Property Development running out of money

A development can run out of cash for a number of reasons, especially in a tough market. But that doesn’t mean your site needs to grind to a halt. Chat to us to get part-complete funding to get your site moving again.

Two people surveying the quality of a new development

Careful costing of a property development is key to ensuring your project stays on time and on budget, but even the most experienced builders, property developers and landlords know that it takes just a few bumps in the road to throw these straight out the window.

That’s why, when arranging development finance its common that a lender will expect you to include an extra sum as contingency. It’s normally a significant figure in the region of 10%, and it is likely you will run through it. According to UK Construction Online less than one in three projects completes within 10% of its original budget.

If your budget ends up falling short, there’s no need to panic. There are usually additional development finance options a specialist can offer. If you need to discuss your funding options or just need some advice from, give us a call on 01489 346788.

The sooner you talk to us, the better your chances of getting the build back on track.

What can make a property development run out of funds?

You get blindsided by unexpected issues

You’ve brought in an experienced quantity surveyor to manage your materials and your project was carefully costed, so what could go wrong?

Even with a New Build, where the cost of constructing the property should be accurate down to the final roof tile you can run into problems before you even get started.

The groundwork can throw all sorts of spanners in the works. Before the work begins a full ground investigation must be carried out to identify any problems that could impact the finished development such as subsidence.

If something crops up, you could be in for months of delays and added costs already.

When it comes to conversions and renovations the chances of you running into issues is even higher.

For starters, you could discover any kind of structural deformity that wasn’t picked up in the survey that will quickly chew through your time and funds. Walls need underpinning, pipes need relaying, asbestos, dry rot, the previous owner papered over dodgy DIY… the list is endless.

You underestimate the costs

Estimating a new build accurately can make the difference between a profit and a loss. A good estimator is worth their weight in gold, so your best bet is to bring in a professional. There will be countless ‘little things’ that you forget to factor in if you have limited experience and those little things add up to push you well over budget.

The cost of materials and supplies can be difficult to predict given the fact their prices can fluctuate drastically between the time you make the estimate to when the project actually kicks off, especially in periods of high volatility.

Get your prices and quantities locked in with your suppliers to ensure they can fulfil your order on time. Your workers not being able to crack on with a new build because they’re waiting on orders will eat away at your profits.

Two people discussing Buy to let mortgages

Our free deal optimiser service saves on average £10,475.

By offering a free price comparison tool we place the power back in your hands. Our deal optimiser service forces lenders to compete for your business, saving you time and money. †

Compare & Optimise

What can you do if you go over budget?

Use alternative materials

This is particularly effective if you recognise early that you’re going over budget. You can easily trim down costs when it comes to aesthetics and a few luxuries – swap out the granite worktops for something cheaper and forget about the underfloor heating.

Reduce the project scope

Think about the elements of your build that you can’t live without. Then, cut back on the things that you can.

Secure additional finance

If you’ve decided that you can’t skimp anymore on the plans, talk to a bridging loan broker about securing additional funds. If you’ve already got a charge against the property, your best option may be a second charge bridging loan which will fund the completion of your development to be repaid when you sell or refinance.

If you’re only short by a few thousand, say £20k you could consider using a secured loan or a 0% interest credit card.

Build in phases

If you’re working on transforming your own home and you’ve blown your budget. Relax. Break the project down into more manageable chunks and build in phases.

It may mean you won’t have your extension by Christmas, but the alternative is settling for a rushed job and skimping on what you really wanted.

Get in touch

Not sure what the best option is for you? Speak to one of our property finance consultants who are qualified to give you impartial advice, with no obligation.

We’re passionate about property, and would be happy to help.

Contact Us

What to do when your property development runs out of money?

No money, no materials, no pay. Your workers aren’t going to work for free and your site will grind to a halt.

Ideally, you recognise being over budget early enough to trim back on costs and keep yourself going a little while longer while you source an additional source of finance before you down tools.

Arranging that bridging finance can be much quicker than you’d expect if you deal with an expert. We got funds into a clients account in 17 days after her development ground to a halt after running out of cash.

Before you get to this stage though, you should have enough of a handle on your budget and finances to recognise that your site is hurtling towards a shutdown.

If you’re unable to get your project back off the ground, eventually your lender will have to resort to seizing the abandoned development and taking control of the project, in addition to any property you may have put down as security.

Thankfully there’s a route you can go down to pull yourself out of this situation.

Secure additional funding: the trusty and versatile bridging loan

It’s likely that your best option will be to secure a second charge bridging loan to complete the works.

A first charge is the primary funding that you used to purchase the land and start the works. This is the loan that will be repaid first, even if your property is seized by the lenders.

It’s worth noting that the rate for a second charge bridging loan is usually higher to compensate for the higher risk a lender accepts when loaning you the money. But it’s better than losing the development, your security and reputation if the project crumbles without additional funding.

The second charge bridging loan will be in place for between 9-18 months to help you complete the works and you won’t usually have to make any monthly payments as the interest will be a part of the loan that is repaid in full when you exit.

Once you’ve sold or refinanced onto a longer term finance arrangement you will make the repayment in full.

What people are saying

Quick!

The whole process quick and straight forward

Gurdev

Customer service excellence

March 3rd, 2026

Friendly, timely and very professional service. Regular progress updates particularly appreciated. A very customer friendly/focused service.

David

Highly recommended

February 26th, 2026

We had quite complicated requirements for bridging refinance and ambitious timescales. Propp were the only company we could find who could help us. Peter was very helpful and reassuring on our initial call, and remained attentive and responsive throughout the process (even when I must have been giving him a constant headache!) Although we didn't meet the original deadline, Peter was very helpful in communicating with us, our existing lender and our surveyor, and got it all through in the end, when sometimes it seemed unachievable.

Lee

Attention to detail.

February 25th, 2026

Megan and Jake have worked hard to help process quite a complicated refinance and taken us through to offers with skill and attention to detail.

JY

All at Propp are amazing...

February 25th, 2026

From Ellie to Caroline to Keira to Zahid and Eddie. Amazing. Thank you!

Natasha

Great advice...

February 23rd, 2026

Great advice and support from Matt and Jordan with quick and efficient service. Cannot recommend highly enough.

Margaret

Great company.

February 20th, 2026

Helped me with a few amazing deals and really smooth process all round. Highly recommend and just to mention, Abbie and Molly, both stars 🌟.

German

Excellent staff!

February 14th, 2026

Excellent staff with so much knowledge.

Lorraine

I can’t fault this service!

February 12th, 2026

I can’t fault the efficiency, communication and service of Propp. Everyone I have dealt with has been very quick to respond and have offered solutions when necessary. I would certainly use them again and wouldn’t hesitate to recommend.

Joanne

Very honest and helpful

February 10th, 2026

Very honest and helpful and did place my case immediately within 24 hours

Franco

It has been a pleasure to work with this company.

February 2nd, 2026

Both Abbie Ball and Sophie Colmer dealt with me in a professional and speedy manner. I first contacted this company on 17th January and have received a mortgage offer today 2 February. I am thrilled

Lesley

I found Jordan M exceptionally helpful!

January 30th, 2026

I Found Jordan Moore exceptionally helpful. Even when things outside our control faulted and started to get complicated, she stuck with it over several months and managed to pull everything together all with a very competitive package. I wouldn’t hesitate to recommend.

Neil

Trustpilot