Almost a third – 30% – of property developers say they have struggled to secure “scale-up finance” for medium-sized business, which shows a “gap in specialist financial support” for this market sector.
According to research by Shawbrook, which surveyed around 250 property developers who are funding or budget allocation decision-makers at medium-sized firms with an annual turnover of £5m-100m, nearly half – 46% – said they had used personal savings or remortgages to fund growth.
Over half said the financial risks were greater than expected, but 38% reported that revenue growth eventually outpaced rising costs.
Around a third of those surveyed said help with navigating regulation and/or compliance would help them make scaling more sustainable, along with decreases in National Insurance.
Approximately 28% said help with recruitment and/or talent acquisition support would be helpful, while 27% pointed to access to tailored finance or funding.
Nearly a quarter of developers reported “moments of isolation” during their growth journey and a fifth said they had higher stress levels as operational demands increased.
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Terry Woodley, managing director of development finance at Shawbrook, commented: “The property development industry is vital to the UK’s economic strength, and developers are clearly willing to back their ambitions with significant personal commitment. Their success shows what is possible when businesses scale well – but it also highlights where more tailored support could unlock even greater growth.
“With red tape and a depleting workforce being the biggest barriers to property developers, it’s crucial that they are given support to continue scaling up, whether this is through legislative changes or funding opportunities. The industry continues to be ripe with potential, it just needs the proper tools to flourish.”
