This year, we have continued to be one of the housebuilders of choice for our partners.
Partnership housing follows the immediate cash inflow from a land sale, with recognition of revenue in line with the proportion of costs incurred compared to the total cost budget. In contrast to private housebuilding, this reduces equity capital requirement and additional borrowings and de-risks the development from any sales risks.
We anticipate continued and increased demand from affordable housing providers and are building a land bank that will support this forecast growth. We currently have 1,302 homes under construction on behalf of partners and a forward order book of £105.8m (30 September 2019: £123.7m).
The successful partnership with Clarion Housing Group (Clarion) at Abbey Wharf, Alperton paved the way for a second scheme with the affordable housing provider in Merrielands, Dagenham.
We entered into a land and build contract with Clarion in April 2019, with Inland Partnerships taking on the development phase on behalf of Clarion. The transaction was for a total land and build consideration of £77.7m, with the land sold for £14m. The four-acre site, originally part of the Ford car plant, will comprise 325 residential units across a number of five to ten storey apartment blocks, together with 1,514m² of commercial space, 178 car parking spaces and associated amenity area.
The site is within the London Riverside Opportunity Area, a 3,000ha regeneration zone designated in the London Plan for up to 26,500 homes across the borough of Barking and Dagenham
Partnership housing revenue
Partnership homes under construction
We believe we are developing a reputation as an affordable housebuilder of choice for housing associations and there is high demand for our partnership housing offer.
We work hard to meet client expectations and we pride ourselves on working collaboratively.
Manage the design development in partnership with the client
Present engineering options to maximise value for money
Share detailed monthly contractor reports
Provide flexibility for clients to amend and adapt their requirements, including tenure changes and facilitating onward sales
Facilitate engagement with senior level management within client organisations
Why partnership housing?
Sustained demand and strong forecast growth
Land bank that is attractive in size and location to affordable housing providers
Short-term returns from the land sale and medium-term returns from build contracts