Institutional equity — from real estate private equity funds and sovereign wealth-backed vehicles — is increasingly available for UK residential development, particularly for larger schemes (£10M+ GDV). These partners bring operational sophistication and can move quickly on deals that fit their mandate, but they typically require standardised legal documentation and institutional-grade due diligence.
For smaller schemes (sub-£5M GDV), family offices and high-net-worth individuals remain the most active equity partners. These investors are often more flexible on structure and governance than institutional capital, and can make investment decisions faster. The trade-off is that each relationship needs to be individually negotiated rather than fitting into a standard framework.
Land-for-equity structures — where the developer contributes land and the equity partner funds all construction costs — are among the most efficient JV arrangements. The developer avoids any cash outlay while retaining a meaningful profit share, and the equity partner gets a fully consented, shovel-ready project with a proven development manager.
London and the South East remain the UK's most active property development markets, underpinned by persistent housing undersupply against some of the strongest demand fundamentals in Europe. Land values are elevated but so are achievable sales prices, creating viable margins for well-structured schemes — particularly in outer boroughs and commuter towns where affordability pressures are redirecting buyer demand.
Indicative Terms
Typical terms available for equity & joint ventures in Bishops Stortford. Actual rates depend on your project specifics and experience.
Interest Rate
Profit share from 40%
Loan to Value
Up to 100% of costs
Typical Term
Project duration
Arrangement Fee
Negotiated per deal
Rates shown are indicative and subject to individual assessment. Contact us for a bespoke quote.
Representative Deal
A 30-unit residential development where the developer contributed land with planning permission (valued at £1.7M) and a family office partner funded 100% of construction costs. The developer managed the build and retained 60% of net profits, with the equity partner receiving 40% plus an 8% per annum preferred return on invested capital.
GDV
£8,500,000
Loan Amount
£6,800,000
LTV
100% of Costs
Loan Type
Equity JV + Senior Debt
This is a representative example. Actual terms vary based on project specifics.
Common Questions
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