Development finance specialist Assetz Capital has launched a new funding model to speed up housing delivery in the UK.
At MIPIM 2025, the firm announced an increase in loan-to-gross-development-value (LTGDV) to 72% and loan-to-cost (LTC) to 87.5% for housing projects.
The move is aimed at providing developers with stronger day-one financial support and reducing their reliance on equity and costly mezzanine finance.
Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said: “Developers need funding certainty and strength of large funding from day one, our enhanced senior lending terms for housing provide precisely that.
“By increasing our LTGDV to 72%, it means we’re offering a more aggressive and developer-friendly solution that reduces the equity burden, improves cash flow, and speeds up project delivery through providing stronger day-one advances on all housing deals.”
Fraser added: “A lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects.
“Reducing the need for mezz will keep things more profitable and allow developers to spread their cash across more schemes.
“Our mission is simple: to enable more homes to be built, faster.”
He said: “By launching this initiative at MIPIM 2025, we’re ensuring the UK’s development sector remains focused on accelerating housing delivery through smarter, fairer funding solutions.
“Lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects by giving a higher day 1 advance is part of this solution.”
