With two-in-five developers (38%) confirming that rising labour costs are their biggest concern, 36% also cite the cost of materials as being a key driver forcing them to pivot on their plans.

Rising costs were especially pertinent for developers with residential housing developments (44%), compared to those with build-to-let (41%), industrial (41%), commercial (39%), semi-commercial (38%), student residences (37%), and residences for later life living (30%).

As a stark indicator of the challenges facing developers, only 1% said that they didn’t have any key concerns or challenges over the past year.

The research also revealed 96% of developers surveyed had been prompted to make changes to their business strategy over the past year, with a change in building materials (40%) being the most popular change — 39% have also built or are planning to build different types of properties.

•   Hilltop launches real estate funding and management platform
•   Shawbrook funds £9m for Woodgate development
•   Zenzic secures new funding line from Shawbrook

According to 36% of developers, increasing profit margin has played the biggest role in influencing the decision to make changes, while 29% made changes in a bid to become more sustainable.

Despite these challenges, 34% have expanded their business over the past year.

Terry Woodley, MD of development finance at Shawbrook (pictured above), said: "Property developers are displaying resilience as they adapt to new directions in construction.

“Only 4% are not planning to make any strategic adjustments, highlighting just how crucial the need for adaptability is going to be over the next 12 months.

“What will be most interesting is the routes developers choose to go down in order to make their plans profitable.

“A key factor for developers is finding a funding partner that can stay committed throughout the entire process, offering expertise and flexibility from planning to execution."