Saving Stream found that smaller developers are struggling with the limited ability of banks to provide development finance for commercial property, with larger institutions forced to hold more regulatory capital against lending for new developments than for pre-let and pre-sold developments.

“The banks just aren’t able to lend to commercial development on anything like the scale that they once did, and smaller commercial developments are struggling to get off the drawing board as a result,” said Saving Stream’s Liam Brooke.

“The big listed developers still have plenty of access to finance for large office, retail or industrial developments, but it’s a different story for smaller developers looking to get spades in the ground on more modest plans.”

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