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Introduction
According to the State of Play 2025/26 survey from the Home Builders Federation that outlines challenges of UK small and medium sized homebuilders, the top 5 major barriers to growth and unlocking new housing delivery over the next 12 months have been identified as:
i) Delays in securing planning permission – 94%
ii) Lack of resources in Local Planning Authority planning departments – 89%
iii) Increased burden from business taxation and regulatory environment – 67%
iv) Local and political opposition to new development – 66%
v) Viability pressures: meaning the commercial value of the development must outweigh total cost of development – 64%
Given that the UK Government has pledged to help deliver the building of 1.5 million new homes during the current Parliament, there is frustration within the sector that an overwhelming number of barriers faced by small and medium sized builders to complete property developments are down to bureaucratic issues at Local Government level.
The Home Builders Federation has identified that there is a shortfall of 2,200 planners within local authorities across England and Wales. Unless these job roles are filled over the next few years then delays in planning permission being granted and other related tasks within planning departments will continue to stall developments across the 2 countries.
In terms of the viability of site developments, developers are concerned about a number of areas where costs are increasing, including those relating to construction, regulation, taxes, marketing, affordable housing contributions, finance interest, as well as a necessary return on investment. This is why 64% of survey respondents now believe commercial viability is a major barrier to growing their business in the next 12 months. It is believed that a range of new policy costs, taxes and regulations placed on the industry have stretched viability to breaking point on many development sites and that these costs disproportionately affect SMEs.
Businesses, property developers and landlords looking to carry out new residential or commercial premises building projects or renovate existing properties can seek grants and loans from local authorities to help address some cost concerns. Council funding priorities permit funds being allocated first for development activities if it increases the availability of local housing stock or allows previously empty commercial units to come back into use or encourages building on brownfield development or stalled sites.
What Are Some Of The Latest UK Property Development Funding Opportunities Available?
i) Transforming Towns Programme – Town Centre Commercial Property Improvement Grants
Bridgend County Borough Council is running a scheme to provide local commercial building occupiers and owners access to funding to enhance building frontages together with the upgrade of vacant commercial floor space to bring back into beneficial business use. Funding up to £300,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Empty Property Grant
Wandsworth Council is running a scheme providing grants for the owners of empty residential properties in the local area to repair and renovate their properties and make them available for rent. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Town and Village Regeneration Scheme
The Isle of Man Government is running a scheme providing financial assistance for internal and external works to vacant business units, internal works to convert vacant units above town centre retail premises into residential premises and installation of payment or point of sale equipment in occupied commercial premises. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Site Enabling Regeneration Grant Fund
East Dunbartonshire Council is running a fund that aims to support the development of residential and commercial sites within regeneration locations such as Kirkintilloch Business Gateway and the Westerhill Regeneration Area. The fund can also support redevelopment at locations which are identified within the Local Development Plan for business use and town centre sites. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Empty Spaces Into Living Places
Conwy County Borough Council is providing grants towards the cost of renovating existing residential properties, or the conversion of commercial properties/empty spaces into residential accommodation. The grant can be used for properties in the town centres of Colwyn Bay, Llandudno or Abergele/Pensarn. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Renovation Grants for Landlords
East Suffolk Council is providing grants for landlords and owner-occupiers to bring properties in the Denmark Road area of Lowestoft up to the Decent Homes Standard. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Empty Property Grants
London Borough of Ealing is providing grants for landlords to repair and renovate residential properties that have been empty for six months or more. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Home Repairs and Improvements – Minor Works Grant
Elmbridge Borough Council is running a scheme providing grants for residential private landlords and owner-occupiers to make major improvements and repairs to their properties for residential use to fix category one hazards or to keep a property from serious disrepair. The type of work that could be funded includes repairing faulty heating or electrical systems and the treatment of damp, rot and timber infestation. Funding up to £5,000 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 funding 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.
Want To Find The Latest UK Property Development Funding Opportunities?
If you want to see the full set of UK property development funding currently available, please visit https://getbusinessgrants.com/