But long before a deal reaches credit committee, a different assessment takes place — one rooted not just in numbers, but in nuance.

As a relationship manager in origination, my role isn’t simply to introduce deals into the pipeline. It’s to assess whether a scheme is fundamentally viable in today’s market. In a new economic environment where build costs remain elevated, refinance routes are less predictable, and absorption rates vary dramatically by postcode that early judgement is more important than ever.

Location is more than a postcode

It’s easy to describe a scheme as being in a “prime” area. But viability lives in micro-markets, not broad labels.

Local fundamentals matter just as much as the headline numbers. Proximity to good schools, established amenities and everyday infrastructure can materially influence demand and exit liquidity. Is the development within walking distance of sought-after schools and a functioning high street, or reliant on future regeneration promises that haven’t yet translated into lived appeal? In the current market, proven demand drivers carry significantly more weight than aspirational ones.

Similarly, comparable evidence must reflect transactions that have completed, not just optimistic asking prices. In some boroughs and parts of the country, we’re seeing price resilience in smaller unit types, but slower absorption for larger, premium units. Understanding who the end buyer is and whether that buyer pool is active is critical.

The exit is everything

In the current climate, the strength of a deal is defined as much by its exit strategy as its entry metrics.

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A build-to-sell scheme may appear attractive on paper, but if local stock levels are rising and time-on-market is increasing, assumptions around sales velocity need to be stress-tested. Conversely, in some locations, rental demand may be stronger than owner-occupier demand, shifting the optimal exit strategy.

As relationship managers, we look at whether the developer has built flexibility into their model. Can units be refinanced onto BTL if sales slow? Is the pricing realistic relative to affordability ceilings in that micro-market?

The most scalable developments are those with scalable exits.

Developer capability matters

Even in strong locations, execution risk cannot be ignored. Track record, build team quality and cost management discipline all influence viability. A well-structured scheme in a secondary location may present less risk than an ambitious project in a prime area led by an inexperienced team.

Origination sits at the intersection of commercial ambition and credit discipline. Identifying deals that are aligned with both market reality and lender appetite reduces friction later in the process and creates a more efficient experience for brokers and borrowers alike.

Scaling development in a challenging economy

We are operating in a market that demands precision. Cost inflation, planning complexity and cautious refinancing markets mean that scaling development requires more than leverage it requires informed judgement.

For the brokers that we work with, this means structuring deals with realistic GDVs, credible comparables and clearly defined exit routes. And for developers, it means understanding that viability is about liquidity, not just valuation.

The strongest deals we see are those where location, demand, developer capability and exit strategy align. When those fundamentals are in place, leverage becomes a tool, not a risk.

In today’s environment, success isn’t about how much you can borrow. It’s about whether the scheme stands up to scrutiny before it ever reaches credit.