Annual Reports Keepmoat Homes Annual Report 2018 | Page 7

Strategic Report
Keepmoat.com
7
Chief Executive Officer’s Review
Delivering the new homes
that the UK needs
The last 12 months have been a transformational period for Keepmoat
Homes and another record year. In the year to 31 March 2018 we
delivered 3,717 much needed high quality new homes, 793 more than
the year before, and we saw an increase in our revenues of 31.3% to
£555.6m.
Our new financial year has started well. We are planning to build over
4,000 homes this year and are looking to continue to build on that
growth with our partners in the years to come.
The disposal of Keepmoat’s Regeneration division to
energy services group, ENGIE, completed successfully on
30 April 2017. Keepmoat Homes is now focused entirely on
delivering the new homes the UK needs and remaining the
UK’s leading partnership homebuilder.
Keepmoat is the UK’s largest and only dedicated partnership
homebuilder and we are committed to maintaining that
position and increasing the number of homes we deliver.
We have a presence in all the top 10 markets outside
London. Our partners include Homes England, with whom
we have delivered 11,300 new homes under DPP1, DPP2
and other initiatives with a gross development value of
£1.3bn. We also work in strong and enduring partnerships
with local authorities and registered providers, with many
of those relationships being 5 to 10 years, or in some cases
over 20 years, in duration. These relationships are extremely
important to us and through our business model we create
both financial and socio-economic benefits for our partners,
not least through the delivery and acceleration of much
needed new homes across the UK.
Keepmoat has been the largest partner of Homes England
(previously the Homes and Communities Agency) as a
member of successive Development Partner Panels. Since
2009, Keepmoat has accessed over £177m in funding
initiatives to accelerate output delivery. We have used the
Home Building Fund to accelerate the delivery of 2,200
homes and Help to Buy to support the ambitions of 70%
of our homebuyers.
Keepmoat’s customer base is at the core of the UK housing
need, with Keepmoat Homes continuing to be the leading
homebuilder of quality homes for first time buyers, at prices
people can afford.
Last year we built 2,555 homes for open market sale, with
69% being built for the very important first-time buyer
market and 51% of our buyers under the age of 35.
The market for new affordable homes remains strong in
all of our markets, supported by the availability of suitable
mortgage products that make it more affordable to buy
than rent. It is also helped by the ongoing support for Help
to Buy and we are expecting this to be continued, albeit we
expect to see some reforms to the scheme. Government
commitment to new housing also remains strong and has
significant cross-party support.
Keepmoat Homes is committed to a multi-tenure strategy
with registered providers and the private rented sector
(PRS).
We sold 1,162 homes to registered providers and the build-
to-rent market (or PRS) in the last financial year (31% of
our total homes built) and this underpins our multi-tenure
strategy. This includes homes delivered for our partner
Sigma and its PRS Real Estate Investment Trust (The PRS
REIT plc), and we have a number of other sites under active
consideration. These markets are important to us as our
partners increasingly want to see multi-tenure development.
In addition, as part of a balanced blend, they can help drive
our financial performance by delivering additional volume
and improving our return on capital which is already one of
the highest amongst our peers.
Keepmoat
Homes is now
focused entirely
on delivering
the new homes
the UK needs and
remaining the UK’s
leading partnership
homebuilder.