One in five property developers have faced pressure from their lenders, according to research carried out for Octane Capital.
The survey found that many are struggling with cost overruns, project delays and tighter funding, putting schemes at risk.
Late-stage projects were hit hardest, with 18% saying their lender applied the most pressure during sales or completion, compared to 10% at the start and 7% during construction.
The main reasons were cost overruns (20%), project delays (17%) and tough market conditions like higher interest rates and softer values (17%).
Lenders often responded by demanding higher fees or rates (24%), delaying or withholding drawdowns (22%) or selling or transferring loans (20%).
Some developers were told to sell units at lower prices to pay back loans faster (17%), while 17% said their funding had been threatened.
Only 16% of developers described their lender as very supportive.
Over half (57%) said their lender was not supportive.
As a result, 23% turned to specialist lenders for help in the past year.
Jonathan Samuels, CEO of Octane Capital, said: “Cost inflation, market uncertainty, and delays are part of the reality of development, but traditional lenders are often quick to apply pressure rather than work collaboratively.
“This can leave projects at risk of stalling or being sold off prematurely.
“Specialist finance can provide a vital lifeline in these circumstances, offering the speed, flexibility, and partnership approach that developers need to overcome challenges and deliver homes.”
Samuels added: “At Octane Capital, we understand the pressures developers face and are committed to providing solutions that keep projects moving, even when the unexpected happens.”
