If you’re planning a property development in 2025, you’ll find the landscape has shifted considerably from just a few years ago. Lenders are more cautious, costs remain unpredictable, and timelines are under increasing pressure. It’s a new era for development finance, one that demands clearer planning, deeper market knowledge, and stronger proposals.
In this blog, we’ll explore how the development funding landscape has changed in 2025 and what developers should know to secure the right finance.
1. Lending Criteria Are Tighter
Lenders are applying greater scrutiny to development projects in 2025. With economic uncertainties and evolving market trends, they’re looking closely at project viability and borrower experience. Developers are expected to present detailed financials, clear costings, and evidence of a well-thought-out exit strategy. A track record in delivering similar projects helps, but newer developers can still secure funding by working with a knowledgeable advisor who can position their proposal effectively.
2. Build Costs and Timelines Still Uncertain
While material prices have started to stabilise, issues like labour shortages, supply chain disruptions, and planning approval delays continue to pose risks. As a result, lenders are demanding realistic timelines and want to see that you’ve factored in potential overruns. Demonstrating how you’ll manage costs and delays is now an essential part of any funding application.
3. Demand Is Shifting by Region
Regional demand plays a big role in a lender’s appetite to fund a project. In 2025, areas like Manchester, Bristol, and parts of the South Coast are showing strong potential due to high tenant interest and regeneration investment. Mixed-use developments and energy-efficient housing are especially appealing in these markets, as they align with both market demand and environmental incentives.
4. Exit Strategies Under the Microscope
Exit planning is more important than ever. Lenders want to know exactly how and when their money will be repaid. That means having pre-sale interest lined up, refinance options ready, or long-term rental plans that make financial sense. A vague or unrealistic exit plan is a major red flag and can cost you the deal.
5. Why It Pays to Have the Right Finance Partner
The development finance market in 2025 is more complex, but the opportunities are still there—if you’re prepared. At Cotterell & Cotterell, we work with property developers at every stage, from feasibility to funding. We help you present a compelling case, connect with the right lenders, and structure a facility that supports your goals from start to finish.
📞 Thinking about a development project this year? Let’s make your funding work smarter.