“We simply can’t afford the luxury of a slow start to Labour’s housing delivery ambitions and, in this respect, the specialist finance sector can play a pivotal role in driving market activity”
– Thomas Cantor – West One Loans
Analysis from West One Loans indicates that while new homes are being built across England, historic delivery rates suggest the country is already behind in addressing the housing crisis. The data also shows that new home starts under the Labour Government are progressing slowly.
West One Loans argues that specialist finance can play a key role in supporting faster development, unlocking complex sites, and enabling smaller developers to bring forward projects that might otherwise remain dormant, helping the country meet its housing targets by 2030.
The analysis shows that over the past five years, England has delivered an average of 231,234 net additional dwellings annually, with the South East seeing the highest average at 40,458 homes per year. While this represents a substantial contribution, it leaves a significant gap in supply and falls short of Labour’s housing targets.
Since taking office, the Labour Government has pledged to build 1.5 million new homes by 2030, averaging 370,000 homes annually. However, previous research by West One Loans suggests that, at current rates of new-build starts, it could take nearly 12 years to meet these targets, far exceeding the five-year timeline outlined in manifesto pledges.
Bridging and development finance are seen as crucial tools in closing this gap.
Bridging finance offers short-term, flexible funding that allows developers to act quickly, unlocking stalled or off-market sites, facilitating conversions and refurbishments, and enabling time-sensitive projects to proceed.
Development finance supports new-build projects, particularly for smaller SME housebuilders who often struggle to access traditional lending. It can also fund brownfield or complex regeneration schemes that might otherwise remain dormant.
By providing speed, flexibility, and tailored funding solutions, these forms of specialist finance can accelerate construction, boost housing supply, and bring the UK closer to meeting ambitious delivery targets.
“While new homes are being delivered, the current pace is not enough to meet national housing demand and, based on the average number of homes delivered over the last five years, we’re already starting on the back foot when it comes to addressing the housing crisis,” explained Thomas Cantor, co-head of short-term finance at West One Loans.
“We simply can’t afford the luxury of a slow start to Labour’s housing delivery ambitions and, in this respect, the specialist finance sector can play a pivotal role in driving market activity. Bridging and development finance provide the flexibility and speed developers need to unlock projects and bring forward housing that may otherwise remain stalled. They enable the use of complex or off-market sites, support smaller SME housebuilders who often face barriers to traditional lending, and can accelerate conversions, refurbishments, and regeneration schemes.”
“By helping developers act quickly and with confidence, these solutions not only increase the quantity of homes delivered but also promote innovation, urban renewal, and greater diversity in the housing market, all of which are essential to closing the supply gap and meeting the country’s housing targets by 2030.”