United Trust Bank eyes northern England expansion

The lender said it sees “considerable potential” for further growth in the North after backing a number of property development projects in the Midlands and East Anglia.

It has appointed former Barclays Bank senior real estate manager Steve Grant as property finance business development manager responsible for the roll-out.

UTB executive director Noel Meredith (pictured) said the bank was particularly keen to support small-scale property developers.

“As the push to build hundreds of thousands of new homes countrywide continues, we are very well placed to encourage that activity by introducing our services to successful SME developers and property entrepreneurs based in the north of England,” he said.

The bank had recently surveyed brokers about their views on access to finance for developers and found the majority (97%) did not believe the environment would improve in the coming 12 months.

Meredith said: “There’s currently a perception among a large number of property finance brokers and developers that the Brexit, and any property market nervousness which may follow, will lead to a shortage of development funding, especially for SME developers.

“However, although some funders may have reconsidered their appetite for development finance, UTB is committed to supporting developers and property professionals as they work towards tackling the nation’s housing shortage and we have the funds available to do just that.”

UTB has built a stronghold in the London and the south but said it recognises a push to build new homes countrywide.

Its move follows recent research from real estate services and investment management business JLL, which had found a 65% drop in central London housing starts.

Rival lender Bridging Finance Solutions has been funding property development in the North of England for the past decade.

Managing director Steve Barber said: “[It is] a geographically specific market, lenders predict that there will be an increase in house prices in the North during the next five years and therefore we anticipate an extremely buoyant market.”