Assetz Capital launches stretched 72% LTGDV to accelerate UK housing delivery
Assetz Capital, a leading specialist in development finance, has announced a major enhancement to its funding model at MIPIM 2025. Increasing LTGDV to 72% and 87.5% Loan-to-Cost (LTC) for housing schemes will drive a surge in day one lending advances for developers. This significant move is designed to accelerate housebuilding, improve cash retention, and ultimately support SME developers in bringing more homes to market faster through retaining equity to acquire further sites.
Andrew Fraser, chief commercial officer at Assetz Capital, commented: “Developers need funding certainty and strength of large funding from day one, our enhanced senior lending terms for housing provide precisely that. By increasing our LTGDV to 72%, it means we’re offering a more aggressive and developer-friendly solution that reduces the equity burden, improves cash flow, and speeds up project delivery through providing stronger day-one advances on all housing deals.”
This change follows Assetz Capital’s recent rate launch in January, where it reduced development finance rates to as low as 9.1%, reinforcing its commitment to providing competitive and accessible funding solutions for SME housebuilders. With nationwide coverage, Assetz Capital ensures that fair and flexible finance is available to developers across England, Scotland, Wales, and Northern Ireland.
This latest enhancement marks another milestone in Assetz Capital’s commitment to bridging the funding gap for SME developers. The enhanced funding model enables quicker site acquisitions, faster project commencements, and reduced reliance on costly mezzanine finance, ensuring that more homes are built at pace and at fair borrowing costs.
Fraser continued, “A lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects. Reducing the need for mezz will keep things more profitable and allow developers to spread their cash across more schemes.”
“Our mission is simple: to enable more homes to be built, faster,” Fraser continued. “By launching this initiative at MIPIM 2025, we’re ensuring the UK’s development sector remains focused on accelerating housing delivery through smarter, fairer funding solutions. Lower equity requirement, means developers contribute less upfront capital, freeing up cash for other projects by giving a higher day 1 advance is part of this solution.”
With over £1.7bn deployed since 2013, including funding for 1 in every 12 SME-built homes, Assetz Capital has established itself as a leader in supporting sustainable and profitable development projects.