200x200_fitbox-cala_finance_jpeg_200.jpegFollowing recent figures from the National Housebuilding Council (NHBC), stating that volume housebuilders have now finally overtaken SME developers in terms of the volume of new homes being built, small housebuilders have to fight harder than ever before to stay in the market.

Previously, the market was controlled by small housebuilders, which produced 61% of the new homes built in UK. Volume housebuilders have been steadily taking over the market, and the figure for small-scale development has now dropped to just 42%. 

Key factors in the shift include larger developers taking on smaller sites, leading to increased competition for land and mounting land prices. The escalating bureaucracy of the planning, development and funding process is a major problem for the industry as a whole, but especially so for smaller developers.

CALA Group, one of the housebuilding industry's ‘big boys' is fighting smaller builders' corner by helping them to overcome some of the major issues affecting small-scale development. The developer's residential funding division, CALA Finance, offers a package specifically designed for small-scale housebuilders to eliminate some of the major issues, by speeding up the development process, and enabling them to take on more projects.

Unlike the packages provided by traditional finance companies or banks, the package offers 100% finance in return for a share of the profits, and gives developers an advisory service from a specialised team to support them and maximise the profits made on the project.

East Yorkshire-based SME developer, Westbridge Homes, is embarking upon its fifth project with CALA Finance. Steve Vessey-Baitson, Managing Director of Westbridge Homes commented, "Land availability and planning permission are always a big issue, and unfortunately not one that is easily solved. Red tape during the development process, however, is something that we can, and have been addressing with some help from CALA Finance.

"One of the major issues for smaller developers is regionalisation.  Companies developing sites across a region may end up with a host of different bank managers or funders for each of their projects, which means that an all-important relationship between the two parties cannot be built.

"The finance package offered by CALA is different. We can develop sites right across the Yorkshire region and deal with the same team on every project.

"Having 100% funding allows us to concentrate on the development of the site with the monthly expenditure being drawn from our pre-agreed facility. The support we get from the CALA team has also being invaluable to us.

"This form of funding has allowed us to complete larger schemes than we would have been able to do under normal funding criteria, and it allows us to do it without compromising our medium to long-term plans for the company."

So would-be developers need not despair. Go to Westbridge Homes to view this SME's portfolio of properties.