However, in reality, they are already largely at capacity; if we are to increase the number of homes being built, then we need to do more to support SME builders in getting their own projects off the ground.

That’s why it’s so encouraging to see initiatives like the partnership between Lloyds and Homes England, which has resulted in a £300m equity fund being provided for these smaller housebuilders to tap into. 

The exit

However, it’s worth recognising that things are complicated for small builders at the moment, with many having to adapt to a plan B. While the project itself may be at, or nearing, completion, they may not have yet managed to sell the units and need a little more time — and money — to market it properly and secure the best possible return.

This has become a particular problem for many developers who have seen their projects hit hard by issues over the supply of building materials and labour shortages. The Federation of Master Builders has warned the materials shortage is disproportionately affecting small builders, delaying the completion of their projects, and adding to their costs.

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Thankfully, lenders have recognised the issue and shown some innovation, as a host of finance providers now offer dedicated development exit products. The idea is that the developer moves off the initial development deal and onto a competitively priced bridging loan, providing them with some much-needed breathing space so they can get on with selling the unit free from deadline worries.

Working together

The world of development finance can be a complicated one, particularly for advisers who may only handle a few development cases a year. Indeed, some advisers may feel ill-equipped to help their clients should they enquire about a development finance loan.

That’s why it’s so important for them to think carefully about the businesses they collaborate with. At Crystal Specialist Finance, we’re determined to make the advice process as straightforward as possible for our adviser partners, developing our online hub which allows them to populate client requirements within just a couple of minutes. They are then connected with an underwriter so terms can be quickly shared and agreed, allowing the client to swiftly access the funds and get on with their project.

A team of dedicated development finance experts can help take the stress out of what can be a complex process and allow developers to focus their efforts on more pressing tasks. This is particularly important for SME builders who are more likely to be resource stretched, and so benefit even more from the helping hand.

By working together, we can help those SME builders to get on with delivering the homes the nation needs.