Assetz Capital cuts rates as developers shift to conversions amid planning delays
Assetz Capital has announced a major repricing across its refurbishment, regeneration and development-exit loans, with all borrower rates now starting from 8.75%, as developers increasingly turn to conversions to keep projects moving during the UK’s worsening planning delays.
Planning approvals for new homes in England continue to contract. According to the Home Builders Federation’s Q2 2025 Housing Pipeline Report, just 48,022 units secured planning permission – down 23%. Only 1,559 housing projects were approved in Q2, down 33% on Q1 2025 and 45% year-on-year. In the rolling 12-month period to June 2025, approvals were just ~221,900 units, the weakest annual total in more than a decade.
Amid this backdrop of deep planning uncertainty, many smaller developers are shifting focus toward refurbishment, conversion and adaptive-reuse schemes – projects that typically offer faster delivery, lower planning risk and make better use of existing stock.
Assetz Capital’s newly priced products:
- Development Exit Loans – from 8.75% p.a.
- Residential Refurbishment Loans – from 9% p.a.
- Planning Assistance Loans – from 8.75% p.a.
Commenting on the announcement, Andrew Fraser, chief commercial officer at Assetz Capital, said: “Despite government intervention, planning approvals still remain low, developers are dealing with unprecedented delays. This is pushing many toward refurbishment and conversion projects, which are quicker to deliver and far less exposed to planning risk.”
“Our new pricing is designed to support that shift. But this is about more than rates – it’s about speed, certainty, and the ability to fund through complexity. We’re calling on brokers to bring regeneration and conversion cases forward this Autumn, because these projects are now critical to keeping UK housing supply moving.”