Assetz Capital has launched a new lending option designed to help first-time developers enter the housing market, in a move the lender says will support “sensible” projects and widen access to small-scale housebuilding.
The Manchester-based development finance specialist said its First-Time Developer Finance product would be available to those who have completed fewer than two schemes but can demonstrate relevant experience in construction, project management or business.
Loans of up to 70% of loan-to-gross-development-value (LTGDV) and 85% of loan-to-cost (LTC) will be available, with developers expected to contribute between 5% and 7.5% in cash, depending on their background and the structure of the deal.
Andrew Fraser, chief commercial officer at Assetz Capital, said the initiative was aimed at bridging a gap left by traditional lenders.
He 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.”
The lender said its model would give new entrants a route into development while maintaining strong risk controls, with robust credit oversight, structured processes and professional project management support. Projects must be fully funded, use straightforward construction methods and be located close to urban areas with proven demand.
Fraser added: “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.”
