SME property development finance provider, Assetz Capital, has launched a dedicated first-time developer finance option aimed at bringing experienced business and property professionals into UK housing development, giving them the opportunity to deploy their capital safely while leaning on Assetz Capital’s market expertise and regional presence throughout the UK.
The facilities offered support developers who have completed fewer than two projects but demonstrate proven capability through construction, project management, or business experience.
Funding is available up to 70% LTGDV and 85% LTC, with a minimum cash contribution from just 5–7.5%, depending on structure and experience.
In addition, Assetz has updated its development finance product to allow full planning gain as a valid equity contribution, reducing the cash required from developers and enabling them to fund more schemes.
Andrew Fraser, chief commercial officer at Assetz Capital, 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.
“By welcoming capable people with capital into the sector, we’re helping to expand the SME developer base bringing new housing at pace to market. 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.
“By recognising planning gain as a genuine contribution, we’re lowering the cash burden on developers and enabling them to deploy maximum leverage. This means cash may be retained for further schemes, which in turn will boost housing output.
“Under the new policy, developers who have invested time and funds to secure or enhance planning approval can count the uplift in site value as part of their contribution. All transactions must be fully evidenced, including acquisition costs, planning investment, and the value uplift generated. Purchases at discounted prices do not qualify, and all deals are expected to be fully funded, straightforward, and in saleable locations across all regions of the UK.”
