Assetz Capital boosts housebuilder leverage with planning gain and use of residual land values
Assetz Capital, a leading SME property development finance provider, has enhanced its development finance product to allow both planning gain and residual undeveloped land value as valid equity contributions. The proposed structure reduces the cash developers must inject upfront, while enabling them to access greater overall leverage and fund more units from day one.
Andrew Fraser, chief commercial officer at Assetz Capital, said: “By recognising planning gain and the value of undeveloped residual land not being constructed as legitimate contributions, we are lowering the upfront cash burden on developers and unlocking additional leverage. Developers can now retain more cash for construction, accelerate delivery, and potentially fund multiple schemes concurrently, increasing housing output across the UK.”
Fraser continued: “Under the updated policy, developers who have invested in securing or enhancing planning approval, as well as those holding additional undeveloped land, can count the resulting value uplift toward their equity contribution. All contributions must be fully evidenced, including acquisition costs, planning investment, and site valuation. Purchases at discounted prices do not qualify. All deals are expected to be fully funded, straightforward, and in saleable locations across all regions of the UK.”
The update maintains full LTGDV (72.5%) and LTC (87.5%), structure, and Assetz Capital’s proven project monitoring. It reinforces the company’s commitment to helping SME developers unlock capital, accelerate delivery, and bring more high-quality housing to market.