Around 77% of property developers have pointed to funding as the most challenging aspect of their business, a survey has found.
A survey from Shawbrook, which collated views from 567 property developers, found that three-quarters said that there were limited funding options for developers.
More than a quarter said they had been rejected by a mainstream lender multiple times for funding.
Approximately 80% said that developers said it was hard to fund funding when they were starting their business and 74% said that it was more challenging to secure funding for a smaller business.
Most developers, however, said that funding was the hardest part of running a business at 78% regardless of size with the same number saying that funding expertise was difficult to find.
Around 77% said that specialist lenders offered better support to developers, showing that specialist funding is available.
Terry Woodley, head of development finance at Shawbrook, said: “Without significant housebuilding activity, the manifesto targets of the main parties have no chance of success.
“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.”
He added: “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.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
