Majority of developers in the Midlands find sourcing funding the most difficult aspect of their business
Property developers surveyed in the Midlands have pointed to funding as their key concern according to new research from Shawbrook.
Some 77 per cent of developers said that finding funding was the most complicated aspect of their business, with 70 per cent saying there are limited funding options for developers.
Significant numbers of developers have been rejected from accessing funding, with 77 per cent having been rejected by a mainstream lender on at least one occasion.
However, the majority of developers agree that no matter the size, sourcing funding is the hardest part of running their business (75 per cent), with a similar number agreeing that it is the funding expertise that is difficult to source (75 per cent).
Fortunately, specialist funding is available for developers struggling to access funding for their projects, and the majority (63 per cent) said that specialist lenders offer better support to developers.
Terry Woodley, Head of Development Finance at Shawbrook said: “Housebuilding is a key issue on the political agenda, but developers need support to understand the funding landscape and access the funding levels they need so that these much-needed projects can get off the ground.
“These developers that have struggled in the early stages of their business have gone on to build significant businesses, yet it’s clear funding is still a real barrier for entry, and early stage growth. There is funding available, and working with a specialist lender can help with structuring developers’ funding needs to surface that liquidity. If the gap is not addressed, promises to boost housing numbers will be very difficult to achieve.”
