Conversions or Ground-Up? Both play a role in fixing the housing shortfall
The housing crisis remains one of the UK's most pressing long-term challenges. While policy conversations often focus on large-scale new-build housing, the real engine for agile, impactful development lies with SME developers, particularly those working on property conversions and smaller ground-up projects.
This is not an either/or conversation. Both types of development will be critical in meeting the country’s housing delivery goals, and each presents a unique set of opportunities and challenges. For brokers, the message is clear: in a market where timelines are tight and project types vary widely, choosing a lender that can adapt swiftly and flexibly to client needs has never been more important.
Government pressure to increase housing supply continues to shape planning policy, with renewed focus on bringing underused or disused buildings – such as old office blocks or mixed-use units – into residential use. Meanwhile, urban infill projects and smaller plots of land are increasingly attractive for SME developers looking to build from the ground up.
Conversions typically offer faster turnaround times and lower planning risk, but may come with structural or title-related complexities. Ground-up schemes often allow for greater design freedom and long-term value creation, but they demand more detailed planning and phased funding.
At London Credit, we see both routes as vital to increasing housing stock—and our bridging and development finance products are built to support either strategy.
Whether it’s a permitted development conversion or a new-build terrace, time is always a critical factor. Developers need capital that can be deployed quickly to secure acquisitions, pay contractors, and keep momentum going. Traditional bank finance, with its multi-stage approval processes, is too slow for many of today’s projects.
That’s where specialist finance comes in. Our development finance product is already proving its value and our pedigree in providing bridging finance for property conversions is already established. Whether it’s a character property conversion or a new-build scheme on urban land, we structure funding the proper way!
For brokers, there’s significant opportunity in the growing demand for development and conversion finance. But it’s not just about finding a competitive rate. Understanding the nuances of planning permission, SPV structures, cost projections, and exit strategies is key to pairing developers with the right lending partner.
At London Credit, we work closely with brokers to assess project viability quickly and transparently. Our team reviews the condition of the asset, required approvals, and exit plans as standard – and we move fast when a deal is viable. In an environment where interest in short-term finance is at a record high, this responsiveness is exactly what borrowers need.
With housing delivery high on the government agenda and a planning framework that’s slowly becoming more flexible, the time is now for SME developers to capitalise on opportunity. Property conversions and ground-up developments each play their part, and when done well, both routes lead to quality homes that our country badly needs.
As brokers, the opportunity lies in supporting these projects with speed, insight, and the right financial partners. At London Credit, we’re committed to being just that.
Constantinos Savvides, Head of Underwriting at London Credit
