Paddy Burke (Fine Gael) | Oireachtas source

Some developers have recently had problems in securing funding. I am delighted to say Bank of Ireland has recently funded many developers. Mainstream banks do not seem to be funding developers to the same extent as previously; rather, developers are sourcing capital from funds to bankroll developments. In the past some developments were not completed. Individuals with mortgages for houses in such developments were not treated very well and found that they had houses but no proper facilities, roads or infrastructure. Some developers funded through mainstream banks are at a disadvantage because of a higher cost of capital than might be the case if they sourced capital from funds. There is a difficulty in that regard. There has been a big change in how developers are funded. Some banks do not fund them at all.