Landmark Development Solutions (LDS) – the residential sales underwriter – has announced that it is working with the National House Building Council (NHBC).
LDS works with SME developers removing their sales and pricing risk via an innovative underwriting process. LDS focuses on sites of around 15-60 houses with total values of £3m-£20m. By underwriting sales developers are able to access finance on better terms as well as opening up other efficiencies which all contribute to more housing starts
The NHBC – established in 1936 – is the largest warranty provider for new housing in the country, covering over 154,000 new homes each year which is 80% of the new build market.
Mark Hawthorn CEO and founder of LDS explains: “A major step change for developers using LDS and the NHBC is the ability to release our 10% deposit for use. This will reduce equity requirements and finance costs, improving both viability and profits. This in turn will bring forward much needed housing starts and construction activity.”
David Kirkwood Underwriting Manager at the NHBC said: “We are always open to unique ideas and innovations that would benefit our current and future developer clients. The LDS model is very simple to understand and transforms the risk dynamics for both the developer and their lenders.”
“We already work with almost 10,000 builders and developers, including the majority of the national developers. Prior to 2008 SME developers made up almost 70% of housing supply whereas that figure has fallen to around 40% more recently. It is key that we support the SMEs wherever we can if we are going to stand a chance of hitting housing targets. Our partnership with LDS has the potential to really drive activity and output at SME level and we look forward to working with them.”
Mark added: “We’re really pleased to be working with the NHBC. The benefits were so immediately obvious for all parties that terms were agreed over a coffee in just a few minutes.
“It’s no secret that volume house builders are at capacity. An obvious solution to the housing shortage lies with SME developers becoming more active. Our underwriting removes many of the traditional barriers faced by both lenders and developers when assessing sites which brings forward starts and supply”.