The Development Bank of Wales funds property development across Wales through dedicated residential and commercial property funds, alongside its wider business lending. It supports projects through to completion, including speculative schemes. Bridge & Build Finance is an independent broker and is not part of the Development Bank of Wales; it is one of the lenders we compare for development finance on Welsh schemes. You can read more on the Development Bank of Wales's own website.
About Development Bank of Wales
Development Bank of Wales Plc is wholly owned by the Welsh Ministers. It is the holding company of a group that trades as the Development Bank of Wales and provides business finance, including loans and equity, to businesses in Wales. Despite the name, it is not a deposit-taking bank. The Plc itself is not authorised by the PRA or FCA, while some of its subsidiaries are FCA regulated.
Property development is one strand of its work, delivered through the Wales Residential Property Fund and the Wales Commercial Property Fund. Its stated aim is to support projects in Wales that might otherwise struggle to find funding, including speculative schemes, rather than to compete purely on price.
As a public body, it lends only on sites in Wales, although the developer's company does not need to be based there.
What Development Bank of Wales funds
At the time of writing (October 2026), its property development lending is split across two funds.
| Fund | What it is for | Loan size | Term | Leverage |
|---|---|---|---|---|
| Wales Residential Property Fund | Residential and mixed-use development, including speculative schemes | £150,000 to £10 million | Up to four years | Up to 70% of GDV, which can include up to 100% of build costs |
| Wales Commercial Property Fund | New office and industrial schemes, speculative or not | £250,000 to £5 million | Up to five years | Up to 70% of GDV |
Funding is for the development period only. It does not offer a term loan on a completed scheme, so you will need an exit such as sales, or a refinance with another lender. Borrowers are expected to share the risk, often by funding the land purchase themselves.
For residential schemes, it offers a Green Development Incentive: a reduction of up to 2% in loan fees for schemes meeting green standards such as an EPC A rating or Passivhaus, non-fossil fuel heating, or a lower-carbon structure alongside one of those. See our guide to green development finance for more on how lenders reward lower-carbon schemes.
Who Development Bank of Wales suits (and who it may not)
The Development Bank of Wales tends to suit:
- SME housebuilders and developers with schemes in Wales.
- Speculative residential schemes without pre-sales.
- Developers who own the land, or can fund it, and need most or all of the build costs funded.
- Office and industrial developers in Wales.
- Developers building to high energy-efficiency standards.
It will not suit projects outside Wales, completed schemes needing a term loan, bridging loans, or developers with no development experience at all. Developers wanting very high leverage, or running several large projects at once, may also find other lenders a better fit; it says it prefers to fund one project at a time per developer.
What Development Bank of Wales looks at
It asks applicants to set out:
- A summary of their development experience and that of the key individuals involved. A track record helps.
- The scheme: location, planning status, design, build costs and programme.
- The gross development value, supported by valuation, and the sales or letting strategy.
- How much the developer is contributing, often through the land.
- For the green incentive: how the scheme meets the required standards.
Pros and cons
Pros
- Publicly owned lender focused on supporting development in Wales.
- A fixed rate for the whole loan.
- Can fund up to 100% of build costs on residential schemes, within the GDV limit.
- Accepts speculative schemes without pre-sales.
- Terms of up to four years, or five for commercial, longer than many lenders.
- Fee reduction for greener residential schemes.
Cons
- Wales only.
- No term loans on completed schemes and no bridging.
- Development experience is required.
- Commercial fund limited to office and industrial schemes.
Going through a broker vs going direct
You can apply to the Development Bank of Wales directly. It is still worth comparing, because private lenders and banks also fund Welsh schemes and may offer higher leverage, a simpler process for a straightforward scheme, or exit finance once the build completes. A broker can also line up the development exit or term finance you will need afterwards.
We search the market, set the Development Bank of Wales alongside other suitable lenders, present your scheme and help manage the process. It is free to enquire, and any broker fee is disclosed before you proceed.
Alternatives to Development Bank of Wales
- Homes England: the public development lender for schemes in England.
- Close Brothers: development finance for smaller schemes.
- MSP Capital: development lending from smaller loan sizes.
- NatWest: bank development finance for experienced developers.
Common questions
How much can the Development Bank of Wales lend for property development?
At the time of writing, its residential fund lends from £150,000 to £10 million and its commercial fund from £250,000 to £5 million.
Does the Development Bank of Wales fund speculative schemes?
Yes. It says speculative residential developments without pre-sales are welcome, and its commercial fund considers speculative office and industrial schemes.
Can I borrow from the Development Bank of Wales for a project in England?
No. Its property development funding is only for sites in Wales, although the borrowing company can be based elsewhere.
Does it offer finance once the scheme is finished?
No. It funds projects through to completion but does not offer term loans on completed developments, so you will need a sale or refinance exit.
Do I need development experience?
Yes. You must summarise your own development experience and that of key individuals, and a track record helps.
This review is our independent summary of the lender's publicly stated lending, checked in October 2026. Criteria change, so confirm the current position before relying on it. Bridge & Build Finance is an independent broker and is not part of any lender reviewed. Finance is subject to status, valuation and lender approval.
