Meeting the 2025 Demand for New Build Homes in the UK: How FundMyProperty Can Help with Development Finance
As we move further into 2025, the UK housing market is facing a significant and growing demand for new build properties. With population growth, shifting lifestyle preferences, and government-backed incentives driving the market, new developments have never been more vital. Yet, for developers and investors, meeting this demand requires not only vision but also the right financial backing.
At FundMyProperty, we specialise in helping developers bring residential projects to life with tailored development finance solutions. Whether you're building a single unit or launching a multi-unit scheme, we provide fast, flexible funding that helps you stay competitive in this fast-moving market.
In this post, we’ll explore what’s driving the 2025 demand for new builds in the UK, where the opportunities lie, and how FundMyProperty can support your next development.
The State of the UK New Build Market in 2025
1. Housing Shortage Continues to Drive Demand
The UK has been grappling with a long-term housing shortage, and despite efforts to ramp up supply, demand still far exceeds availability. Government estimates suggest that at least 300,000 new homes per year are needed to keep up—yet completions consistently fall short of this target.
With increasing pressure on both urban and suburban areas, the need for high-quality new build homes has become even more urgent in 2025. This presents a strong opportunity for developers who can step in to fill the gap.
2. First-Time Buyers and Government Support
Incentives for first-time buyers—such as first-time buyer ISAs, Stamp Duty relief, and shared ownership schemes—continue to fuel demand for affordable and entry-level new builds. Many of these buyers prefer the modern design, energy efficiency, and lower maintenance costs of new homes over older stock.
As the Bank of England maintains relatively stable interest rates, mortgage accessibility remains good, further supporting buyer activity in the new build sector.
3. Sustainability and Smart Homes Are Now the Norm
In 2025, new build buyers expect properties that are eco-friendly, tech-enabled, and energy-efficient. Developers who meet these expectations with features like air source heat pumps, solar panels, smart home systems, and high EPC ratings are seeing increased demand and stronger valuations.
This shift means that future-proof developments not only align with market demand but also gain favour with lenders, investors, and local councils.
Where Are the Opportunities?
While demand is strong nationwide, some regions in particular are seeing a surge in interest and development activity:
The Midlands and North of England – Buoyed by infrastructure investment and the growth of regional cities like Manchester, Leeds, and Birmingham.
London commuter towns – With hybrid working now entrenched, demand for new homes in well-connected, affordable locations is surging.
Coastal and rural areas – As buyers prioritise lifestyle and space, developers are capitalising on opportunities in scenic, underdeveloped locations.
If you're a developer looking to take advantage of these trends, having access to the right finance partner is essential. That’s where FundMyProperty comes in.
How FundMyProperty Supports New Build Developers
We understand that every development is different—and that fast, flexible finance is key to capitalising on opportunities. At FundMyProperty, we offer a range of tailored development finance solutions for residential projects, designed to meet your funding needs at every stage.
1. Ground-Up Development Finance
If you're starting from scratch—purchasing land and building from the ground up—we can fund both the land acquisition and construction costs. Our solutions are ideal for:
Single unit builds
Small housing schemes (2–10 units)
Larger multi-phase developments
We typically offer:
Up to 70% of land purchase price
Up to 100% of build costs
Loan terms between 12–24 months
Interest rolled up or serviced
Staged drawdowns in line with project milestones
2. Joint Venture Funding
For developers with great sites but limited capital, we can arrange joint venture (JV) development funding where we partner you with investors who provide both debt and equity. This structure allows you to:
Build without injecting large amounts of your own capital
Share the profits (and risk) proportionately
Focus on delivering the project while we handle funding logistics
3. Planning Gain Finance
If you’ve secured land with potential but need capital to achieve planning permission before beginning construction, we offer short-term finance to bridge the gap and unlock site value.
This is especially helpful in uplift situations—where land value increases substantially once planning consent is granted.
4. Exit Finance
Once a project is complete, it may take time to sell all units or refinance onto a buy-to-let mortgage. Our development exit finance (also known as sales period finance) helps reduce pressure, repay expensive development loans, and provide breathing room to optimise your exit.
Why Choose FundMyProperty?
We’re not just lenders—we’re property finance specialists. Here’s what makes FundMyProperty different:
✅ Fast Decisions, Quick Access to Capital
Speed is often the difference between winning and missing out on a site. We move fast—with initial decisions often within 24–48 hours and funding completed in as little as two weeks for qualified projects.
✅ Tailored, Flexible Funding Structures
We understand the unique needs of developers and offer custom finance packages suited to your project size, timeline, and experience level.
✅ Specialist Lender Network
We work with a panel of experienced development lenders, private investors, and institutional funders, ensuring you get the most competitive terms available in the market.
✅ End-to-End Support
From initial funding to final sales or refinance, we’re here to guide you through the entire process. Our team includes finance brokers, underwriters, and development specialists who can advise on project structure, exit strategy, and more.
Real-Life Case Study: Small Developer, Big Results
In late 2024, a small developer approached FundMyProperty to finance a four-unit scheme in a commuter town outside Bristol. They had secured land with outline planning and needed £550,000 to fund the build. Traditional lenders were slow and cautious, but we stepped in with a 12-month development loan, funding 100% of the build cost and 70% of the land purchase.
The project completed in early 2025, with all units selling off-plan thanks to strong local demand and high build quality. The developer repaid the loan and netted a solid profit—using the proceeds to fund a larger, six-unit site with our continued support.
Final Thoughts
2025 is shaping up to be a pivotal year for the UK new build market. With high demand, supportive policies, and a growing focus on sustainability, opportunities abound for developers who are ready to act.
At FundMyProperty, we’re here to help you seize those opportunities with the development finance you need to build confidently and profitably. Whether you're acquiring your first site or scaling up your portfolio, our tailored solutions, fast service, and expert support can help make your project a success.
Looking to fund your next development?
Get in touch with us today to discuss your project and see how we can help turn your vision into reality.
