Since launching in January, it has supplied a total of £603.2m worth of sales guarantee proposals for new housing developments in Q1 2021.
Proposals requested spanned 67 sites, consisting of 1,551 new homes across England and Wales.
The sites range in size from 10-59 units, with GDVs of between £3m-38m per site, with the average at around £9m.
The company’s target for the year is to issue £4bn of proposals.
The online engine offers lenders, brokers and developers access to instant sales guarantees — where it acquires all unsold units at an agreed price — and underwrites sites in order to transform their viability, remove risks and help deliver new housing.
LDS can also release 10% of the guarantee value to the housebuilder unsecured and at zero interest.
“We are pleased, although not surprised, to see interest in sales guarantees growing rapidly,” commented Mark Hawthorn, CEO at LDS (pictured above).
He added that the response so far gives the business “huge confidence” it will meet its £4bn goal this year.
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“The adoption of sales guarantees by the market is driven by simple facts: they remove risk, reduce cash requirements and increase returns.
“The compelling duo of higher returns and lower risks completely transforms the viability of sites for both housebuilders and lenders, allowing much needed new housing to be brought forward.
“SME housebuilders tend to build on smaller brownfield and infill sites in already established areas, which hold huge potential for additional homes across the country.
“By helping them to unlock development finance and boost their output, we are driving the revival of the SME housebuilding market and helping the government meet its target to build 300,000 new homes each year.”
A recent SME housebuilder to bring forward a site through LDS was D T Joseph Developments Ltd.
A sales guarantee and a £424,656 cash injection were provided by LDS, enabling the development of 16 new homes with a GDV of £6m.
Daniel Lloyd, founder and owner of D T Joseph Developments Ltd, said: “LDS transformed the financing of our Spring Meadow development in Ramsbottom, enabling us to move forward and provide 16 high-quality and energy efficient family homes.
“As an SME, receiving a guarantee that someone will buy the new homes you’re building is a weight off your shoulders as it significantly reduces the risk from our development and enabled us to secure better rates of lending.”
Lenders, brokers and housebuilders can create a free sales guarantee proposal in minutes using the LDS proptech engine.
LDS is part of Landmark Group, a national investment company founded in 2000.