Why are we needed?
There is a clear and enduring undersupply of housing in the market, a problem which becomes more acute each year that less than 300,000 new homes are built. Furthermore, there is a continued reliance on larger PLC builders, who cannot solve the shortage on their own. SMEs must be part of the solution and will bring quality and variety as well as quantity to the market. HBF figures however demonstrate that over the past three decades, SME output has reduced by 74% (39% in 1988 to 10% by 2020). Reversal of this decline is essential.
LDS created the Sales Guarantee to support an SME revival, which it does by increasing the confidence of lenders and the capacity of housebuilders. Specifically, the Sales Guarantee reduces project risk by assuring the purchase of any completed and unsold homes on a site. At the same time, a 10% interest free deposit is released into project cashflow, enabling SMEs to spread equity further and build more homes. This powerful combination has led to the LDS Sales Guarantee being embraced across the market.
LDS Sales Guarantees benefit lenders, brokers and housebuilders
- Housebuilders reduce cash contribution by up to 67%, spreading equity further and enabling up to 3x more new homes
- Lenders improve credit profile and increase potential lending to new and existing borrowers
- Brokers can increase earnings by over 3x with higher fees per deal and more deals done
LDS Sales Guarantees in numbers
Total LDS Sales Guarantee proposals so far in 2023.
10%Cash deposit released to developer on exchange
2-3xMore building potential from same capital base
Over 3xPotential increase in returns on cash invested
£1.93bnSales Guarantee proposals generated in our first year
£0Arrangement or commitment fees
LDS is part of the Landmark Group
LDS is committed to empowering SMEs with the resources of larger national housebuilders. LDS Boost is a free to use, online platform, developed to provide SMEs with access to a network of useful contacts, knowledge and tools aimed at maximising efficiency and profit
Why work with LDS?
LDS is part of the Landmark Group which has been established for 22 years and has a core investment portfolio approaching £200m. LDS leverages the stability and profitability of Landmark Group, together with its well-established, strong relationships within the sector to support SME revival and enable housebuilders to deliver more new homes.
The following case studies demonstrate the value an LDS Sales Guarantee brought to some recent developments.
LDS is trusted by
"A great scheme that works for lenders, giving sales exit comfort and for developers providing affordable upfront cash to enable running multiple projects. Mark Roberts (Relationship Manager at LDS) is great to work with"
"LDS Sales Guarantees are essential in de-risking projects for lenders. The team’s knowledge and understanding of the market makes the process simple and straight forward from beginning to end. I would certainly use LDS again and can highly recommend them."
“We are very excited to launch Development Plus, powered by LDS - the first-ever development finance product to incorporate a built-in sales guarantee. This new breed of financial product is a very compelling proposition for developers, brokers, and lenders alike…
"Pivot have been working with LDS on a number of schemes and have recently completed a transaction funding the development of 8 houses in Norfolk. We benefit from the reduction in our sales risk, as LDS provide a backstop purchase…
"It's been a pleasure working with LDS from start to finish. "Very professional and easy to pull everything together with Mark Roberts being on hand to answer any questions when they were raised. We are all excited about this scheme…
“Mark and the LDS team not only provided an extremely good product that allowed a complicated and difficult transaction to complete but were also flexible in adapting their approach to accommodate a number of what seemed insurmountable last-minute hurdles. "The…