The Intermediary – September 2026 - Flipbook - Page 67
SPECIALIST FINANCE
Opinion
Opportunities in
East Anglia
O
ne of the most
important aspects
of the UK housing
market to understand
is that there’s no
single market.
Instead, we have a host of separate,
individual markets, each with their
own characteristics.
That’s certainly clear within my
own patch of East Anglia – Cambridge
and its surrounding areas have very
different dynamics from much of
Norfolk and Suffolk, for example.
There is still an appetite to develop
across the region and I’m continuing
to see developers looking seriously
at new opportunities, but what has
changed is the level of scrutiny being
applied before they commit.
Compared with 12 months ago,
the market feels more stable, but
also more discerning. Well-located
schemes are still moving, while
projects become harder to make
work where the appraisal relies on
ambitious end values or the product
isn’t quite right for the location.
That makes understanding the
market you are building into more
important than ever.
Different opportunities
In and around Cambridge,
constrained housing supply and
strong employment drivers are
continuing to support demand.
Connectivity and proximity to major
employment centres are important
factors for developers considering
opportunities there.
But move into Norfolk and Suffolk
and the dynamics can be quite
different. Affordability, lifestyle
and local employment can play a
much greater role, while smaller
developments in market towns,
village-edge and semi-rural locations
can work particularly well.
The common denominator is that
the numbers need to be grounded in
what is actually happening locally.
Strong comparable evidence, realistic
pricing and a product which responds
to the buyers in that particular market
all make a significant difference.
This is particularly important
in more rural locations, where
values, likely sales rates and even the
type of property buyers expect can
change significantly over relatively
short distances.
Beyond headline values
Planning remains an important
consideration across East Anglia,
while environmental and
infrastructure issues are increasingly
part of the picture too. Biodiversity
requirements, utilities, highways
and, in some areas, water-related
constraints can all have an impact.
None of these issues necessarily
prevent a good development from
going ahead, but they can have a
meaningful effect on timings, costs
and ultimately viability.
From a lending perspective, that
means looking at a site within its
local context rather than simply
assessing an appraisal in isolation. We
want to understand the assumptions
behind the costs and values, see good
comparable evidence, understand
the planning route and have clarity
around the exit.
Regional developers
One of East Anglia’s real strengths is
its community of experienced small
to medium-sized (SME) and regional
developers.
While larger housebuilders are
naturally active around some of
the major growth areas, much of
the market is made up of smaller
developers delivering infill schemes,
village-edge developments,
conversions, refurbishments and
smaller new-build projects.
For those businesses, local
knowledge can be a genuine
advantage. A developer may operate
within a relatively tight geographical
JOSEPH GIBSON
is lending manager at
Hampshire Trust Bank
area but know that patch exceptionally
well. They understand what sells,
the sensitivities of the local planning
system, rural design expectations
and the type of product buyers are
looking for.
Reflect the realities
I joined specialist finance in the
period following the financial crisis,
when a number of traditional banks
had tightened their appetite for SME
development lending. Over the years
since, specialist lenders have become
a much more established part of
the market.
The value of specialist development
finance isn’t simply about leverage or
being prepared to consider schemes
that sit outside a traditional lending
model, but about understanding how
development actually works since
schemes don’t always follow the path
set out on day one.
When that happens, what maers is
having a lender that understands what
is actually happening on the ground
and is prepared to have a conversation
about it.
There is continued investment
around Cambridge and the wider
growth areas, yet infrastructure
and investment alone do not make
an individual development viable.
Ultimately, a site still has to work
at the price paid for it and against
realistic assumptions for build costs,
values and sales rates.
East Anglia will continue to offer
opportunities for SME developers
over the next 12 months, but there
is no single formula that works
everywhere. Knowing the market,
understanding the site and being
realistic about the numbers will
maer as much as ever. ●
September 2026 | The Intermediary
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