SME challengers spark record development market growth: Mantra Capital

Mantra Capital’s founders have attributed the growth in the development market to the sharp rise in small and medium-sized ‘challenger’ developers, the higher risk tolerance of challenger banks and the increased value found outside the capital.

The firm believes that challenger banks and niche lenders will continue to accomodate challenger developers to drive the development market forward.

Nick Neophytou, managing director at Mantra Capital, commented: “With the supply deficit so extreme, the development market is seeing unprecedented activity levels. There is no shortage of experienced developers hungry to build, and equally a raft of lenders that are ready and willing to provide finance.

"At the current point in time the challenger banks and niche lenders are particularly active. We are seeing a definitive shift away from price and product towards speed and certainty of execution, which is where the challengers come into their own.”

Nimesh Sanghrajka, managing director, added: “The UK’s development map is changing fundamentally. Developers and investors are increasingly looking beyond the capital in search of better value, with current hotspots including Birmingham, Bristol, Edinburgh and Peterborough.

"While the high street banks certainly haven’t gone quiet, there is a growing synergy between challenger developers and challenger banks that could have a material impact on solving the UK’s housing crisis.”