Specialist finance could prove decisive in helping the UK tackle its housing shortfall, according to new analysis from West One Loans, which warns that current delivery rates leave the country well behind Labour’s ambitions.

HOUSING DELIVERY FALLS SHORT

The lender’s review of official figures shows that an average of 231,234 net additional dwellings were delivered annually across England over the past five years. The South East contributed the most at around 40,458 homes a year.

While significant, this rate falls far short of the Labour government’s target of building 1.5m homes by 2030, equivalent to 370,000 a year. West One notes that, based on present build rates, it could take nearly 12 years to meet the pledge, more than double the five-year timeframe promised in the manifesto.

ROLE OF SPECIALIST FINANCE

West One argues that bridging and development finance will be central to speeding up delivery, particularly in supporting smaller developers and unlocking complex sites.

Bridging finance, it says, provides short-term funding to bring forward stalled or off-market sites, as well as conversions and refurbishments that require speed and flexibility. Development finance, meanwhile, can back new-build schemes, especially for SME housebuilders who often face barriers to traditional lending.

Thomas Cantor, co-head of short-term finance at West One Loans, said: “While new homes are being delivered, the current pace is not enough to meet national housing demand and, based on the average number of homes delivered over the last five years, we’re already starting on the back foot when it comes to addressing the housing crisis.

“We simply can’t afford the luxury of a slow start to Labour’s housing delivery ambitions and, in this respect, the specialist finance sector can play a pivotal role in driving market activity.

“Bridging and development finance provide the flexibility and speed developers need to unlock projects and bring forward housing that may otherwise remain stalled.”

Cantor added that such solutions not only boost supply but also promote regeneration, urban renewal and diversity in the housing market.

West One concludes that without greater use of specialist funding, the government’s 2030 target will remain out of reach.