Since the UK voted to leave the European Union, some investment firms have temporarily suspending trading on their property portfolios, while the Bank of England had to allow banks to release £5.7bn from their regulatory capital buffer to create new lending.

Bob Sturges, Head of PR and Communications at Fortwell Capital, felt although this wasn’t a 2008 re-run, it was clear that banks appetite for risk would be impacted by post-referendum uncertainty.

"A potential area of concern is funding. 

“Developers need the certainty of liquidity to commence and complete projects. 

“In 2008, the markets froze and their sources of funding all but dried up. We know the consequences.”

Meanwhile, Ashley Ilsen, Head of Lending at Regentsmead, added: “The initial reactions are interesting, though, some lenders that rely on funding lines may come under pressure a bit more if there is a continued loss of confidence in the market. 

“We still need to carry on building houses in this country, whether we are in the EU or not and funding over the next few years is going to be critical to help the supply of good-quality housing stock.”

As well as banks potentially cutting off funding for developers, EU funding will be disappearing, which could affect large areas of the country that have benefitted in the past.”

"As regards [to] EU funding, it has historically been channelled into poorer regions of the UK. None of this should change while we remain a paid-up member of the EU,” Bob added.

“Once Brexit is achieved – in around 30 months or so – it will be in the hands of the government of the day to decide if this funding should be continued. 

"For the health of the wider economy, one would hope it decides it should."

James Bloom, Managing Director of Development Finance at Masthaven, felt for developers it was very much a watch and wait situation.

“There will undoubtedly be a period of uncertainty, which will cause some developers to wait on the sidelines to see what is happening to the market. 

“This will provide opportunities for some who are well capitalised and who have the ability to move quickly. Difficult market conditions always bring opportunity for some.”

John Waddicker, Director at Positive Commercial Finance, said while he hadn’t had any of the development lenders it uses pull out of deals, there was some concern for proposed sales above £2m. 

"Generally, the only place we are currently seeing ‘suffering’ from recent events is central London.

“It seems evident that units with proposed sales value above £2m are under intense scrutiny.

"As for the rest of the country, it seems to be business as usual, but time will tell as to whether any pressure on valuers might impact on values and, in turn, development loan applications."

Looking at the positives of the traditional lenders reducing lending, Bob felt it could create an opportunity for the alternative lenders.

"Developers can now also rely on a 'safety net' provided by an extensive and established alternative lending sector. 

“Many specialist lenders enjoy secure funding lines and have developed sophisticated risk modelling techniques. 

“They are likely to relish the opportunities that arise from this current period of readjustment.”

Ashley shared Bob’s optimism adding: “Thankfully the last couple of weeks have been extremely busy so long may that continue.

“Other lenders we have spoken to seem to have shared the optimism at Regentsmead and those with good lending practices will certainly be able to ride out a storm.”