In a bid to further stimulate the housing sector, LDS Sales Guarantees has announced an increase in the maximum Gross Development Value (GDV) of projects they will consider, upping the limit from £35 million to £55 million. This expansion of criteria is designed to open up more opportunities for developers, their senior lenders, and finance brokers, helping to maintain the development momentum.

Ben Jenkinson, the managing director of LDS, highlighted the company’s role in supporting Small and Medium-sized Enterprises (SME) developers across England and Wales. “LDS was established with the aim of aiding SME developers in building more new homes, contributing significantly to the solution of the ongoing housing crisis,” he said.

Jenkinson pointed out the dual benefits of LDS’s sales guarantee: mitigating project risk and boosting returns. “With the increase in project size and unit numbers, the benefits of eliminating sales risk become more pronounced. This enhancement is about improving the credit profile of larger projects,” he elaborated.

This announcement follows a record-breaking August for LDS, marked by the highest volume and number of sales guarantees issued by the company. This move is expected to inject more robust financial support into larger housing projects.

Jenkinson concluded with an optimistic outlook, “We are looking forward to supporting an increased number of developers and projects. Our panel of senior lenders is growing, and we will soon be announcing new additions.”

This development is a positive sign for the housing sector, especially for care home developments, which have been attracting increasing interest from brokers. With LDS’s raised funding limit, larger and more ambitious housing projects can now gain the financial backing they need to come to fruition.