Mortgage Soup fires the questions at Neil Leitch, managing director of development finance at Hampshire Trust Bank
Mortgage Soup (MS): What is the current state of the development sector? Are the government’s promises about housebuilding in this parliament going to be achievable?
Neil Leitch (NL): The government’s target of 1.5 million new homes is ambitious and attention-grabbing, but turning that into delivery will take more than political intent. On the ground, there are real barriers. The planning system remains a significant bottleneck, local authorities are overstretched, and SME developers in particular are being held back by long delays and rising costs. That is before you even factor in high inflation, persistent labour shortages and the cost of materials.
Even so, we are seeing developers continue to push forward and deliver the homes communities need. That speaks volumes about the resilience of the sector. What they need now is practical support from lenders and brokers who can help keep schemes moving despite the uncertainty.
MS: What are the main challenges developers face in getting projects moving currently? And how are they navigating them?
NL: Planning delays are still one of the biggest blockers. What should take 12 weeks can easily take 12 months or longer. For SME developers who rely on momentum and strong cashflow, that can put real pressure on a project.
The second major challenge is funding. Development is rarely linear. Projects evolve, timelines shift, and costs move. Developers need funding that reflects that reality, not rigid structures designed for ideal conditions.
What we are seeing from experienced developers is a more proactive approach. They are preparing more robust applications, engaging early with planners and working closely with brokers to structure funding that fits the real shape of the deal. At HTB, we can lend against outline consent where appropriate, which means developers are not forced to sit still while they wait for final approval. That ability to fund flexibly, with a clear view on risk, can make a huge difference in getting projects moving.
MS: HTB recently increased the maximum borrowing available to developers. What drove that move, and what difference do you think it will make?
NL: It came directly from broker and client feedback. Developers are taking on larger, more ambitious projects, and they need funding partners who can grow with them. Many of HTB’s borrowers want to fund larger schemes but many simply want to take on more schemes at the same time and the increase will aid this.
By increasing our maximum customer exposure to £35 million, we are giving experienced developers more headroom. But it is not just about size. It is about confidence. They know they can come to HTB for consistent support as they scale, rather than having to spread risk across multiple lenders.
This is not a change of direction. It builds on what we already do well: structured funding, regional knowledge and long-term support. We are simply equipping ourselves to back the right projects at the right scale.
MS: How important is local expertise for a development finance lender?
NL: It is fundamental. Development is not a one-size-fits-all business. The conditions in Cornwall are very different to those in Manchester or the Midlands. That is why HTB’s model is built around regional knowledge.
But it goes deeper than location. It is about knowing how a local authority operates, what their priorities are and how a planning officer might interpret a scheme. It is also about understanding what makes a project viable in that particular area, whether that is housing demand, sales values or community sentiment.
That local insight allows us to structure facilities more pragmatically and make decisions that reflect the real market, not just the numbers on a spreadsheet.
MS: How can brokers support their developer clients to get projects off the ground?
NL: The best brokers are involved right from the start. They understand their client’s ambitions, they know what challenges are likely to crop up, and they help shape the funding approach accordingly.
That might mean structuring around planning risk, aligning drawdowns with staged works or planning for the exit from day one. And when things change, which they often do, brokers play a key role in keeping the lender relationship constructive and focused on solutions.
The other big opportunity for brokers is to highlight funding options developers may not be aware of. Revolving credit facilities are a good example. They are not universally available, but they offer huge value for developers juggling multiple sites or looking to scale in a controlled way. Brokers who can introduce those structures add real depth to the conversation.
More broadly, it comes back to certainty. Developers want to know their lender will still be there if timelines slip or market conditions shift. At HTB, our funding is backed by a strong savings base. We are not dependent on external credit lines, which gives our clients confidence that when we say yes, we mean it. And we stay the course.
