The property development firm conducted research using Bank of England data which found bank lending to SMEs had fallen from £9.7bn in January 2017 to £4.9bn in November 2024.
Over the same period, the amount lent to larger housebuilders grew 25% from £5.6bn to £7bn.
Overall, lending to property developers - regardless of size - fell 22% from £15.3bn to £11.9bn between 2017 and 2024.
- The Finance Professional Show 2024: The Video
- CapitalRise and Ciel Capital structure £8.2m listed property redevelopment loan
- CapitalRise secures £20m funding line increase
Commenting on the findings, CapitalRise CEO Uma Rajah said this reflected how banks still found it difficult to lend to property developers following the 2008 crash.
“There is a real gap in financing for SME developers now,” said Uma.
“In areas like prime property, small developers are critical to the market. Large developers tend to focus on major developments of hundreds of homes.
“Getting funding to those smaller, more bespoke developers is vital.”
Leave a comment