Bridging the gap: funding the journey from planning to breaking ground

It is becoming one of the clearest trends in the enquiries we receive: we're seeing a growing number of developers whose projects have secured permission but are still months away from being genuinely ready to commence construction.

Planning consent has become just one of the milestones within a much longer and more technically demanding pre-construction journey.

The obstacle is no longer securing planning permission itself — more often it is managing the growing volume of technical, regulatory and commercial work that follows before a scheme is truly ready to break ground.

The result is that many viable developments are spending longer in a funding gap between planning approval and development finance.

The new post-planning reality

The period between planning consent and breaking ground has become increasingly resource intensive.

Developers are now working through Building Safety Regulator (BSR) approvals, discharging planning conditions, satisfying Biodiversity Net Gain requirements, progressing technical design work, securing utility and grid connections and responding to greater scrutiny from local authorities and statutory consultees.

Each requirement exists for good reason. Collectively, however, they are extending project timelines and increasing the amount of capital required before construction can even begin.

For SME developers in particular this creates a genuine commercial challenge. Even after planning permission has been secured, professional teams still need paying, technical consultants still need instructing and infrastructure deposits and surveys still need funding.

This means developers are increasingly being asked to commit significant amounts of additional equity after planning permission has been secured but before their primary funding can be accessed.

That ties up capital which could otherwise be recycled into future opportunities, and ultimately slows the delivery of much-needed housing.

Bridging finance can be a bridge to delivery

Used correctly, bridging finance allows borrowers to preserve liquidity, maintain project momentum and avoid overcommitting their own equity during what has become an increasingly complex stage of development.

Importantly, it also enables developers to continue progressing other projects within their pipeline rather than having capital locked in a single site that is waiting to satisfy post-planning requirements.

The objective is not simply to fund a delay — it’s to fund progress.

A recent example

We recently completed a £2.95m net planning bridge facility for an experienced developer regenerating a brownfield site in Liverpool that will deliver more than 150 apartments within the city centre.

The development already had planning consent, but BSR requirements still needed to be discharged before the project could transition onto a full development finance facility. Without transitional funding, significant capital would have remained tied up while the developer worked through the remaining technical requirements.

We were able to provide a planning bridge that gave the borrower both the capital and the time needed to move the scheme towards a development finance exit, completing the transaction just 14 days after credit approval.

Lending needs to evolve alongside development

Understanding whether a project is genuinely ready to progress requires a much broader assessment. That includes considering the borrower's experience, the strength of the professional team, contractor readiness, procurement strategy, BSR preparedness, utilities engagement and the visibility of the eventual exit into development finance.

The key question is no longer simply whether a site has planning permission. Instead, lenders should be asking what still needs to happen before construction can begin, who is responsible for delivering those milestones and whether the funding structure properly reflects that journey.

This approach provides a much more realistic understanding of delivery risk and ultimately allows lenders to support good developers through challenges that are increasingly common across the market.

The right funding can make the difference between a site standing still and a development moving forward.

Supporting housing delivery

Much of the conversation around housing supply focuses on increasing the number of planning permissions granted. Planning reform undoubtedly matters, but permission alone does not deliver new homes. Projects only become housing once they are funded, mobilised and built.

As regulation and technical requirements continue to evolve, the period between consent and construction is likely to remain an important feature of modern development.

That means transitional funding will continue to play a growing role.

We believe bridging finance is no longer simply a short-term borrowing solution. It has become an important part of the development lifecycle, helping experienced developers navigate an increasingly demanding pre-construction phase while preserving momentum and protecting valuable equity.

Ultimately, the industry needs to recognise that planning permission is no longer the finish line. It’s simply the point where a different set of challenges begins and where the right funding can make the difference between a site standing still and a development moving forward.