Video Transcription
Nikki:
Hello, my name is Nikki Kiriakou. I'm Sector Lead for Build to Rent at NHBC and I'm delighted to be joined by Steven Teagle, CEO, Partnerships and Regeneration from Vistry Group.
Thank you for joining me today, Steven.
So what would you say is the single action that businesses should prioritise today to thrive in the years ahead?
Steven:
OK. I think there are some fundamentals that apply to all businesses and all sectors around being agile in response to market changes and embracing new technologies and ensuring that that's something that you move towards with confidence and the skill.
I think there's a cultural overlay as well. I think we have to recognise that there's a new generation, people are entering the industry. We want more people to join the industry. That means we need to create the right culture and environment for people to succeed and that's really important.
But I think the biggest change is a structural one. I think there's a move away from what I would call the 20th century house building model of developing schemes at a rate of market sale and developing out sites over a longer period in response to immediate market demands.
And I think the structural shift is towards giving housing choice on schemes, providing homes for rent in the Build to Rent sector, but also providing affordable homes. We've seen this government particularly focus on the delivery of affordable homes, but there is an intergenerational imbalance in terms of affordability of homes and access to housing.
And I think that is going to bring about a structural shift in the way our industry operates. And I think that will bring the industry more towards delivering multiple or triple tenure, as it's often referred to. And that will become part of an important change that the industry will face over the next decade.
Nikki:
Well, that sounds really positive to be fair. But what are you most optimistic about?
Steven:
Well, I'm very optimistic in the short term that we are seeing positive signs this spring in the selling environment, in the open market environment and we're expecting a trajectory of declining interest rates, which will help and support home ownership.
I'm also optimistic in the near term that we're going to see the affordable homes programme kicking in and partners looking to invest in the delivery of new homes. Again, that's going to really stimulate the supply chain, stimulate manufacturers, stimulate opportunities on site.
So that's really, really positive.
I think as we see that structural change playing through that I mentioned earlier, I think there has to be, we all have to be optimistic that we're going to see a housing supply chain that is more focused on long-term consistency rather than all short-term cyclical market pressures.
Nikki:
You touched upon it a moment ago. How can we collectively make a difference for future generations?
Steven:
I think we are sitting at a point of profound generational imbalance. I think the opportunity for people to be able to access affordable homes of any tenure is really difficult.
I speak to a lot of young people, I ski with young people, I play football with young people. They're all better than me and they all have challenges in getting the homes that they need in terms of affordability.
That has got to change. We've got to see governments committed to winning the votes from younger voters and that means that they need to step up and do something about housing supply.
And I think all of us, in order to be successful, need to recognise that generational inequality is something that we need to address.
Nikki:
Oh, thank you so much and I appreciate your time today. Thank you.
