Five deals pulled as the UK headed into coronavirus lockdown have pushed housebuilder Inland Homes to a £7.2m loss over the six months to 31 March.
Chief executive Stephen Wicks said the land sales, three of which had been with national housebuilders and all of which were at an advanced stage, had fallen through “almost overnight” in mid-March.
Revenue attached to those deals stood at £46.2m, and its loss left revenue over the six months at £59.6m.
EPRA NAV rose to 109.3p from 103.57p as of 31 December 2018, the company’s comparative date following a recent change of accounting dates.
Wicks said the company saw “demand returning for our land assets”, highlighting a recent development agreement with Homes England for more than 600 homes in Basildon, as well as its sale of 94 plots at its Wilton Park development in Beaconsfield.
But the company sounded a strong note of caution over the economic outlook and its effect on the housing market.
“The Bank of England warned that the Covid-19 pandemic is likely to push the UK towards its deepest recession in history,” it said. “As a result, it is likely that this will have a dramatic effect on employment and thus on incomes in the UK. It is also likely that in a recession, the availability of credit, and in particular mortgages, will be reduced, which will adversely affect the ability of home buyers to complete their purchases.”
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