Brian Berry

FMB and UK Finance launch development finance guide



UK Finance and the Federation of Master Builders (FMB) have created a guide to help SME housebuilders navigate the development finance process.

The guide offers practical advice to smaller housebuilders on how they should present their project to lenders to improve their chances of success, as well as the alternative options available if an application is turned down.

It also offers housebuilders advice on how to make the most of the diverse range of finance options available, including challenger banks, private equity, crowdfunding, brokers and government-supported funds.

Brian Berry, chief executive at the FMB (pictured above), said that over the past decade, development finance had been difficult to access for SME housebuilders.

“We will continue to work with the government and UK Finance to identify ways to improve this situation by enabling lenders to lend more to this sector. 

“However, it is also the case that the process of obtaining development finance can be complex and difficult to navigate, especially for new entrants or those without recent experience of the market. 

“It is important that SME builders and developers understand what to expect when seeking development finance, the options available and the process they will go through. 

“That is what this guide is designed to achieve and we are really pleased to have joined forces with UK Finance to develop some practical advice for builders. 

“We believe it will open doors and play a part in helping more new homes get built.”

The guide is available on both the FMB and UK Finance websites and was launched at the former’s Eastern Business Conference in Chelmsford.

Stephen Pegge, managing director of commercial finance at UK Finance, said that too often SMEs were deterred from applying for finance because they were unsure about where to look or whether they would be successful.

“This guide is designed to help smaller housebuilders navigate this diverse landscape and find the right form of finance for them. 

“Through close co-operation between UK Finance, the Federation of Master Builders and the government, we are determined to help SME builders grow their business and build the homes the country needs.”

Kelly Tolhurst, small business minister, added: “Smaller housebuilders in particular face challenges accessing the finance they need and this new guide provides useful, practical information on the available options that will help them build the homes the country needs.”


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