The Intermediary – July 2026 - Flipbook - Page 63
SPECIALIST FINANCE
Opinion
We need to support
developers in order
to build
T
he UK’s housing
shortage is well
understood. So too
is the need to invest
in the infrastructure
that supports
sustainable communities.
The challenge facing the sector
is no longer one of identifying
demand. Demand is evident in
every region of the country. The
challenge is delivering sufficient
housing, transport links, utilities and
community infrastructure to support
economic growth and meet the needs
of a growing population.
Encouragingly, capital does not
appear to be the primary constraint.
Investors have demonstrated a
willingness to support residential
development and infrastructure
projects that offer clear fundamentals,
responsible stewardship and a
credible path to delivery. Domestic
and international capital continues to
view the UK as an aractive market.
The rule of law, transparent planning
system, established property rights
and long-term demographic trends
remain compelling foundations
for investment.
The question increasingly becomes
how that capital can reach the
projects and developers capable of
creating the homes the country needs.
This is particularly relevant when
considering the role of small and
medium-sized (SME) housebuilders.
For much of the past two decades,
the UK’s residential development
market has become increasingly
concentrated among a relatively small
number of large developers.
While those businesses continue to
play an essential role, there is growing
recognition that solving the housing
challenge will require a broader
ecosystem of delivery partners.
MARK DYASON
is managing director
at Gatehouse Bank
Historically, SME builders
were responsible for a far greater
proportion of housing delivery than
they are today.
They oen possess deep local
knowledge and the flexibility to bring
forward sites that larger developers
may overlook. Many specialise in
smaller schemes that collectively can
make a significant contribution to
housing supply.
Yet access to development
finance remains one of the most
significant barriers.
Backing growth
Traditional funding structures can
sometimes struggle to accommodate
the realities of smaller developments.
Complex approval processes, rigid
financing criteria and changing
market conditions can make it
difficult for otherwise viable projects
to secure the support they require.
That creates an opportunity
for specialist finance providers
who understand both the risks
and the potential of development
investment. From a Sharia-compliant
perspective, this opportunity is
particularly significant.
Islamic finance has always
been closely connected to the
real economy. The emphasis on
asset-backed transactions and
the sharing of risk and reward
creates a natural alignment with
residential development.
At its heart, development finance
is about enabling productive activity.
It supports the creation of tangible
assets that serve communities and
contribute to long-term prosperity.
Whether that is a residential scheme
delivering much-needed homes or
an infrastructure project supporting
regional growth, the underlying
objective is one of responsible
investment in the built environment.
For financial firms, there is a clear
opportunity to support a broader
range of developers and projects. By
working closely with experienced
housebuilders and maintaining a
focus on transparency throughout the
funding process, specialist finance
providers can help unlock schemes
that might otherwise struggle
to progress.
This is particularly important at a
time when policymakers are actively
seeking ways to accelerate housing
delivery. Planning reform and
political support all have important
roles to play.
However, none of these initiatives
can achieve their full potential
without access to capital.
In spite of this, the necessary
ingredients are beginning to align.
There is political recognition of
the housing challenge. There is
investor appetite for residential
and infrastructure assets. There
is a growing understanding of the
contribution that SME developers
can make. Most importantly, there is
increasing willingness to explore new
approaches to funding and delivery.
The task now is to convert that
optimism into outcomes and
for specialist finance providers,
including those operating within a
Sharia-compliant framework, the
opportunity is clear. By supporting
responsible developers, funding
productive projects and helping bring
forward the homes and infrastructure
the country needs, they can play an
important role in shaping the next
phase of growth. ●
July 2026 | The Intermediary
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