Half of mid-sized property developers say traditional lending no longer fits their needs

By Bridging Loan Directory 12th May 2026

The UK’s medium-sized property development businesses are facing challenges finding financial solutions that fully meet their needs, with half (50%) saying they do not align with traditional lending criteria.

That’s according to Shawbrook’s research which looks at the challenges facing mid-sized property developers, as well as their ambitions and the support they need to scale.

The research highlights a clear gap: 55% of property developers in this space say they are too large for small-business finance yet too small to access corporate-level solutions.

Finding the right fit

The data points to a disconnect between the needs of growing property developers and the financial products currently available to them.

Just under half (48%) find it difficult to source appropriate support, while 45% feel overlooked despite being in a strong position for growth.

This gap has tangible consequences. Among property development businesses that say their current funding is not meeting their needs, 36% say they cannot access the level of capital required, while 32% cite the fact that they have little to no relationship with their lender.

Powering growth

Despite these challenges, the ambition to grow remains strong. Access to the right financial support could act as a catalyst for high-impact activity:

31% would expand their staff
27% would invest in infrastructure and assets
27% would expand into new sectors
25% would expand internationally
23% would upskill their staff

Terry Woodley, MD of Development Finance at Shawbrook, said:

“Property developers face a problem that will be familiar to mid-sized businesses across every sector: they’ve outgrown the products built for smaller firms, but they don’t fit the mould that traditional lenders use for larger ones either.

Add in planning delays and tightening regulation, and sourcing the right funding becomes a serious drag on growth.

What our research shows is that this isn’t inevitable.

When businesses at this stage get access to the right specialist support, the results go well beyond the individual firm, unlocking investment, creating jobs and adding real momentum to the wider economy.

The ‘M’ in SME has been overlooked for too long.”