Specialist property lender, Assetz Capital, has reported an increase in demand for larger-scale residential development projects, as it continues to back SME housebuilders delivering homes across the UK.
Over the past nine months, the lender has seen a 40% rise in development finance enquiries above £5 million, reflecting both growing demand from experienced developers and Assetz's ability to provide certainty in a complex market.
This momentum is further demonstrated by a strong forward pipeline, with the average scheme size enquiry increasing to more than 20 units, highlighting the business's expanding role in funding schemes that make a meaningful contribution to UK housing supply.
Assetz has lent £1.72 billion to property developers over the years, helping bring almost 9,000 homes to market. The lender supports developers as they scale, providing flexible funding solutions across schemes ranging from £1 million to £15 million and beyond.
Recent transactions illustrate this continued focus on larger-scale development. At Rectory Gardens in Lancashire, Assetz provided a £6.3 million development loan to support the construction of 22 new homes, delivering a mix of detached and semi-detached properties, flats and bungalows to meet local housing needs.
Similarly, at an old mill in Saddleworth, a £7.2 million facility from Assetz is enabling the conversion and extension of a historic mill into 38 one to three-bedroom apartments, bringing a redundant building back into productive use while preserving its character.
Highlights from the lender's recent activity include:
- A 40% rise in development finance enquiries above £5 million over nine months
- Average scheme size enquiries growing to more than 20 units
- £1.72 billion lent to property developers, supporting almost 9,000 homes
- Flexible funding available across schemes from £1 million to £15 million and beyond
Andrew Fraser, chief commercial officer at Assetz Capital (pictured), said: "Larger development projects are playing a critical role in addressing the UK's housing shortage, particularly when delivered by experienced SME housebuilders.
"As market conditions remain complex, access to experienced, specialist funding partners is becoming increasingly important, particularly for developers delivering at scale. Our role is to provide the certainty and flexibility they need to move forward with confidence."
