For many SME developers, the headlines in 2025 make for tough reading. Planning approvals are at a 20-year low, Section 106 negotiations remain lengthy, and the pipeline for new builds is slowing. Against this backdrop, refurbishment and regeneration are stepping into the spotlight as the fastest, most effective way to keep housing delivery moving.
Why Refurbishment Matters Right Now
Instead of waiting years for new schemes to clear planning, developers are increasingly looking at what already exists. Across the UK there are:
- 165,000+ privately owned commercial premises currently standing empty.
- Over 7,000 council-owned buildings that have been vacant for more than a year.
These properties represent a huge, largely untapped resource. By converting or modernising them, developers can bring much-needed homes to market quickly, without the delays that come with new land, new infrastructure, and new planning risk.
Refurbishment also aligns with buyer demand. Homeowners and tenants are increasingly looking for energy-efficient, modernised housing. Projects that improve layouts, upgrade EPC ratings, or repurpose buildings for residential use tick both boxes: they add value and they sell faster.
The Opportunities for Brokers and Developers
For developers, refurbishment offers:
- Faster delivery, than waiting on new-build planning approvals.
- Lower infrastructure risk, as existing sites often already connect into utilities and transport.
- EPC improvement potential, a clear selling point as regulations tighten and buyer awareness grows.
For brokers, refurbishment projects open up more opportunities to present clients with fundable schemes that lenders are keen to back because they are practical, visible, and achievable in the current climate.
Where Development Exit Still Plays a Role
While refurbishment is capturing more attention, development exit remains an important tool. Slower sales cycles mean completed schemes can take months longer to sell through. Refinancing away from development finance onto a more cost-effective exit facility helps free up equity and reduce pressure.
For many developers, it’s the combination of refurbishment at the front end and development exit at the back end that keeps momentum flowing from one project to the next.
Why This Matters
The housing shortage isn’t easing, even as planning approvals stall. Refurbishment and regeneration provide a practical, immediate way to bridge the gap, delivering homes faster, making use of existing stock, and meeting the market’s demand for better, greener housing.
For brokers and developers, this means shifting focus: looking beyond new land and towards underused buildings, tired housing, and empty commercial premises. With the right finance in place, refurbishment isn’t just a stopgap, it’s one of the smartest ways to build value in today’s market.
Read our definitive guide to unlocking the potential of development finance:
👉 Learn more about Assetz Capital’s Residential Refurbishment Product
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