It’s an exciting time to be working in development at the moment. James Pennington, Development Director at Radian explains why.
We’ve just adopted our new Corporate Strategy 2018-2023, which sees us striving to deliver 3,500 new homes over the next five years across all tenures to meet demand. This includes 2,200 affordable homes, with the balance being market sale and market rent.
Delivering c.700 new homes a year would put us above many medium sized housebuilders, so it’s a significant number.
We’ve been planning for this for some time, significantly resourcing our development team and making sure we have the skills and expertise to move forward with our plans to deliver the majority of the programme on land led opportunities.
Whilst we haven’t previously delivered market sale homes at this scale, we have wanted to for a number of years. We’re now in a fantastic position to do this. We have the financial capability and the right people, as well as the right internal structures in place to be competitive.
Of course there are challenges, the most significant of which will be securing the right land opportunities.
I’m sure this is the way the sector is going and a number of housing associations have been successfully delivering open market homes and reinvesting the profits into their affordable programmes.
The key benefit of this land led model is that it puts us in control of the affordable housing delivery on any given site. This is a much stronger position to be in, as opposed to delivering through Section 106 agreements only where we have much less control over the timing and the quality of these homes.
The profits from the open market sales are always reinvested into the affordable homes, allowing us to deliver more of them on the same site, or a different one.
Geographically we operate where we have stock holdings; Dorset to the west, Sussex to the east and Oxfordshire to the north – a large area which will give us many opportunities. We’re well set and we can’t wait to get started.