Delivering Homes and Buying Land
Land Buying
At the end of 2009 our short term land bank stood at 12,823 plots which represented a reduction of 2,622 plots on the year, but with production falling again still represents over six years supply against a minimum desirable target of five.
The reduction of 2,622 plots represents a divestment of 794 plots from the short-term land bank. This is almost entirely due to the re-planning of developments to reduce density and increase the proportion of family homes to apartments.
We continue to hold a strong strategic land bank of 18,330 plots, an increase of 571 plots in the year. Of these, 17,000 are considered to have a reasonable prospect of success in the planning process.
Land: Performance data and targets
Given the economic conditions we have progressed well against the short-term targets we set for land in 2009. Until the market stabilises, and returns to growth in output, longer-term land targets are not relevant.
| Performance Data |
|---|
| |
2009 |
2008 |
2007 |
Group Development Value (GDV)
(Short-term land bank £m) |
£2,710m |
£2,935m |
£3,822m |
| Land bank (units – short term) |
12,823 |
15,445 |
17,022 |
| Years of Supply |
>6 |
5.4 |
5.2 |
| Land bank (units – long term) |
18,330 |
17,759 |
16,132 |
| Homes built on brownfield land % |
86% |
92% |
88% |
| Our Land Bank |
|---|
| Short Term Targets |
| 2008 we said |
2009 we did |
2010 we will |
| 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 |
FY09 was a year of cash conservation to ensure good positioning for the end of recession |
Target retained for 2010 |
| Add sufficient plots annually, including land from our strategic land bank, to maintain no less than five years supply |
Achieved more than 6 years supply |
Target retained for 2010 |
| Deliver at least 70% on brownfield land against a Government target of 60% |
Achieved with 86% |
Target retained for 2010 |
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For more on our next steps, see how we are seeking solutions with Government.