Development Finance
Development Finance in London
London's development market demands specialist knowledge and lender relationships that match the complexity of the capital's planning environment. We structure funding for schemes across all 33 boroughs — from single-unit conversions through to major tower developments.
The London Market
High land values, complex planning, significant opportunity
London development finance carries its own set of challenges. Land values are among the highest in Europe, meaning loan-to-value ratios need careful structuring to make schemes viable. The planning environment involves multiple layers — borough planning committees, GLA referrals for larger schemes, the Mayor's London Plan policies, and often heritage and conservation constraints.
For high-rise residential above 18 metres, Building Safety Regulator Gateway requirements add both time and cost to the development programme. Section 106 obligations and Community Infrastructure Levy can significantly affect scheme viability. These are factors we model into every development appraisal we produce.
We have arranged facilities ranging from £250k conversions in outer boroughs through to our largest-ever facility of £68.6m for a 34-storey tower scheme. Our lender panel includes funds specifically targeting London development — institutions comfortable with the higher land values and longer planning timelines that characterise the capital's market.
London-specific considerations
- GLA referral thresholds for schemes above 150 units or 30m+ height — adding 3-6 months to planning timelines
- Building Safety Regulator Gateway process for residential towers over 18m — lenders require evidence of Gateway 2 approval before drawdown
- Section 106 affordable housing obligations — typically 35% on-site, impacting GDV and cashflow modelling
- Conservation areas and Article 4 directions restricting Permitted Development conversions in many boroughs
- Community Infrastructure Levy varying significantly by borough — from under £100/sqm to over £400/sqm
- Higher build costs — £250-£400/sqft for residential, materially affecting development appraisals
By Borough Cluster
Development funding across London — by borough cluster
London's development funding market behaves very differently across the city. We group the boroughs into three clusters because lender appetite, pricing and scheme economics follow this geography.
City fringe
Tower Hamlets, Hackney, Islington, Southwark, Lambeth, Wandsworth — the corridor around central London where regeneration, BTR and PBSA dominate. Mid-rise to high-rise residential, mixed-use and conversion schemes. Deep institutional appetite for forward-funded BTR; senior-debt panel comfortable with BSR Gateway 2/3 timelines for taller schemes. Land values support premium scheme economics with disciplined cost control.
Arrange a call on a city-fringe scheme.
Inner London
Westminster, Kensington & Chelsea, Camden, Hammersmith & Fulham — premium residential pricing, tight planning, smaller average scheme size with higher value per unit. Senior debt with mezzanine is the typical structure; smaller specialist lenders dominate the panel. Schemes here are funded on quality and exit clarity rather than scale.
Arrange a call on an inner London scheme.
Outer commuter zones
Croydon, Bromley, Barnet, Enfield, Redbridge, Havering, Bexley — larger residential schemes, family housing, suburban regeneration. Land values lower than zones 1–2 but supported by Elizabeth line and London Overground connectivity. Senior debt to 65–70% LTGDV is the mainstream structure; mezzanine and forward funding both work for the right schemes.
Arrange a call on an outer London scheme or use the calculator.
What We Fund
Typical London development schemes
From permitted development conversions through to major tower schemes, we structure funding across every London development type.
Tower & High-Rise
20+ storey residential towers requiring senior debt, mezzanine and often equity. BSR Gateway compliance built into our cashflow models. Facilities from £15m to £68.6m+.
Apartment Schemes
Purpose-built apartment blocks from 6 to 200+ units. Build-to-sell and build-to-rent. Inner London, outer boroughs and commuter zone locations.
Conversions
Office-to-residential under Permitted Development and full planning. Commercial-to-residential, warehouse conversions. Schemes from £250k to £10m+.
Mixed-Use
Residential over commercial — retail, office and community uses. Complex structures with multiple income streams requiring careful appraisal modelling.
PBSA
Purpose-built student accommodation near London's universities. Institutional-grade schemes with forward-fund and forward-commit structures.
Affordable & Social
Section 106 affordable units, registered provider partnerships and 100% affordable schemes. Forward funding from housing associations and councils.
London Track Record
Case studies from the capital
Tower
34-Storey Tower
£68.6m facility — our largest development finance arrangement. Senior debt plus mezzanine for a major residential tower.
Read case study →Bridge to Development
Ilford Tower
£24.5m bridging facility — our largest bridge. Securing a tower site ahead of full development finance.
Read case study →Mixed-Use
Commercial Mixed-Use
Residential over commercial — a complex structure requiring specialist lender appetite for mixed-use schemes.
Read case study →Funding Solutions
Finance products for London developers
Every London scheme is different. We structure the right combination of funding products to suit your project and maximise your return.
FAQ
London development funding — common questions
How does development funding work for London schemes?
Development funding for London schemes typically combines senior debt, mezzanine and developer equity, scaled to the value and complexity of the scheme. Senior development funding usually covers up to 65–70% of GDV for mainstream residential, with mezzanine added where the developer's equity contribution sits below the lender's required threshold. Forward-funded build-to-rent and PBSA schemes carrying a contracted institutional buyer at completion attract higher leverage and keener pricing because the take-out risk is reduced. London's planning environment — Section 106, MTH, BSR for taller buildings — requires lenders comfortable with the regulatory timeline, and we match scheme to lender on that basis.
What development funding is available for London apartment and tower schemes?
Senior development funding, stretched-senior, mezzanine, JV equity and forward-funding routes are all live for London apartment and tower schemes in 2026. Smaller and mid-sized residential schemes are funded across a broad senior-debt panel; high-rise residential (above BSR thresholds) and large mixed-use schemes draw on a more specialist lender tier prepared for the Gateway 2/3 timeline. Build-to-rent and PBSA schemes with a forward-funder lined up attract the deepest institutional capital.
Developing in London?
Whether it's a permitted development conversion or a 34-storey tower, we'll structure the funding and present your project compellingly to the right lenders. No fact-find forms — just a conversation.
Other UK Regions
Development finance across the rest of the UK
We work across every UK region and the Crown Dependencies — each with its own development pipeline, lender appetite and scheme economics. Explore the other regional desks below.
Related reading
Development Finance Rates in 2026
Senior debt, mezzanine and equity rates across the UK market this year — plus where we expect them to land in H2.
Read the 2026 rates guide →