The Cut; Insights on SME’s
Matthew is featured in the Bridging and Commercial magazine spring 2025 edition, The Cut - where Real Estate professionals provide their insights on how SME's will be affected throughout 2025. Specifically, the challenges and the headwinds as well as expected strategies that SME's can undertake to continue trading within the current economic climate. Read the full article
”For small residential developers in the UK, several key practices could help increase business income in 2025, with a focus on managing equity constraints. Strategic partnerships will be crucial, including joint ventures with equity-rich partners or landowners willing to participate in profit shares. This reduces upfront land costs while maintaining development potential.
Some developers may explore forward funding arrangements with private investors or family offices to strengthen the capital base. Project structuring needs careful attention, with phased developments reducing peak funding requirements. Early engagement with buyers for off-plan sales can improve cash flow, while some developers may consider smaller schemes requiring less equity commitment. Additional revenue streams become important, such as offering development management services to land owners or other developers – this generates fee income without significant equity demands. Where feasible, securing planning gain on land before bringing in development partners can maximise returns on limited equity.
Careful cost control and robust credit management remain essential to protect working capital.”