Want expert developers? Grow your own

Every experienced property developer once submitted their very first development finance application.

It's an obvious statement, but one I don't think our industry reflects on often enough.

The government has focused its attention on planning reform, housing policy and investment to get homes built. All of those are important. But there is another issue we don't talk about nearly enough: how we create the next generation of SME property developers.

The reality is that first-time developers remain one of the most underserved groups within specialist property finance. While there are lenders prepared to support them, the market understandably places far greater emphasis on borrowers with established track records.

That is commercially understandable. Development finance is complex, every project carries risk and lenders have a responsibility to ensure schemes are viable and borrowers are properly prepared.

The consequence, however, is that many aspiring developers find themselves with the ambition to build but without the confidence, knowledge or funding partner to enable them to take that first step.

If relatively few lenders are prepared to support first-time developers, where will tomorrow's experienced developers come from?

And, if we don't create more experienced developers, how do we realistically expect to increase the delivery of new homes?

Read the full feature in B&C Magazine, here.