Berkshire · South East England

Mezzanine finance for Reading developers

Second-charge development funding to 90 to 95 percent of cost, priced against Reading's own evidence: 1,652 recorded sales in the last 12 months. We lend from our own book and arrange whole of market where that serves you better.

All of Berkshire

£340k

Median sold price, 12m

1,652

Sales recorded, 12m

-2.9%

Price change, year on year

-20.6%

New build premium

The Reading market, in numbers we underwrite from

A mezzanine loan is a view on whether a scheme will sell at the price its appraisal claims, so every Reading deal starts with the local evidence. Over the last 12 months the town recorded 1,652 sales at a median of £340,000, down 2.9 percent year on year. New build stock commands a discount of about 20.6 percent to existing homes on 40 new build completions, which matters directly to how we read a developer's sales assumptions.

What Reading stock actually sells for

Property type	Median sold price, 12m
Detached	£595,000
Semi-detached	£430,000
Terraced	£340,000
Flats	£227,500

HM Land Registry price paid data, trailing 12 months, refreshed 5 July 2026.

Live planning activity at Reading Borough Council

Over the last 3 months our monitors logged 101 relevant applications, 25 approved and 63 awaiting decision, an approval rate of 86 percent on decided cases. Together the live residential applications propose 65 units with an estimated end value of £17.3m.

Schemes moving through planning now

Proposal	Units	Status
Change of use from Class E (offices) to C3 (dwelling houses) to comprise 29 Flats. Prior Notification under Class MA, Part 3 of Schedule 2 of the Town and Country Planning (General Permitted Development) Order 2015.	29	Decision Made
Conversion and alteration of the existing building at 59–61 Southampton Street to provide eight apartments (Use Class C3), 2.5 storey rear extension, formation of a mansard roof with rear dormer and insertion of basement…	8	Under Consultation
Demolition of existing dwelling and erection of 5 detached houses with private and communal amenity space, driveway, parking and refuse stores.	5	Under Consultation
Conversion of the existing building to mixed restaurant/takeaway (Sui Generis) use at ground floor and basement with the creation of 4 flats (Use Class C3) across the ground, first, second and third floors with external…	4	Under Consultation

Sourced from Reading Borough Council public register. If one of these is your scheme, we already know the context.

Gap funding for Reading schemes

The structure is the same one we write everywhere: your senior lender keeps first charge and funds the majority of cost, our mezzanine finance takes a second charge over the next slice, and your equity requirement falls, typically from around 35 percent of cost to 5 or 10. Terms run 6 to 36 months, pricing is indicatively from 12 percent a year, and a complete enquiry gets a term sheet inside 48 hours. Model a Reading scheme with the leverage calculator, or see the wider county picture on our Berkshire page and the national view in the UK development pipeline tracker.

Indicative terms in Reading

Loan size£250k to £5m
Combined leverageUp to 90 to 95% LTC
Term6 to 36 months
PricingFrom 12% a year
SecuritySecond charge plus PGs
DecisionTerm sheet in 48 hours

Indicative only; every loan is priced case by case.

FAQ

Mezzanine in Reading, answered

Do you fund developments in Reading?

Yes. We lend second-charge mezzanine on residential and mixed-use schemes in Reading and across Berkshire, typically taking combined leverage to 85 to 95 percent of cost alongside a senior facility. Where a case suits another funder better, we arrange it whole of market.

What does the Reading market look like right now?

Over the last 12 months Reading recorded 1,652 sales at a median of £340,000, down 2.9 percent year on year. The figures on this page refresh as the underlying Land Registry and planning data updates.

Does new build stock sell at a premium in Reading?

On the last 12 months of Land Registry data, the 40 new build sales in Reading priced about 20.6 percent below comparable existing stock. That premium is one of the first numbers we check when we underwrite a Reading appraisal.

How quickly can a Reading scheme get terms?

A complete enquiry gets a considered credit view and term sheet inside 48 hours, and typical enquiry to drawdown is 4 to 6 weeks, run in parallel with your senior lender.

Nearby

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Building in Reading?

Share the scheme and get a term sheet in 48 hours, underwritten with the same Reading evidence on this page.