A custom build meeting for lenders and developers, led by the Building Societies Association (BSA) on the 10th February, allowed lenders to understand developers’ immediate plans for the provision of custom build, including the shape, size and geography of developments. It also offered developers an insight into some of the challenges lenders face when lending into this market.
Lenders demonstrated a willingness to increase lending into the sector, however there were barriers to them achieving this. One of the issues experienced by some lenders was finding surveyors who had the relevant experience to value custom build. In addition it was felt that it would be beneficial for heads of lending and valuers to develop a better understanding of the various modern methods of construction often used in custom build, as this would better inform any decision to review their current lending criteria. There was support for an education event to be held for heads of lending and valuers to address this. This would involve a site visit to one of the custom build developments, the BSA is in the process of confirming a date for this. The BSA will be meeting with the Royal Institute for Chartered Surveyors (RICS) to discuss the surveying community and custom build.
It is envisaged that a follow up custom build meeting will be held in April.
