With a shortage of homes available for the UK public, it is no surprise that more people are turning to property development finance.
Clearly, there is a market of people in need of somewhere to live, and buy-to-let buyers can capitalise on this opportunity by sourcing funding and moving forward with their current imagined projects.
The biggest hurdle for property developers is finding this funding to turn their dreams into a reality.
This is where property development finance comes in useful – a type of short-term funding (often the investor’s own money) which is given to property developers.
Unfortunately, many banks turn down property development funding because they deem these projects too risky.
Since we are using our own money at Hunter Finance, we are more willing to take risks.
Why is development finance a good thing for the housing crisis?
Although current Prime Minister Boris Johnson has promised to deliver one million homes by the end of 2025, only time will tell whether or not this occurs.
Furthermore, this proposal is nowhere near the 300,000 new homes most experts in the UK believe we would need to even begin to combat the current undersupply of housing in the UK.
Due to the current period of economic uncertainty, many mainstream lenders such as banks are not willing to offer loans for property development due to increased risk-aversion.
Additionally, it may take longer to receive a loan from the bank, which can cause problems if developers have a planned timeline.
This reluctance from banks provides a great opportunity for property development loan services.
Rather than turning away viable development plans, at Hunter Finance we are committed to providing competitive rates on property loans for both personal and commercial use.
We lend to developers from private funds, for new build projects, redevelopments and major renovations, with the hope of contributing to a healthy property market and future of potential homes for UK citizens.
At Hunter Finance we offer property loans of up to £2.5m and bridging loans up to £1m.
We have been lending to property developers for over 9 years, and we are happy to provide over 60% towards the land/property purchase.
For developers who are interested in building buy-to-let properties (especially for large scale flats or communal living buildings), it is often easy to earn back profit fast through renting the new build.
To conclude, by creating affordable housing for UK residents, developers can simultaneously help alleviate the housing crisis while continuing to make a profit.
See the developments we have financed