Now, that may be true for some development finance providers in the marketplace, but it certainly isn’t the case with Hampshire Trust Bank (HTB). We’ve long seen the North as a great place to live and do business in.

HTB made a firm commitment to the North five years ago when we embedded our development finance lending directors in the areas in which they cover. In addition, in 2018, the bank opened an office in Leeds and recruited local talent to work in it. We serve developers through the region and always instruct homegrown professionals to advise us on the transactions we fund. 

The government has finally recognised the importance of the North and has made ‘levelling up’ one of its priorities. While we are yet to see any detailed policy plans in this regard, government departments have been moving some of its functions from London and the South to the North. 

During the coalition government of 2010-15, the Northern Powerhouse scheme was developed in order to facilitate improvements in infrastructure, skills and business opportunities, as well as devolve powers to local government and directly elected mayors. 

Meanwhile, the BBC’s establishment of its major base in Salford’s ‘Media City’ has brought thousands of jobs to the Greater Manchester area and led to significant property developments in the region. 

Such moves have led to the emergence of the term ‘North shoring’, which describes the process where a business moves or outsources various functions to the UK's northern cities, such as Manchester, Leeds and Liverpool.

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Educational standards in the region are high and, when quality graduate jobs are created in the area, evidence shows that people are more likely to stay there. There are six Russell Group universities in the North, and a 2019 report from Centre for Cities, ‘Manchester Brain Drain’, found that 51% of students from Manchester’s universities choose to remain in the area after graduating. Only London has a higher retention rate. In addition, while graduates are more likely to leave the city after the age of 30, they mostly relocate to nearby parts of the North West. 

I have no doubt this will lead to an even greater demand for housing. While some supply will be provided by the large national housebuilders, the SME sector has a vital role to play. 

At HTB, we recognise how important it is to support the region’s SME housebuilding sector. Since making our firm commitment to the North in 2016, we’ve helped countless SME housebuilders and are assisting both existing and new borrowers as the ‘North shoring’ trend continues.

For example, chancellor Rishi Sunak is setting up a new ‘Treasury North’ campus in Darlington, with an aim to move 22,000 civil service position out of London and the South East by 2030. Interestingly, HTB is currently providing a multi-million-pound facility to assist a borrower in the development of 50 houses on site at Middleton St George. This is particularly relevant as Middleton is very close to Durham Tees Valley Airport on the outskirts of Darlington. 

This was a complex deal. While I already knew the directors of Homes by Carlton, they hadn’t done a development for 10 years when this was approved. Works started in October 2019 and first completions were supposed to be in May/June 2020, but these were delayed by the onset of the pandemic. However, despite all the challenges faced by the developer, they’ve managed to create a stunning scheme, with a healthy mix of local buyers and families relocating into the area to take advantage of new employment opportunities.

This deal highlights both our flexibility in our approach to development finance and our dedication to helping SME builders in the North.