District & County Investments has provided a £2.95m net bridging facility to support a brownfield regeneration project in Liverpool city centre, which will deliver more than 150 apartments upon completion.
The lender structured the deal as a planning bridge, enabling the developer to access funding while Building Safety Regulation (BSR) requirements were being discharged ahead of transitioning to development finance. The transaction was completed within 14 days of credit approval.
Post-planning delays driving demand
Michael Clifford, commercial director at District & County Investments, said planning delays following consent are becoming a more common challenge for developers. “We are seeing more and more developers face post-planning delays, and our planning bridge finance can help them acquire or refinance a consented site while they progress the technical work needed for a development finance exit,” he said.
Clifford noted that developers are increasingly required to commit additional capital after planning permission has been granted, but before development finance facilities become available for drawdown.
The case reflects a broader pattern in the bridging finance market, where developers require short-term capital to bridge the gap between planning approval and development finance drawdown. BSR compliance requirements are adding time and complexity to residential schemes above certain thresholds, creating additional funding challenges for developers navigating new safety regulations.
Liverpool development pipeline
The borrower is described as a local developer with previous industry recognition, backed by sponsors with a delivery track record in the region. The project forms part of ongoing regeneration efforts in Liverpool city centre, where residential development activity has continued despite broader market challenges affecting buyer preferences and industry conditions.
The facility demonstrates how specialist lenders are adapting their products to address the evolving regulatory landscape for residential development, particularly for schemes requiring BSR compliance before progressing to main construction finance.