Creative funding solutions the answer for small house builders and property developers?

Joint ventures, private equity, venture capital and business angels look to fund small developments and enjoy high yield returns as the banks continue the funding drought for speculative property development.
Many of the small residential builders and house builders have simply shut up shop in recent times unable to finance sites as capital adequacy criteria has stayed stringent. The lending drought for this sector of property finance has been a big challenge for many developers. Many experts in development finance expect the lending drought for development finance to continue, and that this niche area of bank lending will be one of the last areas to be fully restored as the UK economy continues to recover. There are still lots of lenders offering property development finance but at a much lower level of leverage.
The lenders must keep within their level of capital adequacy for the higher risk lending to satisfy both bank regulations and the peace of mind of their shareholders.