A recent study commissioned by Downing LLP revealed that 78% of developers expect their business to grow over the next three year — with 12% anticipating strong growth.

However, the majority of developers surveyed have several concerns about the risks they are currently facing — in particular the cost of raw materials rising, which poses concern for 96% of respondents.

Developers are also worried about securing the necessary insurance (90% said they were concerned about this), the length of time it takes to secure approval from council to build properties (80%), and labour shortages (74%).

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Parik Chandra, partner and head of specialist lending at Downing LLP, said: “Despite concerns about the economy and rising inflation, the need for a huge increase in the UK’s pool of residential property and the firm commitment from the government to achieve this means developers remain optimistic about growing their businesses.

“However, they face several risks from the rising cost in raw materials to access to funding."