Delivering homes and buying land
Crest sold 2,825 dwellings in FY2008 (FY2007: 3,270, a decrease of 14%), In fact, by the end of FY2008, we had cut production further to less than 2,000 dwellings per annum.
In 2007 Crest reported that, to play our part in meeting the Government's growth aspiration, we would need to be delivering nearer 5,000 homes per annum by 2016. This is now highly unlikely.
Land Buying
At the end of 2007 our short term land bank stood at 17,022 plots which represented over five years supply. However, with production falling by as much as 40%, this represents an eight-year land supply. Accordingly, we reduced land buying in 2008, adding only 1,664 plots to the land bank. We also took the decision not to exercise certain purchase options. The net result is a short term land bank at the end of 2008 of 15,445 plots, a reduction of 1,577 in the year, but still representing 5.4 year land supply at FY 2008 production levels and more, given the Group's likely future production levels.
We continue to hold a strong strategic land bank of 19,910 plots, 17,759 of which are considered to have a reasonable prospect of success in the planning process. This includes six sites of over 1,000 dwellings – each of which is considered to have a good chance of securing planning permission within the next two to five years. It is these sites, together with a number of the Group's larger regeneration schemes, which are capable of delivering major new sustainable communities across southern England.
Land: Performance data and targets
We have included the targets we set for Land in 2008 and reported our progress against them. In some cases, our targets are no longer relevant given the economic downturn. For more about the targets we set, please see page 17 of our 2007 Sustainability Report.
| Our Land Bank |
|---|
| 2008 Targets |
2009 Targets |
|
To continue to secure the types of sites and development opportunities to enable delivery of our Mission Statement.
|
Commensurate with the need to conserve cash, and having regard to the reduced level of production, continue to secure the types of sites and development opportunities to enable delivery of our Mission Statement.
|
|
Add sufficient plots annually, including land from our strategic land bank, to maintain no less than five years supply: achieved 5.4
|
Add sufficient plots annually, including land from our strategic land bank, to maintain no less than five years supply.
|
|
Deliver at least 70% on brownfield land against a Government target of 60%: achieved 92%
|
Deliver at least 70% on brownfield land against a Government target of 60%:
|
| Performance Data |
|---|
| |
2008 |
2007 |
2006 |
Group Development Value (GDV)
(Short-term land bank £m) |
£2,935m |
£3,822m |
£3,566m |
| Land bank (units – short term) |
15,445 |
17,022 |
16,322 |
| Years of Supply |
5.4 |
5.2 |
|
| Land bank (units – long term) |
17,759 |
16,132 |
12,926 |
| Homes built on brownfield land % |
92% |
88% |
84% |
| Longer-term Targets |
|---|
| 2008 |
by |
2009 Targets |
Add an average of 5,000 plots annually
(1,000 from strategic land bank) |
5 years |
The economic climate in 2008 meant it was not possible to set longer-term targets |
| Support an increase from seven to at least eight operating business units with three years' short-term land supply |
3 years |
| Increase the land bank to support a 50% increase in the average number of sales outlets from the current level |
3 years |
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See how we are seeking solutions with Government.