The development finance and bridging lender said that it used to be the case that location, location, location provided a widespread belief that developers could build almost anything if the plot was in a good location in a good town.
The bank however argues that developers need to be far more focused on the potential purchasers and the property type.
Noel Meredith, director at United Trust Bank, said: “The developers that are bringing the most attractive proposals to us at the moment are demonstrating a very high level of local knowledge and matching the right product with the right location.
“In a buoyant housing market there are buyers for almost every type of property but in today’s market, the most crucial thing is to establish not who wants a property but who can afford it.
“There may well be a shortage of new flats in a particular location but if incomes in that area do not allow the first-time buyers being targeted to fund a deposit then restrictive mortgage funding will hamper the sales.
“The crucial skill is to establish at the outset of the project which type of purchasers are actually active in the market and adjust projects accordingly.”
