An SME housebuilder has secured a significant funding package to complete a large residential scheme in Surrey, highlighting continued activity in the UK's housing development sector. Nicholas King Homes has received a £37.1 million facility from Paragon Development Finance for the final phase of its Amber Waterside development in Cranleigh.
This substantial investment will fund the construction of 110 new homes, bringing the lakeside development to completion. Upon full completion, the Amber Waterside scheme is expected to have a gross development value of approximately £54 million, underscoring the scale of the project in the affluent Surrey region.
The announcement comes amidst a dynamic period for the UK housing market. While national average house prices have seen fluctuations, regions like Surrey consistently command higher values. According to recent data from property portals such as Rightmove and Zoopla, average asking prices in Surrey frequently exceed the national average, driven by strong demand and limited supply. Mortgage rates, while higher than historic lows, have stabilised somewhat, providing a degree of certainty for both developers and prospective buyers. However, affordability remains a key concern across many parts of the country, particularly in high-value areas like the South East.
Regional variations in house prices remain stark across the UK. While the South East, including Surrey, typically sees some of the highest property values, other regions such as the North East and parts of Scotland offer significantly more affordable options. This disparity often influences where new developments are prioritised and the type of housing brought to market. The continued funding of schemes like Amber Waterside indicates confidence in the demand for new homes, particularly in desirable locations with good amenities and transport links.