Inland Homes Share Discussion Threads

[p1966] 15/4/2020 08:46

Hargreaves Lansdown quoting The Times : The government is in talks with housebuilders about extending the Help to Buy scheme as part of a range of measures to get the industry building again after the lockdown is eased. Officials fear that the shutdown of construction work and sales offices during the coronavirus outbreak will have a long-term impact. Savills estimates that builders have downed tools on sites where they could construct about 200,000 new homes, equivalent to almost a year's supply.

[cerrito] 14/4/2020 14:23

Impressive that INL has done so well on a day that all the majors except Berkeley have done so badly.

[skyship] 14/4/2020 14:18

Out of the ords; but today topped up my INLZ @ 144.4p. That = 145.2p inc costs; and provides a yield of 8.54% to maturity at 201.40p in 4yrs time (10/04/2024).

A great investment for a corner of any SIPP, as very few people drawdown more than 8%pa.

[p1966] 14/4/2020 13:27

The Homes England news is supportive for two reasons. Firstly, after the terrible loss of life, impact of isolation on the vulnerable, and economic damage caused by Covid-19, it points to a return towards normality. I am sure HE will have a rolling 5 year plan. Secondly, it is a vote of confidence in INL. HE will have undertaken a due diligence process, incorporating both design and build quality and financial wherewithal to deliver a complex GBP 200 million development. DYOR.

[igoe104] 14/4/2020 11:56

Cant believe spud, sold most of his stock so cheaply. it just shows markets can psychologically get into the heads of some of the better investors.

[master rsi] 14/4/2020 10:18

Some large trades are now showing in the ticker and the delayed ones also 54.70p and with a very small spread 54.40 v 55p

[master rsi] 14/4/2020 08:17

After the RNS

A very nice opening with buys from the start, already at 52.50p from the already high of last Thursday 51p with the UT

[daicaprice] 14/4/2020 07:34

That should shut the knockers up.

DC

[skinny] 14/4/2020 07:02

.

Inland Homes ("Inland Homes", "the Group" or "the Company"), the leading brownfield developer, housebuilder and partnership housing company with a focus on the south and south-east of England, is pleased to announce that it has entered into a development agreement with Homes England, a Government body charged with accelerating housing delivery in the UK.

The agreement, which is the culmination of a number of years work by the Group, allows for the development of over 600 homes, employment and community facilities currently owned by Homes England as well as a site for a new school in Basildon.

Inland Homes has paid an initial consideration of £100,000 on signing the agreement which is conditional on obtaining planning consent for the scheme, which already has a draft planning allocation for development. Under the agreement, Inland Homes will acquire land on a phased basis from Homes England once a viable planning consent has been secured. The 54 acre site will have a gross development value in the order of £200m.

The Group, in a separate joint venture, has already built and sold 43 homes on an adjacent project and is nearing completion of phase 2, comprising 33 homes, of which 85% are already sold.

Commenting on the agreement, Chief Executive Stephen Wicks said:

"This is an example of the tenacity of the Inland team in structuring complex transactions and delivering housing supply. The project involves the re-location of a number of sporting facilities to new locations within Basildon as well as major infrastructure works.

"We look forward to working alongside Homes England and submitting an early planning application for the comprehensive redevelopment of this important site."

[p1966] 09/4/2020 17:35

https://www.forbes.com/sites/garybarker/2020/04/09/stamp-duty-holiday-could-it-stimulate-recovery-of-the-housing-market/#352669532ffaRICS suggest stamp duty holiday.

[maturo] 09/4/2020 09:06

Wants to go higher but it takes its time

[dalep716] 09/4/2020 08:25

Just to say Barcs is back to 25% as of a couple of days ago see News Now Barclays.

[p1966] 08/4/2020 14:15

https://www.hardmanandco.com/wp-content/uploads/2020/04/Housing-Book-April-2020.pdfHardman quarterly report. See pages 19-20 (essentially an RNS summary). Pages 40-41 for a wrap up. I suspect that (positive) cash positions may not include land creditors, so a comparison with INL is not on a like for like basis. Views welcomed. DYOR.

[p1966] 08/4/2020 13:40

Once the pandemic abates, my guess is that mortgage finance should be readily available, supporting the new-build market. Base rate has fallen to 0.1%, but the major banks, sitting on 647 billion of deposits, are cutting their deposit rates to 0.01%, suggesting they do not need to raise further funds. These existing deposits have to be lent out somewhere, and mortgage lending requires less capital. I believe the current requirement for (in some cases) 40% deposits, is a short term response to provide lenders the breathing space to manage the significant demand for 3 month mortgage holidays, coupled with a reduction in staffing levels due to illness / quarantining. New build could be worthy of government support (extension of Help to Buy), given the employment created during the construction phase, and increase in consumption by buyers (carpets, furnishings, etc) DYOR.

[cerrito] 08/4/2020 10:20

I see that MJ Gleeson of whom I know very little are raising £16m in fresh equity today.
They seem to be bigger than INL ie revenues in 6 months to 12.19 were £105m compared to £147m for INL over 15 months and they had control over 13625 plots compared to INL's 7796.
Like INL they concentrate on the low cost end of the market but in the North and Midlands.
All that aside, I found the following from their RNS this morning very interesting as it would appear to have read across to INL and the implications it has for INL's working capital position.
My broker's comment also referred to the Strategic land business taking long to recover-which if true would be a downer for INL given the sales it had agreed.
I look forward to your perspectives.

quote
The Company believes that once COVID-19 restrictions are lifted, low cost homes and those sold to first-time buyers will be the segment of the housing market that will recover the fastest. A precursor to home ownership is the saving of a deposit of as little as £5,000. A significant proportion of the Company's customers are the Key and Critical Workers who will be working overtime during the current health crisis and may emerge from this period having saved such amounts. To be able to meet the demand for its homes, building on current sites and opening of new sites will be concertinaed into a much shorter time scale, which will be more capital intensive than usual. The Company is therefore proposing to raise additional capital by way of the Placing to provide additional liquidity. The funds provided will be utilised to:

1) Ensure sub-contractors and key trades are ready to re-commence building. The Company will work closely with its supply chain, mindful of their own financial positions, honouring commitments and bringing them back to site. This is expected to cost c.£4 million;

2) Secure materials including the supply of bricks, block timber, kitchens and other materials ensuring availability on resumption of building. This is expected to cost c.£2 million; and

3) Purchase and open new sites under contract. This is expected to cost c.£10 million.

[master rsi] 07/4/2020 12:41

Midday Market Report

Housebuilders - which have also taken a beating on worries about the impact of the pandemic - rallied, with Persimmon, Barratt Developments and Taylor Wimpey all firmer.

A survey from Halifax released earlier showed that UK house prices were steady in March before the coronavirus lockdown came into effect but that activity is set to fall "sharply" in the coming months.

House prices were flat on the month at £240,384, following a 0.2% increase in February and versus expectations of a 0.1% uptick. On the year, house prices were up 3% in March following a 2.8% rise the month before and below expectations of a 3.3% increase.

[master rsi] 07/4/2020 10:18

The house builders, which have been among the worst hit by the sell-off sparked by the pandemic, INL should be among the big risers from now on.

[master rsi] 07/4/2020 09:27

gone over 50p,as news around the world the Coronavirus responsible for the destruction of the shares during the last month is being slowly put to its place.
That means soon the economy should follow the way it was before

[master rsi] 07/4/2020 09:18

Moving nicely up as are all the Housebuilders

[master rsi] 06/4/2020 12:52

UP 5p @ 45p not too bad,
most housebuilders on the rise today with over double % figures

[maturo] 06/4/2020 11:21

hi Brazil

thanks, yes that is what the wife said this morning, free spending money for next year, but not sold yet.

[master rsi] 06/4/2020 10:57

UK construction sectors suffers worst contraction since 2009
ShareCast - 6 Apr, 2020 10:05
The UK construction sector suffered its worst contraction in March since April 2009 as the coronavirus pandemic took its toll, according to data released on Monday.

The IHS Markit/CIPS UK construction total activity index slid to 39.3 from 52.6 in February, coming in well below expectations for a reading of 44.0. A reading below 50.0 signals contraction, while a reading above indicates expansion.

Survey respondents "overwhelmingly" attributed the decline in activity to the impact of the Covid-19 pandemic, with all three broad categories of construction work recording a fall in output. Civil engineering activity suffered the steepest rate of decline, followed closely by commercial building work.

Employment fell at the fastest pace since September 2010 and business expectations slumped to the weakest level since October 2008.

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: "The battered construction sector was offered a brief respite in February with a marginal rise in output after a difficult year, but any hope of a continuation of growth was mercilessly bulldozed away in March and construction companies registered their lowest levels of optimism since October 2008.

"As measures to contain the coronavirus Covid-19 pandemic were put in place across the UK, construction sites closed and builders lost their jobs on a frightening scale as overall activity fell to an extent not seen since April 2009. New orders were reduced to a trickle as the scale of the disease dawned on clients and lockdown severely hindered any further progress.

"With no upturn in sight, and with the fastest level of layoffs since September 2010, the sector is stuck in quicksand and sinking further."

Andrew Wishart, UK economist at Capital Economics, said: "The incoming data continue to confirm that the UK is destined for the sharpest fall in economic output for over a century in Q2. And the lowest consumer confidence reading since records began suggests that generating a strong economic recovery may not be as simple as ending the lockdown.

“We already knew that the composite PMI, which covers the services and manufacturing sectors, hit a record low of 36.0 in March. And today we found out that social distancing has also put the handbrake on construction activity.”

He noted the survey doesn’t include retail, which he said has done even worse judging by footfall data - with the exception of supermarkets.

"And the PMI is pretty much guaranteed to deteriorate further in April as the full effect of the lockdown is captured. Even then, we doubt it will capture the true scale of the loss of economic activity. We are currently forecasting a -15% q/q fall in GDP in Q2 but if anything, it could be larger."

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "If, as we expect, banks largely maintain the supply of credit to the economy and the government follows through on its plans for much higher levels of public sector investment, the construction sector should see a much swifter recovery than after the 2008/09 recession, when it took seven years for output to return to its prior peak."

[hybrasil] 06/4/2020 10:55

maturo

you have done very well


Two holidays worth !!

[p1966] 06/4/2020 10:35

https://www.theguardian.com/business/2020/apr/06/house-prices-will-not-fall-far-despite-lockdown-says-studyAs always DYOR.

[master rsi] 06/4/2020 09:30

Starting to be some interest now on the shares, a good ladder movement on the intraday chart

For those lucky enough to have some spare cash TLW mention as a good opportunity @ 14p Friday morning has gone over 28p now so one could have double your money in less than 24 hours, (trading hours )