The Intermediary – March 2025 - Flipbook - Page 13
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In focus
due to well-established valuation methodologies
that fit better with their funding structures and
processes.
Specialist lenders are stepping in, offering
tailored financial products that reflect the
HOUSING DELIVERY
In Numbers
real-world viability of MMCs. Many now provide
self-build and development mortgages specifically
designed for modular and offsite construction,
featuring staged payments, interest-only periods,
and higher loan-to-values (LTVs) for energyefficient homes.
Grimshaw highlights the importance
of rewarding sustainability, adding: “We
financially incentivise those who are aiming for
the highest EPC rates, with reduced follow-on
interest rates.”
Government-backed initiatives, such as
Help to Build and Homes England’s MMC
support, are also helping to ease the financial
burden, particularly for SME developers and
self-builders who have been among the earliest
adopters.
Johnson says: “While large housebuilders and
institutional investors were the early adopters of
MMC, the sector is evolving, and SME developers
are increasingly exploring its benefits.”
Bridging the gap
◆ The number of residential units
approved declined by 2% in Q4 2024
compared to the previous year, while
the number of housing projects
approved decreased by 10%.
◆ The number of private sector units
approved fell by 3% in 2024.
◆ Residential unit approvals rose by
15%, reaching 77,284 units.
◆ The number of housing projects
approved increased by 4%, totalling
2,663 projects.
◆ Units in schemes of 10 or more units
rose by 16% to 71,857, while private
While the road to 1.5 million homes is paved
with challenges, specialist finance is undoubtedly
driving Britain’s housing future. By offering
agility, expertise, and bespoke financial
solutions that traditional lenders often cannot
match, specialist finance is not only unlocking
opportunities for self-builders, SME developers,
and MMC projects but actively accelerating
housing delivery.
If the Government is serious about hitting its
housing targets, ensuring that SMEs have access
to tailored funding is non-negotiable.
Douglas says: “Housing is at the top of the
agenda for the Government, so it is going to
require an all-hands-on deck approach to achieve
the level of new homes needed in this country.
This cannot and should not be delivered by major
housebuilders alone.”
Ultimately, specialist finance is more than a
funding source – it acts as a catalyst for progress,
ensuring that viable projects do not stall, and
SME developers have the capital to build.
With regulations tightening and planning
requirements evolving, the role of flexible lenders
is more crucial than ever.
Leitch concludes: “Developers who don’t adapt
will be left behind. The lenders that understand
sector housing projects saw a slight
decrease of 1%, with 1,718 projects
approved.
◆ Private sector units approved
increased by 17%, reaching 68,357
units.
◆ Regionally: the North East saw the
largest increase in approvals, up
177%, followed by the West Midlands
(134%), Yorkshire & Humber (79%).
Other regions with strong growth
included the East of England (59%),
South East (21%), and Wales (24%). In
contrast, the North West saw a 42%
decrease, while approvals in Scotland
and London fell by 4% and 12%,
respectively.
this and can support developers through that
transition – without overcomplicating things –
will be the ones who stay relevant.”
●
Source: Q4 2024 Housing Pipeline Report
The Intermediary | February 2023
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