The Intermediary – December 2025 - Flipbook - Page 47
T H E I N T E RV I E W
Avamore Capital
second to none, because it might be their first,
and that’s their reputation.”
Those relationships are often long-term,
and in a few years, that inexperienced
developer trying their hand might be one of the
established, experienced players making an
even greater difference to the housing market.
They cannot do that without flexible funding
and the brokers that help them get to it.
Future opportunities
While the development, construction and
refurbishment market is plagued by many
challenges – from fluctuating build, materials
and labour costs, to ever-changing regulation
and near-impossible to navigate systems –
there are bright patches on the horizon.
Importantly, Butler explains, this is a
market comprised of resilient players, most of
whom are ready to innovate and pivot to take
advantage of changing opportunities.
He says that, at the moment, the
opportunities Avamore Capital is seeing more
of include regional schemes, particularly in
the North, even in areas where demand might
overall be seen as lower.
He explains: “We’ve always been keen to
support schemes nationwide, but in the last 18
months we’ve seen more schemes in the North
of England.
“I don’t necessarily mean just the fancy city
centres of Manchester and Birmingham, either,
but more regional. We’ve done a number of
schemes in Hull, South Shields, and outside of
Newcastle, for example.
“There are some great opportunities that
feed into smaller schemes, where there is that
demand for 10 units rather than 100.”
While larger developers might not see
opportunity here, SMEs are well-positioned
to make the most of smaller projects that can
ultimately still provide good yields.
Beyond the regional trends, Butler says
that permitted development (PD) schemes
will likely remain consistent, while recent
conversations around developing the grey
belt offers an opportunity that, while still in
its nascent stages, Avamore will “continue to
monitor and track” – although the impact is yet
to be fully understood.
The topic of airspace is one that is seen
as providing a “big opportunity” by many in
the market; however, Butler warns that this
can in fact be fraught with practical risks
that developers and brokers should be wary
of before they attempt to take advantage
following the promise of the 2019 revised
National Planning Policy Framework.
Butler says that concerns centre around
fire safety, utility connections, leaseholder
relations, and more, which can complicate
projects, meaning that this is an area Avamore
looks at with some caution.
Looking ahead, Butler expects the UK
property market to see a similar pattern in
2026 to that of 2025 – there have been bumps
on the road, and recovery and progress has
perhaps not been as meteoric as some might
have hoped, but the year was ultimately
defined by resilience and improvement.
Butler says: “We’re not going to jump back
to any great heights just yet, but there’s a
positivity in our industry now that we know
what we’re facing, and we know the challenges
that are around the corner.
“That’s the thing I love about our industry,
we always overcome things, whether that’s to
do with finding solutions to clients’ problems,
or brokers and lenders providing solutions to
challenges in the market.
“We can’t just wait around for a couple
of years until things return, we’ve got to
drive through.
“I think we will continue to see innovation,
certainly on the lending side, and from clients
looking for different opportunities.”
Against this backdrop, Butler says he hopes
that both the Government and the regulator
will look towards reducing the barriers that are
stopping people from being able to build the
houses that are so desperately needed.
He also calls on them to work towards
“further developments in planning, and
something to help drive sales” in order to
bookend the development process and get the
market moving.
Finally, the outlook for Avamore Capital is
also one of steady growth and innovation,
continuing the trajectory of the past few years.
Butler concludes: “Our loan book’s grown
over the past six to nine months.
“There have been operational improvements
and improvements to the products, and the
last quarter was a record one for the last
three years.
“We’ve seen growth in a still challenging
market, and we expect that to continue further
in 2026.
“But we will do that with the current
offering. We have a very strong funding mix
behind us, and good relationships.
“Our aspirations for 2026 are achievable with
our current product set and funding mix. We’re
able to be adaptable and offer solutions.
“Avamore will continue to do what we do
best in 2026.”
December 2025 | The Intermediary
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