With economic conditions set to improve across 2023, now is the ideal time for developers to arrange financing for their latest projects - writes Mick Howard, Development Finance Relationship Director at Paragon Bank in the latest issue of North West Business Insider. 

It’s time to start looking to the future.

As 2022 drew to a close the news was dominated by inflation, energy prices, mortgage rate rises and talk of recession. The thought of moving house was the last thing on the minds of many families as they counted the cost of the squeeze on household budgets.

Say it quietly, but things seem to be looking up for household budgets. Energy prices have stabilised, inflation is set to fall as the year progresses, mortgage rates have come down and the economy is forecast to outperform expectations.

Following a prolonged period when looking to the future was filled with uncertainty, we can now start to see a recovery taking shape.

Mortgage rates have fallen, and property values have remained largely robust, defying expectations of scarring falls. After months of understandable hesitancy, families are now able to look to the future with a little more optimism and moving house could be back on the agenda.

The challenge for the sector is whether there will be the new properties available for those looking to buy. The past six months have been difficult for developers to know whether to proceed with schemes or wait until clearer economic skies emerge.

As we look ahead to 2024, we are seeing more developer clients ready to commence new schemes and break soil, meaning greater numbers of new homes in months to come.

The ability of developers to access the financing they require will be central to making this happen. As development finance specialists, Paragon is proud to work with developers throughout the region. We share your dedication to delivering projects of the highest standard and can support a wide range of funding requirements.

From pre-planning and bridging support, to residential and pre let commercial development funding, right through to marketing period loans, our product range can support your project from start to finish.

As an established FTSE 250 company, Paragon can also give you the security that you need. It means that we can remain competitive in the market whilst providing a premium service, which is something we’re passionate about.

We also understand that just as each project is unique and with its own individual requirements, so are developers. Building long-lasting relationships with our clients is key to our approach and we are committed to delivering bespoke financing solutions that meet can both the needs of the project and the developer.

With the Government’s Spring Budget offering little in terms of direct support to the housing sector it is even more important for specialist lenders to step up to the plate and play our part in supporting developers - and Paragon is ready to do so.

When visiting with clients on site in recent weeks it is clear that they are looking to the future and are planning for the projects that will complete next year – you could feel the buzz in the air thanks to the increase in productivity. It is going to be busy a year and for those developers looking to secure financing for their next project, now is the time to start talking to lenders.

The sooner a developer secures the financing they require, the sooner they can get spades in the ground – and we can’t wait to learn about your latest project and discuss how we can support you in the years ahead.

Visit our website to learn more about how our Development Finance team can support your projects.