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Finding funding hardest aspect of business for Yorkshire property developers, study shows

Michael Crossland

Published 27th Aug 2024, 16:45 BST

Over two-thirds of developers said that finding funding was the most complicated aspect of their business, while 58 per cent stated that there are limited funding options for developers.

Significant numbers of developers have been rejected from accessing funding, with nearly seven-in-ten having been rejected by a mainstream lender on at least one occasion.

Terry Woodley, head of development finance at Shawbrook, said: “Housebuilding is a key issue on the political agenda, but developers need support to understand the funding landscape and access the funding levels they need so that these much-needed projects can get off the ground.

The Leeds Skyline from Holbeck  13 August 2020.  Picture Bruce RollinsonThe Leeds Skyline from Holbeck  13 August 2020.  Picture Bruce RollinsonThe Leeds Skyline from Holbeck 13 August 2020. Picture Bruce Rollinson

“These developers that have struggled in the early stages of their business have gone on to build significant businesses, yet it’s clear funding is still a real barrier for entry, and early stage growth. If the gap is not addressed, promises to boost housing numbers will be very difficult to achieve.”

70 per cent of developers said that it was particularly difficult to find funding when they were starting their business. The same number also felt that it was harder to secure funding for a smaller business.

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