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Lucy Barrett: New developers face barriers to entry

Lucy Barrett, founder and director of Vantage Finance, has warned that while the development market needs new entrants, many face barriers to entry, including access to funding.

 

Speaking at the NACFB Commercial Finance Expo, Barrett said that funding for small to medium (SME) developers has to take a sensible approach, but that government support could help those lenders that want to fund housebuilders but lack the appetite for the increased risk surrounding a new entrant.

Mark Hawthorne, CEO of LDS Sales Guarantees, added that during the building process, larger developers are able to cope better with disruption, either through additional resources or adapting projects.

However, he said, SME housebuilders have less bandwidth to cope with, among other things, a delayed planning system or issues with supply costs and availability.

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