“The team focuses purely on development and bridging and has deep through-the-cycle experience,” he explained. “This means where there’s a problem – and let’s face it development is not for the faint hearted – we’ve probably seen something similar before and we can work though any challenges and deliver solutions. This also allows us to provide a swift and agile, personalised relationship journey.”
How has the development finance industry evolved?
The development finance industry has certainly evolved significantly. Pre-2008, high street banks were generally regarded as the main source of funding for developers looking to build homes. Challenger banks emerged around 2010, when high street banks had become increasingly risk adverse and rigid within their appetite to lend.
“Over the proceeding period, challengers pretty much dominated the development lending space while specialist non-bank lenders remained in the shadows and were mainly used to service what were deemed as ‘unbankable’ lending proposals,” said Alcock.
“In simplistic terms, small challenger banks grew into big banks. This is exactly the point where the borrower journey at challenger banks began to change and in some cases the uncertainty of support and risk appetite crept in. So, this is where, in recent years, the development funding market has evolved, splintering away from banks altogether to create truly nimble, specialist non-bank lenders.”
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