Assetz Capital has announced a further reduction to its development finance rates, with rates now starting from 8.85% as the lender looks to stimulate SME housebuilding across the UK.
The move follows a previous rate cut in February and reflects the lender’s ambition to accelerate the delivery of new homes in a challenging market.
April saw a number of deal completions under the revised terms, with transactions concluded in Scotland, Yorkshire, the South Coast and the Midlands. Assetz Capital said its focus is on increasing affordability for SME developers, enabling them to progress stalled projects, acquire new sites and bolster their delivery pipelines at a time when market conditions remain difficult.
“Our aim is simple: help developers build more homes, faster,” said Andrew Fraser, chief commercial officer at Assetz Capital. “Our rate reduction immediately improves the Day 1 advance available to developers, therefore helping developers to break ground sooner, with lower upfront costs and more certainty in funding.”
Fraser said the decision to cut rates was taken independently of central bank movements, in a bid to offer more immediate support to SME developers under cost pressures. “We’re staying ahead of the BoE curve because the urgency for housing delivery can’t wait,” he said. “By acting now, we’re giving brokers and their clients the ability to move quickly, reduce finance costs, and maintain profitability—even in a more constrained market.”
In addition to lower rates, the lender is offering up to 72% loan-to-gross-development-value (LTGDV) Day 1 advances, along with 24-hour credit decisions for straightforward cases. The combination of faster funding access and increased leverage is intended to ease cashflow burdens and help developers maintain momentum on their projects.
Assetz Capital’s initiative comes as the sector awaits the impact of government proposals to reform the planning system. While supportive of these changes, the lender warned that reforms will take time to filter through to the market, and said its new terms provide SME developers with immediate solutions.
“Developers deserve both speed and fairness when it comes to finance,” Fraser added. “From site acquisitions to the final build phase, we’re providing accessible, fast-track funding that supports sustainable growth in every UK region.”
The reduced rates and streamlined lending processes are available to developers across England, Scotland, Wales and Northern Ireland.
