In what is typically a quieter period, LDS experienced unprecedented interest for its offering in August, resulting in the highest number of Sales Guarantees issued and largest volume to date.
A consequence of a softening property market, enquiry levels shot up as brokers and developers seek to increase leverage and improve cashflow on new and existing projects.
Mark Hawthorn, LDS CEO, said: “Amid the largest drop in house prices in over a decade, demand for our Sales Guarantees has soared.”
“Our offering reduces risk and releases much needed cash to SME developers—two highly sought after requirements in this market.”
Mark Roberts, LDS relationship director, added: “We are seeing situations where down valuations and increased interest costs are creating equity shortfalls, potentially killing deals.
“Our ability to put 10% cash back into a housebuilders cashflow can remove these shortfalls—often the difference between a site moving forward or remaining undeveloped.”
Ben Jenkinson (pictured), managing director of LDS, said: “We’ve worked hard at fostering repeat business and strengthening our relationships with lenders.
“This, coupled with a growing LDS team and market conditions, is feeding into the fantastic enquiry levels we’re experiencing.”
LDS also recently published news of its acquisition of £3m in unsold properties.
