Majority of developers in Wales find sourcing funding the most difficult aspect of their business

• More than a quarter (26%) property developers in Wales have been turned down for finance on all occasions
• 92% of developers say that finding finance was particularly challenging when starting their business¹
• 93% of developers said that specialist lenders offer better support¹

Property developers in Wales have pointed to funding as their key concern according to new research from Shawbrook. Over nine-in-ten (92%) of developers said that finding funding was the most complicated aspect of their business, while 93% stated that there are limited funding options for developers.

Significant numbers of developers have been rejected from accessing funding, with over a quarter (26%) having been rejected by a mainstream lender on all occasions.

The conception of a business appears to be the hardest stage to secure funding, with 92% of developers stating that it was particularly difficult to find funding when they were starting their business. On top of this, a similar number (90%) felt that it was harder to secure funding for a smaller business.

However, the vast majority (93%) of developers agree that no matter the size, sourcing funding is the hardest part of running their business, while 92% agree that funding expertise is difficult to source.

Fortunately, specialist funding is available for developers struggling to access funding for their projects, and over 93% said that specialist lenders offer better support to developers.

Terry Woodley, Head of Development Finance at Shawbrook comments: “Housebuilding is a key issue on the political agenda, but developers need support to understand the funding landscape and access the funding levels they need so that these much-needed projects can get off the ground.

“These developers that have struggled in the early stages of their business have gone on to build significant businesses, yet it’s clear funding is still a real barrier for entry, and early stage growth. There is funding available, and working with a specialist lender can help with structuring developers’ funding needs to surface that liquidity. If the gap is not addressed, promises to boost housing numbers will be very difficult to achieve.”

¹” Yes, I have been turned down on all occasions” and “Yes, I have been turned down before but I have been accepted on other occasions” answers combined

²” Strongly agree” and “Somewhat agree” answers combined