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Introduction
According to a May 2026 survey by Octane Capital property developer confidence fell in Q1 of 2026, with just 35% of developers surveyed believing that UK property market conditions will improve in 2026. This figure is down from 67% in Q4 of 2025, a decrease of almost a third. Plans to progress on or break ground on new projects has also decreased, with just 20% of developers planning to move forward in Q1, down from 36% in Q4 of 2025.
Overall 91% of developers have cited obstacles to their property development projects, up from 82% quarter on quarter. The biggest hurdles developers face are as follows:
- High build and labour costs – 29%
- Planning delays and uncertainty – 21%
- Funding delays or lack of funding access – 17%
Developers that are planning to use finance to navigate current market challenges are now increasingly reliant on specialist finance for the sector, including bridging loans and refurbishment and light development finance. 72% of developers are now planning on using this type of funding to get projects moving, up from 65% in Q4.
Businesses, property developers and landlords looking to build, improve and renovate commercial and housing properties can seek grants and loans from local authorities to help with eligible costs. Council funding priorities permit funds being allocated first for improving empty homes or commercial units so they can be brought back into use, home improvement activity to improve living standards for existing tenants and conversion grants to change unused commercial premises into new housing dwellings.
What Are Some Of The Latest UK Property Development Grants Funding Opportunities Available?
i) Transforming Towns Place Making Grant 2022 – 2027 Ceredigion County Council and Powys County Council are providing capital funding for local businesses, social enterprises, and public bodies to support projects that can help to rejuvenate town centres across Mid-Wales. Eligible projects can include green infrastructure developments, public realm improvements, internal and external commercial and residential property improvements. Funding up to £300,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Empty Property Grant
The London Borough of Camden is running a scheme providing grants for landlords to help them repair and renovate their empty homes and bring them back into use. Funding includes up to £15,000 per bedsit and, or a studio and, or a one bedroom property, £30,000 per two-bedroom single household property, £40,000 per three-bedroom single household property or larger and £80,000 per building.
Application Deadline: Applications are invited on an ongoing basis
iii) Bridgend Valleys and District Centres Placemaking Property Improvement Grant
Bridgend County Borough Council is running a scheme that will support works to enhance building frontages and bring vacant commercial floor space back into beneficial use and to convert vacant upper-floor space into new residential accommodation above commercial units, including internal and external works to bring vacant space back into use for residential purposes. Up to £30,000 is available for occupied properties and up to £49,999 is available for properties that have been vacant for more than six months.
Application Deadline: Applications are invited on an ongoing basis
iv) Improvement and Repair of Private Sector Properties – Discretionary Grants
Dundee City Council is providing grants for landlords to improve and repair their properties for residential use. Eligible work categories include Below Tolerable Standard housing, lead water supply pipes, serious disrepair, common Repairs, common door entry systems and common stair lighting. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Town Centre Retail Business Fund
North Lanarkshire Council is running a scheme providing funding towards the costs of eligible internal and external works and reconfiguration of ground floor vacant units to enable reoccupation, new commercial activity and support new employment opportunities. Funding up to £20,000 is available.
Application Deadline: 16th December 2026
vi) Repair Grant
The Northern Ireland Housing Executive is providing grants for landlords, agents and tenants to cover the costs of repairs to their properties that have been served a Statutory Notice. Funding up to £7,500 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Empty Property Scheme
Thurrock Council is running a scheme providing funding (50% grant and 50% interest free loan) to the owners of empty properties to help them undertake major repair works to make their homes fit to live in. Funding up to £6,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) North Kesteven Heritage Grant Scheme – Listed Buildings
North Kesteven District Council is providing grants for the owners of historic buildings (residential and commercial) to undertake repairs and restoration works for their buildings, preserving and enhancing the district’s built heritage in the process. Funding up to £3,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Property Development Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.