Shawbrook has surpassed £3bn in development funding, highlighting the growing role specialist lenders are playing as mid-sized developers face mounting pressure from build costs, planning delays and tighter mainstream lending conditions.
The milestone comes as Shawbrook marks 10 years since launching its development finance division, during which time the bank has supported more than 800 projects and helped deliver over 11,000 homes and 1,400 purpose-built student units across the UK.
The lender says demand for specialist funding has continued to grow as developers increasingly require more flexible and tailored finance structures to navigate a more complex market environment.
The figures reinforce the widening gap between traditional bank appetite and the needs of SME and mid-sized developers – particularly on projects involving phased delivery, mixed-use schemes or more complex asset classes.
PLANNING TO COMPLETION
Shawbrook’s development finance activity has spanned residential, commercial, co-living and care sectors, with recent deals including high-end homes in St Andrews, a £13m Wimbledon apartment scheme and sustainable housing projects in the Midlands.
The bank said its focus remains on supporting developers from planning through to completion, reflecting increasing demand for lenders capable of working closely with borrowers throughout the lifecycle of a project.
SIGNIFICANT MILESTONE
Terry Woodley (main picture), managing director of development finance at Shawbrook, says: “Reaching £3 billion is a significant milestone, particularly as we mark 10 years since the development finance team was established.
“More importantly, it reflects what that funding has enabled, including the delivery of over 11,000 homes across the UK and a meaningful contribution to much-needed housing supply.
“At the same time, our research highlights a clear ‘critical middle’, with half (50%) of mid-sized property developers saying they do not feel aligned with traditional lending criteria. This reflects the increasing complexity of projects at this stage.”
RIGHT FUNDING
He adds: “When developers can access the right specialist support, the impact goes beyond individual schemes, unlocking sites, accelerating delivery and supporting wider economic activity.
“That’s where we continue to focus, supporting developers with the right funding and expertise to help bring projects forward.”
The milestone comes as developers continue to rely more heavily on specialist finance providers to manage cost inflation, slower planning processes and evolving exit strategies in a market where certainty and flexibility remain critical.
