Assetz Capital has launched a first-time developer finance product designed to help experienced business and property professionals enter the UK housing development sector.
The initiative aims to broaden access to development funding for those who have completed fewer than two projects but can demonstrate relevant experience in areas such as construction, project management or business operations.
Under the new offering, developers can access funding of up to 70% loan-to-gross-development-value (LTGDV) and 85% loan-to-cost (LTC), with minimum cash contributions starting from 5% to 7.5%, depending on structure and experience.
Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said the new product is designed to open the door for credible new entrants who are often excluded by traditional lenders.
He said: “We want to support the smart, ambitious business and property community with the capital and vision to deliver quality homes – but who may not yet have development experience levels set by some of the banks who remain a blocker to wider housing delivery.
“By combining proposed developers’ financial resources with our expertise and structured processes, we can deliver safe, well-managed projects that meet market demand. This is about opening doors responsibly, providing the right leverage for the right projects and people.”
Fraser added: “By welcoming capable people with capital into the sector, we’re helping to expand the SME developer base and bring new housing to market at pace.
“We will look to focus on the project team, contractor, project complexity, location, PG coverage and strong contingency to ensure the right balance is kept.”
