Inland still selling plots to housing associations

Inland, the quoted company that specialises in buying brownfield sites and converting them into ‘oven ready’ plots which can be sold on to housebuilders, says that it is well positioned to weather the current challenging conditions in the sector.

The group’s financial results for the year ending on 30 June will be unveiled in October.

Inland says that they will be in line with market expectations.

“The housing market is in serious decline with trading conditions deteriorating more rapidly in recent months,” says Inland in a trading update issued on the London Stock exchange this morning.”

The squeeze “could well persist for the foreseeable future” says Inland.

However, it anticipates that its operations, which see land with building potential through the planning process, will “continue to create demand from interested parties”.

Sixty plots, including 47 for low-cost social housing, have been sold in Farnborough for £3.7m. The deal was profitable.

Inland is in discussions to sell a site at Redhill, Surrey, which has consent for 31 residential units. The anticipated buyer is a housing association. The deal is subject to a revised planning permission being obtained within the next six months.

Inland comments: “While our main target was anticipated to be private housebuilders, it is clear that this market will remain weak for some time. However, housing associations have remained active and are now the primary buyers for residential land.”

The group’s unused bank facility, which runs to £7m, is in the process of being lifted to £15m.