“This project is a great example of what can be achieved through genuine collaboration”
– Keir Morris – Shawbrook
Shawbrook has partnered with P10 Financial Group to provide a £13 million development facility for a London project that will deliver 42 contemporary apartments at a time when construction activity has reached its lowest point in a decade.
The scheme will create 26 one-bedroom, 14 two-bedroom, and two three-bedroom homes. Structured at 70% loan-to-gross development value, the facility proved decisive in enabling the developer to proceed with the project.
Government housing targets remain focused on delivery, yet construction starts have fallen dramatically. Recent government data shows that just 3,990 homes began construction in the year to Q1 2025, underlining the extent of the difficulties facing UK housebuilders.
Over the past five years, housing starts in England have consistently fallen short of expectations. In the year ending March 2024, there were 134,780 starts. The year to June 2023 saw 190,170 starts, while the year ending March 2020 recorded 148,520. By September 2020, starts had declined to 123,030.
Market sentiment has cooled, and costs have risen, making it increasingly difficult to secure funding for viable, high-quality projects. Strong partnerships between lenders and developers have become essential to sustaining growth in the sector.
“In this market, where developers have taken the brunt of the changes over the last few years, it’s imperative that banks become flexible and solutions-focused, as Shawbrook have in this transaction,” said James McGregor, director at P10 Financial Group. “Developers have seen pressure on GDV, rising build costs, delays in planning, and ongoing supply chain challenges. Working with lenders who take a pragmatic, partnership-led approach is key to keeping developments viable and getting much-needed homes built.”
The transaction demonstrates how collaboration between lenders, advisers and developers continues to play a critical role in maintaining sector momentum.
“This project is a great example of what can be achieved through genuine collaboration,” explained Keir Morris, senior relationship director at Shawbrook. “At Shawbrook, we place huge value on the relationships we build with our partners because when everyone is aligned and focused on delivery, even complex deals can move efficiently. Working with P10 and the developer, we were able to structure a facility that supports progress in a challenging market and brings much needed new homes to London.”
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