Nearly a third of developers – 31% – have been withholding capital in order to remain flexible in the face of economic uncertainty, according to recent research from Shawbrook.

The same proportion also stated that they have withheld capital to cover any unforeseen costs.

Clearly developers are watching economic headwinds closely, with 36% saying they have closely monitored trends to ensure their projects meet current demand, and a third have focused their developments in areas that are seeing higher activity.

It is also promising that 32% of developers surveyed have been able to take on new developments, and 31% have diversified their investments, giving an insight into the sector’s ability to adapt and alter their strategies to maintain progress and profit.

To mitigate uncertainty, 30% of developers stated they have worked with a lender to secure additional funding.

Terry Woodley, managing director of development finance at Shawbrook, said: “Economic challenges and considerations such as rising costs have been key concerns for developers over the past 12 months.

“However, we have seen the agility of the sector in evidence, with many developers diversifying their strategies to mitigate any impact and navigate their businesses through a tricky period.

“As well as changing property types, and making changes to materials, locations, and other core elements of their plans, developers have shown an ability to monitor market demands and effectively tailor their projects to future proof their businesses.

“However, with the new Government putting housing high on the agenda, and house builder shares on the up since the General Election, the outlook appears positive and developers should have more opportunities to unleash their capital.”