Thistle reports 15% rise in development finance

Thistle Finance has announced that during Q2 it saw applications for residential development finance loans rise 15%, increasing the market share of smaller residential developers.

Related topics:  Finance
Warren Lewis
13th August 2018
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According to the lender, as the number of smaller developers increased, they saw a 9% fall in the average size of loan applications during the second quarter.

Thistle Finance’s analysis of its second quarter data also revealed a shift in activity levels away from London and the South East. Applications for development projects outside London and the South East rose by 18% during April to June, with the South West and North West particularly active.

Mark Dyason, managing director at Thistle Finance, commented: “It’s happening slowly but we’re seeing a fundamental shift in the development sector. A long tail of smaller developers is emerging and gradually increasing its market share, empowered by the proliferation of specialist lenders offering better rates.

The supply deficit represents a major commercial opportunity and regional start-up and SME developers, with lower level schemes, are highly active. The new wave of developers is increasingly aware that consumer demand is moving away from undifferentiated developments to more bespoke projects that better reflect the character of the areas they are in. The monopoly of the major developers is gradually being eroded.”

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