Over a third of brokers working in the property finance sector have said they think builders and developers will find it harder to secure funding for new projects over the next year.
However, United Trust Bank, which spoke to 300 brokers, found that almost 60% of respondents believe the availability of development finance will remain largely the same over the next twelve months.
Only 3% of those surveyed said they think it will become easier for builders and developers to secure funding.
“There’s clearly a perception among brokers that any jitters about the UK property market will lead to the availability of funding for SME developers drying up,” says Noel Meredith, Executive Director of United Trust Bank.
“Indeed, there have been indications that some lenders, or the funders behind them, have reconsidered their appetite for development finance following the referendum.”
“However, several specialist banks have funds available and are very keen to lend them.”
“Development funding has certainly not disappeared, but the lending landscape has changed. In the last few years, established and newcomer specialist lenders have demonstrated that they are credible and in many ways superior alternatives to the larger banks which once dominated the market.”