Posted 23 November 2017 by
Keith OsborneThis week, Whathouse.com has an exclusive interview with Paul Isaacs, managing director of Generator Group, who talks exclusively about his company, their new homes, and the current and future property market.
Please tell us a little about yourself and Generator Group.
I have been working in various aspects of house-building for more than 25 years, having started out in banking lending to small and medium sized housebuilders and moving on to work for real estate fund manager Frogmore and then as MD of a private property company. In 2006, I established Generator Group, as a niche developer targeting projects that range from small residential schemes to major mixed-use regeneration projects.
As a business we are expanding; our turnover is up year on year and we have significantly grown our development pipeline. Our aspiration is not to grow to become a volume housebuilder but stay hands-on.
What projects are you currently working on?
In Norwich, we are developing The Bridge, a collection of 66 one and two-bedroom apartments and penthouses with modernist architecture set on the River Wensum and within walking distance of the city centre. Prices here started from £185,000 for a one-bedroom property and Help to Buy is available, meaning the development has attracted a high proportion of first-time buyers. It has also attracted downsizers and sales here have been strong.
Huller & Cheese in Bristol is a development of 50 warehouse apartments created from two refurbished buildings set directly on the Floating Harbour. Rescued from the Buildings at Risk Register, these were two of the last industrial waterside buildings to be restored and incorporate many original features. We have created six fabulous contemporary penthouses by adding two new storeys to the top of the building. Bristol has an undersupply of high-quality apartments and these have achieved some of the highest values in the city.
What differentiates Generator Group from the competition?
Our expertise lies in acquiring challenging sites that many other developers would not touch. We use our flexible and innovative approach to transform these sites into viable and deliverable developments. We are happy to work in joint venture, tailoring the partnering of sites to suit the needs of vendors to increase their returns.
Mostly our sites are on brownfield and focused on regions, including university cities and towns, where there has been less competition.
Are there any past projects that you are especially proud of?
We completed Azure, in Rottingdean, near Brighton last year. This was a clifftop collection of nine two- and three-bedroom apartments and penthouses perched above the beach facing the sea. The architecture of which was inspired by the Art Deco era and its contemporary interior and high specification were very popular. In terms of location and amazing sea views, there really were no other new build developments like this available in the area.
Are house-hunters really aware of the benefits of new build and what can we do to promote the strengths of new homes?
I think many house-hunters don’t necessarily think of new builds because they haven’t had experience of them and they have a romantic notion of preferring period architecture. Most people, when they do experience new builds, never look back and are wowed by the comfort, efficiency, warmth and peace-of-mind of having everything brand new.
That is why initiatives such as New Homes Week, which was backed by the Home Builders Federation (HBF) are such a great idea. Also, the success of schemes such as Help to Buy has helped encourage many more people to consider new build. However, it is also up to us, the developers, to continue work together with industry bodies to showcase what is available.
What do you make of the current housing market and what needs to be done to drive it forward?
There is very little chance of the government target of one million new homes by 2020 being reached – we are simply not building enough. The biggest barrier to increasing housing supply is planning. We need radical changes to the planning system that is currently not fit for purpose.
A significant proportion of the developments we now have in the pipeline have been significantly delayed in the planning system at great financial cost to us and we are just one small housebuilder. If you multiply this across the country it will equate to a huge number that would without question help to address the housing shortage. More importance needs to be given to small housebuilders by lenders and planning departments to help speed up the delivery of these housing numbers.
Has the government gone too far against buy-to-let investment with its changes in tax and stamp duty?
Small-scale landlords have been badly penalised by the changes and there has been a sharp reduction in investment from them. For example, we might have expected to see more investors purchasing at The Bridge in Norwich, but that hasn’t been the case. However, I think in the right location, residential property is still a good investment and those that have the means to invest, will still do so.
Also buy-to-let still makes up over 95% of the private rental stock in the UK, so until build to rent grows to a significant degree, most people renting are in the hands of buy-to-let investors. Tenants should not have to suffer in terms of higher rents and costs being passed on to them as a result of the tax changes.
What projects are in the pipeline for Generator Group in the coming months and into 2018?
Our pipeline of new homes totals over 418 units and includes a site in Old Felixstowe, Suffolk, with plans for almost 200 homes, as well as a development of 29 homes in Halstead, Kent. Our South West division is flourishing and its projects include the regeneration of the former Elizabeth Shaw Chocolate Factory in Bristol to create a mixed-use scheme with 135 homes.