Business class

“No one likes us, we don’t care,” was the chant sung by Millwall football fans in response to the sustained criticism of their behaviour in the late-1970s and 1980s. It was a defiant stand, but demonstrated a lack of understanding of its critics’ perspective.

Our Millwall moment is not quite so defiant. We do care that no one seems to like us. We are just completely perplexed to understand why it is the case.

It is board awayday season and at the events that I’ve facilitated, I’m asked the same question regularly: what have we done – or not done – to deserve this view?

Credit where credit’s due

Having been a so-called insider, I have a sense the problem is that although the sector has been, and will continue to be, a part of the solution to delivering new homes, it is not seen as a willing partner.

It does so begrudgingly, complaining of inadequate subsidies, unnecessary regulation and bemoaning how it is all so difficult. And yet we always succeed. We always persevere. We always deliver, as a sector. But our way of doing it means we do not get the credit we deserve.

Last year, the sector delivered a third of all homes completed, yet it hardly made the headlines. Indeed, the headline that got the most attention was that we weren’t building enough. Despite the deal now done on Right to Buy, most pundits are suggesting that the sector should prepare for 10 years of an uneasy relationship with government. I take a different view. I think the sector should take a 10-year view of its relationship with all of its audiences, whether that be the current government; the opposition parties; its local authority partners; or its tenants. And we should fundamentally rethink our approach to influencing and lobbying rather than resisting and opposing.

There are lessons to learn from other sectors. The Confederation of British Industry should be a key ally, as we build a case for housing associations making a major contribution to the UK’s economic prosperity. We should have common cause with the Home Builders Federation when we are arguing for better use of surplus public land. Look at the victory it secured on the definition of affordable housing in the planning system.

“Last year, the sector delivered a third of all homes completed, yet it hardly made the headlines.”

Whatever finally happens on the extension of the Right to Buy, we should be closer to local authorities as they negotiate the terms of future devolution settlements and learn from Labour-run Manchester doing the deal with an opposition government.

I also think we can learn from other sectors in how we run our businesses. In the homebuilding industry, senior executives walk their sites, know what their customers want, get regular real-time information and despite being generally conservative in their approach, are always listening and responding to the messages from governments, markets and their customers. Many retailers use the net-promoter score advocacy tool to measure both positive and negative feedback from those who interact with them, and they respond accordingly.

Well-run social enterprises have a constant eye on efficiency and income, and can flex their capacity to respond to more hostile external operating environments and don’t assume that anyone owes them anything. 

All have faced tough and difficult times and have come through.

Our next big test will be the sector’s response to the Spending Review in the autumn. Unprotected departments such as the Department for Business, Innovation & Skills and the Department for Communities and Local Government are being tasked with modelling cuts of 30-40%. So we can speculate on the impact for associations.

It is unlikely to be good, but it is likely to be the new norm. Our response, however, could signal the start of a new norm for our relationship with policymakers; one where we influence, contribute to the debate about delivery and are seen as part of the solution, rather than part of the problem.

Housing associations have prided themselves on investing in communities, building homes and supporting aspiration. This contribution is likely to be even more important over the next few years, though more difficult to achieve.

In five years’ time, associations should look to be part of the solution and regarded as such, no matter who is in power. The rebuilding of our brand and reputation should begin now.

Steve Douglas, partner, Altair.