Lendus.

Property Development Loans

Finance your next residential or commercial development project with the right structure. Explore business funding through Fundably. Eligibility criteria apply.

50+ UK lenders through Fundably
3+ months trading
UK limited companies only
Monthly revenue required

Typical Range

£50k – £25m

Average Loan

£1500k

for property development

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Compare property development business loan rates through Fundably

For UK limited companies with 3+ months’ trading and monthly revenue.

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Loan types available

Unsecured Business Loan

Rate
7.9% – 24.9% APR
Term
1 – 3 years
Security
No security required
Best for
Planning application costs, feasibility studies, professional fees, and small refurbishment projects

Secured Business Loan

Rate
5.5% – 14.9% APR
Term
1 – 5 years
Security
Existing property portfolio or personal property
Best for
Land acquisition, bridging to purchase sites, and working capital for development businesses

Development Finance

Rate
7.5% – 14.9% (rolled up interest)
Term
6 – 24 months
Security
First charge on the development site and works in progress
Best for
Ground-up new-build developments, conversions, and major refurbishment projects for resale or refinance

Representative example

Borrow £1,500,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£48,330. Rates depend on your circumstances and the type of loan.

Market context

The UK property development sector contributes over £38 billion annually to the economy. Around 240,000 new homes were completed in England in 2024, with the government targeting 370,000 per year. Small and medium-sized developers account for approximately 40% of new housing delivery.

Common challenges

Explore business funding options through Fundably

For UK limited companies with 3+ months’ trading and monthly revenue.

Check Eligibility

Bad credit?

Some specialist lenders consider property development businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

How does development finance work?
Development finance is structured differently from a standard business loan. The lender funds the site purchase (typically 60-70% LTV) and the build costs (typically 85-100% of construction costs) in staged drawdowns as work progresses. Interest is rolled up (added to the loan) rather than paid monthly, so there are no monthly repayments during the build. The loan is repaid in full upon sale of the completed units or through refinancing to a buy-to-let mortgage. Total loan costs are typically 70-75% of the gross development value (GDV).
What is the difference between bridging finance and development finance?
Bridging finance is a short-term loan (typically 1-18 months) used to purchase a property quickly, often at auction or to secure a site before full development funding is in place. It is simpler and faster to arrange but more expensive for longer projects. Development finance is specifically designed for construction projects, with staged drawdowns linked to build progress and a monitoring surveyor. For light refurbishments (under 3 months), bridging may be sufficient. For anything involving structural work or new build, development finance is more appropriate and often cheaper overall.
Can a first-time developer get development finance?
It is possible but more challenging. Most development lenders prefer developers with at least 2-3 completed projects. First-time developers can improve their chances by appointing an experienced project manager or contractor, starting with a smaller project (under £500,000 GDV), having a larger equity contribution (35-50%), and demonstrating relevant experience in construction or property. Lendus works with lenders who support first-time developers with the right safeguards in place.
How much equity do I need for a property development project?
Typically, you need 25-35% of the total project cost (land + build + fees) as equity. This can be cash, equity in other properties, or a combination. For a project with a total cost of £1 million, you would need £250,000-£350,000 in equity with the lender funding the remainder. Some lenders offer higher gearing (up to 80-85% of costs) for experienced developers with strong track records and projects with healthy margins (20%+ profit on GDV). Mezzanine finance can also bridge part of the equity gap, though at higher rates.

Equipment finance for property development businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items property development businesses most often fund, with the price range we see quoted in the UK.

Equipment Typical price range Finance page
Drone £3k to £60k Drone finance
Access Platform £12k to £150k Access Platform finance
Asphalt Paver £130k to £500k Asphalt Paver finance
Backhoe Loader £55k to £110k Backhoe Loader finance
Boom Lift £45k to £220k Boom Lift finance
Breaker £4k to £35k Breaker finance
Bulldozer £90k to £450k Bulldozer finance
Cement Mixer £500 to £12k Cement Mixer finance
Cherry Picker £25k to £180k Cherry Picker finance
Compactor Plate £800 to £7k Compactor Plate finance
Concrete Mixer £80k to £250k Concrete Mixer finance
Concrete Pump £60k to £450k Concrete Pump finance

Browse all equipment finance pages

Understand the loan structures

The table above shows what a property development business borrows for. These pages explain how each kind of borrowing actually works, what it costs and who it suits.

Business loans for bad credit Government-backed business loans Merchant cash advance Revolving credit facilities Business loans with no personal guarantee Secured business loans Start up business loans Unsecured business loans

Related industry loans

Construction Hotel & Hospitality Manufacturing Farming & Agriculture Retail

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

Ready to find the best property development loan?

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For UK limited companies with at least 3 months’ trading and monthly revenue.

Business finance matched to your needs

Ltd companies · 3+ months trading · monthly revenue

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