Almost ninety per cent of brokers are still being approached by developers who have been previously turned down for funding, according to new research from United Trust Bank.

The lender, who carried out the survey, stated that 88 per cent of brokers operating in the development finance sector have been approached by developers in the last year, as an option for funding, after being rejected by their normal lenders.

Noel Meredith, Executive Director of United Trust Bank, said: “The research of this UTB survey echo research carried out by the NHBC last year, which found that gaining access to suitable funding was a serious concern for smaller developers.”

Mr Meredith also stated that 50 per cent of the small builders that took part in the research, found banks are “still reluctant to lend to small builders”, and that 39 per cent realised that a move to “centralised decision making” and the loss of a local relationship with banks was a “serious impediment to business.”

The survey also concluded that 50 per cent of brokers had their proposals turned down the last time they met with a high street bank concerning a development finance deal.

Mr Meredith also said: “However, all banks are not the same. Whereas many lenders, including the High Street banks, have decided that lending to smaller developers no longer fits their credit criteria, others, such as the UTB, have stepped in to fill some of the void.

“United Trust Bank has increased its development finance lending every year and has provided hundreds of millions of pounds of new project funding, over the last few years, with loan sizes ranging from around half a million to over ten million pounds.”

However, less than a third of brokers felt that from their clients’ perspectives, the high street banks had improved in terms of lending to businesses in 2014, with 40 per cent suspecting that high street banks would increase lending figures in 2015.

The Executive Director added: “Once brokers and their developer clients have experienced our positive approach, the bespoke service, quick decision making and the real customer focus offered by a specialist development finance leader, they return time and time again.”

Attributed to Dan Goulding