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Micro-homes developer enters administration after chief executive jailed

Inspired Homes has fallen into administration after its chief executive, Martin Skinner, was jailed after crashing his Porsche.

Martin Skinner

Skinner has been sentenced to 22 months in prison by Worthing Magistrates Court, after ploughing the sports car into a tree while under the influence of cocaine in August 2018.

It follows a tumultuous year for micro-homes developer Inspired, which specialises in office-to-residential conversions using controversial permitted development rights.

Administrators at MHA MacIntyre Hudson have been appointed by court order to assess the £100m of assets.

The partners will review the two companies Inspired Asset Management and Inspired Developments and contact creditors about monies owed, the financial performance and the next steps of the process.

Inspired’s portfolio comprises the remaining homes for sale at four launched schemes, including the landmark 197-home project at Croydon Innova (pictured), and the rental assets at two developments.

In recent months, Skinner has reported struggles with lenders demanding their money back, threatening to wipe out smaller investors, on top of poor sales and employee resignations.

The most recent development The Broadway in Crawley was separated from Inspired earlier this year prior to the administration and the 78-home scheme is now being developed. Zorin Capital, who provided a £13.4m senior loan to Inspired for the scheme last year, will deliver this in partnership with Gemini Credit Investments, which also funded the scheme as well as Clapham’s Abbeville Place in SW4.

Inspired previously also borrowed from Amicus, which went into administration at the start of the year. Asset management firm Guild Capital Partners was a director for Inspired Asset Management for a brief period at the start of the year.

Inspired makes acquisitions in joint ventures with small capital equity investors. It works with high net worths and self-certified sophisticated investors, promising fixed returns of 10-25% pa. It acquires sites via special purpose vehicles, with investor funds covering initial deposit and fees, building works, bringing in development debt while it seeks to deliver home sales.

But rising costs have pushed up prices, deterring buyers in a weak sales market. Poor sales have led to delays, incurring higher costs as interest piles up.

Homes at the 41-unit Abbeville Place scheme start at just 323 sq ft, priced at £425,000 and pitched as luxury micro-homes.

Skinner’s imprisonment has been described as “the straw that broke the camel’s back” by a source close to the company, with the developer in crisis over the past year.

Sources said Inspired has faced troubles with the market and the company’s leadership, and the administration comes as little surprise.

To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette

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