The appetite for property development finance in all its guises has increased dramatically in recent years both from the availability of funding and clients looking to build their investment portfolio and materially add value to new and existing assets.
The development finance market has benefited from both new entrants into the market and also established lenders either re-entering or reviewing their development finance criteria. Short-term providers who expanded their proposition to initially include support for refurbishment of property, are now also accepting some development projects.
Both this increased availability of funding and competition in the market have coincided with government initiatives encouraging the conversion of some commercial space (office or retail premises) into residential dwellings under permitted development rights, which has also allowed for some relaxation around residential extensions and improvements.
That said, it remains one of the most complex and confusing funding sectors. The ever-expanding volume of lenders offering a version of development finance, the genuine cost and process benefits of using a professional broker are perhaps more substantial in this sector for that reason.