Shawbrook has partnered with P10 Financial Group to provide a £13m development facility that will fund 42 new apartments in London at a time when construction activity has fallen to its lowest level in a decade.

The scheme will deliver 26 one-bedroom, 14 two-bedroom and two three-bedroom homes. The facility, structured at 70% loan-to-gross-development-value, is understood to have been critical in enabling the project to proceed amid a tougher funding and planning environment.

LOWEST STARTS IN 10 YEARS

The latest government data shows how sharply activity has slowed. Just 3,990 homes began construction in the year to Q1 2025, a figure that underscores the scale of the challenge facing developers across England.

Housing starts have repeatedly undershot expectations in recent years, with 134,780 starts recorded in the year ending March 2024, 190,170 in the year to June 2023, 148,520 in the year ending March 2020 and 123,030 in the year ending September 2020.

The combination of weakened sentiment, rising costs and greater delays has made securing funding more complex. Lenders and advisers say that deeper collaboration is now essential if viable schemes are to progress.

PARTNERSHIP-LED APPROACH

James McGregor, director at P10 Financial Group, said: “In this market, where developers have taken the brunt of the changes over the last few years, it’s imperative that banks become flexible and solutions-focused – as Shawbrook have in this transaction.

“Developers have seen pressure on GDV, rising build costs, delays in planning, and ongoing supply chain challenges. Working with lenders who take a pragmatic, partnership-led approach is key to keeping developments viable and getting much-needed homes built.”

The parties said the deal illustrates how aligning lenders, advisers and developers can help maintain momentum despite more difficult market conditions.

Keir Morris, senior relationship director at Shawbrook, added: “This project is a great example of what can be achieved through genuine collaboration. At Shawbrook, we place huge value on the relationships we build with our partners because when everyone is aligned and focused on delivery, even complex deals can move efficiently.

“Working with P10 and the developer, we were able to structure a facility that supports progress in a challenging market and brings much needed new homes to London.”