1

Key highlights & current trading Clive Fenton

Review of operations John Tonkiss

Financial results Rowan Baker

Strategic progress update Clive Fenton

2

Key highlights & current trading

3

Strong demand and demographic opportunity continues to underpin our business model

Business has demonstrated resilience and flexibility in the face of demanding conditions

4

2,302 legal completions1, in line with prior year (FY16: 2,296)

Record year for revenue at 661m, a 4% increase on prior year

(FY16: 636m)

94.1m underlying profit before tax2, in line with previous guidance

Strong financial position, with 31m of net cash (FY16: 53m) at the

year end

Proposing a final dividend of 3.6p per share, making the total

dividend for the year 5.4p per share, 20% growth on prior year (FY16:

4.5p pro-rated for period since listing)

1. Excludes three commercial units in FY16

2. Underlying operating profit (including underlying operating profit margin and underlying basic earnings per share) and underlying profit before tax are calculated by adding amortisation of brand and

exceptional administrative expenses to operating profit and profit before tax respectively

Housing market lacked momentum1

Reduction in level of residential housing transactions year-

on-year to Aug-17

Help to Buy represented c.40%-50% of new build sales for

mainstream housebuilders

Continued political and economic uncertainty resulted in a

subdued secondary market

Downward trend in new buyer enquiries and sellers more

reluctant to come to market1,3

Bank of England reported slowdown in activity, especially

in higher price brackets4

5

1 RICS September 2017 UK Residential Market Survey2 HMRC - UK Property Transaction Count August 20173 Financial Times4 Bank of England Agents summary of business conditions 2017 Q3

1.2m

1.3m

FY17

FY16

Annual UK Residential Property Transactions2

-5%

131m116m

31 Aug 2015 31 Aug 2016

Forward order book*

-11%

6452

FY16 FY17

Sales releases

-19%

A lower level of sales releases and first

occupations compared to FY16

A lower forward order book brought into the

year

6

69

49

FY16 FY17

First occupations

-29%

*Forward order book as at 31 August 2015 included revenue after cash discounts, PX top-ups and other incentives. Forward order book from the 31 August 2016, and at all subsequent dates, included revenue after cash discounts and PX top-ups

75 land exchanges (FY16: 65)

Progressed workflow to deliver medium-term growth 64 planning consents (FY16: 60)

Improved products & build efficiency

4 week reduction in build time

New on balance sheet PX sales tool

53% off-plan

Focused on operational excellence

First class build delivery

Flexible sales approach

Improved off-plan sales

Sales rates maintained

3

7

73 site starts (FY16: 54)

31m net cashMaintained robust balance sheet

Continued to deliver excellent customer satisfaction

Net reservations per active site in line with PY

3

8

New rental model

New strategic relationship with PfP Capital enabling access to

the growing rental market

126 apartments sold to PfP Capital in FY17 across 27 sites

Identified further opportunities to expand rental offering in

FY18 and beyond

New bungalow product

New bungalow range introduced delivering an alternative

product from FY18 onwards

Diversifying the business

277m

141m

250m

116m

10 November

31 August

FY17

FY18

9

YTD sales releases

FY17: 13 FY18: 17

Forward order bookContinued subdued near-term outlook within

secondary market

However, current trading remains resilient

Continued momentum in forward order book

Net reservations per active site in line with

prior year

10

We continue to make good progress with our three strategic initiatives to

create a more efficient and scalable business and drive margin

improvement:

1. Sales initiative:

Target 50% off-plan sales rates

Target reserve out within 12 months

2. Development initiative: reduce the average time taken between

securing land and build start (target 16 months)

3. Build initiative: accelerate build timescales and reduce build costs

11

Progress

50% 50% 53%

25%

30%

35%

40%

45%

50%

55%

FY15 FY16 FY17

Off-plan reservations

Sales initiative update

Off-plan reservation rate increased to 53% in FY17 (FY16: 50%)

Average time to sell out slightly lengthened to 19 months due to

selling out of older sites

Sales and marketing highlights

Website improvement and repositioned product branding

Relationship Management teams in place in all regions

More flexible usage of part-exchange

Outsourced call handling now fully embedded

New national training academy

CRM system upgrade project commenced

New brand campaign commencing January 2018, including

TV advertising

38

months 31

months18

months

19

months

FY14 FY15 FY16 FY17

Average months to sell out (sold out sites in year)

12

73%

20%

7%

Non PX trans 3rd party PX providers In-house PX

13

Part-exchange (PX) usage

Challenging secondary market required increased volume of PX

transactions in FY17 (FY17: 27% of legal completions, FY16: 21%

of legal completions)

Actions taken to reduce the cost impact of higher PX usage

More consistent use of PX throughout the year

Improved terms agreed with third party PX providers with an

estimated saving of c.1m

Successful pilot of on-balance-sheet PX tool

o Strict criteria and controls applied

o 163 transactions (7%) utilised on balance sheet PX

o Properties resold on average c.8.5 weeks post buy-in in

FY17

o Achieved c.1.2m saving compared to third party PX

Contributed to the decrease in incentives from 7% in H1 FY17 to

6% in H2 FY17

7%6%

H1 FY17 H2 FY17

Total incentives as % of list price

FY17 BuildStarts

FY16 BuildStarts

FY15 BuildStarts

FY14 BuildStarts

Land exchange to build start

Average c.25 months

Target 16 months

Average c.23 months

Average c.19 months

Average c.18 months

Development initiative update

Average reduction of 4 weeks1 between land exchange and build start

achieved in FY17, reducing the average time to c.18 months (78 weeks)

(FY16: c.19 months / 82 weeks)

Increased product standardisation

Improved product specification and efficiency

Significant makeover to bathroom and kitchen designs

Bistro Concept introduced in Retirement Living Plus, increasing

saleable floor area, reducing cost and improving customer

experience

Heating solutions improved to deliver further cost efficiency and meet

our customers needs

Modernised remote monitoring system

Continued development of industry leading product management platform

DATUM

Commenced roll out across all regions of new construction estimating tool

(Bidcon)1 Standard sites only

14

15 Quality awards

7 Seals of Excellence

1 Regional winner

Build initiative update

Average reduction of 4 weeks in build time achieved in FY17,

reducing the average to c.62 weeks (FY16: c.66 weeks)

Use of non-traditional build techniques, instead of traditional brick

and block, contributed to improvement:

Porotherm blocks

Lightweight steel frame

Timber frame

Strategic

initiative

69weeks

66weeks

62weeks

FY15 FY16 FY17

10% reduction

15

c.33% of FY17 build starts

NHBC Pride in

the Job awards

Build cost inflation of c.3-4% experienced in FY17 and expected to continue at similar levels in FY18

Material spend

Total rebates of c.3.0m invoiced in FY17 (FY16: 1.8m)

22 procurement tenders completed, identifying saving

opportunities of 127k per development

Labour

Skilled labour resourcing remains challenging

Currency

Minimal currency exposure on material costs, with a

maximum exposure of 3% cost increase

66% of annual material spend covered by fixed pricing

agreements to July 2018

16

Underpin our growth and returns by:

Securing profitable new land opportunities

Continuing to improve our sales capability

Further improvements to our 5 customer

experience

Enhancing margins and working capital cycle via

our continued focus on three strategic initiatives

17Positioning the business to deliver its strategic growth objectives

18

Key financial metrics FY17 FY16 Change

Legal completions1 2,302 2,296 +0%

Average selling price2 273k 264k +3%

Revenue 660.9m 635.9m +4%

Gross profit 130.7m 136.4m (5.7)m

Gross profit margin 19.8% 21.4% (2ppts)

Underlying operating profit3 96.2m 107.2m (11.0)m

Underlying operating profit margin3 14.6% 16.9% (2ppts)

Underlying profit before tax3 94.1m 105.0m (10.9)m

Statutory profit before tax 92.1m 92.9m (0.8)m

Underlying basic earnings per share3 14.2p 16.1p (1.9)p

1. Excludes three commercial units in FY16

2. Average selling price is calculated as average list price less cash discounts and PX top-ups.

3. Underlying operating profit (including underlying operating profit margin and underlying basic earnings per share) and underlying profit before tax are calculated by adding amortisation of brand and exceptional administrative

expenses to operating profit and profit before tax respectively

Improved average selling price of

273k (2016: 264k), driven by

favourable first occupation locations

Revenue increased by 4% to 660.9m

a new record

Reduction in margin percentage mainly

driven by age mix of stock sold and

increased incentive costs

Strong recovery in underlying operating

margin in H2 (+700 bps)

19

Key financial metrics FY17 FY16 Change

Return on capital employed1 (ROCE) 16% 20% (4ppts)

Capital turn 1.1x 1.2x (0.1x)

Net cash 30.7m 52.8m (22.1)m

Tangible gross asset value (TGAV) 646m 574m +72m

Total dividend per share 5.4p 4.5p 0.9p

ROCE variance driven by lower operating

profit and continued investment in land,

build and operational infrastructure

Continued robust net cash position

Proposing a final dividend of 3.6p per share

(FY16 3.5p), giving a total dividend for the

year of 5.4p

20

1. Return on capital employed (ROCE) is calculated by dividing underlying operating profit for the previous 12 months by the average tangible gross asset value at the beginning and end of the 12 month period. Tangible gross

asset value is calculated as net assets excluding goodwill and intangible assets, excluding net cash

Sales mix deterioration driven by the age

profile and regional mix of legal completions

Pricing improvement offset by build cost

inflation and increased discount and

incentive costs

Higher discounts and incentives at 6.1%

(FY16: 5.6%) due to more challenging

secondary market

3 additional land aborts in comparison to

FY16

Continued investment in regional operational

infrastructure to support growth activity

16.9%

14.6%

3.0%

1.0%

2.6%

0.5%0.3%

0.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

FY16 underlyingoperating

margin

Sales mix ASP increase Build costinflation

Incentive costs Land abort costs Other incl.operational

infrastructure

FY17 underlyingoperating

margin

21

51%

49%

FY17

60%

40%

FY16

CY firstoccupations

PY & earlier firstoccupations

Negative sales mix margin variance of 1% driven by:

Higher proportion of legal completions from older stock in FY17 driven by a lower level of first occupation sites

Reduction in legal completions in the South East area22

69 first occupations 49 first occupations

1,802 1,727

494 449

126

FY16 FY17

Legal completions

Rest of UK Places for People South East

m 31 August

2017

31 August

2016

m m

Goodwill and intangible assets 69.3 71.3

Fixed assets & investments 3.0 3.5

Land 148.6 236.5

Land creditors (67.4) (49.3)

Sites in the course of construction 341.2 201.0

Finished stock 238.7 248.3

PX properties 31.9 0.0

Total net stock 693.0 636.5

Net cash 30.7 52.8

Other net assets / liabilities (50.3) (66.0)

Net assets 745.7 698.1

Total land bank of 9,967 plots (FY16: 10,186)

Significant increase in WIP with 73 site starts during

the year in preparation for growth (FY16: 54)

Reduction in land value reflects decision to halt

build starts at the end of FY16 following the EU

Referendum

FY17 lower level of first occupations evident in

finished stock

On-balance sheet PX

114 properties total value of 31.9m

Of which only 13 properties are yet to be

resold

FY17 properties resold on average c.8.5

weeks post buy-in in FY17

23

-37%

+70%

+37%

-4%

n/a

+9%

52.8m

620.9m

11.3m30.7m

156.2m

316.2m

132.8m

20.4m 28.5m

0

100

200

300

400

500

600

700

800

Opening netcash

Net revenue Land spend Build spend Operatingcosts &

overheads

Tax & interest Promissorynote debtreduction

Dividends paid Closing netcash

24

Total land & build

spend 472m

Priorities

Continue to invest for growth

Significant progress towards 2.5bn investment

target, with 472m invested in FY17

> 600m expected investment in land and build in

FY18

Pay a sustainable dividend

Progressive dividend policy to be maintained

Interim dividend and final dividend payment

expected to be split approximately one-third and

two-thirds

Maintain strong balance sheet

25

Leasehold consultation still ongoing

McCarthy & Stone ground rents key points

No leasehold housing

Ground rents set at a reasonable level (c.0.14% of ASP)

15 year reviews linked to higher of 2% or RPI - no punitive doubling clauses

Possible impact

FRI income expected to remain at a similar level to FY17, increasing slightly with volumes

(FY17: 29m)

13.4m deferred FRI income held on balance sheet at 31 August 2017

Possible reduction to FY18 PBT of 5% if ground rents reduced to 0.1% of ASP

Mitigation strategies to be employed include

Land price renegotiation

S.106 cost renegotiation

Review pricing

Management fee review26

19

30

H1 FY17 H2 FY17

First occupations

(actual)

c.14

c.51

H1 FY18 E H2 FY18 E

First occupations

(current forecast)

FY18 out-turn expected in line with the current range of analyst forecasts

FY18 out-turn expected in line with the current range of

analyst forecasts

More than 65 first occupations expected in FY18

(FY17: 49)

First occupations heavily weighted to H2 FY18 due to

timing of build programmes

H1/H2 PBT split expectation of 20%-25% delivered in

H1 with H1 period end net debt at c.100m level

All FY18 first occupation sites now under construction

Timing of first occupations influences legal completions

growth in FY18

27

*

*

* First occupation defined as the date of the first legal completion within a given development

28

Demand &

demographic

opportunity

29

Demand & demographic opportunity

Quality Land bank at attractive margins

Robust capital structure Market-leading

brand

Demand & demographic opportunity

Operational capability

in place

o

o

o

o

o

o

o

o

Significant step up in build activity with c. 2,700 (43% increase) plots under construction at the year end

4,843 4,842

1,948 1,287

1,883 2,699

1,512 1,139

31-Aug-16 31-Aug-17

Landbank - plots

Controlled land Owned land Sites under construction Finished stock

+43% plots under construction

30

Total 10,186 Total 9,967

54

73>70

>80>85

FY16 FY17 FY18 E FY19 E FY20 E

Site Starts

69

49

>65>70

>75

FY16 FY17 FY18 E FY19 E FY20 E

First Occupations

64

52

c.80>75

>80

FY16 FY17 FY18 E FY19 E FY20 E

Sales Releases

Workflow on track to support the legal completions

growth trajectory

Increase in level of site starts in FY17 is a strong indicator of future growth

Workflow and build programmes on track for delivery of medium-term targets

First occupations growth underpins volume trajectory

31

FY18 E first occupations FY19 E first occupations

c.80 FY18 sales releases currently on track - 17

sites already sales released

96% of sites are under construction

Sales releases split evenly between H1 and H2

FY18

c.34% of FY18 sales releases first occupy in FY19,

contributing to FY19 growth

17 sales releases successfully launched to date

>40 sales releases expected by H1

32

55%45%

Construction status

Site started Not yet started

Workflow on track to deliver >70 first occupations in FY19

All planning applications submitted 52 sites have achieved planning

40 sites already under construction

Improved phasing of build programme between H1 and H2 expected

71%

29%

Planning status

Planning consents achieved Planning applications submitted

33

Quality land bank in place to support growth in

both average selling price and site margin

through to FY20

Improved average selling price in excess of

300k and average site margin in excess of 25%

embedded within the new sites across all 3 years

Land bank evenly balanced across all regions

Product mix in land bank remains in line with

previous guidance

Improved pricing and margins embedded within current land bank

Operating margin will improve as land bank unwinds and sales volumes increase

Note:

Average site margin stated at development level excluding any allocation of variable costs

ASP represents development average selling price

Direct comparison with basis of calculation used in H1 2017 presentation shown in Appendix (slide 51)

34

Average ASP>260k Average ASP

>285k

Average ASP>240k Average ASP

>290k Average ASP>290k Average ASP

>290k

Average ASP>280k

Average ASP>300k Average ASP

>300k Average ASP>300k

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY17 FY18 E FY19 E FY20 E

Per

cen

tage

of l

egal

co

mp

leti

on

s

Margin 25%

35

To support delivery of Groups strategic growth objective,

our existing nine regions will be clustered into three

divisions:

South division

Central division

North division

Central division launched and appointments complete

North and South divisions to be implemented in H1 FY18

All recruitment expected to be internally resourced

126 apartments sold in FY17

Forward sales agreed on 56 units

Exploring an alternative offering for

capital challenged customers in H2

On going discussions to agree

development scope and specification

Delivery expected over the medium-term

17% of older people would rent a property equivalent to

c.2 million people1

New strategic relationship established with PfP Capital to

diversify and access the growing rental market across three

separate offerings

1 Source: Strutt & Parker, 2017

36

Potential to improve capital turn

Enable land investment in new locations

Management services business key attraction for our

partner

Declining supply with only 2,210 new bungalow homes

registered in 2016 in comparison to 26,408 in 19861

Shortage of supply means bungalow range likely to attract

high level of demand

Opens up new land opportunities and enables development

potential to be maximised

222 units across 13 sites now in land bank 6 sites have

achieved planning consent

Construction commenced at two bungalow sites in

Wymondham (Norfolk) and Buntingford (Hertfordshire)

1 Source: NHBC new home statistics review 2016

37

McCarthy & Stone uniquely placed to capitalise on strong demand and demographic opportunity

Continuing to build momentum in forward order book

Build programmes on track for delivery of medium term targets

Quality land bank in place at attractive margins

Operational capability in place to deliver 3,000 to 4,000 units per annum

Robust capital structure with continued focus on careful cash management

Increase returns by targeting improvements to margins and working capital cycle via our three

strategic initiatives

Opportunity identified to deliver further growth, increase returns and improve resilience via

diversification into rental market and introduction of new products

FY18 out-turn expected in line with the current range of analyst forecasts

38

39

6 March 2018 Half year trading update

11 April 2018 Half year results announcement

4 July 2018 Trading update

6 September 2018 Full year trading update

13 November 2018 Full year results announcement

Other key dates

24 January 2018 AGM

28 February 2018 Half year close

31 August 2018 Year end40

41

For the year ended 31st August 2017

42

2017 2016

m m

Continuing operations

Revenue 660.9 635.9

Cost of sales (530.2) (499.5)

Gross profit 130.7 136.4

Other operating income 8.9 8.5

Administrative expenses (38.8) (44.7)

Other operating expenses (6.6) (5.1)

Operating profit 94.2 95.1

Amortisation (2.0) (2.1)

Exceptional administrative expenses - (10.0)

Underlying operating profit1

96.2 107.2

Underlying operating profit margin 14.6% 16.9%

Finance income 1.6 2.7

Finance expense (3.7) (4.9)

Profit before tax 92.1 92.9

Income tax expense (17.7) (19.4)

Profit for the year from continuing operations and total comprehensive income 74.4 73.5

Profit attributable to:

Owners of the Company 74.2 73.1

Non-controlling interest 0.2 0.4

74.4 73.5

As at 31st August 2017

43

2017 2016

m m

Assets

Non-current assets

Goodwill 41.7 41.7

Intangible assets 27.6 29.6

Property, plant & equipment 2.4 2.9

0.4 0.4

Investment properties 0.2 0.2

Trade and other receivables 32.1 32.7

Total non-current assets 104.4 107.5

Current assets

Inventories 760.4 685.8

Trade and other receivables 9.5 7.5

Cash and cash equivalents 40.7 119.0

Total current assets 810.6 812.3

Total assets 915.0 919.8

Equity and liabilities

Capital and Reserves

Share capital 43.0 43.0

Share premium 101.6 100.8

Retained earnings 600.1 553.5

Equity attributable to owners of the Company 744.7 697.3

Non-controlling interests 1.0 0.8

Total equity 745.7 698.1

Current liabilities

Trade and other payables 85.4 98.7

UK corporation tax 6.7 8.4

Short-term borrowings - 11.3

Land payables 67.4 49.3

Total current liabilities 159.5 167.7

Non-current liabilities

Long-term borrowings 8.0 52.5

Deferred tax liability 1.8 1.5

Total liabilities 169.3 221.7

Total equity and liabilities 915.0 919.8

Investments in joint ventures

For the year ended 31st August 2017

44

2017 2016

m m

Net cash (outflow) / inflow from operating activities (3.8) 18.3

Investing activities

Purchases of property, plant and equipment (0.7) (1.5)

Purchases of intangible assets (0.4) (0.4)

Proceeds from sale of property, plant and equipment 0.1 0.1

Net cash used in investing activities (1.0) (1.8)

Financing activities

Proceeds from issue of share capital - 86.0

Repayment of long-term borrowings (45.0) (35.0)

Dividend paid (28.5) (5.4)

Net cash (used in) / from financing activities (73.5) 45.6

Net (decrease) / increase in cash and cash equivalents (78.3) 62.1

Cash and cash equivalents at beginning of year 119.0 56.9

Cash and cash equivalents at end of year 40.7 119.0

45Sources: (1) ONS population projections (2017), (2) ONS total housing wealth by region and age group (2013) (3) YouGov research provided for McCarthy & Stone (2017) (4) EAC data based on owner-occupied retirement housing

(2017) (5) ONS population projections (2016-based)

With a 47% predicted increase in those aged 65 or over by 20375

Supporting 14,600 homeowners across 312

developments as at 31 August 2017 (FY16: 264)

Services delivered:

c.25,000* hours of care and support per month

c.60,500 meals per month

98% Good rating in CQC Retirement Living Plus

inspections

Strong focus on improving efficiencies and

maintaining quality

46

Our distinctive management services capability provides a platform to support business growth and

leverage our service offering across all of our products

* Including additional and standard hours

Three core products delivered to the same outstanding

quality and target return metrics

Independence with peace of mind Downsize for the leisure yearsA retirement apartment you own

with flexible care and support

Minimum age 60

Typical number of apartments per site 30-50

FY17 completions 1,722

FY17 % land bank 57%

Minimum age 70

Typical number of apartments per site 50-70

FY17 completions 479

FY17 % land bank 36%

Minimum age 55

Typical number of apartments per site 20-40

FY17 completions 101

FY17 % land bank 7%

Source: Annual Report

47

Lifestyle living

Late middle-age living

for the fully independent

Retirement Living Plus

For those in need of

increased support

Retirement Living

For the physically

independent

Other retirement

housebuilders

Lack scale, national

coverage and more limited

access to financing

Rental

market

Retirement village

market

Not prevalent in the UK UK predominantly an

owner-occupied market

Generalist

housebuilder

Residential

full-time

Nursing/

Care Homes

Lack intellectual

capital and appetite

Fundamentally

different business

model

48

Sales

process

Previously entered

retirement housing

market1

Currently operating in

retirement housing

market1

1

1. Previous entry or current entry refers to significant retirement housing operations

49

50

Note:

The above shows the same data sources as on slide 34 showing the average ASP and margin by first occupation year

This is comparable to the basis used in our half year presentation in April 2017

Average site margin stated at development level excluding any allocation of variable costs

ASP represents development average selling price51

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY17 legal completions FY18 E legal completions FY19 E legal completions FY20 E legal completions

Per

cen

tage

of

lega

l co

mp

leti

on

s

Pre FY17 first occupations FY17 first occupations FY18 first occupations FY19 first occupations FY20 first occupations

ASP >290k

Site margin >25%

ASP >245k

Site margin 300k

Site margin >25%

ASP >300k

Site margin >25%

ASP >300k

Site margin >25%

ASP >290k

Site margin >25%

ASP >280k

Site margin 300k

Site margin >25%

ASP >300k

Site margin >25%

*Site profit margin percentage52

-

2,000

4,000

6,000

8,000

10,000

12,000

Low marginstock 25%*

Work inprogress >25%*

Owned >25%* Total owned Exchanged withPlanning >25%*

Exchanged>25%*

Total

Sites Units Sites Units

Owned sites

Land held for development 45 1,948 30 1,287

With detailed planning consent 28 1,217 29 1,257

Awaiting detailed planning consent 17 731 1 30

Sites in the course of construction1

49 1,883 64 2,699

Pre sales releases 36 1,405 49 2,017

Post sales release 13 478 15 682

Finished stock 104 1,512 107 1,139

Total owned sites 198 5,343 201 5,125

Exchanged sites

With detailed planning consent 28 1,109 26 908

Awaiting detailed planning consent 100 3,734 93 3,934

Total exchanged sites 128 4,843 119 4,842

Total land bank 326 10,186 320 9,967

Terms agreed, awaiting exchange 42 1,712 28 1,355

Total 368 11,898 348 11,322

Workflow milestones

Sites Units Sites Units

Land exchanges 65 2,614 75 3,164

Planning consents 60 2,449 64 2,473

Land completions 63 2,579 58 2,372

Build starts 42 1,638 66 2,784

Sales releases 64 2,425 52 2,127

First occupations 69 2,591 49 1,925

Inventory holding (m)

FY16 FY17

Land held for development 236.5 148.6

Sites in the course of construction 201.0 341.2

Finished stock 248.3 238.7

Part-exchange properties 0.0 31.9

Total 685.8 760.4

Legal completions (unit numbers) FY16 FY17

Current year first occupations 1,370 1173

Prior year first occupations and earlier 926 1129

Total 2,296 2,302

1 Does not include sites under construction at the pre-foundation stage.

2017

2016 2017

2016

53

Places for People is one of the largest property and leisure management, development and regeneration companies in the UK. They have assets of 3.7 billion and own or manage 182,725 homes.

PfP Capital is the fund management business of Places for People

PfP Capital aims to grow its assets under management from 150m to 750m by 2021

PfP Capital has successfully launched its first fund, a PRS vehicle

The PRS Fund benefits from a seed portfolio from Places for People consisting of high-quality, UK-wide PRS assets valued at c.150m

The acquisition from McCarthy and Stone will form a seed portfolio for a separate fund, to date totalling 126 apartments across 27 sites sold to PfPCapital in FY17

54

Februarys Housing White Paper contained a number of positive proposals for

our business:

A general commitment to explore ways to stimulate the market to

deliver new homes for older people recognising that this sector is

worth supporting

A new statutory duty on the DCLG Secretary of State to produce

guidance for local authorities on meeting the housing needs of older

people. We expect this to be published by the summer

For the first time, it is now official Government policy to look at

incentives to help older homeowners move.

Other positive measures included:

Clear drive to support housebuilding

Strengthening the presumption in favour of developing brownfield land

Greater support for small windfall sites

Support for higher density development in urban locations well-served by

public transport

More pressure on local authorities to meet their

housing targets.

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