landsource plc - Q1 2016

Headline stats - Land processed

• Number of sites processed - 52
• Total acreage - in excess of 200 acres
• 33% of sites consented with the balance either short term subject to planning or strategic
• Site locations span 20 counties - highest %'s in Surrey and Hampshire

Headline stats - Land pipeline year to date

• Total transaction land value - ￡80 million
• Anticipated new homes GDV - ￡280 million
• Average new homes re-sale - ￡380,000
• 720 units (85% houses - 15% apartments)

Site Selection - A number of current Landsource projects

Overview

With only 3 months trading under our belt, focus on land supply within the Northern and Southern Home Counties is top priority. This year, most of our existing clients have reviewed their products and geography and are now seeking more volume oriented sites for houses and upper market apartments within the re-sale band of zero to ￡1.2 million. Gone are the majority of buyers for large 'one and two for one'  plots within the exclusive private estates of Surrey and Berkshire. This market has been left to the private 'punter' and design and build operator to pick over.

We have been amazed at the number of new companies trying to enter the house building arena during the first quarter. No fewer than 90 enquiries have been logged from specific companies together with countless private purchasers all looking for their perfect 'Grand Designs' project. 

It's anyone's guess as to how the remaining 9 months of 2016 will roll out. Focus has to be the safe, solid and more predictable markets of the South-East and the provision of housing and apartments with the emphasis on 'affordable'.

Finally, the care and retirement sectors are massively 'fired up' with land values in some locations easily outstripping private housing.

David Marsh - Landsource plc