"Reaching £1 billion in development loans represents a significant milestone for our business."
Shawbrook Bank doubled the number of loans it made to property developers in the 12 months to April and has now lent more than £1 billion in development finance since launching the product in 2016.
The bank provided 92 loans over the period at a value of £380 million up from 44 (£180 million) in the previous 12 months.
Appetite for new developments accelerated through the pandemic resulting in a significant rise in funding requirements, particularly among smaller developers. Its loan volume to developers with debt requirements below £2.5 million almost tripled, funding 49 projects at a value of £56 million.
The milestone follows the bank’s acquisition of RateSetter’s peer-to-peer funded development finance business last December as it focuses on supporting more smaller developers.
Terry Woodley, managing director of development finance at Shawbrook Bank, said: “Reaching £1 billion in development loans represents a significant milestone for our business. The fact we have achieved it in less than five years is a testament to the strength of our product, the expertise of our team and our commitment to supporting developers across the sector through challenging periods.
“Appetite for property endured the pandemic. We’ve seen strong demand for funding from large developers delivering significant eco-developments and regeneration projects, to the smaller developers that need a specialist lender to understand how they operate and can work with them as they deliver schemes concurrently.
“Our customers are increasingly pushing boundaries to tackle the UK’s development challenges. As we target the next £1 billion, our focus will be championing the innovation that will ultimately lead to more sustainable and affordable developments in the years to come.”