Most property developers underestimate the pressures of moving from small to mid-sized business, says Shawbrook.

It’s found that 51% of property developers underestimate the financial demands of scaling, while 46% used personal savings or remortgaged to fuel growth.

Revenue growth ultimately outpaced rising costs for 38%, but access to suitable finance remains a barrier.

Nearly a quarter of developers (23%) reported moments of isolation during their scale-up journey and a fifth (20%) experienced higher stress levels as operational demands grew.

Many also invested heavily in their business’s potential. Nearly half (46%) used personal savings or remortgaged to fund growth, showing the extent to which founders are backing the future of the UK’s mid-market. 

And although 51% conceded that the financial risks were greater than expected, strong commercial performance followed: 38% reported that revenue growth eventually outpaced rising costs.

But access to suitable scale-up finance remains a friction point. 

Nearly a third (30%) of property developers said they struggled to secure funding aligned to their growth stage.

Property developers highlighted several forms of support that would make scaling more sustainable, including:

• Help navigating regulation and/or compliance – 33%
• Decreases in national insurance – 32%
• Recruitment and/or talent acquisition support – 28% 
• Access to tailored finance or funding – 27%