The strength in our Business Model lies in its agility. Our constant focus is to maintain a strong portfolio, but our decisions on how to proceed with a particular site, whether that be to continue to develop or to dispose of the land after obtaining planning permission, is something that we can reflect on by understanding the market conditions and our current requirements as a business.
Land activity is the foundation of the Inland business model.
Through identifying opportunities, selecting acquisitions, securing planning permission and purchasing strategic sites with future potential, Inland is able to expand its land portfolio.
- Working with Local Authorities and communities to maximise the potential value of each site by securing a valuable planning permission.
Delivery to Customers
- Part or all of a site can be sold to developers: when selling part of a site to developers, they generally benefit from relevant infrastructure already having been installed by Inland Homes.
- We generally ensure that potential barriers to development are resolved and that the planning permission is for the right housing mix and development size to maximise the potential value of the site.
In response to a changing marketplace, Inland Homes has been creating its own construction capabilities.
By investing in our own people, we can ensure longer term, higher value returns for our shareholders.
- Allows us to capture the development margin in addition to the land uplift via planning.
- Developing the sites with our own team provides us with additional control over quality, costs and delivery.
Delivery to Customers
- Part or all of the site can be developed by Inland Homes; we are proud of the developments we plan and design, and are always looking to create an environment that is attractive for future residents. Delivering on our commitment to quality and comfort, developed sites feature open spaces, play areas and attractive landscaping to suit the needs of a variety of people.
We sell some of our sites to Housing Associations and institutional landlords, with a construction contract for Inland Homes.
- The construction contract accelerates revenue and provides monthly cashflow which assists the Group's working capital or reduces our net borrowings.
Delivery to Customers
Housing Associations and institutional landlords:
- Delivering high quality, reliable and attractive developments.
Our Value Chain
Our Value Chain outlines the various options available to Inland for generating value in the short, medium and long term.
In the short term we can generate value quickly through ensuring land obtains planning permission before being sold on, whilst medium-long term value can be made through the developing part, or all, of the site.
Our local insight and established relationships with vendors and public sector bodies mean that we are aware of opportunities to increase our land bank.
Our financing resources and strong reputation as being trustworthy and reliable mean that we can act quickly to secure promising sites. Sites acquired can often deliver short term returns.
This revenue can be generated from a number of sources, such as sale of surplus assets, rent from tenants, car parking and the sites being utilised as filming locations.
Achieve Planning Permission
Once a site is acquired, extensive research and stakeholder consultations take place to prepare our applications for planning permission. Our record of achieving planning permissions on sites is second to none.
Sell Land with Planning Permission to Developers
Once a planning consent is secured, we have the opportunity to sell the whole site with planning permission to developers or Housing Associations for a short term return.
Sell Part of the Site
By selling a portion of a site while carrying out infrastructure works and housebuilding on other parts, we deliver revenue in the medium term.
Develop the Whole Site
Building a whole development takes longer but maximises the revenue a site can deliver over the long term. We are now self-delivering the majority of our sites.
Over the past year, we have increasingly entered into partnerships with Housing Associations as a way of delivering projects through the value chain.
The partnerships involve Inland Homes acquiring land and successfully taking it through the planning process before selling it on to the Housing Association. The Housing Association then employs Inland Homes as the construction contractor to develop the site in accordance with the planning consent. This provides the Housing Associations with exactly the outcome they require in a cost effective, timely and efficient manner.
In contrast to a traditional self delivered site, these partnerships provide Inland Homes with earlier revenue, profit and cash flow that also reduces the Group's borrowing requirements.