CEO Forum Output: A Question of Balance31 July 2018
The subject matter and discussion for The Housing Forum's July CEO Forum, hosted by NHBC, was balancing government targets with diversity in housing supply.
Richard Donnell, Research and Insight Director, Hometrack covered trends in tenures and the market in general. NHBC’s figures shows starts are down 6.4% for the affordable sector and 4.6% for the private sector in the 12 months to April 2018.
There followed a discussion regarding individual housebuilders that were prepared to take lower margins on schemes where they could sell the build to rent and affordable rent and that they were basing decisions on risk blended margins rather than standard 20 to 25% operating margin.
Austen Reid, Group Director of Development, Clarion Housing Group then provided the group with a housing association perspective. The sector is challenged to deliver 80,000 to 100,000 homes p.a. and Clarion is executing its plans to increase its programme to a much higher level than pre-merger utilising its balance sheet strength to significantly increase housing supply.
Will Rutter, Partner, Winckwood Sherwood was the final speaker, and emphasised the need to understand service costs. Affordable Rent (though understood not to include London Living Rent) is inclusive of service charge, so the level of charge will impact on the feasibility of the scheme. It is important to get estimates right, particularly on S106 schemes.
About CEO Forums: The Housing Forum holds monthly leadership forums to build influence at senior level across all organisations involved in the building and maintenance of homes. Over recent years, we have undertaken a series of high level examinations and reactions to measures to stimulate the housing supply and examine the industry’s approach.
- Andy von Bradsky, Chairman, The Housing Forum
- Michael Cleaver, Director, The Housing Forum
- Tim Attwood, Director, Conisbee
- Tony Battle, Joint Managing Director, Kind and Company
- Andrew Beharrell, Senior Partner, Pollard Thomas Edwards
- Guy Burnett, Development Director, Thames Valley HA
- Richard Donnell, Research and Insight Director, Hometrack
- Richard Jones, Partner, Head of Residential & Regeneration, Arcadis
- Brendan Kilpatrick, Senior Partner, PRP
- Simon Leadbeater, Residential Managing Director, Willmott Dixon
- Neil McCabe, Joint Managing Director, Hunters
- John Murray, Senior Partner, Airey Miller
- Steve Nunn, Executive Director, Development & New Business, Moat
- Jane Owen, Senior Strategy and Policy Officer, Ministry of Housing, Communities and Local Government
- Austen Reid, Group Director of Development, Clarion Housing Group
- Michael Richter, Director, Formation Architects
- Will Rutter, Partner, Winckwood Sherwood
- Andy Tookey, Managing Partner, Baily Garner
- Alan Wright, Partner - Architecture, bptw