April 29, 2025

The Developer Exit Opportunity

Property developers will be feeling strained in light of current market conditions, and this presents a significant opportunity for brokers.

Octane’s average procuration fee paid to our brokers on developer exit loans in Q1 of 2025 was £37,500, which highlights the scale of the opportunity

Slower Sales Are Creating Pressure

Problem: Properties are taking longer to sell. According to Zoopla, the average time it took to sell a property in 2024 (from the instruction of an agent to completion of the sale), was 185 days – a whopping 16% increase on the previous year. For property developers who have used development finance to build their schemes, they will rely on the sales of these properties to repay their existing lender.

Solution: Developer exit loans are used to repay development lenders and to give the developer more time to market and sell their units without pressure.

Rising Build Costs Are Adding to the Strain

Problem: In addition to a slowdown in sales pace, rising build costs will also be causing concern. According to BCIS, build costs have risen by 20% since 2020 and are forecasted to rise by a further 17% in the 5 years ahead. Consequently, many developers will require extra funding to complete their developments before they can be brought to market.

Solution: Developer exit loans can provide additional drawdown facilities to fund remaining build costs for unfinished schemes.

Developer Cashflow Remains a Key Concern

Problem: Cashflow. Many developers will have other projects which require capital input. But, until they have sold enough of their units to repay their development lender, they may not have access to the required funds.

Solution: A developer exit loan can release equity on completion to aid the developer’s cashflow position.

About Octane Capital

Octane Capital is a specialist lender that provides short-term financing to property investors and are a leading provider of developer exit finance. We lend up to 75% LTV with rates from 0.73% per month (BBR linked).

Specialising in refurbishment finance, Octane Capital helps investors enhance property value by offering bridging loans, refurbishment loans, and developer exit loans.

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About Fiducia Commercial Network

Fiducia Commercial Network is a commercial finance ‘Appointed Representative’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.

Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.

The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years’ experience in commercial finance.

If you’d like to discuss joining Fiducia Commercial Network or you’d like to apply to become an Appointed Representative…

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