Tier One Capital's Property Backed Lending Trust (PBLT) has hailed the strength of its investment pipeline, with demand for alternative financing continuing to grow.
PBLT - which is listed on the London Stock Exchange - provides finance to develop homes and commercial space for people to live and work.
Earlier this year, shareholders voted on a new residential investment strategy and improved flexibility for the growing fund after expecting a spike in demand from housebuilders.
Ian McElroy, chief executive of Newcastle-based Tier One Capital, told Insider appetite for funding "slowed significantly" with the first lockdown in 2020, but demand for more flexible funding has increased significantly since the end of 2020 as restrictions started to ease.
"The financial support from the government aided this trend, with the stamp duty holiday for homebuyers being one example, and we have seen the appetite to develop residential property and industrial space pick up significantly during 2021," he said.
"We have seen little evidence in the North of a direct link to demand from Brexit, however we are seeing pricing pressures due to rising materials, construction and labour costs, which, in time, may cool the market."
McElroy added that its "investment pipeline remains strong" for Q4 of 2021 and into 2022: "We see demand for alternative finance solutions continuing to grow as the market for funding property developments changes and the experienced development teams continue to push for personal relationships, face to face meetings, flexible solutions and fair pricing."
He also said said PBLT remains "mindful and cautious of the potential headwinds that could come from the effects of rising inflation, further lockdowns, ongoing supply issues from Brexit and beyond".
"However, it is well known that the demand for property, housing in particular, exceeds supply in the UK and we are optimistic that 2022 will be another strong year for PBLT and the North."
McElroy also stressed it is "essential" that the government’s Build Back Better campaign reaches the regions, especially the North.