"Despite Government intervention, planning approvals still remain low, developers are dealing with unprecedented delays"
- Andrew Fraser - Assetz Capital
Assetz Capital has cut rates across its refurbishment, regeneration, and development-exit loans, with all borrower rates now starting at 8.75%, reflecting a shift by developers toward conversion projects amid growing planning delays in the UK.
Planning approvals for new homes in England continue to decline. According to the Home Builders Federation’s Q2 2025 Housing Pipeline Report, only 48,022 units received planning permission, a drop of 23%.
Just 1,559 housing projects were approved in Q2, down 33% from Q1 2025 and 45% compared with the same period last year. Over the rolling 12 months to June 2025, approvals reached approximately 221,900 units, marking the lowest annual total in over a decade.
Amid this uncertainty, smaller developers are increasingly focusing on refurbishment, conversion, and adaptive-reuse schemes. These projects typically deliver faster, carry lower planning risk, and make more efficient use of existing stock.
Assetz Capital’s updated lending products include:
Development exit loans – from 8.75% p.a.
Residential refurbishment loans – from 9% p.a.
Planning assistance loans – from 8.75% p.a.
“Despite Government intervention, planning approvals still remain low, developers are dealing with unprecedented delays. This is pushing many toward refurbishment and conversion projects, which are quicker to deliver and far less exposed to planning risk," said Andrew Fraser, chief commercial officer at Assetz Capital. “Our new pricing is designed to support that shift."
"But this is about more than rates, it’s about speed, certainty, and the ability to fund through complexity. We’re calling on brokers to bring regeneration and conversion cases forward this Autumn, because these projects are now critical to keeping UK housing supply moving.”
