Development Finance
in Porthmadog

The development finance market has matured considerably, with challenger banks and specialist lenders competing aggressively for quality schemes. This competition benefits developers who can present well-structured proposals — but navigating 100+ potential funders to find the best fit requires market knowledge and established relationships.

Build cost inflation has been a defining feature of recent years, and lenders now scrutinise cost plans more carefully than ever. Fixed-price contracts with reputable contractors give lenders confidence and typically unlock better terms. If you're using a design-and-build approach, ensure your contract provides adequate cost certainty.

Planning risk remains the single biggest concern for development finance lenders. Schemes with full, unconditional planning permission attract significantly better terms than those with outline permission or subject to conditions. Discharging pre-commencement conditions before approaching lenders will materially improve your available terms.

Prime residential values in Central London continue to attract international capital, while the suburban and Home Counties markets benefit from hybrid working patterns driving demand for larger homes with garden space. Developers who understand the micro-market dynamics — from Crossrail catchment areas to new Overground extensions — can achieve premium returns.