+ Fortune favours the brave as laws loom ahead - p30
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Contributors
Paresh Raja, Conor McDermott, Terry Woodley, Leigh Bartlett, Karen Rodrigues, David Diemer, Neil Leitch, Close Brothers Property Finance, Andrew Robinson, Aiman Maklad, Andrea Glasgow, Eriona Bajrakurtaj, Spencer Wyer, Stuart Mogg, Vic Jannels, Mike Allen, Ian Bartlett, Karl Wilkinson, Lisa Griffiths
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Bill Bishop
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Idon’t know about you, but there’s a certain tension in the air this summer. Not the bad kind—the kind that comes before a storm of change. The specialist property finance sector is at a critical inflection point, and this issue dives straight into the heart of the pressures—and possibilities—reshaping our market right now. Our cover story this issue pulls no punches: SME Builders at Breaking Point – What’s Next? [p48]. In collaboration with Close Brothers Property Finance, we hosted a roundtable with 11 members of its Tomorrow’s Developer Network to get a real-world view of what’s happening on the ground. Planning delays, rising build costs, and a regulatory environment that seems to ever shift are just a few of the hurdles. It’s a tough market even for seasoned developers—so how are newer players navigating the chaos? The answers may lie in mentorship, support networks, and the kind of practical insight only experience can offer.
Looking further afield, we ask what impact Donald Trump’s newly introduced tariffs could have on planning permissions and long-term investment strategies here in the UK [p13]. It’s a bold question, but one that’s increasingly relevant for developers with international supply chains and cross-border finance partners.
In this issue, we also sit down with MSP Capital’s new CEO Leigh Bartlett to unpack his fiveyear strategy for the specialist lender [p22], and Karen Rodrigues, chief sales officer at Market Financial Solutions, takes us on a whirlwind tour of the growing web of legislation developers and landlords are now expected to navigate—covering everything from biodiversity to tenants' rights [p30].
Meanwhile, Hampshire Trust Bank’s Neil Leitch explains why planning issues continue to hit smaller developers the hardest [p44], and Arc & Co CEO Andrew Robinson doesn’t shy away from the ethics question: are lenders cutting out brokers—and is this a trend that’s here to stay? [p82] Our new section, On the Rise, spotlights some of the people and strategies gaining momentum. We catch up with StreamBank’s Aiman Maklad about his journey so far [p86]. Elsewhere, HTB’s Andrea Glasgow talks us through the drivers behind the growing demand for bridging—and what common pitfall borrowers (and brokers) need to avoid [p88]. We also hear from Jamie Pritchard, MS Lending Group’s new sales director, about his people-first strategy for future growth [p98], and celebrate Paragon Bank hitting the big 3-0 with MD Louisa Sedgwick, who explains how the bank is staying agile and innovative three decades in [p106].
Finally, if you were (or weren’t) at the B&C Awards 2025, you’ll want to flip to our special breakout feature [p69], packed with photos from the night, a full list of the winners, and a look back at what made the day so memorable.
It’s a time of flux, but also of opportunity—and as always, we’re here to bring you the stories, insights, and voices shaping the future of specialist property finance.
Happy reading.
Beth Fisher
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“As the bill is tweaked over the coming months, developers and property investors will need to keep an eye out for how they may be affected” p30
Supply chains, squeezed
News
Fresh direction for MSP Capital
Exclusive
Challenges ahead, but the prepared will win
Labour’s housing pledge under the microscope
SMEs need action, not promises
A ball to remember
Zeitgeist
Are lenders biting the hand that feeds them?
The latest stars making waves in the industry
Interview
Andrea Glasgow / Jamie Pritchard / Louisa Sedgwick
Opinion
Budget boost for builders / Rethinking AVMs / Backing small schemes
Why bridge-to-let matters
View
Think beyond planning / Broker hotspots
Limelight
To new beginnings
Backstory
Lisa Griffiths
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Donald Trump’s announcement of new US tariffs is already having an impact across several sectors—from construction to clean energy. With supply chains disrupted and project costs rising, we asked industry experts to weigh in on the commercial consequences, including how planning permissions and long-term investment strategies could be affected
Paresh Raja CEO at Market Financial Solutions
The recent US/UK trade deal, while positive, still leaves some tariffs in place, so there remains a degree of uncertainty for American investors. However, this uncertainty will be curbed somewhat by the disinflationary effect the tariffs are expected to have on the UK economy; this would enable the Bank of England to cut rates more aggressively. Lower borrowing costs and a weaker pound would make UK commercial property more attractive to investors holding US dollars or other major currencies by offering relative discounts. As a result, while some trade-based uncertainty remains, the UK property market’s long-term stability, resilience, and potential for capital growth should continue to attract US investors—especially as rates ease further on Threadneedle Street.
Conor McDermott Director of SME Lending at LHV Bank
The tariff agreement offers some relief, which may lead to a modest uptick in investor interest. However, persistent trade uncertainties and increased construction costs will continue to pose challenges. Therefore, I suggest American investors are likely to remain cautious, focusing on prime assets and sectors less affected by the tariffs.
Conor McDermott Director of SME Lending at LHV Bank
Despite widespread delays in Local Plans across the UK, certain regions continue to inspire confidence among investors and occupiers due to strong fundamentals, active development pipelines, and strategic regeneration initiatives. For example, in Manchester—one of our core markets—we have seen the largest regional office lease signed up since 2020, with BNY Mellon taking the entire 200,000 sq ft available at 4 Angel Square at NOMA.
Paresh Raja CEO at Market Financial Solutions
Despite Local Plans having stalled in many parts of the UK, investor and occupier confidence remains strong, particularly in London. The capital is experiencing a renewed push for office space and a reversal of some pandemic-era trends, with people returning to the office in greater numbers. This trend is allowing positivity for long-term delivery to rise.
Of course, planning delays remain a significant challenge. However, the government has been clear in its mission to promote ‘builders, not blockers’, and has laid out plans for reducing red tape and encouraging greater development levels. Combining this with expectations of a more accommodative monetary policy means the outlook for long-term development projects is brightening, particularly in places like London. This is supported by a UKREiiF survey that shows positive sentiment has risen from 52% to 70% in recent months, with that sentiment in London alone rising by 17%.
Terry Woodley Managing director of development finance at Shawbrook
Housing has been a point of contention over the last two decades, with successive governments failing to build enough to offset high levels of demand. However, there have been positive developments over the past few months, which may turn the tide for developers, investors, and occupiers. Actions such as reforming the planning system, boosting training to address the skills shortage, and pledging £113bn of capital spending over the next five years have all resonated with developers. This is reflected in our recent research, which found that over half (52%) of developers predict that there will be an increase in housebuilding in the long term (threeto- five years).
There is of course no quick fix to the planning system, but the government is making the right noises on supporting the property market, which should culminate in faster progress and less red tape.
Conor McDermott Director of SME Lending at LHV Bank
Yes, very much so. Local planning authorities, already under-resourced, are channelling efforts toward meeting housing targets, potentially sidelining commercial project applications—and the focus on conversion to residential use potentially reduces the availability of commercial spaces. However, there is an opportunity to align commercial projects with housing initiatives, potentially easing approval processes and ultimately providing better living spaces and much-needed access to amenities such as healthcare facilities.
Paresh Raja CEO at Market Financial Solutions
The increased focus on delivering more housing is contributing to planning pressures, which can make it harder for commercial projects to gain approval. However, this is not the sole reason. The challenge is compounded by broader issues like construction costs, geopolitical uncertainty, and delays in planning processes that predate the push for residential housing.
These pressures may be somewhat alleviated by a more accommodative monetary environment and government commitments to boosting building activity. But, for the commercial real estate sector to thrive, lenders and brokers will need to deliver greater flexibility and certainty. The sector is finding ways to adapt to the headwinds confronting it, and it’s down to the specialist finance industry to make this task easier.
Terry Woodley Managing director of development finance at Shawbrook
While there has been a huge emphasis on housebuilding in recent years, commercial projects are still a go-to for investors and developers. In fact, 66% of developers think the commercial market will improve in the next year, with developers predicting that retirement living (42%), hospitality and leisure (37%), and retail units (32%) will be some of the most profitable areas.
Local councils are keen to support viable towns and cities that bring people in. As the population increases, it is not only houses that are needed but also key businesses such as retail stores, offices, GPs and schools. What’s vital is that the government provides a clearer and smoother pathway to allow developers to move more quickly and provide the housing and other services required.
Words by SCOTT SINCLAIR
Freelance journalist
Speed, teamwork and reliability—MSP Capital’s new CEO Leigh Bartlett outlines how he is drawing on lessons learned from rugby to hone his five-year growth strategy
On the back of a fast-paced settling-in period, Leigh Bartlett is leveraging a number of ways to make MSP Capital match-fit for the ‘next level’. The specialist lender’s new CEO has set a new growth strategy that aims to harness the team’s deep-rooted experience in property finance to achieve a loan book greater than £750m over the next five years. The message to brokers and intermediaries is that a substantial investment programme will help deliver a higher-quality level of service to their customers.
One of Leigh’s first moves was to organise a series of team workshops to plan strategically how to deliver the company’s growth in the development and bridging finance markets.
With rugby legend turned management consultant Rory Underwood providing guidance on the sessions, around 50 colleagues focused on values, motivation, getting the best from people, measuring success, and, overall, how to elevate potential and achieve greater things as a business.
“The sessions helped put the foundations of our strategy in place,” says Leigh. “The keys to success are teamwork, structure, and organisation. Rory speaks with authority as England’s record try-scorer—and, as a former RAF fighter pilot too, his military background emphasises optimal organisation. The parallels with business are clear: does everyone know what they are doing, how do we support each other, and how do we best evolve?”
by
The second piece of the jigsaw in Leigh’s introduction to MSP Capital has been agreeing a landmark £350m senior-secured funding facility through deals with investment partners JP Morgan and Pollen Street Capital.
JP Morgan has the potential to provide an additional £350m of funding to MSP Capital in the future. This, alongside its retained funding lines with Shawbrook Bank and Pollen Street Capital, would mean MSP Capital could expand its future funding capacity to £835m.
“These deals mark an important milestone for us,” Leigh explains. “Securing them is testament to our deep-rooted experience, strong customer base, and loan book pipeline. They will enhance the stability, flexibility, and diversity of our lending.”
Leigh has more than 20 years’ director-level experience, having spent much of his early career in the M&A space advising on buying, selling, and refinancing businesses. Since moving into financial services roles, he has been either CEO or CFO at companies such as Portuguese bank Novo Banco, Masthaven Bank, FNZ Group, NatWest Group, and Westpac New Zealand. He has also applied his business acumen to chairing a joint venture between a major bank and a retailer.
“I’ve gone from general financing to the specialist financing world of development and bridging loans,” says Leigh. “Specialist lending in the property industry is an interesting and attractive market to operate in. The most relevant experience for my new role was the three years I spent at Masthaven. I also have my own portfolio, which has helped with my understanding of the property market.”
Leigh was well aware of MSP Capital before he came on board—but still encountered one or two surprises.
“I knew its strong reputation in the industry as a nimble, responsive operator was based on a deep understanding of property finance. But I hadn’t fully understood the level of expertise running through the team and how the various departments—commercial, valuations, underwriting, legal, distribution, and so on— complement each other. I am very impressed. It’s a knowledgeable group of colleagues, and we have a great team ethos. It’s not just about having people with the right skill set, it’s about working together to deliver for customers.”
Leigh says the first few months of transition into his new role have been ‘invaluable’—not only to learn about the business, but also to offer sufficient time to put the building blocks of a growth strategy in place.
“I want everyone to understand that over the next five years we’ll be delivering their strategy, not mine alone,” says Leigh. “Taking a property analogy, the agreed strategy—coupled with the new funding lines—has put in place strong foundations for us to move forward with confidence with what we need to build. We’re now starting to turn our attention to the medium term. The key is investment so that we can expand our market reach and aspire to a strategic position as a lender of choice for development and bridging business. That aspiration involves implementing tech solutions that improve the broker and customer experience. Timely, effective interaction makes everyone’s lives easier and translates into a faster, more reliable service. Right now, we are a regional player with a national presence. We want to become a national player with a strong regional base. We want to put more emphasis on the broker channel. We’re looking to work with more brokers on a national basis.”
“Right now, we are a regional player with a national presence. We want to become a national player with a strong regional base”
While Leigh’s arrival heralds the latest evolution of MSP Capital, he is keen to stress it is not a wholesale change. “Leadership isn’t about just one or two people. Fellow directors Adam Tovey, Lee Merrifield, Nicky Hollamby, and Daniel Curtis have all played a fundamental role in driving our success. I see my role as supporting them to do their leadership jobs and helping to bring clarity and transparency to what MSP is aiming for in the long term. We remain totally focused on our relationship-led approach. That means working with customers from the moment they want to acquire a plot of land, right through the development cycle and ultimately to the final sales process,” he says.
“It’s a full journey from the front-end land bridge to development funding to a development exit bridging loan. We pride ourselves on being there for the full life cycle, often working at different points on multiple projects for the same customer simultaneously,” he adds.
Early signs of MSP Capital’s ‘evolution’ are positive. Leigh points to a 34% uplift in enquiries in the first quarter of this year compared to Q1 2024. Because of this, and despite global events, he is optimistic. “Yes, it’s a volatile world and that can have an impact on business sentiment, but when you look at the underlying fundamentals of property development, there is a positive outlook,” he says.
To reinforce his view, he cites the latest independent report from funding partner Shawbrook, which found that 64% of developer respondents expect there to be an increase in housebuilding in the short term.
“The outlook is improving,” he says. “There are many opportunities if you can successfully balance a competitive product with a really good service. That’s what our game plan is and why I am excited about the future.”
In property finance, brokers know that the right lender can make or break a deal. At MSP Capital, we’ve built a team that goes beyond traditional financing. We bring together financial experts, construction specialists, RICS-qualified valuers, former estate agents, and legal professionals—all under one roof. We don’t just provide capital; we offer a complete, relationship-led service to help customers navigate the entire property development journey
Property development is a complex process, and it’s crucial to have the right support at every stage. Whether securing funding for a small refurbishment or a large-scale project, MSP Capital’s team brings a wealth of experience across underwriting, legal, construction, and valuations, ensuring that challenges are addressed early, and projects stay on track.
“We’re not just here to fund the project,” says Adam Tovey, commercial director at MSP Capital. “We work alongside brokers and customers from the very beginning, offering insights and guidance that help shape the project, which leads to faster deals and better outcomes.”
Our proactive approach helps streamline the process, offering informed advice to ensure projects progress smoothly and without delays.
Working with solicitors is often one of the first steps to any property project, and any delays can slow things down exponentially. MSP Capital’s in-house legal team works closely with the appointed
solicitors of both parties to ensure a streamlined process and to mitigate risks. The team centres their approach on continually improving efficiency and deal completion speed, whilst balancing the need for appropriate legal processes.
“I’ve worked as a solicitor within the finance and property sector for over two decades. During this time, I’ve been actively involved in hundreds of cases, and have a clear view on the battle between wanting transactions to complete faster and facing avoidable delays—often due to a breakdown in communication,” shares Dan Curtis, legal director at MSP Capital. “MSP genuinely want to help its customers, while ensuring necessary standards are met, so an in-house legal team just made sense.”
Our in-house, RICs-qualified valuers play a critical role in creating an easier and quicker lending journey for customers. Using their own expertise, alongside detailed property data and market trends, our valuers can critique and review external valuation reports with a deeper understanding. This provides
our credit committee with immediate comfort, helping to create a smoother process and ultimately a quicker route to credit approval.
“The Valuations Team ensures we make sound lending decisions by working with external valuers to attain detailed, accurate property valuations,” says Chris Wright, head of valuations. “With this deeper insight, we can be confident that the project is financially sound, and the development plan is realistic and well-structured, ensuring that the project is positioned for success for everyone involved.”
In 2022, a new in-house Property Team was created that focused on further supporting our customers from land purchase to construction and then to the eventual sale of the finished units.
The team includes construction specialists, former estate agents and surveyors who can assess site-specific issues, offer practical advice, and recommend solutions that save time and money. This insight helps ensure projects stay on track and within budget, with fewer surprises along the way.
Heading up the team is Rupert Morrall, property and construction senior manager, who has nearly 40 years of experience in the construction industry and has previously managed his own contracting firm.
He shares: “Our input reduces risk for both the customer and MSP, ensuring the best outcome. For instance, we recently worked with a customer to support him through a situation where his main contractor became insolvent and left site. We worked with the customer to appoint a new contractor and supported both parties through the remainder of the build.”
We work alongside brokers and customers from the very beginning, offering insights and guidance that help shape the project, which leads to faster deals and better outcomes”
Lucy Star, sales relationship manager at MSP Capital, works with the Property Team and brings extensive experience from her time as an estate agent. Lucy’s role is to provide tailored support to customers who are struggling with their marketing strategies, ensuring they can successfully move their projects forward.
“With over 20 years of experience, I know how crucial it is to position a property well in the market,” Lucy explains. “At MSP, I review developments, visit sites, and provide fresh perspectives to help customers achieve better outcomes.”
This relationship-driven support helps developers realise sales more efficiently, protecting their profit margins.
At MSP Capital, we believe success in property development goes beyond just funding—it’s about ensuring the whole process runs smoothly. For brokers, this means having a trusted partner who provides not only competitive finance but also expert support at every stage.
MSP Capital offer a full-service, expert-led solution that helps brokers, and their customers navigate property
development with ease. With specialists at every stage of the process, we make lending faster, easier, and more effective.
Talk to our team today to see how our property expertise can help you and your customers achieve success in your next project.
Call us on 01202 743400 or email info@mspcapital.co.uk
Our team of in-house experts aren’t just from finance. We come from the sites, the agencies, and the property world itself. MSP Capital can offer you more than just funding – we provide understanding. Because, when a lender sees every angle, your development journey gets easier.
From standard deals to complicated lending, we’re here to assist you and your customers. Call us on
A plethora of legislation, including on land use, new towns, biodiversity, infrastructure, tenants’ rights and of course planning, has major implications for developers and landlords—who could do well as long as they have tenacity, time and resources
Words by KAREN RODRIGUES Chief sales officer at Market Financial Solutions
by ALEXANDER CHAI
“FOR
THOSE MORE CONCERNED WITH MANAGING THEIR PROPERTY PORTFOLIOS AS OPPOSED TO GETTING INVOLVED WITH BUILDING NEW ASSETS, THE RENTERS’ RIGHTS BILL WILL LIKELY HAVE THE BIGGEST IMPACT FROM A LEGISLATIVE PERSPECTIVE”
Keeping up with government plans can be tricky. At any one point, numerous bills, frameworks, laws and more may be making their way through the system. Sometimes, multiple forms of legislation seem to propose the same changes while others feed into each other. It’s no wonder many property investors are fearful of how looming legislative changes will affect them.
To help, we’ll explore they key policy changes on their way that will impact developers and landlords specifically. The government is pushing to deliver as much housing stock as possible over the coming years and is using a few key routes to get it done. How this all plays out remains to be seen but, in the meantime, property investors need to understand how they may need to adapt.
For our broad development plans, the Planning and Infrastructure Bill will be key in determining how we progress. Introduced in March 2025, it aims to “see significant measures introduced to speed up planning decisions to boost housebuilding and remove unnecessary blockers and challenges to the delivery of vital developments like roads, railway lines and windfarms”.
More recently, amendments were made to the bill to scrap “burdensome” statutory consultation requirements unique to major infrastructure projects. This, the government stated, would cut the average two-year statutory pre-consultation period by half, and allow for them to be delivered more quickly.
This bill, which still has some way to go before it reaches royal assent, will likely have pros and cons for developers. It may speed up the process of actually getting things built, which is a major issue in the UK. However, it may also raise costs via new local authority fees and contributions to a pooled Nature Restoration Fund. As the bill is tweaked over the coming months, developers and property investors will need to keep an eye out for how they may be affected.
For housing specifically, as opposed to wider infrastructure plans, there are the National Planning Policy Framework (NPPF) updates. Via this framework, a major overhaul of the planning system is due that will “accelerate housebuilding and deliver 1.5 million homes”. The original NPPF was published in 2012 but has since gone through several revisions.
One of the latest updates reintroduced mandatory housing targets. This is noteworthy given the UK has not hit its 300,000 new homes per year target for decades.
“AS THE BILL IS TWEAKED OVER THE COMING MONTHS, DEVELOPERS AND PROPERTY INVESTORS WILL NEED TO KEEP AN EYE OUT FOR HOW THEY MAY BE AFFECTED”
Developers may soon be able to identify new areas of opportunity thanks to the most recent changes. Local authorities now have the discretion to review and alter green belt boundaries where this is justified. Also, grey belt has been formally defined, which will eventually allow development in underused (and unloved) areas, including brownfield land.
Again, there will likely be mixed outcomes for developers and property investors here. It should be easier and quicker to deliver housing. But this speed may result in less scrutiny and overlooked community concerns. Also, building on brownfield sites or the grey belt may be easier said than done and could prove costly.
All told, housebuilding is forecast to hit a 40-year high because of these kinds of reforms, according to the Office for Budget Responsibility (OBR). At the same time, it expects the economy to be boosted by some £6.8bn by
our development efforts. The question remains though: where in the UK could developers and property investors look for opportunity?
While development is set to ramp up across the UK over the coming years, a few key areas could benefit more so than others. In mid-2024, a New Towns Taskforce was set up to identify potential locations where settlements could be created. So far, more than 100 undisclosed sites have been put forward by councils, developers and landowners to the taskforce. While an official list has not been revealed, a few industry insiders and experts have suggested some prime locations.
In early 2025, the think tank UK Day One recommended four sites to the government—Taplow in Buckinghamshire, Poppleton on the outskirts of York, and extensions on the borders of Manchester and Leeds. Meanwhile, Urbanist Architecture identified high-potential locations, which included the Thames Estuary (Ebbsfleet and surrounding areas), the M1 corridor around Milton Keynes, and around the Cambridge area.
For those more concerned with managing their property portfolios as opposed to getting involved with building new assets, the Renters’ Rights Bill will likely have the biggest impact from a legislative perspective. This bill will, among other things, usher in Awaab’s Law and the Decent Homes Standard. Both will hold landlords to a much higher standard.
Angela Rayner confirmed towards the end of 2024 that Awaab’s Law, which previously focused only on social landlords, would be extended to the private rented sector. In a nutshell, Awaab’s Law will demand a much greater focus on assessing the suitability and safety of a home. Specifically, landlords will be required to address damp and mould concerns quickly and, if they do not, there will be costly repercussions. The Renters Rights’ Bill is expected to come into force in the second half of 2025, and it may not be long after that when private landlords will need to adhere to Awaab’s Law.
Awaab’s Law will be part of the Decent Homes Standard, which will set out three key metrics or measures by which properties will be assessed: the state of repair; items provided for use by or for the safety, security or comfort of people staying there; and the means of keeping the premises at a suitable temperature.
Given that more than one in five private rental properties would fail the Decent Homes Standard in their current state, many landlords will need to focus on their refurbishment plans over the coming months—for more than cosmetic tweaks.
All this assumes everything will go to plan. The Planning and Infrastructure Bill should make it easier to develop and build. The government may be able to get new towns built from their list of potential options. Mandatory housing targets could be hit.
But, going by our recent history, it is unlikely that the state will be able to completely turn around the housing market over the next few years. In fact, while the OBR did forecast that housebuilding was set to hit a 40-year-high, its figures also suggested that planning reforms were on course to achieve far fewer new homes than first hoped.
In all likelihood, the private sector will be increasingly relied upon to help deliver as many success stories as possible. The government has already indicated as such, sharing that it is keen to partner with the private sector—or at least open the door for it.
As HM Treasury revealed in a statement on its taskforce plans: “This ambitious new partnership approach will explore new delivery models, establish collaborative agreements between the Ministry of Defence, Homes England, Network Rail and other government bodies, bring in the private sector—ultimately getting spades in the ground sooner to deliver homes faster, making the dream of homeownership a reality for many.”
It added: “It will also see a new property company created between Network Rail property and London & Continental Railways, which will attract public and private investment to develop brownfield sites.”
Looking ahead, property investors will clearly have a big role to play in the UK’s development plans. There are the obvious ways in which they can get involved, such as investing in ground-up development projects.
There may also be ancillary opportunities. For instance, say the government is successful in building new towns, these towns will need more than a batch of houses. To create communities, high streets, leisure centres, restaurants and other commercial elements will be required.
Also, brownfield sites may contain abandoned factories, industrial sites and petrol stations. Could some of these be converted into residential properties?
And, of course, as stricter rules are imposed in the rental market, many existing landlords will continue to sell up. New buyers could take advantage of this and secure BTL opportunities at a discount.
Even being as comprehensive as we have been here, we have only touched on some of the major elements of the government’s planning reforms and proposals. Property investors and developers also need to consider (or seek guidance on) the Future Homes Standard, the Permitted Development Rights (Extension) Bill, the implementation of biodiversity net gain legislation and, of course, meeting EPC targets.
Wading through all this will require tenacity, time and resources. It’s important for market participants to ensure they’ve got the right funding and partnerships behind them to ready themselves for the coming years.
“WADING THROUGH ALL THIS WILL REQUIRE TENACITY, TIME AND RESOURCES. IT’S IMPORTANT FOR MARKET PARTICIPANTS TO ENSURE THEY’VE GOT THE RIGHT FUNDING AND PARTNERSHIPS BEHIND THEM TO READY THEMSELVES FOR THE COMING YEARS”
The Labour government has vowed to deliver 1.5 million homes in the next five years to tackle the UK’s deepening housing crisis. That’s 370,000 new homes in England—every year. Is this just a bold promise, or our new reality, built brick by brick?
Two lenders tell us who is paying the price—and who is getting left behind
Planning faces reform to support Labour’s 1.5 million new homes pledge. However, wider issues could throw up barriers to achieving the target, plus landowners and developers can expect both incentives and checks
Labour’s pledge to build 1.5 million new homes during its first term was first announced by Sir Keir Starmer at the Labour Party conference in October 2023 while still in opposition. It became a key manifesto pledge during their successful election campaign.
Initially, details were thin, but Starmer promised Labour would “recapture the dream of homeownership” and “get Britain building again”. Broad policy ideas around help for first-time buyers and delivering infrastructure would be facilitated by a blitz of planning reform. This included building new towns, empowering local mayors, releasing brownfield land and giving priority to first-time buyers to secure homes in new developments.
A target of 300,000 new homes per year for five years seems unachievable without significant change, given that over the last 10 years an average of only 233,000 new homes were completed in the UK. The last time 300,000 new homes were built was more than 50 years ago in 1969–1970.
While planning changes alone will not reverse 55 years of history, they could make a significant impact. According to a Competition and Markets Authority report published in February 2024, a major hurdle to delivering new homes at scale is the “complex and unpredictable planning system”.
Since winning the election, the government has said it will bring in several planning reforms. Some feature in major legislation, such as the Planning and Infrastructure Bill. Others are part of its wider ‘Plan for Change’. Some of the benefits are visible in parts of specific projects, such as the Old Trafford regeneration scheme, which involve partnerships with local stakeholders.
Here, I have highlighted key reforms that could help achieve the housing targets.
Overhaul of the National Planning Policy Framework
Words by DAVID DIEMER
Investment director at BlackFinch Property
Implemented in December last year after an extensive public consultation, the latest National Policy Planning Framework emphasised a plan-led approach to housing delivery to increase consents. Mandatory housing targets calculated in a standardised way are intended to raise housing targets across the board. Direct intervention in local authorities that do not comply is a radical change in enforcement.
Changes to the approach taken on land that has already been developed seeks to redress the balance of preservation versus new homes provision in natural landscapes and more rural areas. This is through the promotion of sustainable development, even within green-belt boundaries.
There is also support for development of “grey belt” land. This is commonly understood to mean land within a green belt that has previously been developed or poor-quality land that does not actually support the purposes of the green belt.
The bill, introduced by deputy prime minister Angela Rayner in mid-March, is progressing through parliament. The aims of this are to “streamline planning processes, remove bureaucratic delays and facilitate the delivery of new homes”.
The bill includes several reforms, including:
• changes to which applications are dealt with under delegated powers and which are heard by committees. This includes changes to the size and composition of planning committees with a view to streamlining and standardising the process
• recognising that fees should be aligned with the complexity of the application. This is intended to enable planning authorities to properly resource their departments
• empowering development corporations to deliver large-scale new communities (including new towns) across England
• reform of the compulsory purchase order regime to facilitate land assembly, which is intended to speed up and lower the cost of housing delivery
As well as setting out their plans to reform the system, the government is targeting incentives and checks for housebuilders.
There has been some commentary about developers landbanking sites—and while the speed of implementation of planning consents in the UK is somewhat slower than in comparable countries, there is no direct evidence that landbanking is a business strategy of major housebuilders. It is more likely to be linked to complexities in the planning systems and the volatility in construction costs, and the government intends to address those concerns through measures such as a mandatory infrastructure levy. This will oblige developers to contribute to the infrastructure needed to support growth. This will encourage developments to be brought forward.
The introduction of a register of contractual controls will ensure transparency over who controls land, through option agreements and the like, which are currently not open to public scrutiny.
Additionally, there are proposals to levy fines or legal action against landowners who hold onto land with no clear plans for development and granting planning authorities the right to deny consent to any applicant who had previously let permission expire.
The industry has generally welcomed the government’s reforms. Taylor Wimpey praised the recognition of the need for change and the speed of initiatives to unlock land. The Home Builders Federation supported proposals to identify more development land and streamline planning processes.
Meanwhile, the mayor of Greater Manchester welcomed increased devolved powers from the ‘English Devolution White Paper’, highlighting opportunities to partner with the private sector for regional regeneration.
While welcome, and even if wholly successful, the reforms to the planning system on their own are unlikely to deliver 1.5 million homes. The housing market does not operate in a vacuum—broader economic conditions have a significant impact on the cost of providing new housing and potential owners’ ability to afford them. Constrained government finances also risk the investment needed to deliver affordable homes at scale not being available.
We must also remember that sentiment is key in housing markets. Buying a home is an emotional decision, not just a significant financial one for most homebuyers. If they are worried about the cost of living, their job security, the trajectory of future interest rates or wider political stability—even if mortgages are affordable—they may delay purchases until conditions are more stable. Global factors, over which the government has little direct control, may also influence the market and, when buyers get nervous, developers will understandably reduce their own activity.
Even within a streamlined planning system, local opposition to rapid and significant housing development can be a significant drag on delivery with or without the necessary associated infrastructure. Local communities and environmental groups are likely to adjust to the new regime rather than disappear altogether.
Like many in the industry, we welcome the desire of the government to enable the delivery of sustainable, high-quality homes into a market distorted by a significant undersupply and recognise the contribution that planning reform can make to this.
We believe that the measures announced to date could make a significant difference if enacted in full and at speed, but we see barriers to their delivery.
Even if changes proposed are wholly successful, external factors will still have a significant impact on the achievability of the 1.5 million homes target, which we do not believe will be met in full. However, we do see a real opportunity to increase the pace of delivery from recent years if economic conditions stabilise.
While many of the announcements made so far are rightly focused on large-scale delivery, major housebuilders alone cannot deliver the necessary homes, even with the full support of the government. That target will rely upon SME builders and private developers.
Together with the commercial finance broker community, specialist lenders have a significant role to play in empowering those smaller entities to capture any opportunities that planning reforms will unlock for their own development portfolios.
SME developers are disproportionately affected by delays in getting consent. Lenders and brokers can help them manage this—but reforms will have little effect while local authorities remain overwhelmed and SME developers underappreciated
Words by NEIL LEITCH
It is a bold ambition: 1.5 million homes within a single parliamentary term. But, unless the role of SME developers is properly understood and supported, it will remain just that—an ambition.
It is easy to assume that the large housebuilders can simply scale up. But that overlooks the critical role smaller developers play.
SME developers bring local knowledge, flexibility and entrepreneurial drive. They are often the ones unlocking smaller and more complex sites—the very opportunities that larger housebuilders tend to pass over.
In regional markets especially, SME developers are not just important—they are essential. They understand the character of local communities, the real nuances of regional demand and the kind of housing that genuinely supports sustainable growth. Yet, despite their contribution, they are routinely held back by a system that seems more likely to obstruct than enable.
Time and again, the same barrier crops up: the planning system.
Ask any SME developer what is stalling their projects, and planning delays are almost always top of the list.
Local authorities are stretched beyond capacity. Planning departments are under-resourced, understaffed and overwhelmed by growing backlogs. Applications can sit for months, sometimes more than a year, before a decision is made.
The reality is that not all developers are affected equally. For a large housebuilder with deep reserves and a diversified landbank, delays are frustrating but manageable. For an SME developer working on one or two sites at a time, the impact is critical.
Large housebuilders can spread their planning risk across dozens of projects and multiple regions. SME developers live project to project. Margins are tighter, time frames are shorter and resilience is hard earned.
Every month spent waiting eats into viability and tightens cashflow. In too many cases, this can make the difference between a project moving ahead or being shelved altogether. Waiting six, nine or 12 months for an approval is not just an inconvenience—it can mean missing an entire market cycle.
And it is often the small, locally important schemes—the brownfield sites and regeneration projects—that end up stuck.
Without faster planning decisions, these essential homes simply do not get built.
The system, whether by accident or inertia, disproportionately favours the largest players and makes life harder for the businesses we need most. These are the developers who drive local economic growth, diversify our housing supply and bring new life to forgotten parts of the country.
If we are serious about delivering the homes the UK needs, we cannot afford to continue squeezing SME developers out.
Despite the challenges, many SME developers are finding ways to adapt. At HTB, we see this every day.
Developers are becoming more proactive, engaging early with planning officers, preparing stronger applications and building constructive relationships with local authorities to help projects move forward.
They are structuring schemes more cautiously too, factoring in realistic contingencies for delays and increasingly prioritising sites with existing or outline consent to reduce exposure.
As a lender, we are here to support that mindset.
While we lend on land only with planning consent, we take a pragmatic view. We regularly fund sites with outline consent where reserved matters are being progressed, helping developers to maintain momentum even when the process is slower than it should be.
Our focus is on structuring facilities that work in practice, not just on paper.
But even the most proactive approach, backed by flexible funding, can only go so far when the underlying issues remain unresolved.
The government has recognised that planning reform is needed. The Planning and Infrastructure Bill, now working its way through parliament, promises to digitise processes, improve transparency and cut red tape.
Those ambitions are welcome. But reform on paper is easy. Delivering it on the ground, with the right people and resources in place, is another matter entirely.
No amount of digitisation will solve the problem if planning teams remain underfunded and overstretched.
Real change will need real investment in staffing, training and resourcing, as well as a long-term commitment to consistency across local authorities.
Without it, the promise of a building boom will remain just that—a promise.
While lenders cannot fix the planning system, we can make a difference to how SME developers manage the risks it creates.
At HTB, we work closely with developers across the country and see first-hand how planning delays impact not just individual projects but also the viability of entire pipelines.
That is why flexibility is at the heart of our approach, whether it is funding sites with outline consent, structuring revolving credit facilities for developers managing multiple schemes or ensuring funding packages have built-in resilience to deal with unexpected setbacks.
Brokers play a vital role too. They are the ones working at the coalface, helping developers structure deals that are realistic, identifying funding partners who understand the pressures on the ground and building in contingencies before problems arise.
By working together, brokers and lenders can help SME developers maintain momentum and build the resilience needed to thrive despite external challenges.
Ultimately, though, the solution lies in fixing the system itself.
If we want SME developers to thrive and, if the government is serious about hitting its housing targets, then planning reform cannot just be a talking point. It must be a national priority.
That means recognising SME developers as critical to our housing ecosystem, supporting them with funding structures that fit their realities and removing the systemic bottlenecks that have held them back for too long.
SME developers are ready to deliver. The question is whether the system is ready to let them.
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If you’ve reached this far into the issue, then you’re likely well aware of the dire need for extensive support and resources for SME homebuilders in today’s property development landscape.
The Federation of Master Builders (FMB) argues that a housing shortage is straining affordability in the capital. While demand is growing, the delivery of said homes is ultimately forced to a halt, thanks to rising costs and labour shortages. And SME builders are at the frontline of declining market conditions.
According to the FMB’s Q4 2024 State of Trade Survey, 44% of SME builders reported that skilled worker shortages have delayed jobs, and 8% said that jobs have had to be cancelled altogether. What’s more, 52% are struggling to hire general labourers, while 40% face shortages of carpenters and joiners—and 36% of SME builders in London have reduced their headcount.
In Q1 this year, the Labour government announced plans to strengthen the Planning and Infrastructure Bill to tie in with its wider campaign, Plan for Change, aimed at boosting the delivery of new homes, roads and railways, along with clean energy projects.
The Planning and Infrastructure Bill’s Impact Assessment— published in early May—suggests new planning reforms have the potential to derive up to £7.5bn for the UK economy. And while this may offer some hope, the full impact of this initiative is yet to be determined by SME builders looking to break into a seemingly resistant and rigid development landscape.
In May, Bridging & Commercial Magazine —in collaboration with Close Brothers Property Finance— sat down with 11 candidates from its Tomorrow’s Developer Network, to gauge the challenges and opportunities in today’s erratic property development market.
The network was launched in 2021 to support and educate young and aspiring homebuilders to tackle prominent barriers into property development. Close Brothers connects members to its extensive network of experienced industry experts, who offer intel on key areas of property development, such as equity, land and auctions.
The banking group has hosted 12 events so far, initially catering for large groups of 40 to 70 attendees. Later the events became smaller, creating a more tailored and personalised approach for a group of around 10 members. The vision is simple: support developers in the early stages and become a sounding board as they embark on their first projects—with the aim of supporting them in the future and building long-term relationships.
In this roundtable, I catch up with the latest cohort of the Tomorrow’s Developer Network, as well as well-established pros in the field—Andrew Argent, senior BDM at Close Brothers;
Laura Metcalfe, BDM at Close Brothers; Stuart Flynn and Steve Williams, co-owners of Redgate Specialist Finance; and Philip Clarke, managing director at Fisher Property Solutions—to highlight the humbling reality of longstanding issues of delays and frustration in the sector.
Cameron Jeromson: My company is LifeBase Investments, an investment and development firm that launched last year. I previously managed an investment firm, and I wanted to set up my own firm to create more projects.
Since our last meeting, in terms of the development projects, it’s still incredibly difficult to put together schemes that work financially.
Planning delays, rising costs and regulation changes are just a few of the challenges facing SME builders in the current landscape. Times are hard even for experienced developers—so how are newer ones even getting started? A mentorship scheme can offer practical advice and hope for the future
Stuart Flynn is the owner and broker at Redgate Specialist Finance Ltd, a debt advisory and specialist finance brokerage based in Reigate, Surrey, and authorised by the FCA. He has been working as a property broker since 2012.
Steve Williams is the co-owner of Redgate. The firm supports a wide range of property developers and investors in securing finance across the entire lending market. Together with his business partner, Stuart, Steve brings over 25 years of combined experience in broking, in addition to more than 25 years of combined experience working for lenders prior to entering the brokerage sector.
Andrew Argent is a senior BDM with 20 years of experience in property finance, including 13 years at Close Brothers. He currently manages a £200m portfolio, supporting property developers throughout the UK.
Alex Boggis is the founder of Moon Tree Developments, a small ecological homebuilding company based in the South East. He was drawn to the construction and development industry for its multifaceted nature and the opportunity it provides to enhance communities with thoughtfully designed, sustainable homes.
Words by DHUHA
Photography by ALEXANDER CHAI
I've got a couple of investment deals on the go—I just completed a block in Chelsea, which is mixed-use commercial and a few flats, and I'm renovating it all. Don't worry—Close Brothers lent on that one!
Oliver Boggis: I’m at Moon Tree Developments and we’re current Close Brothers clients. We’re on our second project together now. Alex and I founded the company about 10 years ago, going from contractor to smaller developments. We’re still doing smaller stuff, always under 10 units. We’re just finishing our latest project, which is five threebeds in Guildford.
Sales are slightly slower than we would have hoped for, but we’ve got good support from the bank and they're wonderful properties, so we probably just need a little more time. I’m really interested to hear what everyone's got to say today, because we’re looking to expand and need to find that little equity boost or joint venture—it's an exciting time for us.
Andrew Argent: And when did those houses launch?
OB: About six weeks ago. Because it was only five, we didn’t do a show home, but once we'd had a couple of hard hats and muddy boots days we decided to push on and get two of them finished to create a show home pair. It’s worked quite well, and they’ve been really well received. We're due to finish that site in the next couple of weeks.
AA: It would be interesting to hear what the agents are saying, because a lot of client feedback now is that properties really have to be finished, including landscaping.
OB: Exactly. That's what we have heard from the hard hat days. If you’re going to spend over half a million on a house, you want to see the finish—the stone worktops and appliances etc—to make sure it's worth every bit of that.
Oliver Boggis is a director at Moon Tree Developments and has been leading the company for over a decade. During this time, he has successfully delivered numerous development projects, including several multi-unit schemes funded by Close Brothers.
Jevy Umali is a quantity surveyor at Cosy Hauz, with a professional background in architecture and quantity surveying from the Philippines. Since joining the company in 2023, she has been actively involved in development finance—structuring funding for residential projects and managing finances from site acquisition through to completion. More recently, her focus has shifted towards property acquisition through direct-to-vendor strategies.
Karine Kirlew is a corporate real estate solicitor based in the West Midlands, with growing ambitions in property development. She is currently a senior associate at the national full-service law firm Browne Jacobson LLP. With 11 years of experience advising major clients—including corporate occupiers, institutional landlords, and developers—Karine is now looking to leverage her legal and commercial expertise to pursue her own residential and mixeduse development projects.
Cameron Jeromson is the managing director and founder of LifeBase, where he leads company strategy, oversees all investment transactions, manages funding relationships, and directs joint venture activity. Over the past decade, Cameron has personally overseen and completed property transactions exceeding £100m across various asset classes, with a strong focus on the residential sector. He has also collaborated with banks, lenders, and private investment firms on loans totalling over £70m.
Philip Clarke is a chartered surveyor and the head of Fisher Property Solutions Limited, where he specialises in advising clients on investment, finance, and development matters. Early in his career, Philip gained experience at Samuel Properties and Hunting Gate before establishing his own property consultancy. This venture later evolved through a merger to become Fisher Property Solutions, which he now leads.
AA: Yes, we’re seeing that on a lot of our sites. Landscaping has become more important than ever—it really brings a scheme together.
Karine Kirlew: I’m a commercial property solicitor, I’ve worked for a number of international law firms for about 11 years, clients have included several developers and large contractors. I’ve decided to attempt to get into property development myself and have basically obtained some training and I’mtrying to put myself in the right circles through networking to try to make it a reality. I’ve created a long list of potential development sites, and I've started contacting a few of the owners directly, including
site address with incorporating some of that at design stage.
I'm in the process of commissioning a specialist ecologist and BNG specialist to do a survey of the site and to provide a report. And then I'd be able to go back to look at the design while still contacting other owners and so forth in the meantime.
So many brownfield, greenfield, and grey belt sites have been derelict for a substantial period of time which can create a problem because of existing habitats or removal of trees in good or moderate condition, for example, when considering biodiversity net gain.
AA: I've spoken to quite a few clients and without that report being done, it then creates a question mark when you're bidding for sites, because BNG isn’t easy to assess without professional assistance.
KK: Correct.
AA: So, they could be completely varying from one site to another, which makes it really difficult if that cost hasn't really been closed out.
KK: I need to do it now, yes.
AA: It is going to hopefully serve you well further down the line, I’d expect.
KK: It's a balance of both. From the owner’s perspective, it's land that they've got no interest in so they don't necessarily attach a large value to it because of what it is currently . The land itself has a value because of where it is and what it could be (subject to planning) but, for the landowner, it's just a bit of disused land beside the railway. The seller has a specific valuation process they have to go through.
However as it’s an off-market deal, I’m having to do a lot on goodwill and, yes, there’s a bit of exposure by paying some fees to obtain reports and feasibility advice etc, but I'm lucky that I'm in a position that I can do that on this occasion, but not on every single site because I’d otherwise use up all my savings on appraisals. But on this specific site, given its transport links, the area, the schools, from my perspective, it's worth the initial investment to see whether or not it's developable and then take it to the next sign-off stage with the owner to hopefully thereafter negotiate a price.
Jevy Umali: It’s a burden if you have signed off and then you will know that there are a lot of constraints that you cannot work around. So, it’s better to have it at the initial stage.
a number of corporates. I had a call with one of them around the time that we last met and they've confirmed that they've done their initial high-level checks and are open to a sale of a site.
So, I’ve been doing some DD over the last few months and I’ve hit a bit of a stumbling block on biodiversity net gain and ecology, particularly because of where the site is, the fact that it has never been developed and contains some woodland. There are a few investigations that I'm getting done to essentially tell me what I can build, given the size of the site, and what the constraints might be. The advice will help ascertain what I could do to overcome some of the challenges on the
KK: It will tell me whether or not, from a feasibility point of view, I can run with this or not. I need to get to a point where I'm assessing sites quickly and cost-efficiently while running my financial appraisal alongside. There's lots of things I'm learning along the way, and biodiversity net gain is something that's very new to me, and to many developers, so, quite a large learning curve for me personally.
OB: Have you spoken to the landowner to get an idea of what the land price might be, to see if it's worthwhile you investing this time? Or do you need to invest this time to work out what the cost might be before you put a bid in?
KK: Well, that’s what I told myself. So, that’s what I’m doing now. I’ve taken a few days’ annual leave, just to have some focused time sending more letters out to vendors, too. I’m finding it quite difficult among legal life to find a lot of dedicated time to spend on this. I personalise them and do them myself.
JU: I’m Jevy, a quantity surveyor from Cosy Hauz. We currently have four properties that are under offer. Three of those are flats, and the other is a new build. We also have four self-contained flats that will be completed within the next week.
The struggle we're experiencing now is from the date of the offer to the exchange. We've had the offer agreed for two months already for all of those properties, but we haven't
exchanged yet. There are a few reasons for that. For our singledwelling house, we keep following up with our solicitor, but there's a struggle. So, I would like to ask the group whether we could recommend to the buyer a certain solicitor that won't conflict the transaction?
CJ: You can recommend, and you can say, ‘although we can't force anybody to do anything, we’d like you to work with us’. I’ve found a similar problem in getting these transactions done. It takes so much effort to hold everybody’s hands, but if you do that, you’ve not got time for anything else.
JU: This year, we will be finishing six self-contained flats, and we would also like to recommend a solicitor for them, so that the transactions will push from their end into our end, and we will meet halfway. If we are the only ones pushing and their solicitor is not, it's a real struggle to keep the transaction flowing.
Luckily, we didn't struggle finding a buyer, but the process still takes time. We have refurbished and renovated properties before, but this is our first new build, and we didn’t really expect a snagging survey.
We did learn a lot with this property—the snagging surveyor can see a lot of things that we did not catch. So, for our self-contained flats, we got the same snagging surveyor to take a look at the property before it was finished. It's good to have a fresh set of eyes to see things the buyer would catch.
Another thing we are working on right now is direct-to-vendor, sending out a lot of letters. We sent out some letters last year, but didn’t do a follow-up. That was a mistake, because a lot of developers who are going direct-to-vendor have told us that it's on the follow-up that you will have a response or a reaction.
We are also door knocking—I’m doing that right now while I'm here. Our team members are based in the Philippines, but certain team members come to London for six months to see the sites and meet all of these amazing people.
Right now, we have a lot of properties in our pipelines. But
we are also having a hard time because it's only when we do the initial due diligence that we find the legal or planning constraints of the plots that we're looking into.
So, it's good that you are looking at the property before you even exchange, because if you pay the exchange money, you cannot back out—or you could, but you would lose that money.
Before exchanging, we do all of the reports, especially if we are new to the borough. We recently acquired a property where the planning has already been granted. It slowed the transaction down, but I think it was a good result. Because it's a new borough for us, we wanted to be sure what the planning constraints are.
When we did the pre-application, we learned a lot about the processes that we can do simultaneously while contacting the necessary consultants. We did that at the initial stage, so we could be sure that the property is viable. And then when we exchanged, we submitted the full planning application for the extensions.
AA: Wow. You guys sound very busy, which is great news.
According to the 2024/25 State of Play Report—conducted by Close Brothers, Travis Perkins, and the Home Builders Federation (HBF)—almost 70% of respondents said that it is harder to be a small developer now than it was five years ago.
New challenges facing SME housebuilders were brought to light, such as the implementation of the Biodiversity Net Gain regime, which was announced last year, and is cited by 90% of respondents as a barrier to growth, due to delays getting agreement for schemes.
The results also found that more than half (51%) of respondents had waited longer than a year to obtain planning permission over the past three years. Several reported that they had waited over two years, with one stating they had been waiting three years and still had not received permission.
In addition, for the fifth consecutive year, 94% of respondents considered delays in securing planning permission and the discharging of conditions to be the most significant barrier to growth.
One pressing challenge that remains persistent is the supply and cost of labour. The report highlighted that 89% of respondents believe this to be a perpetual barrier to growth.
That’s where companies like Fisher Property Solutions step in—this consultancy specialises in obtaining finance for residential property development, including equity, mezzanine and total funding for projects.
Headed by chartered surveyor Philip Clarke, the second-charge lender has an average loan of roughly £800,000, with some going up to £1m. Philip says that ongoing planning reforms and regulations mean that current market conditions have proved to be some of the toughest for SME developers. But while times have been tricky recently, property development appetite appears to be returning.
like I was 'Yesterday’s Lender’. To be blunt, we brokered no new business, with one exception, for two years. In 2021/22, we wrote a lot of business. The sun was shining, the market was booming, and we made some significant monetary commitments.
Regrettably, we've all had problems—everyone has suffered. I've had main contractors go to pot, developers who lost the will to live. I've even had agents tell us lies on pricing. It's been a difficult time. As a second-charge lender, we sit behind Close Brothers. Our money goes in upfront because it's a contribution towards the land. They’d put in 60% and we would put in 40%, but then they do 100% of the construction cost.
We've suffered losses, so our appetite has really not been there. However, I have been firefighting, and we've now addressed our issues and got our mojo back. But we only want to do small deals with young developers.
I live in Purley, and ideally I want to do deals closer to home— but we've just signed up to do our first deal in North Yorkshire because we're finding it very hard to find viable deals in the South. There are too many developers, vendors want too much money, and it's very difficult to make the numbers work.
We have funded things with Close, but we've become a bit cynical and jaundiced about the way of the world. Deals look great on paper—so we put in, say, half a million pounds, expecting that to return 30% on our money. What we don't expect is having to go back and put in more money later, going to investors to tell them there's a problem. These investors love you when you're making money. They hate you when you lose their money, or you want more money. You need to be tough-skinned and a bit of a realist. Property is not for the faint-hearted.
Philip Clarke: Tomorrow's Developer is great, and we support it. For the last year or so, I’ve felt
We do a joint venture with Tomorrow’s Developer, and while we’re not as young and good-looking as you guys, we’re all on the same side, so we'd like to throw our knowledge and expertise in for nothing.
Being able to talk to someone if there is a problem is important. If I have a problem on a project we’re funding, then I have to talk to the senior lender— because we all have the problem. Some of our developers, sadly, can't believe the world has changed. You've got to be a realist, but small deals, residential, in good areas, good commuter towns… we’re up for it.
AA: I don't think anybody's immune to what's happened over the last 24 months.
PC: It’s been blood, sweat, and tears.
AA: It’s been a very difficult time. Certainly it's been the worst time I've seen for SME developers since 2008. And arguably, it's potentially worse because it's just lethargic in terms of what you’re getting out of it. Having said that, I think there's been a lot of recalibration in terms of costs. So, if you are caught halfway through, it's going to be much more severe than if you're starting now.
CJ: There's been a lot of reason to wait. You're looking over the horizon, thinking, well, it's all going to get cheaper. I'll just wait a bit. There's no incentive for people to rush, so why would they?
PC: Where we can't sell, we've often had to take control in a nice way and have the facts-of-life conversation with a developer partner. There's always a senior lender involved, and it comes to a stage where you can't continue growing the interest. The interest has to be serviced and paid. On some occasions, we’ve had to say goodbye to the developer, because there's nothing in it.
The money’s gone. We want to preserve our equity. We've had conversations with the senior partners to say, give us three months, we'll finish everything, and we'll rent it, and then we'll refinance to clear you in the nicest way. Then we sit on them, and we take a three- or five-year view. Because we have had boom and bust many times in the past, we’ve
learned that 80% of the tenants end up buying that unit. They're settled. They've got a roof over their head.
AA: Kids are in school.
CJ: And buying is cheaper than renting.
PC: Correct. So, we have had to work ourselves out of these difficulties, but in more recent years we’ve sometimes just taken the hit. If you take 10 deals, seven will do exactly what the tin said. One will be a disaster. You'll lose all your money. And two you’ll scrape home. You've won them all. Anyone who's never had a loss in this business is living on another planet. I know there are some lenders who are seemingly immune to losses, but I think they're telling a fib.
AA: Can you give a bit of an overview in terms of what you're offering?
PC: Basically, it's a crowdfund business. I set it up with my accountants 30-odd years ago. It's clients of the practice or friends and family, and my three partners co-invest as well. So it's crowdfunding, but we know the crowd. We take a second charge. We manage the whole process from A to Z.
We take comfort from the senior lender’s monitoring surveyor. We always want a copy of that report, which is available to us at no cost. We can't rely upon it legally, so it's for information only. Then, at the second charge, we have a loan agreement. Our money goes in upfront. We would prefer not to be a shareholder, but I'm always made a director of the SPV and also the signatory on a bank account.
I'm always a director because, say, the senior lender made a demand or wrote a letter of complaint, if you're not a director, you're not aware of it. You need to know if the bank’s about to foreclose or the monitoring surveyor is not happy or he's holding back money. It affects your interest.
I've always had good relationships with Close and other lenders. So, although I may be
monitoring the projects and talking to you on a regular basis, I would always be able to talk to Andrew. It's important that we exchange information.
In terms of control, you're driving the bus—but we want to know what the journey is. In our loan agreement, there are certain areas we have a veto on, one being which agents you’re going to appoint and what your selling price is.
OB: Why is that? What’s the particular interest in the agents?
PC: Good question. We've been doing this a long time and we've learnt the hard way that sometimes the developer has chosen the wrong agent. We would say to them, “We haven't worked with that firm. Have you tried so-andso?” Or perhaps we would have a ‘beauty parade’ and invite three firms to submit their quotations.
Also, we don't want the agent to be launching the price. You mentioned your five houses. Say they launched at £750,000 each. Well, can you sell a house there at £750,000? Perhaps the price should be £650,000. It can take a long time to find out that your pricing was wrong and then you've missed the market. We both have a financial interest and it’s about having those conversations. It's not controlling. It's just being sensible. We're all on the same side.
We do lots of repeat business. So, if the first deal’s a success, we'd be upset if we didn't do the second deal with you.
Usually our lawyer will only deal with the loan documentation. You will have your own lawyer to deal with the conveyancing. But once a month, I like to visit the site. I have what they call the hospitality test, because if we are going to be working together for 12 or 18 months, it's important we all get on.
We're involved in other projects, and we may say to you, “We did something this way, or, we think you should have a show house. Have you seen the show house we're doing in Ripon?” Again,
sharing information and knowledge. No one's trying to be difficult. Now, the profit share. We don't have a fixed menu for terms, or a standard tariff. They’re all deal-specific. But typically we like a combination of interest and profit share. So, the interest could be base rate plus one and then the profit share is up for negotiation: 50-50, 55-45, 60-40.
AA: What typically decides that? Is it the complexity of the scheme? Would you expect equity from a developer?
PC: We prefer the developer to have skin in the game. However, it is not always possible. We have funded guys who have put nothing into a deal. In fact, Close were involved in one deal. We were
“Regrettably, we’ve all had problems— everyone has suffered. . . You need to be tough-skinned and a bit of a realist in this industry”
offered a deal in Sussex where the developer had an option to buy this site and he was paying £1m. The site with planning permission was worth £1.4m and we treated the differential as his equity. So when we did the numbers, the appraisals showed the site was £1m. We'd split the profit, 50-50.
We did another deal in south London where the developer had no skin in the game. He’d gone through a divorce, had no money and was plotless, but we set him right. The profit was approximately £500,000 and we said for the first £300,000 we want two-thirds and you have a third. Over that, you have two-thirds and we have a third.
AA: That incentivised him to keep costs down throughout the build.
PC: Yes. We prefer a developer who's also the contractor. We have seen developers—I call them the double-breasted suit brigade— where they employ a contractor on a JCT contract, have an architect, a QS, an engineer, a project manager, and they're just ripped off.
We like the guy who's got a bit of paint on his forehead and concrete under his nails. Often they’ll build with an overhead mark-up because everyone's got to live through the process. Or it could be a project management fee. But we don't want to be two profit centres.
You've got to be fair and sensible, and reasonable and honest. But we're working in harmony. If things do get difficult, you've got to have that conversation. Often, we've had to go to the senior debt player
and let him be the referee. But generally it’s very much a people business.
It is slow. We’ve had a main contractor go pop on one project. We've had subcontractors coming out of the woodwork, not having been paid. It's been difficult, but you've got to be an optimist.
AA: Absolutely. And with that recent recalibration, a lot of people that were struggling probably have been flushed out now as well.
PC: We're not the most competitive. We don't drive a hard bargain but we're fair and reasonable. But the grass always looks greener until you take a lawnmower across. There's a lot of people telling me they’re wonderful, doing all these deals. Well, not in my world.
Of course, you understand. If you are Tomorrow's Developer, you want to do the best deal you can. You come to someone like us, yesterday's lender, and we're a bit nervous and bruised and battered. So, we're not as hungry.
CJ: There’s nothing wrong with risk averse.
AA: You can go out and find a higher LTV and it might be a little bit cheaper. But for what is such a risky game, we're remarkably risk averse.
PC: The guys want their wages on a Friday—they’ve got to go home and pay the mortgage. On one deal there were delays in getting the money and it was a nightmare. So, you've got to be
very careful about whom you're involved with.
Having said that, I love it all!
AA: Brilliant—thank you very much for that. Over to Stuart and Steve.
Stuart Flynn: Hello, everyone. Steve and I are business partners. We set up Redgate a couple of years ago, but between us we've been doing this for about 30 years. Most of what we do is raising funding for our clients’ property-related activities. Some is development, some is investment, bridging or refurbishment. Steve does a lot of student accommodation and things like that.
We've got certain specialisms within the team. But for the purposes of today, we’re probably similar to you guys. The market
has become very challenging since the base rate went vertical and costs increased. The sales market was flattening, and you went into deals that worked—but then they didn't work when you were midway through. I would say our development business has tailed off in the last three or four years.
A lot of our clients weren't built to sell. They were investors that were looking to add to their portfolios. They've taken a bit of a step back and thought, I'll just maximise what I've already got. Maybe do some refurbishments, try and up the rent. But we're certainly getting a lot more enquiries now on the development side.
We used to do quite a lot of refurbishment projects. We'll get clients that will buy something that
they want to do a change of use on, or they will turn a large house into six flats. They may be in and out within a year—maybe six months of work, six months sales. We do quite a lot of that.
We don't raise our own funding. We're brokers. We'll deal with about 20 or 30 lenders, with access to 100 or so. But there are almost too many lenders, certainly in the bridging space. They're all selling speed and certainty. But until you’ve built with somebody, you don't know how good they are. We tend to deal with people we know and trust.
I've known Close Brothers for quite a while; my wife works here. We had a chat about Tomorrow's Developer, saying that there may be opportunities where the funding required isn't
appropriate for Close Brothers. It may well be that the first scheme isn't, but the second scheme is.
We were trying to create a network where we perhaps find some funding for you for the first, second, third scheme—or something where you need a bit more in terms of LTGDV or LTC. So we get that funding for you, but you're very much still a commerce development client and a Close Brothers client. And maybe we repatriate you back to them when you're ready for these guys.
We have access to the 70% LTGDV lenders, the 90% cost, those sorts of things. We're happy to give you an idea of funding options or help when you're in something and you can't sell, and maybe you want to refinance or
hold things on a two- or threeyear term with the ability to sell during that term. We do a lot of that funding as well.
AA: One of the challenges we've had with Tomorrow’s Developer is the varying degree of experience within the cohort. Some people are borrowing from Close Brothers already. Some people are ready to borrow from Close Brothers. But also, some people haven't got any development experience at all. It's trying to capture everything. We're not going to change our underwriting principles and lend to people that haven't done it previously.
Part of Tomorrow's Developer is creating a network where if we can't do it, then we can still assist and support you in other ways.
We’ll always remain a sounding board within this network.
We can pick up the phone to Stuart or Steve, iron out any issues that you might have and help to support you while you're going through your first scheme. Hopefully, once you’ve done your first, second, third scheme, you might want to come and use Close Brothers. That’s the reason we're bringing these guys in, offering something that we aren't able to ourselves.
KK: When it comes to first-time lending, I presume you're looking at the team that a developer is putting forward. If I don't have the experience myself, how about the wider team I’ve put together?
I'm just trying to get a better understanding of the criteria when you're looking at a first-time lend, because that's definitely the box that I find myself in. What are the bugbears that you see from firsttimers and what are the positives that you're looking for?
Steve Williams: Lenders will look at a lack of experience as a weakness. If you can make up for that perceived weakness with a stronger team around you, which will primarily be contracted to make sure your budgets are accurate, that will hopefully help.
Both Stuart and I used to work for lenders. We know what goes down well with underwriters and credit sign-ups. From your perspective, you're saying you have the right team. But it’s not about having the right architect. It’s having the right product in the right location. All those things have got to be top notch to then make up for the fact that you haven't done it before.
Just be very careful on those first two or three schemes. Once you’ve done those, you'll find that that market will open up, as we've discussed.
KK: What if somebody’s too cautious about their numbers?
SW: That's good if the projects still work. But look at it from both sides. If you're still working from
that perspective, then everything else should fall into line.
AA: It's about the risk profile for yourself as well. That's the biggest problem people are facing. Two years ago, the market was really hot in terms of people buying at overinflated prices, and that's coming back to bite them—and bite them hard—because they just wanted to secure the deal.
SW: One thing that Stuart missed out is that we do a lot of disaster mitigation. We want to know when things have gone pear-shaped. Stuart and I are working on a transaction where clients thought they were going to change their lives with a development of 19 flats and two commercials.
They sold five and had two more flats and the two commercials under offer, but the residual debt was still going to be 75% of the residual value. And that’s not the worst bit. The building contractor is still owed £500,000.
We are working our way through it, but it is painful. And unfortunately, these two guys are going to walk away with literally nothing. It's a similar situation to what you were talking about, Philip, where you had to take control. Although here it's the contractor taking control, not the lender.
Manu Dinamani: I think that's the key—when you're saying conservative numbers, being conservative in the build or on the revenue is going to impair your viability and make you less competitive. If I was going to be conservative in anything, I'd go with the gearing. I’d just plug more equity, which is difficult.
AA: Absolutely right. And I think if you're a developer approaching a lender without any skill sets, then it makes it very difficult. If you cover one of constructions or you're an estate agent or lawyer, you're bringing something to the table.
My strong suggestion would be start small and work your way up. If you are looking at larger sites like the Network Rail example, then you get a decent margin and
you add in planning, half a million now versus £1m and you could flip it. And that's how you put up your equity quickly.
SW: I have a property developer client who's been doing building and developing for 30-odd years. Still doesn't build anything more than eight units, ever.
PC: Only mugs lay bricks! [laughter] The money's in the land. Get the land, get the planning and flip it.
Alex Boggis: I knew we’d been doing it all wrong. [laughter]
SF: Slow-burn deals, which are never going to be quick, but that could be the end game. But there might be an opportunity that you see where you can be in and out in nine months. Because it might be a house to flats conversion, with a side extension and loft conversion. You might think I can cut my teeth on that. Get to know some local tradespeople in that area while you're working on the end game.
I've got a client at the moment who owns a property that he used to live in and the neighbours have moved. His ideal is to buy that house next door, flatten it, build some flats. He thinks that might happen in a year, or it might happen in 18 months, and it's got to go through a planning process. But he wants to be active now. What he's looking for is things that he can quickly get in and out of, investments that he can buy and rework, almost keeping powder dry.
KK: When it goes wrong, a company might end up ultimately being dissolved having gone through an insolvency process. That said, the company directors might well pop up somewhere else…
SW: And restart and rename.
KK: Is that just a reputational damage issue? Because the same people often go on to start up similar companies again. People are clearly still lending to them.
PC: Look, someone's financial history wouldn’t be a problem—as long as we find out from them, rather than hear from others. Be truthful.
KK: Because things go wrong, don’t they?
SW: We live in this world where people get a second chance. And some people are just genuinely unlucky. They’ve done nothing wrong. I had one of the guys say to me once, ‘It's all your fault, you should never have lent me the money’. I nearly fell off the chair!
But just be upfront about it. And today, you can easily check these things out anyway. You've got to start off somewhere. Tomorrow's Developer is a novice, an amateur. But if you surround yourself with the right skill and expertise, you start to build a team around you that gives you the credibility. There are people out there who watch Grand Designs and see property auctions, and they think it's easy. But they’re dreamers.
SF: I think experience needs to be a stepping stone and be appropriate. You go from turning a tiny house into three flats to then building a house in someone’s back garden, to then three houses and that kind of thing. Someone who does a quick refurb of a house and then goes on to 12 new builds, it's not an appropriate jump.
PC: I made that mistake. I was introduced to a guy who was a builder, and he showed me half a dozen projects where he'd done roof extensions, loft conversions, and he wanted to become a property developer. And he was introduced to this site that had planning permission. He did all his homework and was very thorough, so we did the project. £700,000 cost overrun. It was a year late. Nightmare. Never again.
All the pricing, all the programmes were approved by the CU debt monitoring surveyor. But he hadn't appreciated that the complexity of new build. Renovation conversion is one thing.
But new build, a virgin ground, foundations, steel structures… Fortunately, some of the GDV went north. But we lost money. We put in £900,000 and we will get back £600,000. It's a difficult business.
AA: Karine, just going back to your question about administrations, receivership, bankruptcy, I think it just comes back to the individual's integrity and how they acted. If they worked with you and the bank but were unlucky throughout the process, then you might want to be able to support someone like that.
I don't think just seeing that on Companies House or Creditsafe really shows the whole picture. I think you need to delve into the nature of how that happened and the person that they are.
AB: If it's a contractor you're looking at, I would be very careful with that, because some of them are always trying to escape something and popping up with a new name. It's different. If it's a developer who's lending, they'll have hundreds of Companies House records and loads of SPVs. If it's a contractor who is doing that every two, or three years, be wary.
AA: And that happens a lot.
AB: Absolutely. They'll have no company that's older than three years old.
OB: You can build a really good smaller team rather than using a contractor who's then going to use all his subbies. You can find your own subcontractors. We've got a great team that we use, and we've brought them with us from when we were doing two-bedroom flat renovations. Now it's doing five three-bed houses.
I think employing one contractor to do everything as a new developer is really risky. If you can project-manage it and then pick and choose your subbies, you've got more control. Because if a tiler goes bust, at least your plastering is still getting done.
AB: Or if you get through the foundations, the groundwork stage, and you think ‘this has been an absolute horror show, I'm done’.
OB: And you find yourself fixing your weak spots over the projects, which we still do. We had a useless roofer on the last project but we've now found an amazing one so we're taking him to the next one. It's much easier for a smaller developer to build that network rather than having one contractor to do everything, because you're putting a lot of your trust in that one contract. And you learn so much through project-managing.
PC: It's a small world. You talk to a few people in your sector, you'll mention a name and it rings a bell. And if you hear a negative comment, their card’s been marked.
AB: There's more than one way to skin a cat. What works with one developer won't work for another because it's a different area or a different town. It's really about finding your own groove, isn't it?
Dhuha Al-Zaidi: The State of Play Report stated that a lot of the issues SMEs faced were down to the wait time for obtaining planning permission due to under-resourced local planning authorities. To what extent have factors such as increased build costs and delays in planning permissions impacted equity requirements for your projects?
AB: I think the thing that people don't realise is that it's not just the planning applications that it affects. It affects conditional sign-off too. At the beginning of one current project, we were building out a garage that had land contamination. We had a delay of eight weeks at the beginning while we waited for a four-page document to be signed off. We are now at the end of the project and we're trying to get our S-278 done to replace an approximately 15-metre piece of pavement at the front of the site.
I've been waiting six weeks for the technical review, and now it goes into legal review, which I've been told takes three weeks. But I spoke to the lovely engineer who did the technical review, and he told me it's currently looking more like eight weeks for that. It's all these incremental small delays, and I don't think they quite realise how much that affects SME developers.
OB: Particularly at this stage, when our maximum loan value or interest is getting rolled up every month. It's coming off our margin from what was, at the beginning, an eight-week delay. Obviously, that's a lot of money for us now.
AB: Yes, you calculate those delays that happen at the beginning of the project in the cost at the end of the project. At the time you borrowed a relatively low amount, but that eight-week delay is hitting us now.
OB: With the contamination report, we waited weeks just to dig a massive hole. That’s normally what it says.
AB: They didn't have any comment on the report. They said, ‘Yes, crack on’. And the frustrating thing is that you then get a comment in the email saying we could have signed this off quicker.
The technical engineer who came out for our S-278, the first thing he said to me on site was, “Well, this is a really easy one, isn't it?” I thought why has it taken six weeks then? It seems like we probably could have done this from a desktop review.
KK: And you can't account for that delay. You just can’t.
AB: Exactly. They said put the application in 12 weeks before you want to do the work. I thought, I'll do 16 just to make sure—and I'm still going through it now.
OB: It's just remarkably frustrating because you control the controllables. But with things like this, it's completely unnecessary. It could be done so much quicker, particularly if there is an answer. We get the report, and it says, land's been signed off. You've done everything correctly. To then have to wait for that to be read is really expensive. Thankfully, when it's done, this project is going to do really well. But these are unnecessary costs for us as small developers, and they slow us down in terms of what we go on to do next. It all adds up to a really frustrating, head-banging part of being an SME developer.
AA: And it’s turning people away from the industry. Because the more challenging it gets, where's the incentive to go through these headaches?
There's also no accountability. We’re talking about housing targets and bringing those back. Well, great, but there should be other targets, such as making sure that projects are signed off in three weeks rather than eight—that will really help you guys.
PC: We had a case in Croydon where the developer was building five houses and he turned around one day and said, I want to make them a bit prettier, bigger gardens, move them slightly forward. He spoke to the planning officer, and they said, we can deal with this under reserved matters—put in your application and we'll deal with it.
Three weeks later, Croydon Council went bankrupt, and they had to shed a lot of staff. So two thirds of the planning department got sacked and no one could make a decision. We had to stop work on site because there was no point carrying on when things were going to change. Then they finally
secured some temporary staff who said, we think this should be dealt with under a full application; no disrespect to my predecessor, but he gave the wrong information.
So, we then had to put a full planning application in. By the time this was registered, it was six months. In hindsight, we should have carried on building.
Laura Metcalfe: But it’s difficult because it varies from council to council as well.
I’ve got a client who's trying to get a Section 106 signed, and the council said it's got to be signed in person. I think it’s been about three weeks since our lawyer signed it, whereas another council said, ‘Yes, we can do it via DocuSign’. There's no consistency with the councils.
OB: And it's really subjective to who you get. You submit your vision board of what tile you want to use and it's down to that one independent councillor, whether they like it or not. With our first project, we had a four-week delay on the colour off-white, even though we go through a really rigorous process of choosing what materials we think would go with that local area, match with the neighbours.
There's been more than one occasion where it's come back and they said, ‘Actually, we don't want you to use that particular cladding’, or, ‘We want to know exactly what colour off-white you’re planning to use’.
AA: And it all becomes very subjective, doesn't it? And it shouldn't be, really. The rules, the guidelines should be fixed.
LM: I also think the council sometimes doesn't understand the impact of the little decisions on the build cost. The council on one of our developments has decided it specifically wants Portuguese spruces—and that’s going to be £1,500 a tree. It's just a tree, but it could have a massive impact on your cost.
OB: It’s a major difference between the bigger developers and SMEs. We're trying to build the best
“The council sometimes doesn’t understand the impact of the little decisions on the build cost”
“These are unnecessary costs for us as small developers, and they slow us down in terms of what we go on to do next. It all adds up to a really frustrating, headbanging part of being an SME developer”
product we can because we are risking so much, and we've got personal guarantees that if all goes wrong, even the Golden Retriever’s coming back to the bank!
When you're putting up 50, 60 houses on a plot, I can see why you have to go through those decisions within a really rigorous timeframe. But for an SME, we're trying our best to get this done quickly at a really tight cost. Help us!
SW: These planning delays can also affect income. I have a client who has, in recent years, developed a few mid-sized student blocks; however, planning delays have cost them significant amounts of income. Students tend to rent from September through to the following July; so if a development is not ready for occupation in September due to planning delays, then the developer may have to wait until the following September in order to rent the property, thereby missing out on a whole year's worth of rental income.
AB: The launch of the State of Play Report made a really good point that SME developers need to hire a public relations consultant because we get lumped into the same group as Taylor Wimpey, Redrow and others. People just assume that for developers it's easy, they're raking it in.
And councils think about it in the same way. They think we've got time to play with, and it won’t affect our margin. What they don't realise is we're grafting away, trying to get houses built on time and on schedule, and all of these things make a huge difference to whether we can stay in the market or not.
CJ: You’re talking about all these factors of planning, delay, and increased build costs in a high-interest rate environment and how that affects our equity. It does feel like we're at the back of the chain. We're going to get paid last, and all these things are impacting us, and it's ultimately just hurting us the most. And then it feeds into the global economy and house prices. It feels like we're getting kicked from all angles.
AB: We're being constantly told we need more houses, we need more SME developers.
AA: That’s probably a central government directive: we must build X amount of houses. I mean, it’s gone down to 1,300 already now, but it's down to the local authorities in terms of approving these consents. And it's really disjointed.
CJ: It feels like we’re getting no help.
JU: For us, because of the planning process, we stick to the same boroughs. And when we do the pre-application, we usually submit all of the documents as if submitting a full planning application, so that we can minimise the chance of the planning officer asking us for the full planning application. Overcommunication is better than undercommunication.
When you show them the plans that you are looking into, they'll often say that you need this report, this document—but then when you submit the full planning application, there's still something lacking. But over-preparation on the initial stages is better because the costs really will kill you when you reach the completion of the project and you haven't sold the property or rented it out. I think to mitigate the risk it's really about the initial stages of the planning.
With the planning stage, we actually don’t have a set process, and that's better for us. But we are struggling with construction, and that's why we're also exploring new ideas with different contractors, because that's what will bring us the final value of the property, not just the initial stages.
DA: As newbies starting out, what challenges have you faced due to your limited experience? What policy changes would you want to see more of, whether from government or lenders?
CJ: I think it’s unresolvable at a government level. Some of the steps they've taken feel futile. Let's increase planning officers—but that’s less than one per council.
“It does feel like we’re at the back of the chain. We’re going to get paid last, and all these things are impacting us, and it’s ultimately just hurting us the most. And then it feeds into the global economy off the back of that and house prices.
It feels like we’re getting kicked from all angles”
“I just think there’s a real mishap between what’s happening in government and what’s actually happening on the ground. And no one’s got the foresight or the understanding of the actual implications of the changes and how to structure that with the industry in order to actually make beneficial change”
What impact is one person going to have? And who's going to train these people? It feels like the government measures aren't well thought out.
Imagine if a few people high up in the government or council actually came to sit in and get a better understanding of how this stuff works.
KK: I really can't understand, particularly as a lawyer, how some of this isn't really well thought through. So, coming into it as a newbie, I'm trying to get to grips with lots of new legislation changes, building regs implicatios, new gateways for signing off on various different heights of buildings etc.
It's all well and good having good aims and purposes behind some of these changes. And there is. Let's be clear. But there just isn't the resource or the wellthought-out process, or even the lead time. So, you're having issues with sites where something's been
brought in, and you costed your site two-three years ago when you were looking at your appraisal, and you went for planning, and suddenly something new has come in today, and that affects your site or proposed development. You've either started or you're just about to start, and your deal's no longer viable. How has the government not considered that in their long-term planning for some of this? I just think there's a real mishap, between what's happening in government and what's actually happening on the ground. And no one's got the foresight or the understanding of the actual implications of the changes and how to structure that with the industry in order to actually make beneficial change.
SW: We've seen that with fire safety, which still has ongoing ramifications for flat owners in highrise buildings today. Flammable cladding on high-rise buildings
into it. Everybody deserves the right to have a roof over their head, in my opinion.
SF: With EWS1, you’ve got a lot of people who are landlocked. They can't move because they're in something they bought five years ago. They can't sell it. They want to buy one of your houses, but they can't sell their flat because no one can get a mortgage on it. It might need cladding. It might need a report on cladding. It might not. The developer is not interested in doing it freehold. You might get five lenders that are lending on it, but if the buyers don't go to those five lenders, they can't get a mortgage. You’ve got people that are just stuck in limbo year after year after year, and they can't move up the property ladder.
Help to Buy is great, but some people need help to sell! They can’t move. They’ve had kids and they're living in two-bed flats but they just can't sell because they're either going to have to lose £150,000 of equity, or they're going to have to just wait it out and hope that someone waves a magic wand.
poses a fire safety risk. So many individuals are struggling to sell those flats and apartments due to ongoing remediation issues, lack of buyer interest, and the challenges of obtaining mortgages on them.
It was years ago that the EWS1 stuff started, and it still hasn't been clarified or resolved properly. That's tough for experienced developers, let alone those starting out.
AA: It's the level of red tape that’s really causing problems.
OB: We really need a bit more cross-party communication.. How many housing ministers have we had? How do you get any traction with that if you're chopping and changing every eight weeks or every six months?
AA: It should be held in the same regard as schooling, the NHS, all these sorts of things, in terms of how closely they look at housing and the money that gets pumped
LM: Even if you can sell, the jump in stamp duty is huge from a two-bedroom flat to a three- or four-bedroom house. My partner and I were looking at moving, but need more savings, and the bulk of capital is the extra stamp duty. That’s another £30,000-40,000 in London, and so we ask, can we afford to move? It’s restricting families moving out to bigger properties and freeing up the two-beds for the first-time buyers.
SF: There are certain things that shouldn't be political—things like the NHS or the housing market or schools. It should be an agreed standard. It's not about whether you're Tory, whether you're Labour.
AA: It takes a government that is serious about changing that. But unfortunately, it is very political. It needs to be taken out of politics, because the five-year tenure of a government isn't going to be long enough to make any meaningful change.
Andrew Argent: Ensure that you surround yourself with a decent professional team who can help you plug skills gaps. Understand your strengths and identify where you need help, and mitigate that risk by appointing the right people. Presenting a case that is underpinned by collective industry experience can help offset certain risks and will make opportunities more appealing to any debt/equity provider.
With that in hand, call upon your network in terms of introductions to debt/equity providers directly or access to a decent broker.
Alex Boggis: I suggest starting small with something manageable and surrounding yourself with any expertise that you lack.
Stuart Flynn: Certain lenders will always shy away from developers without a strong track record; however, many lenders will consider inexperienced or first-time developers. The key is to understand and accept where your weaknesses lie and ensure that you mitigate them. This could be financially (introducing more equity), but typically this is from surrounding yourself with a strong team and leaning on and learning from them during the first two- to three-projects, which should grow in size and complexity each time. Once you have done this successfully, the doors to all lenders will open up.
Jevy Umali: My advice to developers in the early stages of their journey is to focus on overpreparation rather than overconfidence. Once you’ve identified a promising site, ensure your numbers are thorough and that all relevant details—including your vision, projected outcomes, and professional team—are clearly presented. Involve your consultants early and include them in your lender presentations to demonstrate both competence and commitment. Even if your track record is limited, showcasing completed projects, however modest, signals that you can deliver and work professionally. This approach builds credibility and trust, which are crucial when accessing finance and equity.
Karine Kirlew: If you are new to development, ensure you assemble an experienced professional team whose expertise is the right fit for your proposed scheme to address concerns that lenders or investors may have about your lack of track record or experience. As a new developer, the experience and local knowledge of your professional team are key to helping you appraise and ultimately take your site forward to construction. Considering joint ventures with more experienced developers may also help to address a lack of development experience, while also securing equity to finance deals. Being authentic, honest about your level of experience (or lack of it), following up, and maintaining any connections you make is important. If you network intentionally with lenders, potential investors, and other developers while focusing on building relationships with the people that you meet, you can offer your time, skills, and/or development opportunities to them in the future in exchange for equity.
Cameron Jeromes: With less experience, your priority should be to work hard on leveraging and expanding your network while actively learning to close any knowledge or skill gaps. This will help strengthen your business case for equity and debt partners. It’s important to strike a balance between being action-oriented and being a strategic planner—someone who not only takes initiative but also anticipates challenges and builds a team to address them.
Development is a long-winded, multistage, complicated activity, and you need to make sure you have a full understanding of what is required by when and by whom. Making sure you know all the stages and who might be required to assist (plus how much it could cost!) is fundamental before undertaking a development.
89% of landlords plan to stay in the industry.
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Dearest reader, It is with the utmost delight that we welcome you to this most splendid occasion — the Bridgington Ball — a Regency-inspired celebration of excellence, elegance, and enterprise within the specialist finance sector. Held in proud partnership with Market Financial Solutions, the B&C Awards 2025 marked the first time in our storied history that we gathered in the exquisite surrounds of Ditton Manor, a setting truly befitting the grandeur of this landmark 18th annual event.
Much like Lady Bridgington’s society columns on B&C, the ceremony revealed the triumphs and talents of our industry’s most dazzling individuals and institutions. But rather than whispered gossip, these accolades are grounded in achievement, innovation, and undeniable impact.
This year, in true Bridgington spirit — where tradition meets transformation — we introduced a refreshed judging process to ensure greater transparency and fairness. From February 3rd, industry professionals were invited to register as judges, with only the swiftest and most devoted securing a coveted place. Their votes, cast solely on lived experience and observable impact, shaped the shortlist. No tiresome testimonials, no labyrinthine submissions — simply recognition of those who have made the greatest strides this past year from the voices of 350 companies.
As the season’s most anticipated annual event, the 2025 awards spotlighted the thrill of recognition and the joy of reunion. The post-formalities festivities on the lawn’s rooftop bar, generously supported by our main sponsor Market Financial Solutions, were charged with the excitement of the winners' triumph. We reminisced about the ever-elegant Avamore Capital official After Party, where the merriment continued well into the night.
On behalf of all of us at Medianett Publishing, thank you for attending. We look forward to many more events filled with connection and celebration.
Be ST BRIDGING NEWCOMER — BROKER
Winner: Ross Commercial h ighly commended: Karis Capital
Be ST BRIDGING NEWCOMER — LENDER
Winner: Maslow Capital h ighly commended: StreamBank
Be ST S u RV e YOR
Winner: Project & Co h ighly commended: Capital Value Surveyors
SPe CIALIST BTL BROK e R OF T he Y e AR
Winner: Dynamo h ighly commended: SPF Private Clients
SPe CIALIST BTL L e NDe R OF T he Y e AR
Winner: West One h ighly commended: OSB Group (InterBay)
Be ST SPe CIALIST FINANC e PARTN e R
Winner: VAS Group h ighly commended: iLA
LARGe LOAN L e NDe R OF T he Y e AR
Winner: Century Capital h ighly commended: Hilco Real Estate Finance
Be ST SPe CIALIST DISTRIBu TOR
Winner: Synergy Commercial Finance h ighly commended: Crystal Specialist Finance
Be ST SPe CIALIST BANK
Winner: United Trust Bank h ighly commended: Hampshire Trust Bank
Be ST SOLICITOR
Winner: Brightstone Law h ighly commended: JMW Solicitors
Be ST De V e LOPM e NT BROK e R
Winner: Positive Commercial Finance
h ighly commended: Arc & Co
Be ST De V e LOPM e NT L e NDe R
Winner: LendInvest
h ighly commended: Mint Property Finance
Be ST R e GIONAL BRIDGING
L e NDe R OF T he Y e AR
Winner: Somo
h ighly commended: MS Lending Group
u NDe RWRIT e R OF T he Y e AR
Winner: Adam Robson, Mint
Property Finance
h ighly commended: Sam Bryce, MS Lending Group
SPe CIALIST PRODuCT
OF T he Y e AR
Winner: Aspen Bridging
h ighly commended: Avamore Capital
R e Gu LAT e D BRIDGING
BROK e R OF T he Y e AR
Winner: SPF Private Clients
h ighly commended: Propp
R e Gu LAT e D BRIDGING
L e NDe R OF T he Y e AR
Winner: OSB Group (Precise)
h ighly commended: United Trust Bank
Be ST COMM e RCIAL BROK e R
Winner: Watts Commercial
h ighly commended: Positive Commercial
COMM e RCIAL L e NDe R
OF T he Y e AR
Winner: Allica Bank
h ighly commended: Alternative Bridging Corporation
L e NDe R R e LATIONSh IP
MANAGe R OF T he Y e AR
Winner: Annie Crust,
Hampshire Trust Bank
h ighly commended: Joe Grace, MT Finance
SERVICE EXCELLENCE — BROKER
Winner: Aria Finance
h ighly commended: Clifton Private Finance
SERVICE EXCELLENCE — LENDER
Winner: Octane Capital
h ighly commended: Fairbridge Capital
Be ST BRIDGING BROK e R
Winner: Envelop
h ighly commended: Willow Isle Capital
BRIDGING L e NDe R OF T he Y e AR
Winner: Market Financial Solutions
h ighly commended: LendInvest
Ou TSTANDING CONTRIBu TION
Jon hall, OSB Group
LIF e TIM e AC h I e V e M e NT
Martyn Smith, Black & White Bridging
“It is a true honor to receive this Lifetime Achievement Award and to be recognised for my contributions to an industry I’ve been privileged to be part of for so many years. This milestone would not have been possible without the incredible teams I’ve had the fortune to work with throughout my career. In particular, I want to extend my heartfelt thanks to everyone at Black & White, including Damien, Heather, Oli, Sophie, and Matt — your dedication, talent, and hard work have been instrumental in shaping our success and bringing us to where we are today.”
— MARTYN SMITH CEO AT BLACK & WHITE BRIDGING
“It’s so humbling to win such a prestigious personal award for Outstanding Contribution, but I’ve been lucky to work with so many talented people. So proud to be recognised by B&C and celebrate with so many friends in the industry.”
— JON HALL MANAGING DIRECTOR AT OSB GROUP
“We are honoured to be named Bridging Lender of the year. While recognition isn’t the reason we do what we do, it’s a valuable moment to pause and reflect on the success we’ve achieved over the past 12 months. A huge congratulations has to go to the entire team for their hard work and dedication to providing an excellent service, without which this award would not have been possible. Congratulations as well to all the other winners and thank you to the Medianett Publishing team for hosting another fantastic award show.”
— PARESH RAJA, CEO AT MARKET FINANCIAL SOLUTIONS
The broker originates the loan and puts it on the lender's desk—only for the lender to swoop in and cut out the broker when it comes to extension. This unethical practice is a growing problem for the bridging market, but it can be avoided by understanding the importance of maintaining ongoing relationships
Words by ANDREW ROBINSON CEO at Arc & Co
Although we have experienced this issue a handful of times over the past 15 years and are cognisant of it in the market, it does not represent an area of significant concern for our company.
Primarily, this is because of our approach to broking and advice— we always aim to stay close to our clients long after a deal has been placed, and that allows us to remain in control throughout the term.
Thanks to our in-house case tracking capabilities and emphasis on the broker-client relationship, we are able to stay one step ahead of a client’s likely next move, whether that is an exit onto term debt, a loan extension, or a renewal.
A minimum of three months before the end of the bridging term, we are in communication with both the client and the lender to strategise and provide guidance on the best next step for the borrower.
It’s important to understand what the current scenario is for the client and what’s fair for them. If the exit is via pending offer or sale and an additional month or two will support this, we engage with the lender early to negotiate an extension, keeping the lines of communication open. We have found that lenders are typically receptive to this.
If a new six to 12-month loan is required, an introduction fee should be (and will be) applied for this renewal. We are always firm about following through with this, and ensuring our clients clearly understand their obligations.
Nurturing long-term, mutually successful relationships with bridging lenders is always a high priority, as this ensures that lines of communication remain open. By maintaining trust like this, it is taken as accepted that the origins of the deal will be honoured.
For our firm, extensions of any kind should be avoided where possible— our primary objective is that the borrower does exit once the bridging term has expired. Through diligent underwriting, understanding the client and the asset, and having an appropriate term in the first place, we are setting borrowers up to exit this short-term solution as part of their overall plan.
The role of the broker in offering advice is particularly important in bridging, as they can assess the market and holistically review the clients’ options at the front and back end of the loan. A lender’s job is to lend where it makes sense for their appetite and criteria; ours is to advocate for the right facility for our client.
It’s important to create a situation where clients trust the broker and understand that their knowledge of lender practices and processes (and potential pitfalls) contributes to protecting their interests. In a case where a client may end up dealing directly with a lender at the point of default, extension or a new loan agreement, that all-important buffer is lost; this means the borrower may experience stricter enforcement and possible penalties. A good broker is not only contracted to the client but also demonstrates a duty of care to the lender.
A good broker is not only contracted to the client but also demonstrates a duty of care to the lender”
As bridging has attracted many new brokers, some of whom are unfamiliar with the requirement to service the loan throughout its term, this may be resulting in lenders spotting an opportunity where clients aren’t being sufficiently supported—and therefore stepping in to take over that relationship. While cutting a broker out of a deal or any resulting deals should never be condoned, we must question why this has been allowed to happen at all.
In the mortgage market, lenders routinely contact clients regarding product transfers. As a broker, if you fail to key in new products within the client record, you won’t get paid. This incentivises brokers to service both the client and the mortgage.
At Arc & Co, we feel that, in bridging, the lack of standardisation that exists in broker-lender agreements and contracts could also be contributing to opaque practices such as this. We believe that it would be a mark of progress if lenders who are members of the NACFB or FIBA were signed up to centralised documentation to streamline the terms of business between stakeholders.
At the same time, brokers should do better at staying in contact with (and therefore in control of) their client and prioritising suitable high-quality advice that places the borrower at the centre of every transaction.
Aiman
A
Tell us about your journey so far. How did you get started in the bridging and commercial space, and what brought you to where you are now?
Like many in the industry, I started out in more traditional financial services. I worked in mainstream banking and property early on, which gave me a solid grounding. But I was drawn to bridging because of the pace and variety. No two deals are the same, and I enjoy the hands-on, problem-solving side of things. After four years at smaller unregulated lenders, where I really developed my experience in the specialist market, joining StreamBank felt like the right move for my next step. What appealed to me was the mix of competitive regulated and unregulated products, along with a practical, solution-led way of working.
What motivates you in your role, and what makes this sector exciting or meaningful to you?
You’ve got to stay motivated as a BDM, and for me that comes from working with brokers on deals that really matter. Many bridging cases are time sensitive or don ’ t fit neatly within mainstream criteria. That’s when we can step in and add real value.
At StreamBank, we’re encouraged to look at the full picture and apply common sense. That personal, flexible approach is what makes the job so rewarding. And the best part? Making that call on completion day to say the deal’ s gone through. That moment never gets old.
Bridging is active, with borrowers and brokers showing an advanced understanding of what it can do, and expectations are rising, says Andrea Glasgow, sales director— specialist mortgages and bridging, at Hampshire Trust Bank. She tells us what is behind the growth demand and a big pitfall to watch out for
Photography by ALEXANDER CHAI
Are there brokers with BTL clients who aren't doing bridging business? If so, why do you think that is?
There are—and a lot of that comes down to perception. Some brokers still view bridging as a reactive solution, something to fall back on when plans change, rather than as a strategic tool that can be used proactively across a range of scenarios.
Bridging has often been associated with urgency or distress. In reality, it opens up far more opportunities than it’s given credit for. We’re seeing more investors taking a hands-on approach to their portfolios. That could mean upgrading properties to meet EPC standards, making them more appealing to a different tenant profile, or repositioning assets to support longer-term plans. Bridging is often the enabler that allows that activity to happen. For example, we’ve seen landlords using bridging to convert single lets into small HMOs or to upgrade heating systems ahead of regulation.
Encouragingly, attitudes are shifting. Brokers are increasingly seeing how bridging fits within a longer-term investment strategy, rather than being treated as a last-minute option. Education has played a part in that, as has access. When brokers can speak directly to decision-makers and understand how deals can be shaped to suit the client’s path, bridging becomes a much more natural part of the advice process.
How do you see the bridging and specialist mortgage teams working together?
They are working more closely than ever, and that is very deliberate. Clients rarely look at funding in isolated pieces. They look at the outcome they want to achieve and the steps needed to get there.
When bridging and specialist mortgages teams are aligned, it creates a much more joined-up journey. The client may be buying something that needs work or repositioning before it can move onto a term facility. When the lender understands that path from the start, the structure can be shaped around it.
That’s where brokers see real value. It gives them the ability to plan the full strategy from the beginning, with one lender and one relationship not just at the outset but also as the deal evolves.
What are the benefits to brokers and their clients of having teams working more closely like this?
I’ve no doubt that brokers will see significant benefits from the new structure. From their perspective, they have a single point of contact who understands the full picture. Whether it’s a refurbishment with a term refinance in mind or a broader portfolio restructure—they’re working with someone who knows where it’s heading.
It also saves time. They’re not having to repeat the client’s background or re-explain the purpose of the deal. It creates more room to structure something properly, from day one, and it means the client is supported by one consistent team throughout.
Clients benefit from a smoother, more joined-up process. It helps them trust the strategy, not just the product. That ultimately strengthens the broker-client relationship, which is what matters most.
Given the level of competition in the bridging space, how can lenders stand out?
In my view, it’s about showing you can do the hard things well. Any lender can price a straightforward deal, and brokers know where to go for those. The value is demonstrated when the case has a bit more to it, whether that’s cross-collateral portfolios, phased refurbishments or a tight timeline.
That’s where experience, flexibility and direct access come into play. Brokers need to know that if something changes mid-deal, they’ve got a team who can adapt and take a view. That might mean structuring phased drawdowns, managing a staggered disposal or working through layered ownership.
Technology plays a role in keeping things visible, but relationships and judgment are what really get deals over the line. That’s where trust is built.
What impact do you think the Renters' Rights Bill will have on the bridging market?
We’re already seeing it prompt landlords to take a closer look at their portfolios. Some are choosing to upgrade their stock, while others are opting to exit certain properties and redeploy capital into assets that are better aligned with future regulation and returns.
That naturally leads to more activity that requires short-term flexibility, from funding improvement works to managing sale and purchase sequences.
This creates opportunities for brokers who are active in the bridging space. But it’s not something that will land in their laps. Now is the time
“When brokers can speak directly to decision-makers and understand how deals can be shaped to suit the client’s path, bridging becomes a much more natural part of the advice process”
“Technology plays a role in keeping things visible, but relationships and judgment are what really get deals over the line. That’s where trust is built”
to be proactive, start those conversations with clients and provide the guidance that helps them raise funds and reposition their portfolios with confidence.
What is your take on the state of the bridging market currently?
Bridging remains incredibly active. The data shows consistent growth, but what’s more interesting is how demand is evolving.
We’re seeing fewer rescue deals and more structured planning, particularly around refurbishment, repositioning and exit. Brokers are building bridging into the strategy from the outset. That reflects a more sophisticated understanding of what the product is there to do.
It also means expectations are higher. Brokers want service and certainty, but they also expect a lender to understand the shape of the deal. They’re looking for alignment, not just a fast yes.
Bridging is often seen as a reactive tool. Are you seeing more brokers using it as part of a longer-term strategy?
Without question. We’re seeing brokers build bridging into structured plans that go well beyond the initial stage.
It might be funding a conversion with the intention of refinancing once the asset is income-generating. Or repositioning a portfolio over time to support a more stable long-term structure. In both cases, bridging is no longer just filling a gap—it’s creating momentum towards a clearer outcome.
When the exit is planned from the beginning, bridging becomes a strategic enabler. That shift in mindset is becoming more visible across the market.
When brokers position bridging as the first step in a defined plan rather than an emergency fix, clients are much more likely to stay engaged and trust the advice.
HTB has a reputation for thriving on complex cases. What types of deals do you think are underserved by mainstream lenders right now?
Heavy refurbishment is a standout. The moment structural work or phased funding is involved, a lot of lenders step back. But these are exactly the kinds of projects that unlock real value, improving the layout, repurposing the use or creating a better long-term yield.
Semi-commercial assets, mixed-ownership portfolios and cases involving unusual titles are also underserved. These aren’t necessarily higher risk but they need a more considered approach. A tick-box model doesn’t always reflect what’s possible in practice.
We don’t shy away from complexity. We look for ways to make it work with the right structure and the right conversations early on.
Some lenders rely heavily on tech. Others lean into relationships. How do you strike the right balance?
Technology plays a valuable role. It gives transparency, improves turnaround times and helps everyone stay aligned. But it’s not the solution on its own.
When a deal becomes more complex—and many do—it’s the relationship that makes the difference. Brokers need to know they can get hold of someone who understands what’s going on and can help resolve issues as they arise.
That’s the balance we aim for: use technology to support the process but keep people at the centre of the deal.
We’re seeing more brokers diversify into semi-commercial and MUFBs. What’s your view on where the market’s heading?
It’s a natural progression. Investors are chasing yield and diversification and these asset types offer both. But they come with added complexity, including different valuation methods, planning considerations and multiple tenancies.
Brokers who take time to build confidence in this space are going to stand out. These deals aren’t always straightforward, but they are becoming more mainstream.
Specialist knowledge can really add value here. Understanding how to structure a deal so it works in practice, not just on paper, is what sets brokers apart. And brokers don’t need to know it all on day one. What matters is working with a lender who can help navigate that journey with them.
What do you think brokers value most in a bridging lender, and what do they often not get enough of?
They value certainty. Clear answers, a consistent process and no surprises at the last minute. That builds trust, especially when the case involves moving parts.
What they often don’t get enough of is access. Being able to speak to a decision-maker, getting a straight answer and knowing that the lender is engaged in the detail make a huge difference. That access isn’t just about speed. It’s about shaping the deal together. When brokers can get a view early, they can build a better case and avoid unnecessary friction later.
That’s something we’re very mindful of at HTB. Keeping access easy and ensuring brokers never feel they’re out of the loop is central to how we work.
What benefits come from working with the same lender for both bridging and longer-term BTL funding?
Consistency. When both stages of the journey are aligned, the broker can build a clear plan that supports the client from acquisition through to term. It removes duplication, reduces friction and creates a better experience for everyone involved. The lender understands the purpose of the deal from day one, and that shapes the structure of both the bridge and the term exit. The lender can also manage the risk across the full journey, which gives the broker and client greater confidence in the outcome.
I like to think we offer something even more fundamental—certainty. Our funding lines are secure, and we’re not here one day and gone the next. That matters when you’re planning ahead. Brokers and their clients know that the refinance route has been understood from the beginning, and that we’re not going to leave them in a position where they’re overleveraged and forced to sell when the plan was always to refinance.
It also means less re-explaining. The broker doesn’t need to resell the case partway through. That saves time, avoids delays and supports a stronger overall strategy.
How do you ensure that transitioning from one form of funding to another goes as smoothly as possible? What are the common pitfalls?
It all comes down to early planning. From the first conversation, we’re asking where the deal is going. Is the asset being retained? What sort of term facility might be needed? Are there any challenges we can anticipate now?
“Understanding how to structure a deal so it works in practice, not just on paper, is what sets brokers apart. And brokers don’t need to know it all on day one. What matters is working with a lender who can help navigate that journey with them”
The biggest pitfall is treating the exit as a separate event. If it isn’t part of the original plan, you risk misalignment, whether that’s around documentation, timings or affordability. We’ve all seen cases where a great bridging deal unravels because the exit wasn’t fully thought through. That’s avoidable—but only if you start with the end in mind. We stay close to the broker and keep the lines of communication open. That’s what makes the handover seamless. The broker shouldn’t have to carry that alone. It’s our job to help them see the deal all the way through.
“We’ve all seen cases where a great bridging deal unravels because the exit wasn’t fully thought through. That’s avoidable—but only if you start with the end in mind”
Refurbishment
is no different.
New sales director Jamie Pritchard comes to MS Lending Group with over 25 years of experience, but also an approach that’s always open to new ideas. Here he tells us about how his future plans are built on a people-focused strategy and a culture of collaboration
Words by DHUHA AL-ZAIDI
Photography by ALEXANDER CHAI
To some, he’s known as an avid LinkedIn enthusiast. To others, perhaps a meme-maker. In the industry, he’s the well-liked sales guy. And as of March this year, he officially became the sales director at MS Lending Group (MSLG).
But while Jamie Pritchard has over 25 years’ industry experience under his wing, his beginnings were somewhat humble. Like many others, it was something he stumbled into—and it worked out well.
“I didn't grow up wanting to be in financial services, and you can't find that on my LinkedIn any more,” he jokes. “I had aspirations to be a footballer but, like pretty much everyone in Chester, I fell into working at call centres from about the age of 18.”
Following his university degree in Sociology, Jamie recalls entering a recruitment company as one of approximately 111 candidates. They were handed a series of tasks, and eventually he was one of 11 who made the cut. “At the end, they called me up and said you need to go and work with IFAs. I took them up on that—but I had to Google it straight away to find out what they were talking about. And I ended up being an account manager in sales,” he shares. He went on to complete a CeMAP—a widely recognised qualification for mortgage advisers in the UK—alongside an FPC, before ultimately becoming a broker.
“Something that I didn’t put on my LinkedIn is that I went into recruitment myself for a few months while I was waiting for the branch and countrywide role to open. I did that to get myself used to being back on the phones and selling again,” he tells me.
After the 2008 financial crash, Jamie quickly identified his talent for working within BDM teams. “The leadership aspect was never something that I particularly wanted to do, but my boss at the time was good at getting his way. He went on an MMR project that was supposed to last a week. Nine months later, he was still on it because it was much bigger than everyone expected, and at that point he told me, ‘I need you to do this and that’, and I said, ‘I'll do it all’.
After a taste of leadership, there was no going back. He reminisces about his time at Precise Mortgages, an introduction that he initially turned down. “I later met Roger Morris, who is someone who doesn't get turned down much. We got on like a house on fire [so I agreed to join them]. The Precise years were really good for us—we built it up and grew to having a sales team of around 20 working with me. And I mean it when I say working with me. I loved seeing how the whole team flourished. Some of them were big names within the industry. Now they're all working at different lenders and doing really well,” he reflects. After a short hiatus, Jamie touches on going on to fulfil four years as managing director of sales at Glenhawk—which secured its third consecutive bridging lender of the year recognition at the B&C Awards in 2023—before starting a new chapter with MSLG.
When asked what drew him to join the Northern-based lender, the rationale extends beyond geographical convenience. “I've known the CEO and founder Michael Stratton for a while—not personally, but I've known of him. I've been on stage with him when we've done panels, and when he talked, I listened. I believe [MSLG] is a lender that doesn't just say it's commercial—it shows it, deal after deal,” he says.
The appointment was perhaps, as Jamie puts it, “written in the stars”. After hearing positive feedback from brokers, Jamie met with Michael and discussed all things strategy, eventually leading to his newfound role—as the missing jigsaw piece in the lender’s puzzle. “Michael's ambition and belief in what the business can become are absolutely infectious. I've spent many years building broker trust across the country, and my goal now is to scale that trust here at MSLG as we build our new relationship management team. It’s something that I love doing,” he expresses.
I’ve spent many years building broker trust across the country, and my goal now is to scale that trust here at MSLG as we build our new relationship management team”
There’s no point going after the new shiny thing, like different brokers you are not working with—that’s hard work. You’ve got to concentrate on the ones who have already helped build MSLG and see what more you can do together”
Jamie has been tasked with expanding the company’s broker network, as well as delivering short-term finance solutions. With his wealth of experience, he appears to take this expectation optimistically. “I’ve always suffered massively with impostor syndrome in every role I’ve had. My big motto is: don’t ever think that you’ve made it, because the second you think you've cracked it—whether that’s the market in general or a specific deal—you’ll get a reminder that things change all the time. I'm always in learning mode—that mindset keeps me sharp, relevant and open to change,” he reveals.
Regardless of the tasks he’s been assigned, it appears this lender has one crucial priority on the agenda: building and strengthening rapport with brokers. Jamie explains that it's vital to understand any gaps in the company you’re delivering strategies to: “It's not about focusing on how to keep repeat business coming in, it’s about finding gaps that need to be addressed. For us, there weren't enough salespeople even to manage the relationships that we already had. Growing networks is always something that I think loads of people get wrong straight away. There's no point going after the new shiny thing, like different brokers you are not working with—that’s hard work. You've got to concentrate on the ones who have already helped build MSLG and see what more you can do together.”
For Jamie, remaining consistent and communicative with brokers is key—for example, recounting the last time he got in contact with the intermediaries, a case was presented to them before, or a time they went out for some networking. “I think of things as less of a transaction and more as a relationship,” he asserts.
Jamie’s sharp market insight has revealed a gap in the bridging space—the underserved middle. “I still think there's a lot of work to be done within bridging itself, to really show the market the benefits that bridging solutions can provide. That culture of education—getting online and utilising things like webinars to get the message out there—is key,” he says.
My big motto is: don’t ever think that you’ve made it, because the second you think you’ve cracked it— whether that’s the market in general or a specific deal—you’ll get a reminder that things change all the time”
With the planned recruitment of new BDMs, Jamie hopes the lender’s reach will gradually expand, consequently enhancing the company’s credibility. In early May, MSLG announced two new hires—Daniel Smith and Ash Kendall—to its sales support team. “I'm really excited for the next level because this new breed of younger BDMs/relationship managers in the industry is promising to move us forward with a new approach,” he adds.
He goes on to add: “We're aware that there's a saturated market out there, but there are still ways to stand out. For example, speed was once a given standard—because the idea was that every bridging lender should be fast—but that's not the case now. Brokers are telling me it's not always quick with a lot of lenders out there. For me, there’s a gap in simply making sure that you can be flexible and reliable, and just helping people understand the deals.”
“We could sit here all day, but we wouldn't come up with something really brand new in bridging. It's just about doing it better consistently every time,” he adds.
When it comes to establishing stronger relationships with brokers, Jamie’s advice is worth tuning into. “Pick up the phone and go see them—don't hide behind emails. They may not remember that you have something else in your product set, or that you do desktops on commercial, for example. Again, if you stop thinking of it transactionally and view it as a key relationship, the broker market will feed you—but that only happens if you're giving some value back to them. My team will always ask for the business, but they also find out what brokers need first, and what they identify as headaches in the market,” he says.
In a high-pressure industry, Jamie is adamant about both managing teams efficiently and having fun. “I never expect them to do anything I wouldn't do myself,” he states. Keeping true to his habit of learning on the go, Jamie goes as far as learning the ins-and-outs of each team member’s role. “When I've got a chance, I learn everything that everybody is expected to do in their role. When I know how to do it myself, I’ve got a better ability to refine things. If something's slowing down the broker-customer journey, I’ll look at it with a strategy mindset to see how we can change it. That’s helped me with consistency of delivery,” he explains.
His wider goal is to learn about each individual’s motivation and ultimately strengthen their skillset. “I always want to make them a better version of themselves—from the day I meet them to the day they may move onto a new journey. I always want everybody to become my leader in my team, if that's something that motivates them. The only problem is that I'm really ambitious myself! So I'm always driving myself further through that forever-learning mode, and hopefully that brings us all together. That’s where I think the magic happens,” he exclaims.
Ongoing political uncertainty has undoubtedly caused turmoil in the specialist finance industry, but for Jamie, adaptability in strategy is imperative. “What Q1 has shown me is that the noise hasn't gone away, but neither have opportunities. Some people say certain areas may be quieter, but you've just got to get more of the slice of the cake than maybe you wanted to from your competitors,” he says.
“A challenge I’m seeing is that borrowers have a lot of opportunity out there, and that may pose challenges for lenders. They've got a lot of options with brokers, so the brokers are fighting to keep those customers. Borrowers often do want speed, but they also want handholding and structure, especially with the higher-value deals. From what investors have taught me, rates alone won’t get you over the line—brokers are seeking lenders who are consistent,” he says.
Over the next 12 months, Jamie is all about team collaboration—and that extends beyond MSLG. “Brokers, pick up the phone and let us understand the deal up front. I know you want terms quickly to present to customers, but don't just send over the numbers. Talk us through the client, the background. I like knowing what the deal is about and what its quirks are. If there's no quirk in a deal, ask again. There's always a quirk in the deal somewhere! It's just to allow us to structure and deliver properly and avoid any late surprises with the deal itself,” he advises.
We could sit here all day, but we wouldn’t come up with something really brand new in bridging. It’s just about doing it better consistently every time”
He informs me that MSLG has reduced its rates in a bid to “maintain the speed, flexibility and reliability” in its services. Newbie Daniel Smith will lead the lender’s London operations, with Ash Kendall driving the desk and streamlining the sales process. A new relationship manager—Junior Borland—has recently joined their team to operate the Midlands and South Wales regions, with a couple more set to join in the next few months.
With teams expanding, Jamie vouches for the new office, which he says speaks for itself. “That's a real sign of intent; Michael's aim is to quadruple our current office space. If anything shows you where we want to be from a growth perspective, this is it. The lovely offices that we've got now incentivise people to come into work, especially as we're five days in the office. Having a really good work environment just makes people happier and helps build that amazing culture the team strives for,” he says.
In tune with another passion, selfmade DJ Jamie channels his creative side through house music production. He teases two EPs that are set to hit streaming platforms this year, a testament to his love for escapism through art. From structured deals to structured sound—it’s a natural balance.
With lenders, Jamie urges the need to ‘explain the why’. “Lenders must teach their team to be confident in telling brokers why we don't like certain things or why we need extra documents and so on,” he says. This, he believes, is an indicator of cooperation.
Words by DHUHA AL-ZAIDI
Photography by BILL BISHOP
Unable to find the system they needed to support Paragon Bank’s specialisms, the lender simply decided to create a bespoke tool—and there’s more to come, managing director Louisa Sedgwick says, as the company hits the milestone of 30 years in BTL as agile and adaptable as ever
“We’ve started thinking about what the world could look like going forward, and how we should adapt to make sure that we can support as many brokers and landlords as we can”
rousing chorus of ‘Happy Birthday’ is due for Paragon Bank, as it celebrates its 30th year in the BTL market. And while, yes, 30 is still young, at Paragon this milestone reflects years of wisdom, adaptation and growth in an ever-changing market.
At the forefront of the bank’s success stands Louisa Sedgwick, managing director of mortgages. Following her appointment to the role last year, after joining the company in April 2023, Louisa looks back on her accomplishments to date.
She shares that two years ago the mortgages team started to seek out opportunities that could offer effective originations systems for brokers to support the bank’s level of specialism alongside its mainstream BTL offerings. After failing to discover anything adequate, Louisa’s team set about creating their own. The result was a new smarter, faster and more flexible originations platform for brokers to submit applications. The system was soft launched in September 2024 before being gradually opened to more users. By the end of March this year, rather than request a fancy dinner for her anniversary, Louisa instead opted for a simpler gift—the launch of Paragon’s bespoke BTL origination platform. Keeping total rights with the bank has meant the platform can be adjusted quickly to reflect adaptions in the market. “The competitive nature of the mortgage market, and BTL in particular, means that we must be a bit more agile. It also means we can bring new products and pricing to market really quickly,” she says.
She lets on that the internal structure of teams within has also been altered. “We’ve now got a head of distribution who works really closely with our networks. We didn't have that historically, so that's now helped to build our distribution strategy and open the doors to new broker relationships,” she explains.
The last six months also saw a shift in the bank’s regional strategy with the allocation of two regional managers in the sales team. These managers act as an aid by coaching and encouraging the sales team. “We've changed things quite significantly and we've moved our operational function around as well. So, within underwriting, we've now got some more expertise within the credit risk team, for example. That stands us in good stead for going forward,” she says.
For Louisa, adapting to change to support brokers better is a priority for the bank. “Although the bank is in great shape, we know we need to continuously evolve. We've started thinking about what the world could look like going forward, and how we should adapt to make sure that we can support as many brokers and landlords as we can.” she declares.
Where being a policewoman was once her sole dream growing up—sadly shattered thanks to an imposed height restriction at the time—Louisa fondly remembers aspiring to join Paragon when she first joined the financial services industry. “When I joined Bradford & Bingley Mortgage Express, I used to look across at Paragon Mortgage Trust (as it was at the time) and think, ‘Wow, what a great environment. What a great business’. And I used to look at the MD, which was John Heron at the time, and strive for his job. I remember thinking that he had the best job in the industry. Fast forward 20 years or so and now I have the best job in the industry—and that's down to the company’s strong team culture,” she expresses. In 2022, Paragon Bank was awarded the Platinum Investors in People (IiP) status and was recently reaccredited, a testament to the bank’s dynamics, she asserts.
Louisa draws inspiration from Paragon’s FTSE 250-listed CEO, Nigel Terrington—who she says is “new and alive every day”—whose habit of challenging employees has driven a cooperative team culture. She also commends the newbie starters at the bank, who she says bring different perspectives that allow the bank to “stay fresh”. “It also helps us to think about what we need in the future, because if you have the same people in situ for a prolonged period of time, they may not spot new opportunities. Having some new people has brought in opportunities for us to think outside of the box and start to think about how we need to evolve as a business over and above where we already were,” she says.
While there’s plenty to suggest that the BTL investment environment is improving following a couple of challenging years, Louisa draws attention to legislations like the Renters’ Rights Bill (RRB), which she claims could actually have a negative impact on tenants. “I think, for landlords, the changes are relatively insignificant. And actually, most landlords are very resilient, so they’ll probably just dust themselves off and carry on. I think the bigger impact of the RRB is likely to be on tenants. That's because there is already a supply-demand mismatch and if legislative changes introduce challenges, we may see some of the smaller landlords, who perhaps have less skin in the game, sell-up. While these homes may be bought by other landlords, there’s a chance they won’t. This worsens the undersupply issue, helping to increase rent and decrease tenant choice,” she explains.
With more potential regulation on the horizon, such as the minimum energy efficiency standards, Louisa argues that the impacts of some of the proposed changes are valid and “a good piece of work to be doing”. However, she says that there remain certain issues to tackle: “If the government is still only just looking at whether EPCs are fit for purpose, they’re unlikely to be able to make any changes any time soon. And then the dates and timelines for implementing those EPC standards become unrealistic. Because if they do impose changes in 2026, it shortens the time frame we have to make changes to meet those standards.”
She goes on to explain further: “The two timelines they've set are that for new tenancies properties must meet EPC standards A to C by
the end of 2027; for existing tenancies, the deadline is by 2030 This works out to roughly 2,000 properties per day that would need to be upgraded—and that number keeps growing every day. The longer this drags on, the more properties will need upgrading within that shrinking time frame.”
Paragon is urging the government to adopt a phased approach to new EPC standards for rental properties—2030 for new tenancies, 2033 for extended, and 2035 for all—arguing that the current targets are unrealistic. Louisa warns that the proposed timeline could worsen the rental supply crisis, harm tenants, and overwhelm the retrofit sector, with 1.6 million homes needing upgrades annually. Only 17% of landlords support the 2030 deadline, despite strong tenant demand and already limited rental stock.
To combat these challenges, Louisa is looking to support the bank’s existing landlord community, whether through their property assets— such as borrowing more money if that's called for—or simply through education: what they need to do, how they need to do it, and when they need to do it.
“That’s assuming the proposals go ahead—but even if they don’t, we still believe there’s a need to support landlords to improve the sustainability of their properties. So that support is available for our existing customers. At the same time, we’re working on new propositions for new customers that would complement our existing customer base,” she says.
She references retrofit solutions, such as Paragon’s ‘refurb-to-let’ proposition, which she says works really well for landlords who want to upgrade their properties. “We’ll continue to evolve those products to help landlords meet potential new legislative requirements. I think there’s a lot of change coming, and we need to be proactive in supporting landlords,” she reiterates.
Louisa explains that there are also cases where landlords who currently hold properties in their own name may want to consider transferring them to a limited company, and that the bank is assessing ways to support this move—without the typical high costs involved. “This is important because more landlords are now buying properties through limited companies, rather than in their own name. So, we need to support both our existing landlord customers and any new landlords joining Paragon,” she adds.
According to Louisa, while the PRS does face challenges—recent legislative and tax changes along with rising interest rates, to name a few—a mass exodus of landlords hasn’t happened.
But, with BTL almost 30 years old, it is feasible that long-term landlords might be considering reducing their portfolios or retiring. “Once these properties are sold, they may or may not stay in the private rental sector. If they shift to the owner-occupied space, that’s great for buyers—but not so great for renters, especially those who can’t or don’t want to buy. So you’re essentially moving the issue elsewhere,” she says.
She notes that some rentals, especially lower-value ones, may not be economically viable to upgrade, and this poses long-term challenges. “So, then you create what I call property prisoners—landlords holding onto stock they can’t rent, sell, or use. That has a knock-on effect as tenants have even fewer homes to choose from, which only worsens the housing crisis. These are the unintended consequences we’re warning about,” she articulates.
Louisa clarifies that Paragon supports improving energy standards but is urging the government to set more realistic timelines to avoid destabilising the sector.
She shares that she’s been a key figure in the decision-making process for the RRB and has been actively discussing the upcoming legislation with Lords, which she acknowledges is a “good opportunity” to influence prominent decision-makers.
Louisa is also an advocate in other areas and is actively involved in industry working groups where she regularly touches on broader housing issues, such as the PRS, social housing and the role of local authorities.
Two years back, Louisa had teased an innovative tool called the ‘Sedgwick Brainchild’ that she was working on to improve the BTL sector. When I question its origin, she jokes that the real brainchild is her daughter, who is currently studying history at Durham University.
“We've got people that are reaching the end of their natural life as a landlord—and rather than disposing of properties in the open market, why do we not have another group of landlords who want to increase their investment in the private rental sector? How do we match landlords that are selling with landlords that are buying?”, she questions.
As the bank is already aware of who is selling—via mortgage redemptions—Louisa is working on identifying buyers both within and outside Paragon’s community reach. She elaborates that this ties into PropTech solutions effectively and she is currently investigating how best to support and educate landlords through a tech platform.
She reveals that early test cases using SPV-to-SPV sales have been successful and are being further developed to scale the model.
The innovation is only just getting started, as Louisa teases a range of upcoming developments that will boost Paragon’s lending capabilities and capacity to support brokers, landlords and consumers alike.
Louisa reiterates that while Paragon is known for handling complex and niche BTL deals, she wants to remind brokers and landlords that they also handle simpler cases effectively.
A few of the upcoming enhancements include a new-build platform, set to launch before summer, with system and policy changes to support it. New offerings for retrofit solutions are also in the works to help landlords meet future energy efficiency standards, in accordance with upcoming regulations. .
“We're incredibly busy and we've got lots of exciting initiatives to bring to market. Is there a silver bullet or anything that's massively game changing? Maybe not, but we hope that some of the solutions that we're going to bring in over the coming months will show Paragon in a slightly different light,” she says.
“Roughly 2,000 properties per day would need to be upgraded—and that number keeps growing every day. The longer this drags on, the more properties will need upgrading within that shrinking time frame”
Words by ERIONA BAJRAKURTAJ
Property developer, CEO at Major Accounts, and founder of Volt Digital Transformations
AThe Spring Budget not only brings money for construction training—it also challenges developers to shape the workforce. Such opportunities must be grasped
s a property developer, there are many things I’ve learned to work around—planning delays, supply chain issues, weather unpredictability, sudden finance cost increases. But one challenge that continues to loom large, year after year, is labour. Skilled, dependable, available labour.
The 2024 Spring Budget, pledging more than £600m over four years to boost construction sector training in England, isn’t just a policy initiative. It’s a practical lifeline. And it matters immensely to smaller-scale developers, whose projects can rise or fall based on who, if anyone, turns up on site.
Let’s take a deep dive into why this funding could be a game changer—not in theory but in day-to-day, boots-on-ground practice.
Skills are required for delivery, and that drives growth. Every site you walk onto reflects resources. No matter how beautiful the architectural
plans or how well structured the financing, a project can only go as far or as fast as the team building it. In recent years, that has meant developers being forced to slow down on some projects, not necessarily for lack of capital but for lack of qualified people available to carry out the build.
According to the Spring Budget, over £600m will be invested into expanding schemes such as skills boot camps and technical excellence colleges to upskill workers in trades including bricklaying, electrical systems repair and installation, carpentry and groundworks. These are exactly the trades developers rely on across both new build and refurbishment schemes.
The idea is to close a critical labour gap and, from where I stand, that doesn’t just improve timelines—it transforms feasibility. If a developer can forecast a project’s delivery with greater certainty, they can bid for more land, take on more projects and increase confidence in investor-backed schemes.
However, for a dependable project, you need reliable labour. There is a direct link between workforce stability and site momentum. It is estimated that around 340,000 new homes are needed year-on-year in the UK, according to a report commissioned by the National Housing Federation (NHF) and Crisis from Heriot-Watt University, but in 2021/22, only 233,000 homes were built. If this trend were to continue, this means there will be a 31% deficit year-on-year on new homes. A huge contributing factor to this is the lack of available labour to build.
When skilled workers are scarce, you're at the mercy of subcontractor availability, often bidding against other developers to secure teams. This drives up day rates and makes phasing difficult.
The Construction Industry Training Board projects that 225,000 additional workers will be needed by 2027. That means today’s scarcity is tomorrow’s crisis, unless we act now.
As a developer, this is making me think more strategically about recruitment and local partnerships. With government support being funnelled into training, there is now an opportunity to form early alliances with skills providers, influence training agendas, and help shape the pipeline of future workers in local areas.
Coupled with the labour shortage crisis, it does not help that the industry is changing, with the Future Homes Standard coming this year and expectations around energy performance and low-carbon solutions accelerating.
One of the hardest parts of building sustainably is not design—it's execution. As a condition of planning one of my projects, it was specified that an air source heat pump had to be installed. It was easy enough to source it, but I couldn’t find anyone trained to install it correctly and sign it off. It was a nightmare. I was stuck for months, and I like to think I have a large and competent network. That’s why this funding announcement is so relevant: it’s not just about traditional trades but about expanding our capacity to deliver modern, compliant, future-ready buildings.
This is where every developer needs to be. It opens the door to ESG-focused finance, helps meet lender criteria, and ensures we’re building to the standards that buyers and regulators increasingly expect.
I do believe we are now in a new era of collaboration. One of the overlooked benefits of this funding is how it encourages developers like me to collaborate more intentionally with the training ecosystem.
If developers know that local colleges are receiving funds to train construction workers, they can:
• engage directly to shape curriculum relevance
• offer real-world placements, which improve training outcomes
• build loyalty with trainees who are likely to return as full-time team members
This kind of ecosystem doesn’t just benefit my business; it benefits the sector. And, for SMEs or regional developers, this connection to local talent can be a game changer.
Nevertheless, that is not to say it will be easy. This isn’t a fix-all. Funding will take time to flow. Training outcomes will vary. And developers still face the ongoing challenge of retention, as well as finding talent now. Workers who will be trained may be lured by higher wages elsewhere unless the entire employment offer is attractive.
And there’s also a risk of skills mismatches. I’ve seen too many well-intentioned training programmes produce workers who aren’t job-ready or don’t match local development needs. That’s where feedback sessions are vital. Developers need a seat at the table. We need to tell skills bodies exactly what we need—and hold them accountable for delivering.
So, what does this mean for the future of development? This isn’t just about plugging a labour gap. It’s about shifting how we grow.
If we embrace the funding, engage locally, and rethink how we source and support our site teams, we can unlock scale. This will bring more predictable timelines, more cost certainty, and ultimately, more homes delivered. In a market starved of supply, that matters.
I’m optimistic, not just because of what’s been promised in the Budget, but also because of the way it challenges us to lead. As developers, we have the opportunity to shape the future workforce of our industry. That’s not just a responsibility—it’s a privilege.
But this will only work if it is executed correctly. The investment must translate into structured, relevant training and meaningful pathways into long-term employment. The new generation entering the workforce must be shown that construction is not just a fallback option but a career with substance, growth, and purpose.
We need to help them see that trades can be refined into lifelong, respected skills—and that these roles are essential to building the future of our communities. If we get this right, we’re not only solving today’s labour shortage but also building a resilient, skilled workforce for the next generation of property development.
As developers, we have the opportunity to shape the future workforce of our industry. That’s not just a responsibility— it’s a privilege”
Words by SPENCER WYER
Strategic development
director
at CLSQ
In bridging finance, speed is currency. Whether funding an auction purchase, securing liquidity for a time-sensitive refurbishment, or delivering short-term capital to a developer, delays can kill deals. And it's often the valuation process that slows things down.
Traditionally, bridging lenders have relied on desktop or physical surveys to assess a property’s risk—it’s a tried-and-tested approach, but one that increasingly seems out of step with the market’s demand for immediacy. As competition intensifies and loan volumes continue to increase, a growing number of lenders are asking the same question: is there a faster, smarter way to value property without compromising control?
AVMs have often been viewed with suspicion by the bridging market, which has traditionally preferred to stick with physical inspections. But with new refined models becoming available, now could be the time to rethink
AVMs are being adopted by a growing number of bridging lenders to help speed up the process. Although they are frequently used in the mainstream market, in bridging the uptake of AVMs has been slower as the lending model puts more emphasis on the asset.
Historically, in bridging, concerns over risk and recourse meant that AVMs were largely sidelined in favour of physical inspections. But today, due to a persistent surveyor shortage and an industry-wide push for faster completions, AVMs are being revisited with a more pragmatic lens.
Across mainstream lending, the use of AVMs has risen from 25% to 35% over the last five years and it is anticipated to reach 60%-70% in the coming years, according to a recent webinar we held with UK Finance.
Now it seems that bridging, with its time-sensitive nature, is following the trend. The need to assess properties quickly—especially for standard residential assets in strong postcodes—is prompting lenders to revisit their risk frameworks and
rethink legacy valuation models.
The impact on brokers is immediate and tangible. With faster valuations, brokers can provide quicker decision-in-principle (DIP) outcomes to clients, improving service levels and reducing fallthroughs. This is especially valuable in scenarios where speed of execution is the borrower’s top priority.
Borrowers, in turn, benefit from fewer delays, lower upfront costs, and reduced intrusion. In a competitive market where digital experiences shape consumer expectations, these advantages can be crucial to a deal's viability—particularly for portfolio landlords or time-sensitive investors navigating complex chains.
The primary reason why AVMs haven’t dominated before now is risk—specifically, the lack of lender recourse if an automated valuation proves inaccurate. In bridging, where property exit strategies are shorter and LTV thresholds can be aggressive, risk tolerance is naturally low.
Lenders are understandably cautious when it comes to automating something as central to the lending decision as property
risk. AVMs are fast, but they don’t give you protection if something goes wrong down the line. That’s why, in the past, many institutions have hit what we call an ‘automation ceiling’.
However, for lenders there are options that offer both speed and protection. For example, at CLSQ, we have launched the market’s first insured AVM solution, called VerifyQ. This system provides instant valuations with protection against loss should a repossession reveal the valuation was wrong.
Where a lender offers an insured AVM using VerifyQ, that valuation will be delivered using more than 800 datasets across 28 million UK properties, which are then triangulated with lender criteria, property type, LTV range, and geography. Rather than simply spitting out a value, it provides an insurability decision—meaning brokers can more confidently structure deals knowing whether a case is likely to receive an instant offer or require further valuation.
This means that speed no longer has to come at the expense of control. If a borrower defaults and the valuation is found to have been too high, the insurance policy—AA-rated, backed by Aviva, and valid for up to five years—covers the outstanding loan amount.
Crucially, such products unlock the ability to process lower-risk cases in seconds, allowing physical surveyor resources to be removed from routine cases and directed toward more complex or unusual assets where they can add most value, and where human expertise is still essential—such as high-rise flats, non-standard construction, or properties with suspected struc -
tural or legal issues
It’s important to understand that insured AVMs will never completely replace surveyors. Rather, they enhance the valuation ecosystem by enabling smart triage. Operationally, AVMs also free up underwriters and surveyors to focus on complex or higher-value deals. For lenders trying to scale without adding significant headcount, AVMs can contribute to faster throughput, more efficient triage, and stronger customer outcomes.
There’s also an ESG dimension to this approach. Travel and logistics mean that each physical valuation generates an estimated 4kg of CO₂ emissions. As bridging volumes increase, reducing reliance on site visits supports lenders’ sustainability goals—without compromising underwriting quality.
The time is now
AVMs have reached a turning point. For bridging lenders, they no longer represent an operational gamble, but a strategic opportunity. With tools like VerifyQ, the barriers to wider adoption are falling away. For brokers, understanding how AVMs work—and which lenders are using them—can provide a competitive edge.
Ultimately, those who embrace a mixed-model approach—combining automation, insurance, and expert surveying—will be best placed to thrive in a market defined by speed, transparency, and trust.
“FOR LENDERS TRYING TO SCALE WITHOUT ADDING SIGNIFICANT HEADCOUNT, AVMS CAN CONTRIBUTE TO FASTER
Words by STUART MOGG Managing director and head of financial services debt and capital advisory at
Despite government backing and an urgent need for highquality housing, the funding landscape can be frustrating for SME builders. Could development finance be scaled up to offer suitable solutions?
The development finance market has undergone significant evolution in recent years, shaped by market demand, the rising cost of raw materials, and shifts in investor appetite. Yet, despite an urgent need to build more housing, funding for projects remains distinctly polarised, dividing lenders by the size of the loans they offer and preventing the market from achieving its full potential.
This funding gap is particularly evident when comparing those who lend at or above £20m per development and those who lend below that level. At the larger end of the market, development finance lenders benefit from easier access to institutional capital, where loans are usually written on a deal-by-deal basis. Pension funds, insurance companies, and private debt funds are typically more comfortable investing at this level. This is due to the scale, the perceived lower risk per transaction, and the capacity to deploy large sums of money efficiently—as well as, crucially, a greater ability to turn down opportunities if they do not hit the desired size and scale, and the capacity to walk away from any lends that are underperforming.
Conversely, lenders that focus on the SME end of the market operate in a more fragmented and challenging funding environment. Institutional funding is harder to access in this segment due to the relatively small deal sizes, which (from an institutional perspective) often do not justify the high fixed costs of underwriting and monitoring. Instead, these lenders typically rely on private capital, family offices, HNW individuals, or their own balance sheets to fund developments. As a result, they often face higher funding costs and greater difficulty in scaling their operations compared to their larger counterparts.
Despite this, there is a compelling opportunity for lenders to consider smaller development loans. Demand for these remains high, particularly among the SME developers that form the backbone of housing delivery in many regions. These developers often struggle to secure financing from mainstream banks, which have retrenched from real estate lending since the global financial crisis and are constrained by stringent capital requirements.
This underserved segment represents one of the last parts of the specialist mortgage market that has not yet seen a full inflow of institutional capital. Of course, development finance—particularly within the SME space—still requires deep market knowledge, flexible structuring, and a hands-on
approach to risk management. However, technology and real-time data are beginning to play greater roles in standardising elements of the underwriting and monitoring process, which should help de-risk SME lenders and attract more institutional interest.
There is also significant potential for institutional capital providers to differentiate themselves by offering tailored solutions such as building deep partnerships with platforms, thereby possibly enabling wider asset origination opportunities. However, it’s not enough for the underlying developer to have knowledge of the sector—it’s also important for the institutional funder to have an element of understanding themselves. The concept of continuing to lend after an asset has underperformed is not a concept many asset-backed lenders are used to, but failure to fund a development can cause more harm than good, even in a stress scenario.
Words by VIC JANNELS
Bridging & Development Lenders Association
Small and medium-sized developers play a pivotal role in helping the UK tackle its ongoing housing shortage. As national housebuilding targets continue to be missed, it’s experienced developers that are able to build high-quality homes at pace— often through the conversion of under-utilised properties, regeneration of brownfield sites, and delivery of smaller-scale new-build projects that might otherwise be overlooked by volume housebuilders.
Development finance is the engine that enables this building, and in 2025 we are seeing continued strong demand from SME builders seeking to scale up their operations, diversify their portfolios, and respond to local housing needs. It is a segment of the market that deserves greater recognition—and greater support.
So, while there remains a clear divide in funding access between large and SME originators for developing finance, lenders may be poised to bridge that gap. Those focusing on SME transactions have a unique opportunity to grow, particularly given the current government support for housebuilding and the lack of quality housing stock in the UK. Equally, for institutional capital providers, development finance offers an opportunity to deploy capital in a less competitive space and build deeper originator partnerships.
Unlike bridging finance, which typically suits short-term acquisitions or refurbishment, development finance is tailored to schemes requiring significant construction. As Scott Marshall
of Roma Finance explains, the distinction is clear: if the cost of works exceeds 50% of a property's current market value, development finance becomes the appropriate route. Structured with drawdown facilities that align with the build programme, it gives borrowers flexibility while helping to manage interest costs.
Cam Levitt of Avamore Capital points out that development funding also allows borrowers to leverage a project's GDV, rather than the current value alone. This can significantly increase the capital available, enabling developers to deliver more ambitious or larger schemes—as long as the fundamentals of the deal stack up, of course.
However, this is a more complex process than a standard bridge would be. Development finance involves rigorous legal due diligence, professional Red Book valuations, and ongoing monitoring—elements designed to mitigate risk and protect all parties. It’s a specialist sector that requires lenders with specialist expertise throughout the lifecycle of a development loan.
Critically, success hinges not just on the numbers but on the strength of the borrower. As Ashley Ilsen of Magnet Capital explains, the developer’s experience, track record, and capability to manage the project day to day are as important as the site itself. Lenders are placing increasing weight on a borrower’s understanding of their local market, their past delivery, and their preparedness to navigate challenges that may arise during the build. The general consensus is that 2025 will be characterised by a shift away from large-scale, high-GDV ‘trophy’ schemes, and towards more pragmatic developments—smaller sites with strong exit routes and achievable sales values. These are the projects where
SME developers excel, and where development finance continues to provide meaningful support.
That said, misconceptions about development finance persist—particularly with regard to timelines and complexity. This is not simply a more expensive form of bridging. It’s a distinct lending product that requires detailed assessment, close collaboration between lender and borrower, and timely communication across all parties involved.
With demand for new homes still far outstripping supply, supporting the ambitions of SME developers is not just good business—it’s vital to the future of housing in this country.
At the BDLA, we believe development finance is at its best when built on partnership, and we’d like to thank Scott, Ashley, and Cam for partnering with us to contribute their expertise and insights.
Words by MIKE ALLEN BDM at Aspen Bridging
In a market where timing is everything, bridgeto-let solutions offer developers a flexible, seamless path from build to sale or rental— reducing delays and protecting profits
Within the current property world, speed and flexibility mark the difference between profit and pressure for developers.
Most will utilise a heavy refurbishment or development product to fund their project with the aim of being fully finished and achieving either a sale or BTL refinance within the initial term, however, timescales are forever a challenge even for the most experienced developers.
Once a development reaches completion, there are two simple exit options: sell the assets or refinance to retain as a long-term investment. That’s not rocket science, but getting from A to B is often easier said than done.
The original heavy works or development loan, typically between 16 to 24 months, is only sufficient to fund both the works and sales or refinance period when the stars align.
The works cannot overrun; the planners, build control inspectors, Natural and Historic England, archaeologists, utilities companies, solicitors and warranty providers must all be satisfied perfectly upon schedule.
Even when your clients have completed the build within the initial timescale, the sales process can be long-winded. Rightmove reported in their April House Price Index that the average time to find a buyer nationally in the UK is just under three months, and completing a sale thereafter is about a four-month process, with sales often collapsing along the way. So, a 12-month additional period is often the floor for a successful sale exit, especially if your client wishes to test the market at a higher level initially.
Additionally, developers who are looking to retain their developments as a long-term investment will similarly have to navigate a lengthy underwriting, valuation, legal and BTL stress-testing process, which again may involve significant delays for your client.
This is why so many developers, including some of the most capable and experienced, have to be willing to part with yet another slice of profit to seek out and pay for a development exit loan or to obtain expensive bridging extensions before refinancing swiftly away onto suboptimal term products. In the very worst-case scenario, time runs out altogether, and the original lenders foreclose.
Aspen has recognised these common issues, which is why we have launched a unique heavy works bridge to let and (just now piloted) ground-up bridge to let to step in as solutions for developers seeking flexibility, competitive rates, and a secure exit.
These products are designed to fill the void and act as the perfect combination of a development loan and a matched guaranteed BTL (during which borrowers can either hold or sell).
Let’s consider a couple of real-life examples in which a product like this could help.
Here, your client is an experienced developer undertaking either a multi-unit conversion or a significant ground-up scheme building multiple residential or mixed-use units.
Utilising a heavy works or ground-up followed by a BTL product can be utilised to help your client in the following manner:
• phase one provides 12 to 24 months to undertake works. Our product, for example, is available at up to 80% LTV gross of purchase price with 100% of works and professional fees funded in arrears. Heavy works rates are now available at 0.78% pm and ground-up at 0.85% pm.
• phase two, assuming they have not sold or refinanced in phase one, allows the borrowers to seamlessly transfer onto the BTL phase.
The BTL phase is designed to facilitate your borrowers’ plans, whatever they are. For example, if the exit is sale, they can have a oneyear BTL, and if they are aiming to retain, they can access a two-year BTL. To illustrate how this could be beneficial to borrowers, our BTL
is serviced at a rate of 6.49% p/a (equivalent to 0.54% pm) with lower fees than a traditional development exit.
This offering gives your developer anything up to four years overall of development and development exit lending in a single flexible facility and pays you both initial and transfer procuration as the broker.
Using the BTL is also much cheaper than using a separate traditional development exit facilit,y where the loan amount is typically grossed or compounded up and interest is then charged at c.10% p/a on a higher debt figure.
Additionally, the BTL phase two offers your developer clients greater certainty, as it is guaranteed in the initial facility, subject to works being completed, and can be accessed without another round of third-party valuations and legals.
Your client has approached you for a solution to enable the purchase of a residential property, followed by undertaking significant extension works, and will then be looking to sell as a refurbished house.
Another borrower, who has capital to invest, has come having researched the yields and income that can be generated from purchasing and converting into HMOs in certain urban areas and has found an experienced contractor to work with them.
A bridge-to-let product could offer both clients the following flexibility on this. For example, a nine-month or one-year bridge—with up to 80% LTV gross of purchase price, with 100% of works funded using no monitoring surveyor.
Secondly, a one-year BTL for the sale exit client and a two-year BTL for the HMO client, which both borrowers can flip to from month nine if works are completed at a pay rate of 6.49% p/a.
On the transfer to BTL, similarly, both these clients will not have to pay for a full valuation and will have no further solicitor fees to be paid, plus the property can be tenanted within our bridging facility, meaning instant income.
Whether you or your client has just exchanged on a purchase of a multi-unit development site or found the next property to convert or renovate, bridge-to-let offers a hybrid of short-term finance for the works and a serviced BTL for sale or retention.
It offers your client an initial term to carry out works, which seamlessly rolls into a BTL term without the need for a new valuation, legal process, or lender underwriting.
Your clients have a pre-approved and fully underwritten exit offering the ability to sell or retain for up to two years over the works period before the first spade goes into the ground.
We believe products like these are an innovative solution to the challenges developers and landlords face that all responsible brokers should educate themselves about to offer much-needed time and certainty to the lending supporting their clients’ projects across the UK.
Words by IAN BARNETT National land director at LRG
Bureaucracy, expense, delays— but deregulating the muchmaligned planning system is too simplistic a fix. Housing is not just about planning—it involves a whole ecosystem of development—and needs a broader, national approach
Given the scale of the government’s 1.5 million homes pledge, it is inevitable that the planning system has come under scrutiny. Some argue that loosening planning laws could pave the way for faster delivery.
However, while there may be merit in refining elements of the system, planning laws exist for good reason to ensure housing is of a high standard, in appropriate locations and supported by infrastructure and services such as schools, healthcare and transport. The solution is more complex than simply deregulating planning.
Planning laws are often perceived as an obstacle but, at their core, serve as a system of checks and balances. A laissez-faire approach might allow for faster approvals but also risks poor-quality schemes, strains on infrastructure and environmental degradation. The system is not a bureaucratic hurdle it underpins sustainable growth.
Moreover, planning delays are not necessarily causing bottlenecks. In many areas, thousands of homes have consent but have yet to be built. This highlights that the housing shortage is not solely a planning issue but extends into construction capacity, site-specific legal or environmental issues and economic conditions.
Targeted approaches can help. Growth zones where applications are fast-tracked for developments that align with strategic priorities (a recent example is a simplified planning zone for AI and related infrastructure) could streamline delivery as could expanding permitted development rights (PDRs) for conversions and brownfield redevelopment.
However, these should be applied with caution as they can undermine the integrity of the planning system. PDR relaxations have led to provision of substandard housing in inappropriate locations, particularly in the case of commercial-to-residential con-
versions. If growth zones and PDR expansion are to be implemented, they need clear quality controls.
Rather than deregulation, I believe the answer lies in a comprehensive national spatial strategy. Under the previous government, a piecemeal planning framework often led to piecemeal development, with decisions driven by local politics rather than a cohesive national vision.
The current government, through reimplementing housing targets, strengthening their role in local plans, adopting a more regional approach and introducing a national land use framework, is moving in the right direction.
Even so, we still lack a national spatial strategy, which would help ensure development happens in the right places, providing clarity by balancing housing needs with economic growth, infrastructure investment and environmental sustainability. This would provide clarity on how different areas can accommodate growth and help address regional inequalities.
The return of the national infrastructure committee and an infrastructure-first approach, bringing together infrastructure, housing, energy and climate change in a depoliticised environment to expedite settlement creation is part of the solution. Regarding removing the influence of politics, we could learn from the German and Dutch systems. Germany’s strategic planning decisions are made through regional plans at a federal level; the Netherlands has something more akin to a national plan. Both allow development to proceed largely unhampered by political interference.
In the UK, the closest we got to these were the regional spatial strategies (RSS). These established a spatial vision and strategy specific to a region, for example the identification of areas for development with a 20-year timescale while providing direction for local development frameworks at a borough/district level.
The RSSs provided a cohesive approach despite the inherent
problems within a two-tier system. Even then, politics hampered progress: RSSs were never allowed time to crystallise and were withdrawn before they had chance to come to fruition.
Housing delivery and strategic planning are fundamentally (or should be) apolitical in the sense that most politicians agree housebuilding is a major component of the economy, that we should build enough homes and that they should be built where people want to live, with appropriate infrastructure and in a manner that protects and enhances the environment and biodiversity.
A national plan, with its clear framework, would offer several key benefits: it would give the private sector greater confidence to invest in housing and infrastructure projects, better align housing and infrastructure, depoliticise planning and reduce regional disparities.
The government has committed to publishing a land use framework this year. It has indicated this will include: principles it will apply to policy with land use implications; how policy will develop to support land use change; the release of land use data and analysis to support innovation in spatial decision-making; and tools to support land managers.
The consultation document makes a commitment to “taking a spatial approach”, stating how location and climate change affect land use and must be taken into account at a national level. It also looks at “land use incentives”, how the government makes policy and the information in planning applications that we provide to decision makers.
However, on reading the document, I feel it is somewhat lacking: it appears to assume each piece of land has just one use, failing to appreciate, for example, that housing developments can deliver shade and biodiversity without land having to be singled out for this. It makes only one reference to the National Planning Policy
Framework. Ditto biodiversity net gain, which provides the vital link between housing (and, from November this year, infrastructure too) and environmental protection.
For too long, a haphazard approach has been taken to how infrastructure is sited or homes are built. For years, the planning system has seen almost constant upheaval; the previous stripping back of planning policy created a vacuum that led to a large proportion of housing being delivered on appeal.
To make better decisions into future decades, we need data. This will support homes to be built where there is access to water and clean air, and major infrastructure being built where it least disrupts nature. At LRG, we use GIS software to undertake research using a wide range of data, from planning history to ecological and conservation designations, which helps us to identify locations for development.
The housebuilding industry has faced ever-increasing costs and, for each new layer, there is a new term: the Community Infrastructure Levy, biodiversity net gain, affordable housing and suitable alternative natural greenspace. Larger sites in more affluent areas and major housebuilders are generally more able to swallow these costs. However, lower value areas, smaller homebuilders and smaller sites have struggled.
Other critical factors, including labour shortages, material price inflation and supply chain disruptions, cannot be resolved by altering planning laws. Then there are market conditions. Developers need confidence that there is demand for new homes, particularly when mortgage interest is high. Additionally, many local authorities are underfunded and lack the resources to process applications swiftly. Speeding up approvals requires investment in planning departments rather than a wholesale weakening of regulations.
Meeting the government’s housing targets requires a multifaceted approach. While there is a case for simplified growth zones and an expansion of PDR, a wholesale relaxation of planning laws is not the answer.
The focus should be on creating a national spatial strategy and a system that better encourages housebuilding in the right areas, along with addressing supply chain and labour issues. Housing delivery is not just about planning—it is about the entire ecosystem of development, from infrastructure to market confidence. A more strategic, well-resourced approach is needed if we are to meet our housing ambitions without sacrificing quality and sustainability.
When choosing a lender, make sure you consider the full facility costs, which can be hidden in many guises.
We don’t charge admin, application or upfront fees, and when combined with our market-leading rates from 0.69%, it mean’s we’re confident our pricing won’t be beaten. Our name makes sense now, doesn’t it?
Brokers and property professionals will do well—very well, in fact—if they look North
Words by KARL WILKINSON CEO at Access FS
In a property market characterised by nuanced regional narratives and shifting economic tides, one trend is becoming increasingly clear: the North of England is not just staying afloat—it’s charting the course. While national headlines might be oscillating between the lows of tariffs and the highs of trade deals with India, recent property market data paints a compelling picture of resilience, growth and opportunity concentrated in the North East, North West and Yorkshire and The Humber.
For brokers and property professionals, grasping this is no longer just advantageous— it’s essential for helping clients navigate the landscape of 2025 and beyond.
The headline figures on house price growth, a key marker, unequivocally point towards northern England as the engine room of growth. Zoopla’s April 2025 House Price Index reveals that while national house price inflation is showing signs of moderation, the momentum remains firmly within the northern regions. The North West, a consistent performer, recorded an impressive 3% year-on-year price uplift, closely followed by Yorkshire & The Humber at 2.5%. Scotland also aligned with the northern surge, posting a healthy 2.7% growth.
When we broaden the lens, Nationwide reinforces this, stating that prices in northern England were up a significant 4.9% yearon-year, starkly “outperforming southern England.” This is not a fleeting anomaly; it’s a sustained pattern. The same Nationwide report underscores this north-south divide, noting that “across England overall, prices were up
3.3% year-on-year”, but the real dynamism propelling this average is clearly concentrated above the Midlands. Perhaps the most striking individual regional performer, according to Zoopla, is Northern Ireland, topping all UK regions with a remarkable 6% price inflation. However, within England itself, the Office for National Statistics (ONS) data for January 2025 highlighted the North East as experiencing the greatest annual price rise at a staggering 9.1%. This kind of figure demands attention and signals a fundamental rebalancing of where value and growth are being found.
This price buoyancy in the North isn’t occurring in a vacuum; it is underpinned by robust transactional activity. The Q1 2025 Property and Homeowner Report from TwentyCi provides crucial insights here, revealing that sales agreed surged by an impressive 14% year-on-year in the North West. The East Midlands mirrored this strong performance, also recording a 14% rise, further cementing the Midlands-North axis as the current transactional hotspot. When sales agreed nationwide are up nearly 10% year-on-year in Q1, it’s clear regions such as the North West are significantly contributing to and exceeding this national average. This translates directly into more opportunities for brokers, more deals to be financed, and a more vibrant market ecosystem.
This northern dynamism stands in stark contrast to the sluggishness observed elsewhere. London, once the undisputed champion of UK property, continues to lag significantly. Zoopla’s figures show the capital limping along with just 0.7% price growth and the broader South East also dragging its proverbial feet at a mere 0.3%. Nationwide’s data corroborates this, identifying London as the UK’s weakest performing are for house price growth, with a modest 1.9% year-on-year rise. These figures, ultimately, indicate that while demand in Southern England is higher than a year ago, the area is struggling to keep pace with the growth in supply.
Scotland, despite the respectable price growth noted by Zoopla, presents a more mixed picture when it comes to market activity. The same TwentyCi Q1 2025 report that lauded the North West showed Scotland, alongside inner London, recording only a 4% growth in sales agreed. This suggests that, while prices may be holding or increasing, the actual volume of transactions is not keeping pace with the more active English northern regions. This is further compounded by the March RICS Survey for Scotland, which noted a concerning fall in new buyer enquiries, registering a net balance of –9%, a decrease from February and a clear indicator of potential regional weakness in the pipeline.
Delving deeper into the success of the northern market, certain cities emerge as beacons of investments and activity. Manchester, an ever-increasing favourite, continues to justify its reputation. It tops TwentyCi’s sales agreed by major cities chart with a remarkable 16% yearon-year in Q1 2025. This transactional velocity is complemented by solid capital growth, with Zoopla listing Manchester as a top city for capital appreciation at 2.9% year-on-year. Continuing infrastructure investments and significant population growth continue to fuel demand.
Leeds in another strong northern performer. Noted for its growing young workforce, particularly within the burgeoning tech and financial sectors, Rightmove places it as fourth most attractive city for first-time buyers (FTBs).
Crucially for brokers, for whom volume is often a key metric, Leeds saw the second most homes sold by agents at 9,058 units. Liverpool also shines brightly, particularly for investors prioritising income. It is noted for strong rental yields, around 8%, and also features among Zoopla’s top cities for capital growth, mirroring Manchester with a 3% year-on-year increase. Even Glasgow, despite the broader Scottish caution, was named by Rightmove as Britain’s most in-demand city for FTB buyers in 2025. These cities have active, dynamic markets driven by FTBs, attractive rental yields and promising capital growth forecasts.
While the North takes centre stage, it’s worth noting Birmingham’s standalone strength. Though situated in the West Midlands, it commands attention. Zoopla includes Birmingham
in its top five cities for capital growth, registering a healthy 2.4% year-on-year. ONS data for Q1 2025 reports Birmingham with the highest total house sales in any local authority area in the UK, shifting an impressive 9,313 properties. This underscores Birmingham’s status as a major urban centre with significant transactional flow, making it a key focus point for brokers operating in and around the Midlands.
The engine driving much of this regional rebalancing is, unsurprisingly, affordability. The national price:earnings ratio has seen some welcome moderation, down eight times from a previous peak of 8.4. However, the regional disparity remains stark. The North East proudly wears the crown as the most affordable region in England. Here, nearly half of all homes (49.9%) sell for less than five times average earnings. This accessibility is a powerful magnet for buyers. Contrast this with London, which, despite some improvement, remains the least affordable region at 11 times, where a mere 3% of homes sell for less than five times average earnings. This affordability advantage in the North is a fundamental market driver, fuelling demand, supporting prices and generating healthy sales volumes.
The evidence from early to mid-2025 paints a clear and consistent picture. The North of England, encompassing the North West, North East, and Yorkshire and The Humber, is demonstrating superior house price growth, robust sales activity, and is home to some of the UK’s most dynamic city markets. This performance is underpinned by a significant affordability advantage compared to London and the South East.
For bridging and commercial finance professionals, the message is clear: the northern regions are where momentum and opportunities are now most concentrated. With Manchester’s investment appeal and transactional velocity, Leeds’ FTB demand and Liverpool’s yields and overarching price growth and sales volume across the North West and North East, the compass for UK property investment and lending activity is firmly pointing North. Ignoring this pronounced regional shift is to overlook the market’s most vibrant and promising theatre of operations.
This year’s annual Directors’ Lunch, generously sponsored by Brightstone Law, marked more than just a cherished tradition—it was a celebration of new beginnings. We’ve officially settled into our new home in Guildford, and with fresh surroundings has come fresh momentum. Our magazine is thriving like never before, with growing subscriptions, a rising wave of online followers, and an ever-expanding community of engaged readers. Here’s to turning the page on an exciting new chapter—thank you for being part of the journey.
Photography by DHUHA AL-ZAIDI
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In March this year, former lawyer turned property developer Lisa Griffiths was welcomed to an all-female business development team at Bridge Help. The business development manager talks excitement working with CEO Chris Stellars, leveraging her background in law and shares how her expertise in property extends to her hobbies
Congratulations on your new role! What attracted you to join Bridge help?
I have worked with Chris Sellars throughout my career—and when he approached me to join the team—I couldn’t say no. He is great to work with, and I knew that under Chris, Bridge Help would be a company that would put brokers and borrowers first. From what I’ve seen, that is definitely the case.
You’ve had a diverse career journey— from law to property development to commercial finance. How have those experiences shaped your approach to business development today?
My legal background in property has given me a great understanding of the law and the conveyancing process, while my property experience–renovating, buying and selling them— also means I have a good understanding of the construction process. Combining the two is certainly very useful when it comes to interpreting surveyors reports and working with clients on loan applications. For instance, it can be immediately obvious if a loan will be straightforward, or whether it will be trickier and need a RICS valuation rather than a desktop one.
“WHAT IS A CHALLENGE IS ALSO AN OPPORTUNITY”
We heard you like DIY and interior design. If you could renovate or design any famous property, which one would it be and why?
I would love to do the interior design for a famous hotel, like The Savoy—where money is no object. I could just get what I want and didn't need to work within a budget. It’s a beautiful place, I’ve had tea there before and loved the art deco styling.
If you weren’t in this industry, what dream job would you love to try out for a day?
The dream would be to be a presenter on A Place in the Sun on TV for a day, helping people find a home in somewhere like Italy. That’s next on my property development list: a property in rural Tuscany in Italy.
What’s one thing people would be surprised to learn about you?
My love for property development and interior design means that I have owned and lived in 26 properties in 30 years—one of them for as little as six months!
As someone who works closely with brokers and borrowers, what is your go-to advice when it comes to collaborating to secure deals for clients?
The key thing with bridging finance is that borrowers want it quickly. It’s crucial to keep communication lines open and have as much information as possible about the property at hand—such as paperwork, valuation, full address, etc. Also, a clear idea of how much they want to borrow and what their exit strategy is. If they have all this information, then I can immediately get the property valued, into legals and then onto completion.
What challenges and opportunities do you foresee in the bridging space this year? How will you go about tackling them?
What is a challenge is also an opportunity. With a lot of larger landlords selling their portfolios because of factors like rising mortgage rates, increased taxation, and stricter regulations, this is creating opportunities for first-time and small landlords who are keen to snap them up. To help them, we’ve introduced cost-effective desktop valuations, which in many cases means the properties don’t need a full RICS valuation.
Can we expect any exciting announcements from Bridge Help in the next 12 months?
Growth is always on the cards at Bridge Help, so I am looking forward to seeing some new faces in the office!
Now that you are part of an all-female business development team, how does that influence the team dynamic and the way you engage with clients?
It’s an incredibly supportive culture at Bridge Help—both male and female. There’s great energy and a desire to get things done. I think that comes across when we talk to our clients.
You mentioned a passion for helping people realise their property ambitions—can you share a favourite personal project that reflects that passion?
My favourite project was my very first deal with Bridge Help. I was new to the business and to the sector, but within three weeks I secured a loan. It was a new experience for both me and the broker (as it was his first auction property purchase), but we worked together and supported each other to get a deal over the line quickly for his client. It has given him the confidence to offer more auction bridging loans to clients.
