Hampshire · South East England

Mezzanine finance for Southampton developers

Second-charge development funding to 90 to 95 percent of cost, priced against Southampton's own evidence: 2,683 recorded sales in the last 12 months and 64 units in live planning applications. We lend from our own book and arrange whole of market where that serves you better.

All of Hampshire

£250k

Median sold price, 12m

2,683

Sales recorded, 12m

Units in live applications

£11.1m

Estimated pipeline GDV

The Southampton 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 Southampton deal starts with the local evidence. Over the last 12 months the town recorded 2,683 sales at a median of £250,000, down 2 percent year on year. New build stock commands a discount of about 6.3 percent to existing homes on 7 new build completions, which matters directly to how we read a developer's sales assumptions.

What Southampton stock actually sells for

Property type	Median sold price, 12m
Detached	£398,200
Semi-detached	£300,000
Terraced	£260,000
Flats	£159,494

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

Live planning activity at Southampton City Council

Over the last 3 months our monitors logged 89 relevant applications, 24 approved and 61 awaiting decision, an approval rate of 92 percent on decided cases. Together the live residential applications propose 60 units with an estimated end value of £10.3m.

Schemes moving through planning now

Proposal	Units	Status
Prior Approval sought for a change of use of the first and second floor from Commercial, Business and Service (Use Class E) to 7 flats (5 x 1 bed, 1 x studio, 1 x 2 bed) (Use Class C3) and part change of use ground floor…	7	Approved
Application for approval of details reserved by condition 3 (Foul and surface water sewerage disposal), 4 (Landscaping, lighting & means of enclosure), 9 (Ecological Mitigation and Enhancement) and 14 (Cycle Storage) of…	7	Awaiting decision
Permitted Development Assessment - Prior Approval sought for a change of use of commercial building (Class E) to 6 flats (3 x 2 bed, 3 x 1 bed) (Use Class C3)	6	Approved
Roof alterations including rear dormer windows to facilitate conversion of existing dwellings into 6 flats (2x 3-bed, 4x 1-bed) with associated amenities and parking. (Part retrospective).	6	Approved

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

Gap funding for Southampton 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 Southampton scheme with the leverage calculator, or see the wider county picture on our Hampshire page and the national view in the UK development pipeline tracker.

Indicative terms in Southampton

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 Southampton, answered

Do you fund developments in Southampton?

Yes. We lend second-charge mezzanine on residential and mixed-use schemes in Southampton and across Hampshire, 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 Southampton market look like right now?

Over the last 12 months Southampton recorded 2,683 sales at a median of £250,000, down 2 percent year on year. The live planning pipeline holds 64 units with an estimated GDV of £11.1m. The figures on this page refresh as the underlying Land Registry and planning data updates.

Does new build stock sell at a premium in Southampton?

On the last 12 months of Land Registry data, the 7 new build sales in Southampton priced about 6.3 percent below comparable existing stock. That premium is one of the first numbers we check when we underwrite a Southampton appraisal.

How quickly can a Southampton 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

More Hampshire markets

Hampshire

Building in Southampton?

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