The property finance specialist said that while market conditions remain buoyant, ongoing and intensifying pressures in the sourcing and delivery of construction materials, plant and labour are likely to increasingly impact the time it takes to complete projects.

Therefore, it has urged companies to ensure more flexibility in their project finance to accommodate any delays and disruption.

Lee Merrifield, underwriting and credit manager at MSP Capital (pictured above), said: “The dual impact of Covid and Brexit has already been leading to prolonged supply chain pressures and project delays; now we have the added prospect of rising inflation, higher energy costs, the Ukraine crisis and sanctions on Russia as well.

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“This combination of factors will only add to the pressures facing the construction industry. 

“The upshot is that developers at risk of disruption on their projects may need to consider fresh cost assessments and potential refinancing, so they can avoid or mitigate any exposure to contractual liability. 

“For projects already under way, there will obviously be issues when your current finance is nearing the end of its term and your build is behind schedule — the original loan term may not be sufficient to finish the building works and also sell on the completed units. 

“This is where specialist bridging loans can help, which can refinance the original debt to give developers those precious extra few months to get properties from practical completion to sold.”