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Keeping up delivery in the downturn Tracy Williams Deputy Director of Development

Keeping up delivery in the downturn Tracy Williams Deputy Director of Development. External Environment from this……. Genesis Housing Group …where we were. Social Business Customer Choice & Service Big is Beautiful Sweating our Balance Sheet Mixed tenure The broken model???.

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Keeping up delivery in the downturn Tracy Williams Deputy Director of Development

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  1. Keeping up delivery in the downturn Tracy Williams Deputy Director of Development

  2. External Environmentfrom this…….

  3. Genesis Housing Group …where we were • Social Business • Customer Choice & Service • Big is Beautiful • Sweating our Balance Sheet • Mixed tenure The broken model???

  4. Scale 2007 • 7700 Homes (4 Years - £1.4billion) • 700 outright sale • 3500 shared ownership • 3500 rent • £160m Landbank • £60m without planning • £100m without grant

  5. External Environmentto this…….

  6. Genesis Housing Group…the downturn • Lack of available development funding/cash • Lack of mortgage funding • Sales receipts down • Impairment of landbank sites But still… A social business Committed to customer service and choice

  7. How To Respond?

  8. Scale 2009 • 3000 Homes (4 Years - £650m) • 100 outright sale • 700 shared ownership • 750 intermediate • 1450 rent • Landbank reduced where possible • with planning • with grant

  9. Genesis Housing Group…what did we do? • Reduced our commitments where possible • Changed tenure on 750 units intermediate/rent to homebuy rent/social rent • Maximised value of the landbank sites • Agreed grant package with HCA to bring forward the landbank • In house financial advisors • Marketing campaign • Flexibility on sales receipts

  10. The First Time Buyer Marketplace Then • Strong mortgage availability • High consumer confidence • Reasonable recognition of shared ownership • Defined addressable market Able to purchase on open market Capacity to purchase on open market Affordable homes addressable market Unable to engage Representations only, not indicative of actual market size

  11. The First Time Buyer Marketplace Then Now • Poor mortgage availability • Low consumer confidence • Low recognition of shared ownership • Undefined addressable market Able to purchase on open market Able to purchase on open market Affordable homes addressable market Capacity to purchase on open market Affordable homes addressable market Unable to engage Unable to engage Representations only, not indicative of actual market size

  12. Research - Applications by Job Sector • Finance – 8.2 % • Healthcare - 7.0 % • Marketing/PR/Publishing/media - 6.8 % • Education - 5.6 % • Retail - 5.5 % • Transport/Logistics - 5.1 % Source: Genesis Homes Applicants Database Jan 2007 – Oct 2008

  13. Home owners by different tenure types (Source: National Statistics, Social Trends 2007)

  14. Prospective Customer Survey • Have you heard of these terms? • Part buy/part rent – 8% • Affordable housing – 7% • Social Housing – 9% • Can you name any Housing Associations? • 92% couldn’t name a housing association Source: Commissioned market research; Sample 160 25-45 year old adults, living at home or with friends or renting in Harrow, Battersea and Wandsworth

  15. Lack of clarity • Too many schemes • Bewildering to the general public • Need a clear single-minded thought to succeed

  16. Correct Market Positioning • What we’re not • Estate agent • Private developer • A mortgage broker/provider • For the poor or needy

  17. Lucozade • “Hospital champagne” • Worthy and necessary product • For the sick, infirm and old • Limited addressable market

  18. Lucozade • Changed positioning • From helping the ill… • …to empowering the healthy • Tripling of sales in 5 years

  19. Genesis Positioning Change • Move away from development specific marketing only • Service based communications strategy • Clear simple messages • Reflected in clear simple communications

  20. Genesis Positioning Change

  21. Genesis Positioning Change

  22. Genesis Positioning Change • Educating potential customers • Strong response • Positive sales • Attracting a wider spread of tenants and owners • Part of the mainstream

  23. Product Development – Factory Quarter • Mixture of tenures • Outright sale • Shared ownership • General needs rent • Your Place • Reward for good tenants

  24. Larden Road Genesis Flagship scheme: Commercial Rental Shared ownership Outright sale Most apartments have balconies overlooking a landscaped square

  25. Major Schemes • Larden Road • Grahame Park • Bethnal Green • Thomas Road

  26. Grahame Park

  27. Genesis Housing Group • 2008/9 HCA end of year review • upper quartile on starts, completions and expenditure • Sales programme on target • Revision of the business plan

  28. A new tenure • A single flexible tenure • Available on all affordable homes • Allow tenants and owner occupiers real choice • Common standards between public and private • Simplify the offering • RSL’s can deliver!

  29. Thank You

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