Building Together for the Future: Industry obstacles and how we can challenge them together

A series of insights from friends of the firm and long-standing leaders across the Built Environment


We received an overwhelmingly positive response to our first article in our insights series, Building Together for the Future, which explores the “Bright Spots” in the built environment.

In the second of our series, looking at topics and themes of importance in the Built Environment, we are focusing on the big industry challenges. We asked what is top of mind for leaders in the sector, and what are they doing to address the challenges at organisational, sectoral and government levels.

We are grateful to our contributors for their valuable insights, including:

  • Hugh Seaborn, Chief Executive of Cadogan Estates
  • Professor Yolande Barnes, Chair of the Bartlett Real Estate Institute at UCL
  • Richard Donnell, Executive Director of Houseful
  • Emily Cox MBE, Chair of Gentoo Group
  • Andy Hulme, Group Chief Executive Officer of The Hyde Group


A polycrisis paradigm

For our leaders there is a recognition that “business as usual is actually a perpetual management of crises.”  This places challenges on leadership at board and executive level.

This was articulated by one leader: “The frequency and clustering of challenges has been like nothing I have experienced in my previous 25 years in Housing Associations”. It is a situation that is unprecedented, certainly in this generation of leadership. The risks and compliance have increased in a manifold way, operationally, regulatorily and financially – for some ten-fold.

This requires resilience at a senior level, but also means that a greater framework of risk management needs to be developed and regularly referred to. The impact of this across board rooms means there is a greater focus on operational activity than has existed in previous times.

In addition, the need for greater compliance and increased safety procedures has meant that there is a reputational challenge that has arisen. The default view of the sector, especially in some Housing Associations as “a free-for-all kicking shop” has to be overcome. It requires action and a collective response, but it is a long road of recovery and that needs trust in leadership and transparency in approach.

One interviewee observed that “this single solution mindset is a hangover of the 20th century and we need to change how we look at the problems.”  That doesn’t mean there aren’t answers or solutions to the challenges, but asking the right questions from the outset is absolutely crucial.

 

People and planet – it’s not a zero sum reality

There are fundamental demographic shifts that need to be considered in the whole picture. An ageing population and falling fertility rates in the UK are a reality, as with many other parts of the world. By 2028 there will be 6 per cent less under 50s in the population than there were in 2018 in the UK. This has implications on building requirements from houses, to offices, care homes to retail.

The way we live and the type of homes, must be a serious consideration. Care homes are not the answer for the elderly in the long term. This means that access and availability at both ends of the scale, from first-time buyers to down-scalers must be considered. All of our leaders agreed homogenous housing estates are not going to cut it.

The emphasis must be on community, sustainability and planning and design. However, there are sticking points to this as one commentator said: “The mantra around thriving communities is very welcome and should be encouraged, but the plan of funding it is currently a dream.”

Consumer demand is evolving at a pace previously unseen, and in an industry which has traditionally had a “component-focused approach”, the customer-centric view requires a shift in leadership thinking, as well as funding. It cannot be a case of building just what works well for a developer or even in a planning context; it must be much more about what is needed for the population and, without question, the planet.

This can be done in a variety of ways. Considering the value of land differently, with much more focus on valuing appropriately rural space, tree canopy cover, gardens and permeable areas in one. The sector has to focus on greater biodiversity, and that requires “careful planning, better questions being asked, and more collaborative, strategic thinking rather than waiting for regulation to catch up.”

 

Best laid plans

The new government has certainly made progress in putting housing and community in poll position of its agenda. That has been welcomed by the leaders we spoke to (and articulated in our first series focus). There is clearly an ambition to understand and address the challenges. However, that does not mean wholesale ripping up of the planning system, nor does it mean just building houses to meet targets.

In terms of the planning system: “We need to be thinking more nationally and strategically. Encouraging local authorities to talk with one voice and discuss the investment they need will be crucial.”

However, for planning changes to be meaningful, affordability must also be addressed, particularly in areas such as the South-East of England. The private housing market has driven the model in the last 15 – 20 years, but that puts significant pressure on the rental market and the availability of affordable and social housing continues to be a challenge. High demand and a low supply of properties continues to keep rents high, but the number of homes available for rent is rising. There are still 25% less rental properties available in 2024 compared to 2019.

The approach to land value capture needs to be reconsidered. As one commentator said: “I think we can do bring change in this area but boy is it going to need some serious leadership from government to bring it about.”

A redesign of the housing market and how we measure land value is also a key part of the discussion; including how we use technology, tokenisation or fractional ownership The current ownership, rental or part-ownership model does not appear to be fit for purpose in the long term.

 

For the generations to come

There are areas where our leaders can bring real change and impact, but ultimately there needs to be greater support and innovation at a central government level. We have a significant skills shortage, which it was suggested has been heightened by Brexit, but also other global events. There is a lack of materials supply, crucially in areas such as concrete, and that is causing delays in any area of development and build. We are not incorporating and utilising technology and data in the ways that we could be, and that will become an expectation for future generations.

These are all challenges which impact at both a macro and micro level, but no one organisation or leader can drive change by themselves, nor should they. We all need to learn and evolve together.

We needed change at a wholesale level – that is apparent in the introduction of a new UK government. And with this change, there are some fundamental policies which need to be reconsidered: safety regulations must be met and as quickly as possible; sustainability and the net zero agenda need better regulation and a greater consideration for the costs to implement these changes; long term rent settlements and formulas must be updated and made realistic; and leaseholds need to be reconsidered and clearer, more implementable rules need to be drawn up.

These are not insurmountable challenges, and with a more open and collaborative approach to discussion and question scoping, there is a view from our interviewees that change can and will come.

 

Adviser view

As trusted advisers in this space we realise there is a juggle in all of this. Our leaders are naturally, and appropriately, encouraged to think strategically and long-term. However, the necessity of living through short term crises makes that very difficult. Innovation and looking beyond our own borders are going to become necessity, not just for skills and talent, but also to understand where we can learn and embed new systems and approaches to make our built environments the best they can be.


 

Our next focus topic is: A post-Budget insight: How is this challenging economic environment being addressed through innovation?

 



Committed to Leadership Excellence in the Built Environment

Our Built Environment practice group is committed to finding and supporting excellent and authentic leaders across infrastructure, local and regional development, housing and transport to deliver tangibly positive benefits for existing, emerging and new communities across the UK.  To find out more about how we can support your organisation’s leadership development and appointments, please get in touch with Vidhu Sood-Nicholls or Hannah Scarisbrick in our team.

 


 

Further reading:

Chapter 1 – The Bright Spots

 


 

Latest

Coram appoints Professor Sir Ivor Crewe as President and Chair

Helpforce appoints Amerjit Chohan as new Chief Executive

Chineke! Foundation Welcomes Seven New Trustees

James Brining announced as The Royal Lyceum Edinburgh’s new Artistic Director

Black History Month series: Music, Literature, Film and More!

Tilly Blyth joins Weald & Downland Living Museum as new Director

“Good is not good enough, you have to want to be great” – An evening with Scottish Rugby legends Chris Paterson MBE and Stuart McInally on Leadership

British Museum appoints new Managing Director and Director of Finance

David Isaac CBE Appointed as New Chair of the Henry Moore Foundation

University of Brighton appoints new Vice-Chancellor

Jacqueline de Rojas CBE appointed as Chair of the Board of Trustees of Bletchley Park Trust

Andy Street announced as Birmingham Rep’s new Chair of the Board of Trustees

John Whitgift Foundation appoints new CEO

FCA and PRA appoint new Chair of the FSCS

University of Glasgow announces Professor Andy Schofield as new Principal and Vice-Chancellor

Nurturing future leaders: Jane Gotts, Chair of The Glasgow Academy

Alan Cumming appointed new Artistic Director of Pitlochry Festival Theatre

Building Together for the Future: A series of insights from friends of the firm and long standing leaders across the Built Environment

What will healthcare look like over the coming decade? Interview with Haris Sultan

Jo Ogilvy rejoins Saxton Bampfylde as Consultant in the Schools’ Practice

Transforming Legal Services: Isabel Parker on AI, Innovation, and the Future of Law Firms

Nurturing future leaders: Interview with Emma Taylor, Warden and CEO of Dean Close Foundation

Steering the family business forward: Interview with Neil Davy, Chief Executive Officer at Family Business UK

Sandie Okoro OBE appointed as first female Chancellor of the University of Birmingham

SXSW London reveals key management team appointments

RSA announces Loyd Grossman CBE as Chair of the Board of Trustees

University of Chichester announces appointment of new Vice-Chancellor

DFN Project SEARCH appoints learning disability expert Kirsty Matthews as new Chief Executive

Jonathan Shaw appointed as new Headmaster of Ellesmere College

Elizabeth Newman appointed as Artistic Director of Sheffield Theatres

Queen Mary’s School Announces New Head for 2025

Canterbury Christ Church University appoints Deputy Vice-Chancellor and Provost

Steering the family business forward: Interview with Gouy Hamilton-Fisher, Director Colleagues & Support, Timpson Group

Canford School appoints Chris Wheeler as new Head

Jewish Museum London appoints Sally Angel as new Chief Executive

Foundling Museum announces new Chair

The White Horse Federation appoints CEO

Social Mobility Day 2024

Concern Worldwide (UK) appoints new Executive Director

Richard Greenhalgh succeeded by Christian Brodie as Chair of United Learning’s Group Board

Royal Botanic Gardens, Kew announces Susan Raikes as Director of Wakehurst

Standing Together: Saxton Bampfylde Celebrates Pride Month

We have moved! Our new London location

Managing Risk in Professional Services: It’s not just about protecting the firm, but enabling it – Interview with Alastair Levy

Crystal Palace Park Trust welcomes Victoria Pinnington as new CEO

Nadia Fall appointed as new Artistic Director of The Young Vic Theatre

How lawyers are coming to terms with their own ‘Now and Then’

Nicola Dudley announced as new Head of Queen Margaret’s School for Girls

Gordon Seabright appointed new Chief Executive of the Horniman Museum and Gardens

The General Pharmaceutical Council appoints new Chief Strategy Officer

A healthy perspective on executive search

Foot Anstey LLP appoints Non-Executive Director

South By Southwest comes to London

Saxton Bampfylde in action with charity Smart Works

Sue Ryder announces new Chief Executive

What will healthcare look like over the coming decade? Interview with Gabrielle Mathews

Liz Truss was correct. Well, on one fundamental point

General Dental Council announces new Chief Executive and Registrar

Andrew Comben appointed new CEO of Britten Pears Arts

Dr Nicholas Cullinan OBE appointed as new Director of the British Museum

Saxton Bampfylde partners with Family Business UK

Professor Robert Mokaya appointed Provost and DVC at University of Sheffield

30 years on from the first Code: A personal account of the Corporate Governance Revolution

Celebrating International Women’s Day 2024

Steering the family business forward: Interview with Emma Fox, CEO of Berry Bros & Rudd

Leadership in the age of AI: CEO Breakfast with Doug Gurr, Director of the National History Museum

Sustainability Dinner with speaker James Cameron, Chair of Crown Agents

What will healthcare look like over the coming decade? Interview with Nigel Edwards

Middlesex University announces its new Vice-Chancellor

SafeLives appoints new CEO

Do the right thing: ESG in 2024 – Interview with Lisa Hart Shepherd, CEO of Lamp House Strategy

A Healthy Perspective Podcast – Helen Buckingham, Nuffield Trust

New GPhC Council members appointed for 2024 and 2025

RICS senior governance appointments

An Independent Mind: Sharpening the role of a law firm NED

CLCH appoints new Director of Strategy, Partnerships and Integration

Into Film appoints Fiona Evans as new CEO

An evening for current and aspiring non-executives with Kenny Imafidon

V&A announces Director of Collections and Chief Curator

RNLI appoints new leader to take charity into third century of lifesaving

Erika Lewis appointed CEO at Connected Places Catapult

Alex Frazer Announced as the New Head of Bancroft’s

Sue Baillie appointed as Woldingham’s new Head

Royal Hospital School appoints new Head

The University of Manchester appoints Professor Duncan Ivison as next President & Vice-Chancellor

Championing the Mission – Interview with Jonathan Morgan

Quadrant Chambers appoints Sarah Longden as new COO

New Oasis Community Learning Chief Executive Announced

Rachel Kent made Financial Regulators Complaints Commissioner

Steering the family business forward: Interview with Paul Drechsler CBE

Indhu Rubasingham appointed as Director of the National Theatre

Northumbria University, Newcastle appoints new members to Board of Governors

Professor Tom Crick joins DCMS as Chief Scientific Adviser

Norwich Theatre appoints Tom Sleigh as new Chair

MOSL announces Cliff Kamara as new Board member

Saxton Bampfylde welcomes Partner Hannah Scarisbrick back to the firm

Saxton Bampfylde ranked in Financial Times UK’s Leading Recruiters 2024

The Duke of Edinburgh’s International Award Foundation and Association Welcomes Martin Houghton-Brown as Secretary General

Royal British Legion Announces New Director General

English Heritage announces New Blue Plaques Panel Members