Assetz Capital has provided a development finance facility of £490,000 for the construction of two residential flats in Anerley, South London, the lender has announced.
The 15-month loan, structured at 70% loan-to-value, will fund two one-bedroom garden flats near Crystal Palace Park. The properties will be built on a plot between two existing properties on an established residential street.
SME developer financing
The facility was provided through Assetz Capital’s Elevate range, which launched last year to serve SME property developers building smaller ground-up schemes. The range offers loans from £250,000 to £1.5 million for residential developments of one to 15 units across England and Wales.
According to the lender, it has now provided £262 million in facilities for schemes under £1.5 million to date. The focus on smaller developments comes as landlords increasingly turn to agents amid regulatory complexity, reflecting broader pressures on the residential property sector.
Lloyd Whiting, business development manager at Assetz Capital, said: “We worked closely with the borrower to understand the development and put a facility in place that gives them the support to move the project forward.”
Housing supply context
Andrew Fraser, chief commercial officer at Assetz Capital, stated that creating opportunities for SME housebuilders is necessary to increase housing supply. “Small developments have an important role to play in delivering new homes across the country, utilising existing sites that are often in well-established areas, limiting disruption,” he said.
The completion follows broader trends in the property market, where UK rental prices reach new highs as supply falls, highlighting the need for additional housing stock.
The loan represents Assetz Capital’s continued activity in the development finance sector, targeting borrowers delivering schemes of varying sizes across the UK. The lender has positioned the Elevate range as a means of widening access to specialist development finance for smaller developers.
