Pandemic-related supply chain issues, trade complications caused by Brexit, increased transportation and materials costs, together with labour shortages, have all resulted in rapidly increasing costs for the industry.

In the face of ongoing uncertainty, we don’t expect this to slow down this year, and anticipate that overall build costs will continue to rise for SME housebuilders in particular.

At the same time, in the wake of COP26 and the government’s latest carbon reduction commitments, the industry will be hit with additional costs as they look to produce more eco-friendly homes, while simultaneously minimising the environmental impact of their construction processes. Although increased consumer demand for green homes will help attract a premium on relevant new builds, this is unlikely to be enough to offset their additional costs.

Finally, the supply of credit to smaller businesses by many established big banks is drying up, leaving many SMEs needing to pursue alternative finance sources to fund projects. 

These challenges aside, we are positive about the sector’s prospects over the coming months and years and believe alternative finance will play an increasingly important role in helping to secure exciting opportunities for SME builders going forward. 

We expect pandemic-induced shifts in homeowner trends to continue to feed market activity in 2022 and beyond, with significant opportunity for housebuilders to capitalise on this momentum.

Smaller housebuilders are optimally placed to leverage this appetite, given their expert local knowledge and ability to adopt innovative housebuilding processes at speed — often responsible for pioneering new techniques involving modern methods of construction and factory-built housing. In order to unlock this opportunity, they will require access to appropriate funding.

We have seen growing demand from housebuilders seeking financing solutions throughout the pandemic and expect this to increase going forward, with a particular interest in funding for eco-friendly projects.

Alternative finance providers are continuing to fund, with Assetz Capital having up to £1bn available for housebuilding this year.

So, as we reflect on the housebuilder industry over 2021, I believe we should focus on the opportunities revealed, rather than just the difficulties.

With sufficient support, the industry has already proven that it can survive in challenging market conditions. But, with the optimal backing of the alternative finance industry, I have no doubt that housebuilders will absolutely thrive in 2022 and beyond.

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Pandemic-related supply chain issues, trade complications caused by Brexit, increased transportation and materials costs, together with labour shortages, have all resulted in rapidly increasing costs for the industry.

In the face of ongoing uncertainty, we don’t expect this to slow down this year, and anticipate that overall build costs will continue to rise for SME housebuilders in particular.

At the same time, in the wake of COP26 and the government’s latest carbon reduction commitments, the industry will be hit with additional costs as they look to produce more eco-friendly homes, while simultaneously minimising the environmental impact of their construction processes. Although increased consumer demand for green homes will help attract a premium on relevant new builds, this is unlikely to be enough to offset their additional costs.

Finally, the supply of credit to smaller businesses by many established big banks is drying up, leaving many SMEs needing to pursue alternative finance sources to fund projects. 

These challenges aside, we are positive about the sector’s prospects over the coming months and years and believe alternative finance will play an increasingly important role in helping to secure exciting opportunities for SME builders going forward. 

We expect pandemic-induced shifts in homeowner trends to continue to feed market activity in 2022 and beyond, with significant opportunity for housebuilders to capitalise on this momentum.

Smaller housebuilders are optimally placed to leverage this appetite, given their expert local knowledge and ability to adopt innovative housebuilding processes at speed — often responsible for pioneering new techniques involving modern methods of construction and factory-built housing. In order to unlock this opportunity, they will require access to appropriate funding.

We have seen growing demand from housebuilders seeking financing solutions throughout the pandemic and expect this to increase going forward, with a particular interest in funding for eco-friendly projects.

Alternative finance providers are continuing to fund, with Assetz Capital having up to £1bn available for housebuilding this year.

So, as we reflect on the housebuilder industry over 2021, I believe we should focus on the opportunities revealed, rather than just the difficulties.

With sufficient support, the industry has already proven that it can survive in challenging market conditions. But, with the optimal backing of the alternative finance industry, I have no doubt that housebuilders will absolutely thrive in 2022 and beyond.