Property developers have pointed to funding as their key concern, according to research from Shawbrook. 

Four in five (77%) of developers said that finding funding was the most complicated aspect of their business, with three quarters (75%) saying there are limited funding options for developers.

Significant numbers of developers have been rejected from accessing funding, with over a quarter (26%) having been rejected by a mainstream lender multiple times. 

Four in five (80%) developers stated that it was particularly difficult to find funding when they were starting their business, while 74% felt that it was harder to secure funding for a smaller business. 

In addition, 78% of developers agreed that funding expertise was difficult to source, while a similar number (77%) said that specialist lenders offered better support to developers.  

Terry Woodley, head of development finance at Shawbrook, commented: “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.”