Claire Kober: Housing battles loom for Labour
For those who have been watching Welcome to Wrexham, Ryan Reynolds’ documentary series on the town’s football club, the frequent references to the British planning system might come as a surprise. The series follows Reynolds and his business partner, producer Rob McElhenney, as they navigate the complexities of owning a football club and engaging with the local community.
Their journey is heartwarming, showcasing their growing and seemingly genuine affection for Wrexham and its people. However, the obstacles they face are striking. When they attempt to redevelop the stadium, they encounter what Reynolds calls a “thick buttress of bureaucracy” within the planning system. McElhenney describes it as presenting “hurdles for hurdles’ sake”.
While their comedic frustration provides laughs, it underscores a serious issue. Reynolds and McElhenney, international investors with a combined net worth of over £400m, want to invest and bring about social good. Yet, the planning system risks thwarting their efforts.
Unlike Reynolds and McElhenney, institutional investors – recognising the increasing importance of ESG factors – must also focus on returns in the social housing sphere and cannot afford prolonged delays.
To attract private capital into the sector, among other things, we need a simplified planning process. The new government has rightly made this a priority, aiming to reduce bureaucratic hurdles and speed up planning decisions.
The urgency is clear. Council spending on hotels for homeless households has tripled in the past five years, soaring from £81m to £241m.
In London, authorities collectively overspent on their homelessness budgets by £208m last year, with spending on temporary accommodation rising by 25% from April 2023 to April 2024 alone. Newham Council has repeatedly sounded the alarm over spiralling costs, allocating a further £18.5m to its temporary accommodation budget this year, but predicting costs will top £40m. The authority says the issue could soon account for a third of its total budget.
Housing is clearly a key issue for the new government, but significant hurdles remain. Nimbyism and development protests, especially with plans to reclassify some green-belt land as ‘grey belt’, are growing concerns. Politicians will face pressure from constituents to preserve these areas.
While 11 out of 12 metro mayors in England are Labour, the new administration shouldn’t underestimate the impact of local pressures. Take Stockport. The Financial Times’ northern correspondent recently noted that, despite the area’s proximity to Manchester and the benefits it reaps, the town and council – an authority of no overall control – have a complicated relationship with housebuilding.
Having dropped out of the Greater Manchester Spatial Framework over green-belt concerns – despite the combined authority’s revisions to focus on brownfield – its recently published draft local plan would meet only 85% of its housing need. This proposal is unlikely to satisfy, given the strident rhetoric from Westminster.
Similarly, at Salford Quays, one of the UK’s most successful regeneration projects, a resident Liberal Democrat councillor recently raised concerns about overdevelopment. While his points – made to the Local Democracy Reporting Service – about the need for supporting infrastructure and services are valid, his focus on the potential loss of character for the area seems somewhat misplaced. The challenge of balancing much-needed development with maintaining the area’s unique identity is significant, but not insurmountable.
Clearly, political and community battles loom, alongside the complex task of unpicking planning law. To address the housing crisis, a collaborative approach is essential. Investors, government, developers, councils and regional politicians must work together. The government needs to hold its nerve, while local administrations of all colours must be realistic about the necessary actions, showing strong leadership in the face of community sentiment.
With more than 150,000 children in temporary housing in the UK, the urgency for more affordable housing is undeniable. We can no longer afford to delay.
Claire Kober
Managing Director (Homes), Pinnacle Group
This article was originally featured in Property Week, on 5th September 2024.
Pinnacle Group Expands Affordable Housing Portfolio with 250 New Homes
Pinnacle is set to offer more affordable accommodation across the country after boosting its portfolio by 250 homes, funded by CBRE Investment Management.
The homes – developed by national housebuilder, Persimmon – will fall under Pinnacle Spaces, one of the company’s two Registered Providers, who will act as landlord, with the wider Pinnacle Group providing management services.
Registered in 2012, Pinnacle Spaces aims to increase the supply of high-quality, well-managed affordable housing across England and Wales.
It achieves this through a unique combination of access to large-scale funding through partnerships with institutional investors, alongside effective utilisation of Pinnacle Group’s tried and tested operating platform.
Over the coming months, the new homes will be available to local people in Burgess Hill, Mid Sussex; Weston, Spalding; Wantage, Oxfordshire; and Exning, Newmarket.
“We have a strong track record of not only delivering high-quality, well-managed homes but offering a trusted platform for investors to generate positive social outcomes alongside achieving stable financial returns. We are thrilled to integrate these properties into our portfolio to provide new affordable housing for families across the country and foster communities that people are proud to call home.”
Claire Kober
Managing Director - Homes for Pinnacle Group
“We are immensely proud to announce this partnership with Pinnacle Spaces and Persimmon in which CBRE Investment Management purchased a mixture of affordable and shared ownership units. This project is another step toward our commitment to helping solve the affordable housing crisis in the U.K. Through our institutional capital, we can start to bridge the gap between the current mismatch between the demand and supply of quality affordable housing whilst meeting investor returns.”
Andrew Davey
Head of Liability-Aware Strategies and Affordable Housing for CBRE Investment Management
The homes – a mix of social rent and shared ownership – will be offered to those on social housing waiting lists, providing them with quality accommodation while reducing pressure on local authorities.
The additions will increase Pinnacle Spaces portfolio to around 500 homes, with an upcoming pipeline expecting to swell numbers to over 1000 in the coming months.
This expansion underscores Pinnacle Group’s commitment to addressing the housing crisis and supporting communities by providing sustainable and affordable housing solutions.
Pinnacle Group appoints former Army officer and Royal aide to key leadership role on MOD contract
Pinnacle Group has today announced the appointment of former Army officer Sarah Pittaway as the new Divisional Director for Pinnacle Service Families, one of the company’s largest contracts. It comes as Pinnacle Group builds on a series of contract wins in the past few months and looks to further strengthen its leadership team.
Sarah Pittaway said she was “committed to applying my experience to improve the quality of services we provide.”
Currently Deputy Chief Executive of the Union Jack Club – an HM Armed Forces members’ club – Sarah has a wealth of leadership expertise, including an early career as a Commissioned Army Officer.
As part of Sarah’s military career, she trained at the Royal Military Academy Sandhurst and was deployed on multiple overseas engagements and operations, including Afghanistan, Cyprus, and Oman, as well as inter-military exchanges in France and Italy in support of NATO diplomatic relationships.
Her extensive career in senior executive roles includes Managing Director at fine dining and events caterer, Chester Boyd, Assistant Private Secretary in The Royal Household, and Senior Manager for Enterprise Risk at EY.
Joining Pinnacle in October, Sarah will head up the firm’s contract with the Defence Infrastructure Organisation, managing 49,000 military family homes nationwide. She will oversee its 440-strong team across the National Service Centre in Liverpool and regionally throughout the UK.
“Sarah brings a unique and impressive blend of military and commercial experience, making her uniquely qualified to enhance the quality of services we provide. This new post has been created to drive further improvements for our military families. I look forward to welcoming her to the team and leveraging her expertise to support the families we serve.”
Claire Kober
Managing Director - Homes for Pinnacle Group
“I am thrilled to join Pinnacle Service Families as it will allow me to contribute to the vital work of supporting Service families. Whilst serving in the Army, and subsequently, I have been able to see first-hand the unique challenges faced by the military families community, and I am committed to applying my experience to improve the quality of services we provide.”
Sarah Pittaway
Divisional Director for Pinnacle Service Families
Pinnacle Group Secures Major Contract with HOCHTIEF to Manage Over 1,000 New Student Rooms
Pinnacle Group has been selected as a key delivery partner for Staffordshire University’s new purpose-built student accommodation village at its Stoke-on-Trent campus.
This landmark project, which received planning permission in March, will feature approximately 700 new student rooms in blocks and townhouses centred around a vibrant social hub. The village is set for completion in 2026.
Under the 50-year contract with German construction giant HOCHTIEF, Pinnacle will deliver a comprehensive range of services to ensure the facilities are well-managed and foster a community that students are excited to call home.
HOCHTIEF has formed a consortium – Staffordshire Campus Living – with Staffordshire University and Plenary to deliver the project, with Willmott Dixon constructing the new buildings. This includes the refurbishment of 300 existing en-suite rooms, which will also be managed by Pinnacle.
Pinnacle Group Chief Executive Perry Lloyd said: “We have a long track record of successfully managing and maintaining places where people live, learn, work, and play. We are delighted our unique offering has led to a new partnership with HOCHTIEF. With our expertise and track record of service delivery, we look forward to managing a home away from home for so many Staffordshire University students.”
Sally McGill, Chief Financial Officer and Executive Lead for Sustainability at Staffordshire University, added: “The new Student Village is a significant step forward in enhancing our campus infrastructure. This development not only addresses the growing demand for high-quality student accommodation but also aligns with our sustainability goals. The partnership with Pinnacle and HOCHTIEF will help us create a vibrant and sustainable living environment that supports our students’ academic and personal growth.”
This contract is the latest in a series of new business wins for Pinnacle, which recently announced partnerships with Kew Green Hotels, Funding Affordable Homes (FAH), and an expanded role with Legal & General Affordable Homes (LGAH), becoming its leading managing agent.
Pinnacle team rewarded with prestigious military recognition
A number of colleagues working on Pinnacle’s Service Families contract have been recognised with a commendation from the Vice Chief of Defence Staff, General Dame Sharon Nesmith.
Conferred twice a year alongside the state honours, commendations are awarded to individuals and teams who have performed exemplary service to the Ministry of Defence.
Ben Leahy, Jolanta Mokrzycka, Ed Rigby, Barry Reynolds, Jas Patel, James Jamieson and Francesca Obertelli were awarded the honour for their work on the Afghan Relocations and Assistance Policy (ARAP), alongside colleagues from the Defence Infrastructure Organisation.
Pinnacle has supported the Ministry of Defence in mobilising the programme, with colleagues ensuring Afghan citizens – who supported the UK Government in Afghanistan – are safely moved into surplus military accommodation.
“We’re incredibly proud of our team, who have worked so hard on this programme and have truly earned this commendation. Individuals have gone far beyond the call of duty to support these families as they settle into life in the UK. Alongside those mentioned in the citation, recognition is extended to our Afghan Liaison Officers as well as our wider Strategic Estate Management, regional teams and sub-contractor, Pickfords.”
Claire Kober
Managing Director, Homes at Pinnacle Group
Team members are now set to attend a presentation at MOD main building, where they will be thanked in person by General Dame Sharon Nesmith.
Pinnacle starts work on first Cornish contract
Pinnacle Group has secured its first housing management contract in Cornwall, building on a series of new business wins and geographical expansions since the beginning of the year.
Pinnacle has now begun work with Perran Housing, a registered provider connecting local people with sustainable shared ownership or affordable rental homes.
Pinnacle will provide a full complement of housing management services, ranging from tenant on-boarding, building compliance, defect management, maintenance and void management. This work will cover the extent of Perran’s portfolio and reflects Pinnacle’s expertise and range of services in the space.
The contract marks the latest in a series of new business wins for Pinnacle, which also recently announced instructions with Kew Green Hotels, Funding Affordable Homes (FAH), as well as an expansion of its work with Legal & General Affordable Homes (LGAH), becoming its leading managing agent.
"With a series of new contract wins under our belt in recent weeks, we’re pleased our reputation for providing market-leading management services has resulted in yet another geographical expansion. We look forward to continuing and expanding our work with Perran as their pipeline delivers more homes to the people of Cornwall."
Claire Kober
Managing Director, Homes at Pinnacle Group
Launched in 2022, Perran Housing falls under the organisational umbrella of Treveth – a B Corp certified property development company set up by Cornwall Council in 2019 to create new homes, sustainable communities and commercial developments all of which benefit people who live and work in Cornwall.
The registered provider’s main objective is to improve the quality of new homes in Cornwall. Perran’s homes exceed current minimum standards and are designed to help to reduce the running costs for occupants, through the use of low carbon technologies.
Perran’s sustainable housing is carefully integrated into existing communities through the inclusion of walking and cycling routes, as well as measures to support the local ecosystem, such as hedgehog highways and bat boxes.
Dulcie Paleschi, Head of Residential Portfolio Management at Treveth says, “Perran Housing ensures Treveth remains responsible for managing all the affordable homes on our sites. This means that our affordable and private tenants benefit from Treveth’s high-quality service with a single point of contact.
“We are delighted to be working with Pinnacle and utilising their expertise to continue our mission to deliver quality and sustainable communities for local people in Cornwall."
Pinnacle Group’s Claire Kober on why for-profits are key for housing supply
Earlier this month, the Financial Times reported a stark warning from housing associations: “We can’t build houses.” Some said they had ceased all new development for the coming financial year; others said the system was “maxed out”.
A perfect storm of high interest rates, inflation, low government grants and rising construction costs, as well as net zero and remediation obligations, means traditional registered providers (RPs) are struggling to build. Put simply, the finances do not stack up. In fact, housing associations say building new affordable homes is becoming financially impossible, which is worsening the downturn in supply.
Alongside this, demand continues to grow. In 2022, there were 1.2 million households on social housing waiting lists. Statistics released last month show this has increased by 6% to 1.29 million. In 2021-22 alone, 173,550 households who received a social letting were new to the social sector. Meanwhile, households in temporary accommodation now number more than 109,000, with costs exceeding £1.74bn in 2022-23. Something has got to give.
What the FT piece neglected to mention was that for-profit RPs (FPRPs) are moving into the space and helping to bridge the gap. There are 69 FPRPs registered with the Regulator of Social Housing – two of these owned by Pinnacle. With this number continuing to rise, albeit at a slower pace, it is clear institutional investment’s role in the sector is vital and will continue to grow. There is a real opportunity for traditional RPs to support this growth.
In 2023, I was part of a working group, drawn from the British Property Federation’s (BPF’s) Affordable Housing Committee, that developed a toolkit to provide greater understanding of partnership models for investors and RPs. Its aim was to boost the delivery of affordable homes by providing greater understanding of how investors and housing associations can collaborate.
Encouragingly, a recent Savills survey of traditional housing associations revealed that 89% would consider a partnership with a for-profit and 43% are already working with them in some way. The ever-growing pressure on housing associations to find alternative sources of investment is shifting attitudes among traditional RPs. Five years ago, an earlier survey found that only 62% of traditional housing associations thought that for-profits had any part to play in solving the housing crisis.
It is clear there is a rapidly growing recognition of the role equity has to play in unlocking financial capacity. This collaboration is set to be key in the sector’s future growth.
Capital funding
Rapidly scaling up long-term institutional investment in the sector is vital to boosting affordable housing supply. Analysis by L&G and the BPF reveals that £34bn is the additional capital funding needed per year to meet demand.
But if we are to scale up, we must create the conditions to encourage private capital to enter the sector. These include longer-term rent settlements, a review into subsidy provision and the creation of a level playing field between traditional RPs and their for-profit counterparts. New tax and grant initiatives would remove obstacles for closer collaboration between institutional investors and RPs.
As the gulf between supply and demand broadens, the housing crisis is set to take centre stage in the upcoming general election. It is already shaping up to be a key battleground, with the industry and communities patiently waiting to hear how parties intend to address the issue should they retain or take power. Whichever party wins, they need to adopt a pragmatic approach, acknowledging the role institutional investment has to play in delivering the affordable homes the country needs.
Claire Kober
Managing Director (Homes), Pinnacle Group
This article was originally featured in Property Week, on 1st May 2024.
Pinnacle expands affordable homes contract – becoming Legal & General Affordable Homes’ leading managing agent
Pinnacle Group is set to more than double the number of homes it manages on behalf of Legal & General Affordable Homes (LGAH) as it becomes the provider’s leading managing agent.
In recent weeks, the housing services provider has taken on management services for an additional 900 homes – a mix of affordable rented and shared ownership – spread across the Southwest and Midlands, including The Berries in Paignton, Devon and Cross Trees Park in Shrivenham, Oxfordshire.
Now, a further 40 shared ownership homes at a variety of locations across England will be managed by Pinnacle after we signed yet another agreement with LGAH.
In total, Pinnacle will now be responsible for managing around 1800 homes for LGAH, with a pipeline of new properties expanding the portfolio to at least 2600 homes over the next few years.
“Having begun our relationship with LGAH back in 2019, we’re thrilled our reputation for providing market-leading housing services has resulted in us becoming their leading managing agent. With our teams already delivering on the ground for the first tranche of new homes, we now look forward to serving even more communities across the country as the additional homes come under our management.”
Claire Kober
Managing Director, Homes at Pinnacle Group
Pinnacle’s role will include tenant on-boarding and management, building compliance, defect management, maintenance and void management.
Pinnacle will also work in close collaboration with LGAH in advance of the handover stage, including liaising with relevant local authorities on nominations agreements and the production of welcome packs and home user guides for prospective tenants.
Shaun Holdcroft, Operations Director, Legal & General Affordable Homes, said: “Pinnacle is a trusted partner of Legal & General Affordable Homes, and we are proud to have formed a robust and long term relationship over the past five years. We look forward to working with the Pinnacle team as we continue to serve our current and future residents by providing high quality, affordable housing right across the country. Our aim is to better people’s lives and ensure that everyone has access to our vision of a sustainable and affordable home.”
As we approach our 30th anniversary, Pinnacle continues to see considerable growth, having recently announced a new instruction with Funding Affordable Homes as well as its first Brighton-based contract.
Pinnacle Group wins first Brighton contract to manage hotel apartments
Pinnacle Group has won its first Brighton-based contract to provide management services to residential apartments above an historic seafront hotel.
Kew Green Hotels, which owns and manages over 55 hotels across the world, has selected Pinnacle to manage sixty-four leasehold apartments in the building, which overlooks Brighton’s Grand Pier.
Kew Green Hotels’ portfolio covers several leading global brands including IHG Hotels & Resorts, Hilton and Marriott International, alongside managing several independent hotels and operating over 25 Holiday Inns under franchise across Europe.
The former Bedford Hotel, now Holiday Inn Brighton-Seafront, is an iconic landmark in the city, dating back to 1829. It counted Charles Dickens among its historic guests, though the current iteration of the building opened in 1967. Today, eleven floors of the hotel are used for luxury residential apartments.
"As we celebrate our thirtieth anniversary this year, we’re delighted to be expanding into Brighton, especially with such an iconic building.
This new contract represents yet another geographical expansion of our market-leading services, enabling us to deliver for local leaseholders while also exploring further opportunities in the region.
We look forward to working with our partner, Kew Green Hotels, to maintain high quality management standards and create a first-rate customer experience for the residents.”
Alex Elsy
Director of Assets and Residential Management, Pinnacle Group
Alongside residential management of the apartments, which begins this week, Pinnacle will also work in close collaboration with the hotel team on shared building services.
This instruction is another example of Pinnacle’s vast experience in forging partnerships to deliver comprehensive community solutions. It will see the organisation deploy its unique expertise to respond effectively to client and customer requirements, particularly in complex residential developments.
Chris Dexter, CEO of Kew Green Hotels said, “We look forward to working with the team at Pinnacle, supporting them in delivering exceptional services to residents at Bedford Towers, complemented by the operational excellence delivered by our team at the Holiday Inn Brighton-Seafront. At Kew Green Hotels, we set ourselves apart by combining years of experience with innovative ideas to deliver outstanding hotel services, delivering exceptional returns for hotel owners and partners throughout our portfolio of independent hotels through to global brands.”
Shane Willmoth, Director of Property at Kew Green Hotels added, "We are pleased to be working with the team at Pinnacle, who demonstrate strong experience in the UK residential services sector with a robust infrastructure and employee community.”
Pinnacle Group secures new contract with Funding Affordable Homes
Pinnacle Group has been appointed by Funding Affordable Homes Housing Association (FAHHA), a for-profit Registered Provider and Homes England investment partner, to provide management services at a new-build home counties housing scheme.
Sterling Gardens, a development of 119 apartments, including 27 for social rent, 30 shared ownership and 62 for affordable rent, is built on brownfield land in Newbury.
Pinnacle will act as managing agent at the scheme, conducting a full range of tenancy and estate management. The contract marks a new relationship for Pinnacle, which currently provides housing management services across a portfolio of over 70,000 properties nationwide.
As it approaches its 30th anniversary, the Group continues to see considerable growth, with plans to announce further contract wins in the coming weeks.
Laura Newey, Head of Partnerships - Homes, Pinnacle Group, said: “We are delighted to have been appointed by FAHHA as their housing manager of choice on this exciting new scheme in Newbury.
‘Drawing on our experience of place-making, and place-keeping new communities on new build developments, we look forward to working with FAHHA to bring our market-leading services to the residents of Sterling Gardens.”
Paul Munday, CEO of FAHHA, said “FAHHA are hoping this project will be the start of a long-term relationship for the delivery of housing services by Pinnacle. Funding Affordable Homes (FAH), whose investment advisor is Edmond de Rothschild Real Estate Investment Management (EdR REIM), invested institutional capital alongside grant from Homes England to deliver 119 affordable homes from what was to be an entirely private sale development. The scheme demonstrates FAH’s commitment to providing tangible social benefit from its capital”.
Pinnacle Group strengthens board with appointment of high-profile Real Estate expert
Pinnacle Group has announced the appointment of highly respected Real Estate investment executive, Phil Clark, to its board.
Phil has over 30 years’ experience in senior and non-executive roles at a number of established businesses in the residential, commercial, regeneration, infrastructure and energy sectors.
Starting his career as a surveyor in the public sector, he later moved to Aviva Investors, establishing and leading its specialist property investment funds team.
Following this, he spent 14 years at Aegon Asset Management becoming Global Head of Real Assets Equity where he had responsibility for direct and indirect, listed and non-listed investment strategies.
In 2000, he established the Igloo Regeneration Partnership, believed to be the first property investment fund to be focused on sustainable housing-led regeneration.
Perry Lloyd, Pinnacle Group Chief Executive, said: ‘Phil is a highly respected, commercially-minded real investment leader who brings a wealth of knowledge and delivery expertise to the Pinnacle Group board. His years of industry experience supplement the current skills and experience of the board and I look forward to working with him as we drive the business forward.’
Phil Clark said: ‘By joining Pinnacle’s board, I am looking forward to supporting a market-leading organisation that is determined to break new ground, particularly in the residential real estate space. I’m confident that, with its socially-conscious, commercial culture and strong leadership, we’ll leverage additional partnerships to make a positive difference to the communities Pinnacle supports.’
Alongside his role at Pinnacle Group, Phil is also a non-executive director for several active Real Estate businesses and chairs the Royal Institute of Chartered Surveyors’ Commercial Property Forum.
In addition to his professional credentials, he has a passion for accessible education. He is Chair of the Academy of Real Assets, a social enterprise that introduces the real estate and real assets industry to students who would not typically consider it as a career.
ESG Impact Report 2023
Our latest report detailing a series of key ESG pledge successes has today been published, highlighting our progress across the four key pillars of our ESG Framework.
Today we're pleased to publish our latest ESG impact report highlighting the exceptional service and positive difference we make to every community we serve.
This report not only celebrates our achievements but acts as a marker on our journey to net zero. This represents a substantial challenge but is one we welcome, and are making significant strides towards.
Over the course of 2022-2023, we are pleased to announce that our total emissions per £1m revenue has reduced by 8.7% year-on-year to 85.48tCO2e.
Pinnacle continues to be a socially conscious and value-led business, this is demonstrated through the exceptional achievements of our people in protecting our planet, the social investments in our team and culture, and the communities we serve.
