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ANNUAL REVIEW 2019 20 years of quality


A NNUAL REVIEW 201 9

CONT ENTS 1. VISION AND VALUES

9. JOINT VENTURES

2. CEO UPDATE

10. INVESTMENT PARTNERSHIPS

3. FINANCIAL OVERVIEW

11. REGENERATION

4. HEALTH, SAFETY AND ENVIRONMENT

12. PLACEMAKING

5. CUSTOMER AND QUALITY

13. COMMUNITIES AND SOCIAL VALUE

6. PORTFOLIO

14. SUSTAINABILITY

7. AREA OF OPERATION

15. SUPPLY CHAIN

8. REGIONAL EXPANSION

16. TEAM HILL

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ATHENA, CAMBRIDGE

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A NNUAL REVIEW 201 9

1. VIS IO N AN D VALUES

V IS I O N

Our vision is to be the leading, most trusted provider of distinctive, quality homes in the UK. O U R VA LU E S To support our vision, we have a set of Hill values which confirm the behaviours important to us as an organisation and which are fundamental to our business. They reflect our history and our ambition. Our values define the way we work.

EXTR AOR D IN A RY IN EVERYTH IN G WE D O Working for Hill means being inspired to achieve success and create exceptional opportunities; for our partners, our staff and our customers. We are a housebuilder with the upmost care for health, safety and environment for everyone who works for and with us. We carry a responsibility to listen, and it’s this strength of ours that sets us apart and remains crucial to the ongoing success of our long-term partnerships.

PROUD OF OUR FA MILY BUSIN ESS ETH OS We value honesty, openness and fairness and are focused on quality in everything we do. We have set high standards for the future to remain passionate and committed to every area of our work and will always remain accountable and responsible throughout our relationships.

IN N OVATIVE A N D FORWA R D TH IN KIN G We positively encourage ideas and innovation which enables us to inspire, pioneer and lead on new ways of working. We embrace solutions that challenge the status quo, such as addressing fuel poverty and initiatives to alleviate homelessness. Hill is at the forefront of housebuilding and we want to remain there by embracing change and by helping to build modern sustainable homes for all.

COLLABOR ATIVE WE A R E ON E TEA M H IL L Enjoying what we do is fundamental! We champion enthusiasm and positivity to deliver on our vision; to create distinctive, quality new homes. Our relationships have been essential to our success over the past 20 years. When you partner with us, you become part of Team Hill. Together we will achieve our shared ambitions.

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5


A NNUAL REVIEW 201 9

A MILESTONE YEAR

6


MOTION, LEYTON

2 . CEO U PDATE

ANDY HILL MCIOB Group Chief Executive

2019 was a momentous year for the Hill Group. It was our 20th year as a company and I am very proud when I reflect back on what we have achieved. Our financial performance in 2019 was again very strong, with turnover up 12%. In line with our budget at the beginning of the year, profitability dipped slightly to £42.6m due to cyclical factors and planning delays. However, 2020 is set to see profitability increase to record levels supported by further turnover and activity growth, subject to the impact of Covid-19. As we enter 2020, we do so with an exceptionally strong balance sheet and the willingness and capacity to invest in new opportunities. Net assets are just short of £200m, we have net cash of £60.5m and £270m of undrawn secured banking facilities that we can use to grow our portfolio. Our diverse pipeline now comprises over 6,500 homes, reflecting our bespoke, design-led placemaking approach. From large scale estate regeneration projects to architecturally-renowned contemporary urban extensions or leafy, traditional housing, we deliver best in class places and our brand and customer feedback reflects this.

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A NNUAL REVIEW 201 9

2 . C EO UPDATE

CO N T.

Partnership and joint venture working remains at the heart of our business. We are committed to partnership working and have been since our inception. We don’t participate in joint ventures as a cycle driven activity, but because we believe that, in the long-term, they produce the best possible product and customer outcomes by bringing together multiple skill sets to solve difficult problems. Our commitment to joint ventures remains a long-term one and at the core of our partnerships is repeat and reciprocal working. We commenced five new joint venture projects in 2019 and have a number of partnerships nearing planning submissions that we look forward to beginning in 2020. These include the Douglas Bader Estate in Colindale where, alongside our partner, we secured a positive ballot decision to commence regeneration of the existing estate. We have been selected as the partner of Bristol City Council’s new housing delivery vehicle for delivery of their flagship Baltic Wharf scheme on Spike Island. This is particularly exciting for us as it marks the beginning of our geographical expansion into the south west of England. We are confident this is a natural step in our geographical expansion with our bespoke product, existing relationships and supply chain all being well suited to this market.

FUNDRAISING IN OXFORD The concept of giving is important to Hill and we were proud that our Mosaics team at Oxford raised £10,000 for John Radcliffe’s Children’s Hospital.

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NINEWELLS, CAMBRIDGE Ninewells, our multi award winning development on the edge of Cambridge, was completed during the year.

We have strengthened our Group Board. Tom Hill joins Greg Hill and I on the board having worked in the business for 14 years, reinforcing the family values, culture and ethos at the heart of the business. We have also appointed two new Non-Executive Directors. Ann Santry and Naisha Polaine both join us with considerable experience in the sector and will complement our already strong management team through our next stage of growth. Quality remains at the heart of our business in terms of design, product, place, community and customer experience. I am delighted that we continue to be recognised by our customers as a 5* housebuilder. We are investing further in the use of BIM to support the quality of our product and we are making substantial investments in social value to further develop our community offering.


We launched Foundation 200 at our 20th anniversary celebration in the Sky Garden.

Our 20th anniversary was cause for celebration with our partners, clients, supply chain and staff. It was also an opportunity for reflection and I was delighted to use it to announce Foundation 200. Foundation 200 is our pledge of ÂŁ12 million to rehome and help the homeless. We will provide 200 modular homes for homeless people over the next five years. This pledge will be delivered though our newly formed company, The Hill Group Foundation. We will deliver the homes on small plots of land such as former garage sites across our area of operation working with local authorities and housing associations to source land and secure planning for each of the sites.

COMMITTED TO FIGHT HOMELESSNESS During our 20th anniversary year we committed to doing our part to help some of the homeless in the communities in which we work.

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A NNUAL REVIEW 201 9

2 . C EO UPDATE

CO N T.

As we move beyond our 20th anniversary, I am more excited than ever about our plans and believe we are excellently positioned for another decade of great successes. The external environment in which we operate remains challenging but offers opportunity, particularly for well capitalised businesses like ours. There was much positive commentary following the decisive election result at the end of 2019 and we saw this translate into greater activity in our sales centres. However, as we ‘go to print’ the Covid-19 pandemic dominates the future economic and social landscape. The current situation is one of broad economic paralysis across most sectors, not least the sector that we work in.

Nobody yet knows the full impact of the virus, not only on business and the economy, but on society as a whole. However, we believe our strong balance sheet and cash position along with the continued support of our banks, the ongoing commitment and dedication of all our staff, as well as the strength of our supply chain and client relationships, all mean that Hill is well positioned to capitalise on new opportunities that emerge from these unfortunate times. Alongside the current crisis situation, our industry also faces much change with the ongoing evolution of building regulations relating to both sustainability and fire safety.

FAMILY BUSINESS VALUES Greg and Tom Hill are now both main board directors, championing the company’s family values and tradition of nurturing home grown talent.

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Pipeline Turnover up 12%

secured 270m Cash of 66m

Turnover up 12%

12% 12%

12%

12%

£

£

£

£ 12% 5 star secured 270m

secured 270m

Cash of 66m 12%

£

£

£ £ £ £ £

12%

Joint venture

£

£

£ £ £ £ £

£60.5m

£

£270m

Pipeline

net cash

banking facilities £ £ £ £ £

£

12 million pledge / founation200 5 star Pipeline Pipeline

£

secured 270m

increase in turnover compared to last year

£ £ £ £ £

Pipeline

Joint venture Cash of 66m Cash of 66m K E Y HI GHLIGHTS Turnover up 12%

£

££

£

Joint venture secured 270m

6,500

Joint venture Joint venture

5 star

homes

Pipeline in the pipeline

£12m

12 million pledge / founation200 5 star

5*

pledge to fight

housebuilder

homelessness

for 3 years in a row

The addition of a new Ombudsman is welcomed There is a strong determination within our family and should assist in the industry’s quest to improve business that whatever the future holds, our starthe customer experience of purchasing standards5 and culture and values will remain constant. That 12 million pledge / founation200 a new home. I expect this direction of travel to means continuously investing in our team and continue, despite current disruption from the Jointthe venture encouraging the development of our home-grown pandemic, and as a business we are well set up to talent with opportunities for all staff to progress manage this. their careers at their pace.

The current situation does not change the fundamental principle that at the heart of the future 12 million pledge / founation200 are our people. 12 million pledge / founation200

5 star

I am, as always, extremely grateful for the hard work and commitment of Team Hill and believe our outstanding team will help us deliver our next vision for the future.

12 million pledge / founation200 11


A NNUAL REVIEW 201 9

3. FINA NC IAL OVERVIEW

£563m

£42.6m

IN REVENUES

IN PRE-TAX PROFITS

NEIL WILLIAMS FCA Group Finance Director

Yet again, the business has performed very well in 2019, delivering pre-tax profits of £42.6m from revenues of £563m. With a balance sheet fast approaching £200m and development funding committed through to the end of 2022, the Group is in a strong position, all of which has been achieved in just 20 years of trading. 2 01 9 T R A DI NG PER FO R M A NCE The Group’s revenues increased to record levels of £563m this year, an increase of 12% over the previous year. Profits were slightly ahead of our budget for the year at £42.6m, which, whilst a small dip from the previous year, still reflected a strong performance in both the private sale and contracting parts of the business. During the year we completed over 1,800 new homes, 1,120 of which were delivered from our private sales and Joint Venture activities.

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£196m

BALANCE SHEET

1,800 NEW HOMES,

1,120

DELIVERED FROM OUR PRIVATE SALES AND JOINT VENTURE ACTIVITIES


2018

2019

12%

£247m

REVENUE INCREASE

IN LAND BANK WHICH REPRESENTS OVER

£196m 6,500 NET ASSETS AT THE END OF 2019

18%

INCREASE IN NET ASSETS FROM PREVIOUS YEAR

HOMES, WITH ANOTHER

10,000 EXPECTED TO BE DELIVERED

BA L A N CE SHEET AND F UND IN G With the vast majority of profits being reinvested in the business year on year, the balance sheet continues to go from strength to strength.

Included in our net assets is a land bank with a value of £247m at the end of 2019, comprising acquired land and development costs to date.

Net assets at the end of 2019 were £196m, an increase over the previous year of 18%.

This represents over 6,500 homes with either planning or pending planning consent, with another 10,000 homes expected to be delivered from other opportunities currently being explored within the Group.

A strong balance sheet puts us in a great position to win larger, more complex developments where we can make an even bigger positive impact on the quality of lives of the communities with whom we work.

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A NNUAL REVIEW 201 9 CONT.

N E T CA SH 275% increase on the previous year

£50m

£50m

£40m

£40m

£30m

£30m

£20m

£20m

-£10m -£20m

£-12.6m

£0m

£16.1m

£10m

2018

£10m £0m

2017

2019

2018

£42.6m

£60m

£60.5m

£60m

£48.3m

P ROFI T (before tax) 12% reduction on the previous year

£47.2m

3. FINA NC IAL OVERVIEW

2019

2017

N E T ASSE TS 18% increase on the previous year

R E V E NUE 12% increase on the previous year £200m

£600m £500m

£150m

£400m £300m

£100m

2017

14

2018

2019

2017

2018

£196m

£0m

£166m

£50m £133m

£563m

£0m

£502m

£100m

£416m

£200m

2019


5 year £200m

RCF WITH

4

The Group has a five year £200m Rolling Credit Facility with four high street banks, committed to the end of 2022, along with other lines of credit from other lenders. Notwithstanding that, the Group reported another very strong cash position being net cash positive at the year end, with our cash balances exceeding the amount of loan drawn against the facility by over £60m. We expect to use the facility to a greater extent as the business grows, although being cash positive with long-term credit lines already in place puts us in a strong position, allowing us to invest in developments to help us deliver our longer term business plan targets.

£

Thank you to everyone for helping us to deliver another strong year’s performance.

HIGH STREET BANKS

CASH BALANCES EXCEEDING AMOUNT OF LOAN DRAWN BY

££

£60m

+

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A NNUAL REVIEW 201 9

4 . H EA LT H , SAFETY AN D E N V I RO N M E N T

WORKING SAFELY At Hill, health, safety and environment (HSE) is central to everything we do. Our staff and our supply chain’s safety at work is our number one priority.

9%

9% lower

incident rate than average HBF member

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We believe everyone plays an important role in ensuring that our sites continue to be safe and healthy environments in which to work and we are lucky to have the benefit of a long-serving internal health and safety team, who work with partners to bring consistency and quality to the process of maintaining site-based compliance. We are delighted that this year, Hill has maintained the status as one of the safest housebuilders in the industry, with an accident incident rate 9% lower than the average Home Builders Federation (HBF) member.

SAFETY IN SPECTION S We ensured that in 2019 each of our sites received an average two safety inspections per month, with results based on a rigorous scoring matrix. Our in-house safety department has overseen 1,233 inspections completed via an online app which instantly provides data to all the HSE team and directors. Separate to our site safety inspections is our drink and drugs testing programme. The programme ensures the health of our workforce and helps us maintain the highest levels of site safety consistency across the business.

CONSIDERATE CONSTRUCTION Maintaining safe, clean and tidy sites along with consideration for our neighbours is a priority.

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A NNUAL REVIEW 201 9

4 . H EA LT H , SAFETY AN D E N V I RO N M E N T

FIRE SA F E TY REGULAT IONS Hill has reacted quickly to the new requirements of the Building Regulations post Hackitt Review. Immediately following the Grenfell Disaster of June 2017 we made a decision to fit all new Hill homes in multi occupation with sprinkler systems, irrespective of the building height. We have introduced a comprehensive inspection and audit procedure to ensure that installation of fire barriers and fire seals is both checked and recorded by an independent specialist consultant on all developments. This year, legislation has been changing quickly and Hill has been constantly monitoring both new and emerging regulations. Our policies and procedures have been reviewed and revised to ensure that our new homes meet these new standards of fire safety.

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CONT.

N EW TECH N OLOGY TO TAKE U S FORWAR D Real time information, connected devices, people and data management will influence all our future operations to enable safer standards and methods of working. This includes the tracking of materials on site from arrival through to use, the removal of any waste packaging and the movement of site operatives and vehicular traffic. In 2019, we rolled out MSite software that permits off-site pre inductions, biometric tracking and access/ egress technology across all of our developments. This exciting new company-wide system delivers paperless safety inductions to our supply chain prior to their first day on site. It also enables us to reduce the number of people we have waiting idle on site due to pre-induction.


REWARDING EXCELLENCE Our Fish Island Village team had accrued sufficient funds from two high HSE CCS scores to treat themselves to a weekend in Bruges.

We capture all the training records and personal information in the cloud, so no printing is required, and we record all travel information from home to site for carbon monitoring. Delivery scheduling also allows for just in time delivery booking, cutting down standing time and dust in communities around our developments. This greater level of data and control ensures an increase in safety and site management compliance across the whole of our supply chain. Our aim is to complete over 80% of inductions online and off-site. To date, the system has overseen 4,500 inductions which has dramatically reduced management time and has greatly reduced paper usage. The company now benefits from a centralised compliance databank that tracks 5,000 individuals, helping us maintain safety and security across all our sites.

CO NSI DERAT E CONST RUCTOR S SCHE M E Being a responsible construction company means being considerate to the environment, to neighbours, residents and our workforce. We are Partner Members of the Considerate Constructors Scheme (CCS) which promotes good neighbourliness as well as encouraging our sites to become positive advertisements for the construction industry. In 2019, we received 39 CCS inspections, scoring each development against pre-agreed criteria. We are pleased to report an in-year pass rate of 100% with 90% greatly exceeding the company’s minimum score. The excellent results highlight how we go above and beyond in maintaining considerate practices.

BEST PR ACTICE SAFETY R EVIE W Hill strives to be a leader on HSE. It is important to us and all our supply chain. Ultimately, this assists and protects our clients. We are reassessing our safety objectives, with a view to increasing performance, achieving higher standards and ensuring we are achieving best practice for a company of our scale, now and in the future. We want Hill to set the standard that everyone aspires to. In the world of data and digital construction, BIM is becoming one of the key elements to be integrated into our projects. This is further driven by the benefits that can be obtained in facilities management, as well as in response to The Hackitt Report. We have a responsibility to provide access to data on projects and supply a golden thread of information. This enables our clients, teams and supply chain to access a single, integrated source of data for any built asset. Everyone involved in a project must adopt a collaborative way of working and implement the use of digital construction. This allows for increased efficiency, lower costs and improved communication. BEST SAFETY PRACTICE Site safety is constantly reviewed to ensure we adopt best practice at all times.

To help incentivise our production teams, we distribute financial team awards at our bi-annual staff meetings for high CCS scores. Not only does this drive up our CCS ambition, it also supports the ambitions of Team Hill.

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A NNUAL REVIEW 201 9

5. CUSTOMER AN D QUALI TY

5*

housebuilder 3 years in a row

20


CUSTOMER CENTRIC APPROACH An incredibly proud moment for us was retaining our 5* rating in the Home Builders Federation customer satisfaction survey for the third year in a row. 5* H OU SEBUILD ER Over 93.4% of our customers would recommend us to a friend, which not only demonstrates their trust in Hill as a housebuilder, it also reaffirms our commitment to delivering high quality, distinctive homes complemented by excellent customer service. Our customers will always remain our top priority, because buying a home is one of the biggest financial commitments they are likely to make in their lifetime and our objective is to exceed their expectations and support them throughout the process.

IN VESTMEN T IN PROCESSES A N D TECH N OLOGY We have invested heavily into our bespoke Customer Journey model, which aims to guide purchasers seamlessly through every step of the process. Following the success of the digitalisation of our FICC (Final Inspection Commissioning Checklist) and RTMI (Ready to Move In) processes which have provided better clarity for real-time checks and more efficiency, we have rolled out the implementation of Spaciable across some of our key developments. This is an online database used to electronically store all the home user guide information, such as manuals and manufacturers instructions, together with the finishing schedule for each property. It also includes useful information about the development and local area, including service providers and the managing agent’s details.

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A NNUAL REVIEW 201 9

5. CUSTOMER AN D QUALI TY

CONT.

B RI T TANY, MOT I ON RE SI DE NT

D EL I G HT I NG CUSTOMERS We pride ourselves in making sure the spirit of a development is clearly communicated to our customers. Our team at Fish Island Village were winners of Best Marketing Campaign at the National Housing Awards 2019 and were congratulated on how the marketing reflected the development’s values: vibrant, authentic and eclectic, and championing the local creative community. In 2019, we helped over 1,500 people move into their new homes – from first-time buyers moving into apartments in London, right through to downsizers relocating to the countryside. Our diverse portfolio means we have something for everyone, and our experienced sales team helped customers find their dream home.

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Brittany (above) was renting in east London for years, and had immersed herself into its dynamic community. She wanted to buy in the area and our Motion development was the perfect find for her. Its location, competitive pricing and high specification finish were just what she was looking for. “It’s amazing having my own place to call home. My studio feels like a one-bedroom apartment – it’s really spacious and brilliantly designed. I also love the fact that Motion is directly opposite Lea Bridge station, which keeps me connected to everything. The customer service with Hill was brilliant overall. I reserved my new home in February and completed in July as promised so it was a fairly quick process. The Hill team was really helpful and responsive to all of my questions and concerns as a first time buyer.”


G OIN G TH E EXTR A MILE RICHARD AND JO, THE ORCHARDS RESIDENTS After living in East Sussex for 16 years, Richard and Jo wanted to relocate to Cambridgeshire to be closer to their daughter and grandchildren, who had just moved back from America. Their heart was set on a bungalow and they soon found the perfect one at our Great Abington development, The Orchards. “Having worked in the construction industry for many years, I knew that The Orchards could tick all of our boxes as soon as we drove in. I could see the great amount of detail that had gone into the design and planning of the new community. Our house is just one of five in a secluded courtyard area with plenty of space between each home, which makes it feel very private.”

We feel very proud when recognition for our service comes directly from our customers. This is celebrated at our bi-annual staff meetings. The 2019 awards were presented to two outstanding members of the Customer Service team. Our Barton Park Site Manager, Jonpaul McCourt was praised on various occasions for taking on tasks well beyond his job role. His ability to relate to the customer earned him the job of dealing with escalations, which is normally reserved for the Customer Service Manager. This was a responsibility he did not have to accept, but he took it on proudly and, to date, he has secured a 100% success rate for customer satisfaction surveys on the homes he builds.

Jenny Sheekey, our Resident Liaison Officer at New Union Wharf in London, has gone out of her way to help residents move into their new homes. As the interface between our site managers and the general public, she helps people move into their new homes, carries out home demonstrations and helps unpack residents’ belongings when they are being decanted. In addition she hosts visits for local schools, has given up many of her weekends and evenings to help the move process and regularly checks in on elderly residents if they are unwell, even offering to go to the shops if they need anything. She is a highly valued member of our front line team.

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A NNUAL REVIEW 201 9

5. CUSTOMER AN D QUALI TY

D EL I V E R I NG QUALIT Y In order to retain our class leading reputation for delivering quality in the housebuilding sector, we are committed to year-on-year continuous improvement in building quality, building to time and providing an end product that will add value to customers’ lives. Keith Fisher, our Project Manager at Blackwall Reach, was part of the prestigious group chosen by NHBC from over 16,000 site managers nationwide for having Pride in the Job. All winners underwent spot checks of their sites and were assessed across 37 areas of construction management. Known as the ‘Oscars of the housebuilding industry’, the NHBC Pride in the Job Quality Awards recognise the best run building sites in the country and are the highest award accolade a site manager can achieve. We continuously revise our choice of materials, design and finish. Our customer service feedback is essential in keeping aspirations and requirements at the highest level.

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CONT.


DESIGN LED Quality design is at the heart of every home we build, traditional or contemporary, urban or rural.

DE SI G NING QUALIT Y Our dedicated in-house design team of twelve both design our own developments and manage external architects to ensure a consistently high level of design is on all our projects. Our technical team, working alongside the design team, have established a suite of standard details to ensure consistency and quality. We are committed to designing great homes and also making them more cost effective to run. After receiving five accolades in the renowned WhatHouse? Awards, we were commended by the judges for our work with innovative designs and standards of construction, reaffirming our consistent quality delivery.

We substantially exceed Building Regulation requirements for insulation and fuel usage and are achieving 35% below regulated CO2 emission levels in London. The first 95 new homes at the Agar Grove estate in Camden are certified to Passivhaus standard and the entire development is set to be the largest Passivhaus development in the UK.

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A NNUAL REVIEW 201 9

6 . P O9%RT FOLIO

588

new homes in this award winning development

26


FISH ISLAND VILLAGE, HACKNEY WICK

BESPOKE HOUSING SOLUTIONS The scale and breadth of our portfolio is expanding at pace as we continue to deliver on our pipeline of exciting projects. We pride ourselves on delivering quality, distinctive homes and developments, investing heavily in innovative design and superior materials to provide bespoke housing solutions for today’s modern buyer. Our portfolio ranges from contemporary city centre studio apartments, to rural five-bedroom family homes set in rolling countryside, to new town developments that are at the forefront of modern sustainable construction. We do not build a standard product, instead we specialise in creating buildings based on sustainable principles with designs and layouts that we know will stand the test of time. Building developments at the pace and scale we do is a challenge we relish and we are very proud that no two Hill developments are ever the same.

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A NNUAL REVIEW 201 9

6 . P O RT FOLIO

CO N T.

MOTION, LEYTON Three distinctive towers elegantly twist as they rise to look out across London. This development boasts high quality, stylish apartments and combines convenient transport links with excellent local amenities.

We also have a breadth and depth of expertise in enabling and infrastructure works. At Blackwall Reach, which is located directly above the Blackwall Tunnel, and adjacent to the DLR and bus terminal, our team was challenged to ensure safe working and to minimise disruption to the public. In addition to the challenge of building adjacent to the tunnel, the enabling works had to include the diversion of an existing Thames Water trunk sewer as well as constructing over fibre optic cables which serve Canary Wharf. As the height and scale of our projects increases, we have developed close liaison with key stakeholders, such as London City Airport and Cambridge International Airport, London Underground, Transport for London (TfL), Docklands Light Railway (DLR) and Network Rail.

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BLACKWALL REACH, POPLAR We completed this development of 242 new homes which includes a 24 storey tower built at the Blackwall Tunnel.

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A NNUAL REVIEW 201 9

6 . P O RT FOLIO

CO N T.

ST R ATEG I C L AND We continue to invest in our strategic portfolio, with additional land secured across the whole of our operating region. Our strategic portfolio could accommodate over 2,500 homes along with land for employment, schools and community facilities. We identify development opportunities by working closely with landowners and agents and bring these forward with local communities, engaging them with our proposals at every stage.

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ATHENA, CAMBRIDGE This is the first development at Eddington, an urban extension to the north west of Cambridge.

Throughout 2019 we continued to promote over 20 parcels of land, half of which are within the Green Belt, through the development plan process. We submitted or prepared planning applications for over 1,300 homes in the period with many more to follow this year.

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A NNUAL REVIEW 201 9

6 . P O RT FOLIO

CO N T.

KEY

1

1

2

3

4

5

6

7

8

9

MERIDIAN FIELDS, HARDWICK

So called due its proximity to the earth’s Meridian line, this 98 home development comes complete with stunning views of rolling countryside. 2

MAWBY DRIVE, FULBOURN

These much needed affordable homes for local families were developed using modern methods of construction to speed up construction. 3

KEEPERS GREEN, CHICHESTER

This partnership with Homes England delivered contemporary new homes along with community facilities, including a cricket ground and pavilion. 4

NINEWELLS, CAMBRIDGE

These beautifully designed, high specification homes are located on the edge of Cambridge with countryside views. 5

MOSAICS, OXFORD

Mosaics, on the edge of Oxford, is a great example of how a modern development can blend successfully with the countryside surrounding it. 6

WOODSIDE SQUARE, MUSWELL HILL

This award winning joint venture development delivered over 55s homes, family houses and apartments in a prime location. 7

FARRIERS YARD, BALSHAM

A development of 20 contemporary family homes at the heart of a village community, surrounded by beautiful scenery. 8

NEWINGTON GATE, HACKNEY

Our joint venture partnership to deliver 72 mixed tenure apartments in a superb north London location. 9

ECHO ONE, HARROW

This joint venture delivered 116 homes on the buzzing Northolt Road, two minutes walk from South Harrow tube station.

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33


A NNUAL REVIEW 201 9

CONT 7. AREA ENTS O F OPERATION

GLOUCESTE

OV ERVIEW Initially our area of operation was concentrated in and around Greater London and the northern home counties. We have undergone continuous expansion across the southern half of the country and in 2019 launched a new south west regional operation.

1 1 BRISTOL

OV E RV I E W I N NUMB ERS

150 19 57 74 1

P ROJ EC TS IN TOTA L

WI

P ROJ EC TS CO M PL E T E D I N 2 01 9 P ROJ EC TS U N D E R D EVELOPM E N T

GLOUCESTERSHIRE

FU TU R E P ROJ EC TS

OXFORDSHIRE

BALTIC WHARF, BRISTOL BRISTOL

BE

WILTSHIRE

HAMPSHIRE

Our first project in Bristol is Baltic Wharf, a regeneration of a key site on Bristol’s floating harbour for Bristol City Council’s newly formed housing company.

34


NORFOLK

CAMBRIDGESHIRE NORTHAMPTONSHIRE

SUFFOLK

BEDFORDSHIRE

BUCKINGHAMSHIRE ESSEX HERTFORDSHIRE

ERKSHIRE

LONDON

SURREY

KENT

E

WEST SUSSEX

EAST SUSSEX

KEY Projects completed in 2019 Projects under development Future projects Hill offices

35


A NNUAL REVIEW 201 9

7. AREA O F OPERATION

CONT.

LO N D ON

46 10 22 14

P ROJ ECTS I N TOTA L P ROJ ECTS CO M PL E T E D I N 2 01 9 P ROJ ECTS U N D E R D EVELO PM E N T FU TU R E P ROJ ECTS

2 1 3

KEY Projects completed in 2019 Projects under development Future projects

1

BLACKWALL REACH, E14

PROJECT VALUE: £60M NEW HOMES: 242

36

2

FISH ISLAND VILLAGE, E3

PROJECT VALUE: £265M NEW HOMES: 588

3

LAMPTON ROAD, TW3

PROJECT VALUE: £280M NEW HOMES: 780


CAM B R I DG E S HI R E

44 5 20 19

PROJEC TS I N TOTA L PROJEC TS CO M PL E T E D I N 201 9 PROJEC TS U N D E R D E V E LO PM E N T

ELY

FUTURE PROJEC TS

HUNTINGDON

2 1

CAMBRIDGE

1

NINEWELLS, CAMBRIDGE

PROJECT VALUE: £145M NEW HOMES: 271

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IRONWORKS, CAMBRIDGE

PROJECT VALUE: £85M NEW HOMES: 236

3

3

MARLEIGH, CAMBRIDGE

PROJECT VALUE: £260M NEW HOMES: 547

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A NNUAL REVIEW 201 9

CONT 8 . R EGIO ENTS NAL EX PAN SION

EMBRACING NEW HORIZONS Our story began twenty years ago in 1999, working predominantly on estates in east London. Over the past 20 years, the company has expanded its operations into new areas, the south coast, the Home Counties, Cambridgeshire, Oxfordshire and as far as North Norfolk.

3 major

developments in the Bristol area in the next 5 years

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BALTIC WHARF, BRISTOL

Last year we took our next major step for growth, announcing exciting new plans that will see the company build large-scale developments in Bristol and the south west. It is a timely landmark in our dynamic history, marking the 20th anniversary celebrations and pointing to further sustainable growth. In 2019, building on the success and experience of our previous joint ventures and relationships with local authorities, we announced an exciting new partnership with Bristol City Council’s development arm, Goram Homes. The objective is to combine our expertise on an ambitious plan to regenerate part of the City’s iconic Floating Harbour. The new development, surrounded by water on two sides and with views of the Clifton Bridge, will transform surplus land, creating a new destination in Bristol that will integrate seamlessly with the area’s historic centre and distinctly urban harbourside. This project will act as the catalyst for further developments and we are excited to be expanding into the south west, a buoyant, growing and ambitious area that is focused on sustainable growth. Further projects are scheduled, with three more major developments in and around the city in the pipeline. We see the south west as a strong market for housebuilding that provides us with a significant opportunity to form new partnerships to deliver profitable, sustainable growth.

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A NNUAL REVIEW 201 9

9. J OINT VEN TURES

PARTNERING FOR SUCCESS Creating long lasting partnerships is at the core of our business and this is what has differentiated us from our peers since our inception 20 years ago. We value the relationships we form and maintain with our partners which are based on trust and transparency. Being open and honest is part of what being a family owned and run company is all about. Put simply, it is in our DNA. Our relationships are very important to us and we have jointly invested in projects together, successfully providing high quality new homes. What is equally important to us is that we maintain and strengthen these relationships. We started work in the year on our fourth partnership project with Anchor Hanover, the specialist provider of retirement housing in the UK. Newington Gate in Hackney will create a multigenerational community with a mixture of private and affordable homes, with the latter exclusively for the over 55’s. Following the completion of the Echo One development, we also strengthened our relationship with Origin Housing with work starting on our second joint venture in Harrow. The redevelopment of the former Cumberland Hotel site will provide 204 new homes and include a feature 16 storey tower, as well as new community facilities for the adjacent church

ON TOP FORM Celebrating the topping out of Harrow One, a collection of apartments housed in two tower blocks and our second collaboration with Origin.

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OPEN FOR LIVING Echo One, a mix of stylish apartments and duplexes, was our first joint venture with Origin Housing in Harrow.

and local community group. The development is located in the heart of Harrow town centre, in a bustling retail area and close to the station – a perfect location for those looking to be close to central London whilst having the benefit of local amenities on the doorstep. Residents will also benefit from modern energy saving features, such as photovoltaic panels and an efficient communal heating plant. After successfully developing two phases of new homes in Surrey, we entered into another joint venture partnership with Clarion Housing Group in Cambridgeshire to provide a further 155 new homes. The land had been successfully promoted and we were selected for our expertise in developing locally, our detailed knowledge of the market and a best in industry local supply chain. In addition, we utilised our resources to manage the next stages of the planning process to ensure returns will be maximised for both partners.


ECHO ONE, HARROW

“Being open and honest is part of what being a family owned and run company is all about.“

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A NNUAL REVIEW 201 9

9. J OINT VEN TURES

5 new

joint ventures were started in 2019

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FISH ISLAND VILLAGE, HACKNEY WICK CO N T.


We are in the final phases of the Stonebridge estate in Harlesden, which we are developing in joint venture with Hyde. The partnership agreed to the housing association delivering more much needed affordable homes on one of the sites to utilise grant they had secured from the GLA. Joint ventures offer us the opportunity to bring our sales and marketing skills to the fore and two of our developments in London, both with Peabody, were some of the bestselling developments according to Molior. At Fish Island Village, another joint venture with Peabody, we responded to the thriving local community by creating a vibrant cultural hub along with an eclectic mix of modern apartments and unique workspaces, making it the ultimate place for like-minded people to live, work and socialise. Its appeal to the community meant that around 90%

URBAN EXTENSION PHASE 1 Marleigh is the first phase of a wider 10,000 home development on land owned by the Marshall Group in Cambridge.

of the homes were sold to local people, with 50% of purchasers coming from east London. This success gave us the confidence to accelerate securing planning consent for phase 3 of the development. It’s not just our housing partners that benefit from our skills and resources in joint ventures. Our land team agreed terms with a landowner in East Cambridgeshire to purchase their garden centre and jointly develop 97 new homes with them. Similarly, work progressed well in 2019 at Marleigh, where we utilised a loan secured from Homes England to deliver infrastructure to enable the first phase of this urban extension on the outskirts of Cambridge. The development, which is being carried out with the landowner Marshall Group, has the capacity to provide 1,300 new high quality homes and we are working hard to ensure the return is maximised for the joint venture partners.

INSTANT BESTSELLER Greg Hill, Clare Coghill, Leader of Waltham Forest Council and Peabody Chief Executive Brendan Sarsfield at the topping out of Motion, the first phase of a larger joint venture initiative between Hill and Peabody.

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A NNUAL REVIEW 201 9

10. INV ESTMEN T PARTN ER SH I PS

A GENUINE PARTNERSHIP Financial pressures on councils are creating a need to utilise resources more efficiently whilst still delivering their key civic objectives – not least enhancing their communities, creating attractive, safe and economically prosperous places, and meeting the urgent need for new housing. Our business is based upon the principle of ‘people and community first’. We have developed a proven model of genuine partnership with local authorities to help

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deliver their regeneration objectives whilst generating additional capital or revenue for councils to invest in other areas of their community. We currently operate two investment partnerships, with Cambridge City Council and Rushmoor Borough Council, and a third with South Cambridgeshire District Council is imminent.

RESIDENTS FIRST We listen to residents to ensure our proposals meet their needs and aspirations.


THE BENEFITS OF OUR INVESTMENT PARTNERSHIP MODEL INCLUDE: y The council is treated as an equal investment partner, not just the client

ONWARDS AND UPWARDS Cromwell Road in the centre of Cambridge is the Cambridge Investment Partnership's 11th and largest project to date.

y A 3-6 months set-up timescale with low set-up costs, which can be offset against the partnership once established

y The partnership improves the control over the design and construction risk as a result of working with an experienced Top 20 UK housebuilder

y Deadlock provisions enforce the council’s right to an equal voice around all land development options, including a veto

y A strong pace of delivery working in a strategic partnership

y The council secures a land value at a level at least the same as with a traditional disposal but in this case it also secures half of the project’s development profit

The two existing Investment Partnerships performed well in 2019, securing planning permission for over 400 new homes and commenced work on site to construct 339. The pipeline is more than 1,500 new homes across a mix of tenures.

y A flexible model enabling a broader range of other commercial and retail uses that suit the council’s strategic plan y The partnership mitigates planning, design and running costs

POISED FOR SUCCESS Some of the Cambridge Investment Partnership (CIP) team at the launch of the Cromwell Road site.

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A NNUAL REVIEW 201 9

10. INV ESTMEN T PARTN ER SH I PS

CONT.

10

developments worked on by Hill on behalf of CIP

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CA M BRIDGE INV ESTMENT PA RTN ER SH IP (CIP) The Cambridge Investment Partnership was established with Cambridge City Council three years ago in a bid to tackle the affordable housing shortage across Cambridge. The council was allocated £70m of grant funding towards delivering affordable housing and replacing existing unsuitable homes across 10 sites in the city. CIP exceeded the spending target with the £70m funding committed a clear two years early. The sites now in construction or with planning consent will deliver 480 affordable homes and 295 private sale homes. This is a good demonstration of the pace of delivery working with an experienced development partner.

£

In order to exceed the council’s delivery targets CIP acquired, against strong market competition, a new site from a private landowner to deliver a mixed tenure scheme of 295 homes on a city centre site. Although CIP did not submit the highest bid, the investment partnership with the city council was a key factor in CIP’s selection. As well as new affordable housing, CIP has also supported the city council with commercial development on its other sites. The investment team explored a number of options to help the council deliver a new underground car park, with a hotel above, to generate much needed income and a scheme will start on site in early 2021. The additional income will be used towards delivering additional affordable homes in the city as well as supporting the delivery of other council services.

Construction activity was impressive in 2019 and Hill, on behalf of CIP, worked on 10 developments across the city demonstrating our flexibility and our ability to utilise and empower a loyal local supply chain. Our construction team has supported the council’s local housing lettings team in their allocation of new housing. The first 26 homes were occupied immediately through close partnership working between the construction and lettings team, avoiding delays experienced previously. Our first CIP site with homes for sale, as well as council rent, is a development on a former council depot site, now known as Ironworks. An eightminute walk from Cambridge railway station, it is a collection of contemporary houses, maisonettes and apartments. Since launching in October last year 23 homes have been sold and the first occupiers are due to move in summer 2020. On the mixed tenure sites the council is an equal investor participating in risk and reward. Along with exceeding their new affordable homes target and obtaining a land value, they will also secure half of the development profit providing additional benefits of the Investment Partnership to the city council. CIP is now focused on a new pipeline of sites. It recently acquired a site north of the city for 66 new homes and is also tackling the regeneration of a number of existing council assets.

OVERVIEW OF SOME OF CIP SUCCESSES

£ £7.2m

881

200+

5

worth of S106 money committed to local schools, parks, sports centres, NHS and The Chisolm Trail

new homes submitted in planning applications by the end of 2019

trees have been planted

new community centres across 4 different wards

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A NNUAL REVIEW 201 9

10. INV ESTMEN T PARTN ER SH I PS

AN IDEAL COMMUTE Ironworks is CIP’s first venture combining both affordable homes for rent and for private sale.

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CONT.


R U SHMOOR DEV ELOPMENT PA RTNERSHIP (RDP) This Investment Partnership, in Hampshire, focuses on the regeneration of key sites within Farnborough and Aldershot town centres to create distinctive, mixed use retail, leisure, office and cultural uses alongside increased employment opportunities and new homes.

NEW LIFE This regeneration project for Aldershot town centre has been the subject of extensive consultation.

In Aldershot the council acquired a number of retail units with a view to regenerating the town centre by generating new footfall. Our proposals include developing new purpose built student accommodation with 128 beds and 100 new market rental homes along with new commercial and retail units. The development will also provide a unique creative space for local artisans and independent businesses as well as providing the council with an income stream to support the long-term viability of the development. The planning application was recently submitted following very positive community consultation events attended by more than 1,200 people. Hill was responsible for communicating with the local residents and addressing their concerns whilst showcasing the vision for the area. The response was excellent and attracted considerable support, reinforcing the confidence in submitting the detailed planning application. The successful public consultation is a clear example of the benefits of working in partnership with one another, providing a different approach around local issues and community aspirations. In Farnborough RDP is leading the development of the masterplan proposals to redevelop a 9.8 ha site in the town centre. It is a major transformational redevelopment for a large-scale, mixed-use town centre regeneration, creating a development within Farnborough for people of all ages to come together and driving the future prosperity of the area. The Farnborough Civic Quarter project will deliver over 1,000 homes, the re-provision of a leisure centre, and almost 8,000 square metres of commercial space

featuring offices, shops, hotel, retail, restaurants and other civic buildings. On the back of these proposals the council has decided to relocate its offices to the site, alongside the new leisure centre and other community provision. The Civic Quarter development will also anchor the existing town centre by generating additional footfall and supporting town centre living. In addition it will provide further income generation for the council from the commercial retail and hotel.

SOUTH CAMBR ID G ESH IR E D ISTR ICT COUN CIL (SCD C) We have been selected by this council as Investment Partner to utilise funding to acquire development opportunities throughout the district. The council has few sites to utilise in its ownership but the Hill land team is already busy identifying a number of suitable opportunities to purchase for joint development. The legal document has been evolved and agreed to facilitate this joint approach.

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A NNUAL REVIEW 201 9

11. REGENE RATION

REIMAGINING PLACES FOR A BRIGHTER FUTURE Throughout the last 20 years we have demonstrated the core skills to lead on regeneration projects. Along with leading housing associations and local authorities, we have supported many communities by improving the environments in which they live, benefitting local economies and providing opportunities to enhance quality of life.

FOUNDATIONS FOR LIFE Fish Island's younger residents enjoy their new environment.

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TRANSFORMATIONAL The regeneration of London's Aylesbury Estate will create 3,500 new homes, community facilities, public art, jobs and training.

WE AR E TR U STED In 2019 we were entrusted with delivering the first phase of homes at two major south London estates, and we made significant progress with both. We commenced construction on the landmark 3,500 new-home project at the Aylesbury Estate for Notting Hill Genesis. This highly anticipated project is bringing much needed new homes, a new community facility and public park in Southwark. The local community will benefit from over 400 job and training opportunities, including nearly 100 apprenticeships throughout the course of the project. The first phase of the 1,700 home regeneration at the High Path estate in Merton is progressing ahead of expectations with Clarion Housing Group. We are setting the standards for residents and this will be the benchmark for future phases. We are also delivering a new community centre, neighbourhood park and commercial, retail, office and community uses for existing and new residents.


BLACKWALL REACH, POPLAR

20yrs

demonstrating the core skills to lead on projects

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A NNUAL REVIEW 201 9

11. REGENE RATION

CO N T.

WE L I STE N A ND DELIV ER O N O U R P RO MISES Urban and estate regeneration projects cannot be successful without listening directly to the needs of the local community first. It is vital for them to have a meaningful say so we involve them at the early planning and design stages. This means we can include their suggestions in the proposals and allay their concerns.

"It is our open, caring, innovative, considerate and personal approach to estate regeneration that defines our work." IT'S A WINNER We were one of the first to get a ballot approval under the Mayor's new estate ballot guidelines on Douglas Bader Park estate with Home Group.

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ENERGY CONSCIOUS Representatives of the Passivhaus Trust visited our Agar Grove development as part of London Climate Action Week.

We take a community led approach, with our teams engaging with local stakeholders from the outset. We are working with Home Group to redevelop the Douglas Bader Park estate in Barnet on a joint venture basis and will provide over 750 energy-efficient new homes, as well as new parks and landscaped areas. A key element at Douglas Bader Park was securing resident support. We worked with Home Group to deliver a public ballot carried out under the Mayor’s Homes for Londoners initiative, which encourages residents to be more involved in estate regeneration. We received a huge turnout, the highest of any of the public ballots in 2019, with over 90% of residents voting, and over three quarters voting in favour of the proposals. Achieving this public support enabled us and our partners to progress confidently in developing this new neighbourhood for the community.

“The binding nature of the offer on regeneration ballots has meant that you have to make sure your case is solid from day one. Hill’s early involvement in the scheme ensured we could test any commitments were truly deliverable. Taking the community with you becomes even more important. Hill facilitated a visit to their completed blocks at New Union Wharf so our customers could get a feel for a new build development and speak to residents who had been through a redevelopment and regeneration. This really helped us build trust as people could see for themselves what we can deliver.” MAGGIE GJESSING Director of Regeneration at Home Group

Maintaining this approach is an important part of our success. We are close to completing our work at Rectory Park, a four phase estate regeneration in Ealing with Network Homes that we started working on together nine years ago. Community cohesion was imperative, as was minimising disruption. As an example of this, we temporarily relocated the community centre prior to providing a new one so that the children’s nursery and other essential services were uninterrupted throughout the works. Whether it is assisting with rehousing or saving time through finding alternative phasing solutions, we do whatever we can to help our partners and communities. It is our open, caring, innovative, considerate and personal approach to estate regeneration that defines our work.

NOT JUST CRICKET Our annual cricket match against Network Homes is the only time we are not on the same side.

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A NNUAL REVIEW 201 9

12 . PLAC EMAKIN G

MAKING GREAT PLACES Creating great and sustainable communities is at the core of what we do. The concept of ‘place’ is ingrained in our ethos and closely guarded by our in-house design team. Place is rooted in the community it serves. There is no one right type place: getting placemaking right amplifies the unique strengths and features of an area and development. However we are not just ‘placemakers’ but ‘spacemakers’. We also create fantastic spaces for local businesses and community groups to provide for the communities in and around our developments.

Whether we are embarking on large scale estate regeneration, delivering suburban starter homes, or creating new city centre quarters, we aim to create vibrant developments with buildings that respect the locality and dovetail with landscaped green spaces, parks and community facilities for residents to enjoy and curate for years to come. But there are key features that consistently underpin our approach to placemaking.

PIONEERING Athena is the first residential phase of the new community of Eddington in north west Cambridge.

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ART FOR ALL

BE U N I QUE Each of our schemes are unique. We do not roll out a series of standard products in standard formats. We do not subscribe to the cookie-cutter approach to housebuilding. Our product is varied and tailored to the site. The design approach that underpins each scheme is set from a detailed design brief which reflects the nature of the place we want to create. We always offer a wide breadth of choice of homes to meet the varied demands of our customers. All our homes meet national space standards as a minimum. We dovetail our product with the environment in which it resides. From carefully managed density to openscapes and parks, integrating our product into the local environment is at the heart of the places we create. Design is central to our Ninewells development on the southern fringe of Cambridge. The architecture has been strongly influenced by its position in the landscape with green spaces, allotments and outdoor spaces. The attenuation ponds and swales have been incorporated into the landscaping and their water

These sculptures have been designed to complement the natural landscape at our Ninewells development.

levels are managed by an ingenious surface drainage system. It is a key feature and an important area for public enjoyment, whether travelling through on foot or bike or within the development. To further entwine Ninewells and its community with the natural and historical context of the location, artists Peter Randall-Page and Laura Ellen Bacon have worked with the design team and the local community to create original public artworks that enrich the environment. Both artists utilise natural materials to create large scale, organic looking sculptures that celebrate nature and connect with their context. Externally, the styles and materials of the homes make reference to local buildings to help bed the development into the existing community, and internally the optimisation of space, views and natural light has been the guiding principle. Design has also helped to build the Ninewells community as a safe and sustainable place that promotes health and wellbeing through access to the countryside beyond and offers easy access to the vibrant city centre.

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12 . PLAC EMAKIN G

CO N T.

D EL I V E R SU STAINAB ILIT Y Sustainability is about more than just carbon emissions. Whilst the fabric of our product and the energy strategy that underpins it are key determinants of sustainability, there is much more to creating sustainable places. Promoting healthy lifestyles is key and moving to a new home is the perfect time to change behaviours. We actively promote community garden creation, allotments and we supply soil, seeds and plants. Our development at Barton Park is more than a housing development and has been chosen as one of NHS England’s ten Healthy New Towns. It is underpinned by core values of viability and sustainability and the following key objectives to: y Create an exemplary, residential led development, including complementary facilities to serve the new and existing communities, such as a primary school, community facilities and a food store. y Ensure the development integrates with, and helps regenerate, the surrounding neighbourhoods of Barton, Headington and Northway, establishing social and physical connections and promoting social inclusion. y Deliver a range of high quality, well designed homes for sale in Oxford to meet the needs of local people, including family, detached, semi-detached and terraced houses and apartments. y Ensure that at least 40% of properties built on the site are affordable. y Specify and enforce a strict design code to ensure all properties are built to high standards. y Provide improved transport and pedestrian links across the A40 at Barton. y Promote sustainable modes of transport. y Establish and strengthen pedestrian and cycle links to the centre of Oxford. y Establish a network of green routes, enhance the Bayswater Brook and create a new brook-side park. y Encourage a low-carbon lifestyle.

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PROMOTING COMMUNITY SPIRIT Community garden at Motion.

In addition to the overarching values all properties on our Mosaics development achieve a minimum of Code Level 4 of the Code for Sustainable Homes. Each includes green roofs to slow rain run off and solar panels to generate clean energy, along with natural ventilation and light, airy internal environments. Within the properties, highly efficient boilers, top-rated appliances and low energy lighting combine to reduce energy usage, fuel bills and environmental impacts. The sustainability extends outwards from the properties, as carefully considered green spaces promote biodiversity, while a focus on pedestrian and cycle travel reduces emissions throughout the whole development.


Integration of tenures and communities is also vital in creating active lifestyles. We believe that mixed communities create more sustainable outcomes. For example, at Woodside Square, we have a collection of 159 one, two, three and four bedroom homes set in six acres in the heart of leafy Muswell Hill, North London. We are delighted with the mix of the development, which offers a significant proportion of the new and historic conversion apartments to over 55s who want to make the most of life, with none of the hassle of home or grounds maintenance.

The extent of the communal grounds has been key in bringing together young and old and has quickly built a real sense of community. Not only has it added to the lives of the people within the development, but the Common House community building has been the catalyst to bed the development into the wider area. Regular classes and clubs are offered to anyone in the vicinity of Woodside Square, ranging from ballet for the very young through to life drawing, meditation, yoga and meetings of the University of the Third Age.

"Mosaics is a design for a greener, cleaner future"

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12 . PLAC EMAKIN G

CO N T.

S ERV E THE COMMUNIT Y Embarking on a new development impacts the lives of many. Community is at the heart of this, both supporting and enhancing the existing community and ensuring newly created communities have their own sense of place, but are sympathetic to their surroundings. Places should be where people feel at home, but also foster a sense of belonging. Our approach is a personal one, crafted around a clear social value offering. We look to the local community and try to understand what is unique to that place. Our Fish Island Village development is unique and uses traditional industrial architecture with forward thinking design. The creation of this new waterside community is part of a bigger programme of urban renewal. It captures the creative vibe of a bohemian borough of London with a sustainable and supportive environment for everyone who lives and works in the community.

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This vision has been conceptualised in partnership with The Trampery, a social enterprise specialising in shared workspace for entrepreneurs and creative businesses. We are providing workspace facilities with work studios of different sizes together with a cafĂŠ-bar and restaurant, whilst The Trampery is responsible for the facilities and services to support the entrepreneurs. We have enjoyed working alongside local artists to help with the marketing and branding of the site to reinforce links, from the start, to the existing local community. We have developed a broad community offering. Our Resident and Community Liaison Manager, Lynne Bell, has worked for Team Hill since its inception, some twenty years ago. Along with her dedicated team she covers the whole of the Hill development portfolio. CREATIVE COMMUNITY Fish Island is situated at the heart of an already vibrant community in east London and our development is reinforcing and enhancing its creative vibe.


IN SAFE HANDS Lynne Bell, our experienced Resident and Community Liaison Manager, oversees our communication programmes.

For many residents, our resident and community liaison team are the face of Hill and are seen at many different community events, school assemblies and public consultations during the life of a development, listening and responding to the needs of both new and existing residents. One of the most insightful and impactful schemes we have implemented during 2019 is the school attendance initiative. Ofsted has a 96% attendance requirement for primary schools. For many schools, especially in areas we are helping regenerate, this is a tough ask on top of daily workloads. Our initiative incentivises children by rewarding school attendance for both the individual pupil and the class.

There have been some great success stories, for example, attendance rose above 96% within the first half term at Newton Primary School in Havering. Attendance jumped from 104 to 118 pupils in the first term at St Francis Catholic Primary School, Braintree and at Spalding Close Primary, Braintree and they used their class attendance reward to fund drinks and ice creams on a trip to Norfolk.

IN ATTENDANCE These youngsters from St Francis Catholic Primary School in Braintree learned some useful lessons about good school attendance.

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12 . PLAC EMAKIN G

CO N T.

B UIL D A P OSI TIV E LEGACY When built, our homes will be part of their environment for a long time. All the places we create will deliver a legacy. Our focus is on ensuring that the legacy created is one that benefits end users and the local community alike. We enjoy monitoring how our developments have embedded into their surroundings and seeing the positive impact on the communities around them. Places need to have lasting architectural appeal. They must be accessible, both today and in the future. They must be sustainable for future generations. And the management strategy is important in supporting a sustainable legacy. We contrast two developments at different ends of their placemaking lifecycle to illustrate how this process works.

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MARL E I GH, CAMB RI DGE : T HE B EGI NNI NGS OF A NE W DI ST RI C T

Marleigh is a new neighbourhood being developed in joint venture between Marshall and Hill, two lifelong companies of Cambridge. It is a great partnership and both companies have much in common in terms of values and ethos. Marleigh is the first phase of the redevelopment of the entire Marshall airfield in Cambridge. It will set the tone for a wider district of over 10,000 homes. Marleigh will not be built in a day. With up to 1,300 new homes and a wealth of community facilities planned, it will take time for Marleigh to evolve. There is much in the making, all going towards creating a place that promotes neighbourliness, helps people to thrive and inspires them to live a healthy way of life in natural green surroundings. In time there will be a two form entry primary school, sports pitches, a community centre, a market square, as well as green open spaces, public parks and woodland.


"It will set the tone for a wider district of over 10,000 homes."

2020 will see the launch of our homes and we have already laid out the central linear park and cycleway network linked to Cambridge North Station, Newmarket Road Park and Ride and Cambridge Ice Arena. Creating the right transport links and open space unlocks the first phase of this new community. The management strategy for the whole of Marleigh has the long term in mind. We have engaged with The Land Trust, a national land management charity. The Land Trust is dedicated to managing and preserving over 70 sites across the UK, organising routine maintenance, such as grass cutting, weeding, litter picking, looking after the public art, play equipment and, on this development, the community centre, the market square and the green open space.

As a new community, we have already appointed resident in-house artists who, together with local artisans, yoga instructors and landscape specialists is already planning an exciting year of pop-up activities in the spacious sales suite that will continue to be in place when the new residents move in. We believe this is essential to embedding the new community in both the city and the existing villages around the airport. The new school is also well underway and will play a key role in the new community, providing an education facility by day and offering a community hub outside school hours.

ARTISTIC TOUCH The in-house artistic team at Marleigh – Matthew Lane Sanderson and his wife, and fellow artist Rachel Wood.

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TH E SCEN E, WA LTH A M STOW: S U PE R- C H A RG E REG EN ER ATI O N BY C R E AT I N G A PL AC E PEO PLE WAN T TO VI SI T

At The Scene we are able to further witness the legacy this award winning development has contributed to Walthamstow. Our mixed use project has brought residents back into the town centre and created a buzzing leisure economy around a 9-screen multiplex cinema, restaurants and shops. The 121 apartments above the cinema surround a shared roof garden, which has become a true hidden secret right in the heart of Walthamstow. It has led to a dramatic improvement to both the daytime and evening economies in the town centre. Five years on, it continues to act as a catalyst for further investment into the area. The Ravenswood Industrial Estate has seen dramatic changes in the last few years. It started when the neon artist Chris Bracey moved his studio and massive collection of neon work, Gods Own Junkyard, to the estate. Since then it has gone from strength to strength, with two award winning breweries, a gin

“We only get one chance at the redevelopment of Walthamstow and we need to do it right the first time so that is why this place is so well designed. We worked really closely with the architects, making sure it’s a stunning building... It’s a ripple effect... the sustainability of the whole town centre. It gives the market confidence.” MARTIN ESOM Chief Executive, Waltham Forest Council

palace and a multi use events space dubbed The Blitz Factory joining the thriving Walthamstow social scene. The Connecting Communities programme and ‘Waltham Forest, Our Place’ campaign, have helped highlight the amazing people and incredible community work happening across the Borough. 2019 saw Waltham Forest becoming the first ever Mayor’s London Borough of Culture. From music festivals and garden parties, to busking in shop windows and human libraries, 2019 was a celebration of the communities in Waltham Forest, with music, art, culture and more, bursting from east London. Further down the street, the One Hoe Street Gallery opened as a new exhibition space for modern and contemporary art run in partnership with the awardwinning William Morris Gallery and funded by Waltham Forest Council. During the year, Waltham Forest Council also purchased the former EMD cinema adjacent to The Scene on Hoe Street for £2.8 million. In an innovative partnership with Soho Theatre, the EMD cinema will be transformed into a 1,000 seat local theatre with a national profile. Work has now begun to restore the building back to its former glory, boosting further the local night time economy around The Scene. Whilst it was only one development in a string of exciting regeneration projects that have followed, The Scene did set the scene for an amazing transformation of the area. It bedded quickly into the heart of both the residents and town centre of Walthamstow and has aged well.

SETTING THE SCENE The Scene, our landmark regeneration project in Walthamstow, kick started the revival of the local community with its striking mix of housing, retail and leisure facilities on a once derelict town centre site.

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"Our mixed use project has brought residents back into the town centre and created a buzzing leisure economy."

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13. CO MMUN ITIES AN D SOCI A L VA LU E

EMBRACING OUR SOCIAL RESPONSIBILITY Team Hill is committed to leaving a positive legacy through the work and actions we undertake in every community. CO R P O R ATE A ND SOCIAL VALUE Last year, Hill committed to a total charitable spend in excess of £275,000. In addition to this sum is the non-spend social value Team Hill contributed to supporting charitable events, local teams and activities out in the community. In 2019 we also saw the first fashion entrepreneurs move into their new studios at Fish Island Village. Fashion is part of Hackney Wick’s DNA and we were keen to support this by providing studio space for local fashion designers to rent at low prices. Teaming up with workspace specialist The Trampery, we built 62 studio workspaces at competitive rents for the creative sector. We are delighted to continue to support the work of Cambridge United Football Club with our sponsorship of their School Sport Partnership programme to enable young people to receive high quality physical education (PE) lessons along with access to extra-curricular sport and physical activity opportunities both at their schools and within the local community. We believe access to sport is essential for many people, young or old, to manage their mental health and learn important life skills, such as timekeeping and team work.

POWERING UP Hill has been working with Power2Inspire to encourage people from all walks of life to come together to enjoy a range of sports.

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Charity

spend in excess of £275,000

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WE H AV E SP O NSORED MANY SP ORTS CLU BS OVER TH E YEA R , IN CLU D IN G :

FAVERSHAM LADIES HOCKEY CLUB /  IFIELD CRICKET CLUB / CAMBRIDGE RUGBY CLUB / HISTON FOOTBALL CLUB / CAMBRIDGE UNIVERSITY RUGBY CLUB / WENDONS AMBO MINI RFC / LINTON GRANTA FC /  HANBOROUGH FC / PAPWORTH FC / HILLS ROAD SIXTH FORM COLLEGE RUGBY TEAM / KIDLINGTON YOUTH FC / SOHAM UTD FC / BALSHAM & WICKHAM U18 FC / STONESFIELD STRIKERS FC / CAMBRIDGE CHESTERTON INDOOR BOWLS CLUB / DALLAGLIO RUGBY WORKS /  RIDING FOR THE DISABLED. 66


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INSPIRATIONAL

Whilst we physically create new places and neighbourhoods, we also understand our role in enhancing and helping those existing communities around our developments and sites. We believe it is Team Hill’s community-led approach that differentiates us from our peers. CULTURAL COLLABORATION Hill joined Waltham Forest Council to support the borough's annual Mela, a celebration of South Asian culture.

Hill was the main sponsor of the Cambridge University Rowing Power House Games, hosted by Power2Inspire.

ACTIVE IN OUR COMMUN ITIES In August, Hill was delighted to join Waltham Forest Council as the presenting partner at the annual Waltham Forest Mela, one of the events run as part of its role as the London Borough of Culture. The event was a vibrant celebration of South Asian culture and a memorable festival for the local community. We were proud to be the main sponsor for the very first Cambridge University Rowing Power House Games, hosted by Power2Inspire. Pupils were selected from three different schools, state, private and special needs, and were joined by elite student rowers from Cambridge University’s Women and Lightweights boat squads, together with some ‘elite’ volunteers from Team Hill. The aim of the Power House Games is to ensure no one is left on the bench. It brings people from all walks of life together to experience the joy of playing together, breaking down social barriers in communities and having fun.

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INVESTING IN THE FUTURE We go the extra mile to encourage awareness of careers, education and training opportunities.

Our Jolles House site team donated materials to the Year 1 children at Old Palace Primary School for their own mini construction project, building bug hotels. A bug hotel is a multi-storey structure full of all sorts of natural materials, providing hidey-holes and crevices where creepy crawlies can scamper, nest, burrow and feed. The problem is that lots of gardens, including those in schools, tend to be kept so tidy that the minibeasts don’t get a chance to settle. The project was being promoted by the Royal Horticultural Society as part of their School Gardening Campaign.

HOMES FOR BUGS Our construction team at Jolles House, Bromley-byBow provided materials for primary pupils to create bug hotels.

In December the history and art of Ironworks was celebrated at the Mill Road Winter Fair. Hilary Cox Condron, our artist in residence at Ironworks, hosted drop-in sessions where visitors were encouraged to explore the sights, sounds and smells of the former Ironworks site. Helen Weinstein, Community Historian for Ironworks, presented what the Ironworks site and nearby streets used to look like in Victorian times when the Eagle Foundry and Coprolite Mills were in operation, showing bridges, railings and water fountains fabricated on Mill Road. Approximately 80 people attended the open day at our former Jarrolds’ printing works site in Norwich to view the ongoing archaeological excavations, in particular a newly revealed segment of medieval city wall and medieval house plots. The day consisted of a series of guided tours and an opportunity to discuss the findings with the archaeologists working on the site.

SU PPORTIN G PEOPLE IN TO WOR K TH ROUG H ED UCATION, TR AIN IN G , OPPORTUN ITIES AND A PPR EN TICESH IPS Communities are important to us, and one of the ways in which we can help is through local training initiatives and providing opportunities for professional growth. We recognise our social, economic and environmental responsibilities to the communities in which we work by recruiting from local areas as much as possible and advertising all our employment opportunities locally. We work with employment facilitators to provide training and placements to unlock meaningful and sustainable jobs for people who need work. Hill is a proud member of the 5% Club, a dynamic movement of socially conscious companies working to create a shared prosperity across the UK by driving ‘earn and learn’ skills training opportunities. As members, we work with our supply chain to commit to 5% of staff being apprenticeships, recruited from local areas, and we exceeded the target in 2019 with over 250 apprentices working across our sites during the year. We are pleased to report that at the end of 2019 18% of our directly employed workforce is made up of apprentices, sponsored students and graduates, proving that a focused approach on our future workforce is paying dividends.

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ED U CATI NG T HE F UT URE GEN E R ATI O N

SUPPORTIN G IMPORTA N T CH A R ITIES

In 2019, Hill became an associate member of Cambridge Launchpad and a silver partner of Form the Future, a pioneering initiative to inspire young people into careers based on Science, Technology, Engineering and Maths (STEM). Through our three year agreement we aim to inspire the next generation of planners, surveyors, site managers and sub-contractors. Launchpad is the perfect way for us to reach talented young minds, helping them gain insight into the myriad of exciting employment opportunities they could find in the construction sector. We are working with Year 8s in four schools, Linton, Bottisham, Sawston and Cambridgeshire Home Educating Families, to take part in an event later in 2020.

We want to make a significant difference to people’s lives and charity is one way we can do that. We actively encourage our staff to help through volunteering, giving and fundraising. Team Hill continue to make us very proud with their efforts to contribute and we were involved in supporting many brilliant charities throughout the year.

LAUNCHING CAREERS We are working with Cambridge Launchpad to educate students about the variety of career opportunities in construction.

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In May, two members of our marketing team, Lena Frederiksen and Sarah Hinson, were part of a team of six Cambridge based women, the Pinkster Peddlers, who cycled from Milan to Venice in aid of Women v Cancer, raising vital funds for three female cancer charities, Breast Cancer Care, Jo’s Cervical Cancer Trust and Ovarian Cancer Action.


IN TOUCH Nine Members of Team Hill took part in the Cambridge University Lion’s Den Mixed Touch Rugby Tournament.

TICKLED PINK Office and site staff donned pink for a day to support Breast Cancer Now.

Team Hill took part in #WearItPink2019, one of the largest fundraising events in the UK, during Breast Cancer Awareness Month in October. Staff at our offices and sites bravely donned their best and brightest pink garments in support of Breast Cancer Now. The charity is the UK’s largest breast cancer charity and is dedicated to funding research into cures and treatments for the disease. Three staff members Rachel Pells, Neil Blannin and Alfie McDonald all ran a marathon last year raising a fantastic £10,314 for the London Air Ambulance, British Lung Foundation and Breast Cancer Now respectively. Nine members of Team Hill took part in the annual Cambridge University Lion’s Den Mixed Touch Rugby Tournament. The team finished top of their group but lost 3-2 in the semi-finals to a team which included two former Cambridge University men’s captains. Funds raised from the tournament were equally split between CURUFC and My Name’5 Doddie Foundation, raising funds to aid research into Motor Neurone Disease.

Elena Day, Rochelle Borroughs and Erica Sjostrom undertook the ‘Walking together, saving lives’ half marathon challenge through the Essex Countryside. Not only did the walk raise awareness within Hill of the importance of the stem cell database, the £360 raised was enough to add 12 people to the register. We were also very proud of the team at our stunning development, Mosaics in Oxford, who raised £10,000 for John Radcliffe’s Children’s Hospital. Our development is just half a mile from the hospital and the charity is using our donation to fund two new bedside monitors for young patients. We want to say thank you to everyone at Team Hill who raised money for charities and long may our work here continue to benefit the vulnerable people in our society.

MARATHON MAN Neil Blannin was one of three members of Team Hill who successfully ran a marathon for charity.

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MODULAR MMC The prototype of our Foundation 200 modular homes was delivered to our Marleigh site in Cambridgeshire.

L AUNCHI NG FOUNDAT ION 2 0 0

DELIVERING THE SOLUTION

Looking back at 20 successful years of Hill, we are grateful for how far we have come as a family business. Having grown to become a top 20 UK housebuilder, we have a lot to be thankful for and do not for a second take our success for granted. We wanted to mark our 20 years in business by giving something back, something that will truly change people’s lives for the better.

Our newly formed subsidiary, The Hill Group Foundation, will be delivering Foundation 200, a project that will provide, over the next five years, 200 modular homes for homeless people across the communities in which we operate in. The £12m foundation will deliver the one bed, one person homes on surplus plots of land, such as former garage sites, and will be designed to be warm and comfortable for those who truly need them.

HOMELESSNESS

WORKING TOGETHER

The scale of the homelessness crisis in this country can no longer go ignored. As housebuilders, it’s a problem that is close to our hearts. So we are pledging to embark on a journey that will contribute towards rehoming some of the estimated 103,200 people who are homeless in London and the south.

This is a project that involves many stakeholders and we need like minded organisations to step forward and help us. We need local authorities to assist with finding suitable sites and gaining planning permission. We also need charities, either housing and/or homelessness linked, to receive the homes as our gift and help support the occupants once they move in. This is not an initiative that will be completed overnight, and it is our ambition to begin housing people in time for next winter.

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GIVING BACK CEO Andy Hill announced the new project at the company's 20th anniversary celebration, describing it as his way of giving back to a sector that has always been good to him.

REBUILDING LIVES These modular homes are fully kitted out with everything occupants need, from furniture and bedding, down to plates, knives and forks. They will have their own front door key and their own address. They will have a home for themselves and their possessions and will help to lay down the foundations to rebuild their lives. All of the homes are identical at the point of delivery and can be stacked two high, one on top of the other. A retrofit gantry walkway with a staircase at both ends can be fitted to a stacked solution. They are designed to be ‘plug and play’ to enable a quick hook up to services once delivered to site. On advice from a number of homeless charities, we will only be gifting up to eight homes on each development to avoid issues of anti-social behaviour. In areas where community or support facilities are lacking we have designed a community unit in the same shell as the home. It will comprise a toilet and small kitchen area but, most importantly, will contain a communal table and space for residents to meet each other and key community support workers. We have designed the homes in-house at Hill with the same care and attention to detail we give to all our developments. Using our skills and knowledge we have also ensured that the homes are built to the latest Building Regulations, anticipating the more stringent Part B Fire Regulations, and are fundamentally low cost to run for future occupiers. Hill will also be responsible for every step prior to occupation from planning, site preparation, service connections, landscaping and drainage. As part of these processes we hope to utilise the skills of our Year 4 and 5 management trainees to provide live sites for them to manage. Gifting homes in this way requires many different organisations to work closely together, so we are creating a blueprint for working with our many

partners to deliver this initiative successfully. We have already been touched by the amount of goodwill this project has attracted, and we are excited to see our prototype delivered to one of our sites in Cambridge so our partners can share our vision of the homes to be provided. The wardrobes will also contain clothing, thanks to the charity HIS Church which provides genuine and counterfeit clothing that has been donated by a range of organisations, from designer labels to supermarkets as well as from trading standards organisations. HIS Church completely debrand and rebrand the clothing, giving it a new life and a new identity. #BETHECHANGE Foundation 200 is a project that our whole business is taking pride in delivering. Be the Change Movement is a project about giving back to the world through service. For Hill, we could no longer ignore the increasing problem of homelessness in the UK. We chose to deliver positive change and to act as a role model for kindness and compassion through positive action. By investing in the delivery of 200 homes for the homeless, we are committing to provide a future of hope to the many people who will benefit from having a place to call home, a semblance of normality and a stepping stone to leaving the streets and coming back into society.

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RESPECTING THE ENVIRONMENT It’s not just about delivering sustainable homes. If the process by which we build is not sustainable, we will have failed. Hill is committed to operating and developing in an ecologically sound, sustainable way. We know that, as housebuilders, the relationship we have with the environment and the way we develop land can have a positive or negative impact on the ecology of the area. We always strive to reduce our impact, not just across our developments, but in our product and business operations too.

PROD UCT A N D PLACE At Hill we do not just build homes, we create communities with sustainability running through the core. We are aware of the impact building on green spaces has and we are acutely aware of the role parks play in people’s lives and their wellbeing. Through sustainable placemaking, landscaping and biodiversity net gain, we are committed to a future environment full of green spaces and sustainable homes where vibrant communities love to live. There can be no better illustration of this than at our recently completed Passivhaus development in Camden. Passivhaus is the latest ground breaking design standard that produces airtight, comfortable and healthy buildings that have low energy consumptions. We are currently developing the UK’s largest Passivhaus regeneration project at the Agar Grove estate, where 335 out of the proposed 493 units will be built to Passivhaus standards. This is the first Passivhaus development adopting an external airtightness parge coat in the UK and had the largest residential air test, requiring eight sets of specially calibrated door fan equipment operating in parallel, achieving an impressive 0.6 air changes per hour (ACH). We were absolutely delighted to see Agar Grove held up as a paragon of sustainable development by the New London Awards, winning not just the Sustainability Prize, but taking the award for Overall Winner 2019 too.

LEADING THE WAY Agar Grove in Camden is the country's largest Passivhaus regeneration project.

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AGAR GROVE, CAMDEN

UK's largest

certificated Passivhaus development

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2019 was a successful year for Hill’s other sustainable developments. We won the Eco-Living award in the Evening Standard New Homes Awards, which recognised our Athena development’s response to today’s environmental challenges, meeting and surpassing industry targets in terms of energy efficiency, recycling and sustainability.

ALL THE HOMES AT ATHENA ARE FITTED WITH THE FOLLOWING:

Athena received more critical success winning Gold for Best Sustainable Development at the prestigious WhatHouse? Awards. Judges commended Athena for being “a sharp and innovative scheme and a remarkable achievement of consistent quality”, adding that “Hill should be commended for creating interesting, adaptable and light-filled homes”.

y Solar photovoltaic (PV) panels installed on each house or, on apartments, on top of each building. The solar PV panels on the apartments are used to provide lighting and power for communal areas

COMMUNITY HEART Storey's Field Centre is the civic heart offering a wide range of opportunities for the residents of the new community of Eddington, a sustainable urban extension to the north west of Cambridge.

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y Mechanical ventilation and heat recovery (MVHR) units which take heat from stale air from the house, particularly from kitchens and bathrooms and use it to warm fresh, filtered air bought in from outside, reducing the demand on the heating system

y High levels of insulation, as well as triple glazing, ensuring warmth is kept in y Green roofs for greater ecological benefit and slowing rain run-off to help prevent flooding y Aerated showerheads and taps, as well as baths with a limited capacity of water, help to keep water consumption low


ACT I V E HOMES T RIAL The Active Building Centre is working with Hill to support the delivery of five pilot Active Homes within phase 1a of the Marleigh development – three three bed houses and two four bed houses. The purpose of the pilot is to demonstrate the Active Homes approach for rolling out more widely in future phases of this development.

1 12 2

3

11

5

ALL THE PROPOSED HOMES WILL HAVE THE FOLLOWING SPECIFICATION:

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4

7

y Passivhaus certification, including triple glazed windows and doors y 500mm of roof insulation, together with 300mm thick external wall insulation and plaster internal coat for air tightness and 200mm insulation in the ground floors y Airsource heat pumps y Mechanical ventilation and heat recovery (MVHR) y Roof based PV with domestic battery storage with integrated battery management system y Integrated intelligent energy management controls with the ability to export to the grid and use time of use tariffs There will also be the installation of in-home monitoring and the collection of 18 months in-use data, including energy and environmental performance, together with the experiences, reactions and behaviour of residents in relation to the homes.

10 8 9

1

Building integrated solar PV across all of south east facing roof

2

Triple glazed Passivhaus certifiedwindows and doors

3

Mechanical ventilation with heat recovery

4

Electric meter

5

Passivhausentrance door

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Battery and EVcharging point

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Air source heatpump for hot water

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200mm insulation in ground floor

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No thermal bridgingat building junctions

10 Airtightness to meet Passivhaus standard 11

300mm insulation inwalls to meet the Passivhaus standard

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500mm insulationin roof

We will also be comparing the five homes to two standard homes to see how these interventions have benefited the customers and the wider environment. The five homes, like all of the homes on Marleigh, will have access to EV charging pods for electric vehicles. CLEANER DRIVING Charging points for electric cars are being installed on many of our developments.

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SETTING AN EXAMPLE

D EL I V E R I NG DEV ELOPMENTS S USTA I NA BLY Our sustainability targets are driven by our ISO 50001 accreditation which satisfies our Energy Savings Opportunity Scheme (ESOS) requirements. In line with these standards and our Group objectives and targets, we monitor three key areas, energy use, waste and water. Attitudes towards energy usage and sustainability are changing amongst our staff, suppliers and consumers. With regulations changing to suit, we are planning to move ahead of the curve and lead the industry on energy usage. We have done much as a business on a project specific basis, for example, Athena in Cambridge and Agar Grove in Camden. However, there is more we can do. As part of our 2020-2024 business planning exercise, we have made leading this agenda a key ambition and detailed work will be commencing in early 2020 to set a clear path towards carbon improvement in product and delivery.

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Our Mosaics development is leading the way as the first phase of a sustainable new extension of Oxford.

Our waste diversion target is 85% and we are currently exceeding this with 93% of our construction waste diverted from landfill. Sites use Building Research Establishment’s SMARTWaste online waste and recycling management system to record key environmental data. One major solution to reducing waste has been the reuse of materials that would otherwise end up in landfill. In our pre-orders we actively look for environmental benefits from the products we are purchasing and installing. A key target is plastics and packaging.


SHARED COMMITMENT Our supply chain partners are selected on the basis of their shared commitment to sustainable principles and are as local as possible.

a sympathetic client who is understanding of the extensive rework we have undertaken over the last 18 months.

At a development in Cambridge we deconstructed, rather than demolished, a building, donating the frame and fabric to a company that needed the component parts. That building is now providing purpose for a local business, while we build affordable homes on the land where it once stood. Our supply chain partners provide in excess of 95% of the workforce on our projects. They play a crucial role in delivering our developments and are selected, in part, based on their sustainable credentials as well as their locality to each project. Engaging a supply chain more deeply connected to the area we are developing helps us deliver a cleaner, more sustainable build. Where possible, we work with supply chain partners local to the area surrounding our developments, reducing the carbon footprint, creating jobs and helping to sustain the communities in which we work. Our confidence in utilising a volumetric modular MMC system going forward on more complex mid-rise projects has been severely impacted following a very negative experience on a scheme in Havering. We have spent the whole of 2019 deconstructing many elements that were wrongly constructed in the factory, finishing them off on site ourselves to an acceptable standard. This poorly performing specialist has established a reputation in recent years for failing on a number of projects, not just ours. The delays and costs we have incurred have been significant, but fortunately we have had

As a consequence of this experience, we have embarked on using off-site construction for elements of traditional building. Pre-installed modular heat interface units have proved better quality, improved uniformity and reduced at least one visit from a plumber during installation. Another change, led by our supplier Stair Master, is the production of stairs complete with handrails. This has significantly improved HSE on sites. We are also utilising pre-cast concrete columns on a number of new projects to reduce hook time on the crane, which has saved us on average two days construction time per floor.

BUSIN ESS OPER ATION S The company vehicle fleet is a large producer of carbon and we are encouraging employees to choose vehicles with reduced CO2 emissions. This applies to those employees with a company vehicle and those that receive a vehicle allowance. Legislation surrounding a vehicle’s emission continues to evolve and form the basis for an employee’s company car tax, road fund licence costs and our companies NI contributions. Therefore, the cars emission rating plays a large part when creating a coherent and environmentally sound company vehicle list and Hill take this selection process very seriously. In addition to this, and to achieve a reduction in our carbon footprint, we pay an incentive of £25 per month to employees who select a fuel efficient or hybrid vehicle from the relevant list, or who own any hybrid, electric or other fuel efficient vehicle. Conversely, for those employees who receive a vehicle allowance, a 10% reduction in their allowance will be made if their vehicle is greater than five years old or has covered in excess of 120,000 miles. Employees who opt for a vehicle allowance will also not be eligible for a fuel card if their vehicle exceeds annual set CO2 emissions.

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GROWING TOGETHER We value sustainable, long-term relationships with our supply chain. Having taken this approach for over the last 20 years, we have watched as many of our supply chain partners have grown alongside our own business. Our supply chain plays a fundamental part in our success and we recognise that continuously striving to succeed means actively supporting and investing in our supply chain, including promoting innovative and more efficient ways of working and through the sharing of common goals.

IN FOR TH E LON G TER M We develop long-term relationships with our supply chain partners, striving to be a partner of choice. We work together to ensure they are truly integrated into our business and add flexibility to our operations by engaging a combination of local SMEs, larger national or regional subcontractors. In 2019 we implemented an upgrade of our supply chain database, SupplyBase, which has helped us better manage performance and relationships with our suppliers. We introduced a tier supply structure that recognises key and preferred subcontractors, which has helped us to further develop communications and relationships.

Upgrade SupplyBase, our supply chain database

VALUED PARTNERS This year we upgraded our supply chain database to recognise our most valued subcontractors.

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GROW I NG O U R SUP P LY CHAIN A S W E G ROW We have identified key supply chain members who have successfully delivered many of our projects over the years. By working with and trusting our key supply chain, we are able to keep them abreast of upcoming projects so they are better positioned to work with us. This allows them to prioritise Hill as a key client, helping us deliver on our growing commitments. We continuously encourage and support new entrants to our supply chain and develop our current relationships. Our strategic procurement and supply chain team is responsible for managing these procedures and developing initiatives, ensuring a productive relationship is developed as early as possible.

TRUSTED TRADES We have a preferred supplier list for all trades and labour on site.

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We have 38 supplier agreements covering all types of commodities, such as brick factories, builders merchants and timber and 33 manufacturer agreements with well-known brands covering many of our specified items such as boilers, white goods, paint, kitchens and sanitaryware. We also have a preferred supplier list for all our agencies who provide trades and labour to our sites, and agreements with utility providers such as British Gas and Sky making sure that our customers have access to everything they need as soon as they move in. Our most recent agreement to be put in place is with Caesarstone, who provide high quality quartz worktops through our subcontract supply chain. We have also just engaged with a new carpet manufacturer, JHS, for all our specifications, hopefully bringing improved customer service and rebates.


BUILDING RELATIONSHIPS

We are currently reviewing our mechanical and electrical specifications and will be looking at our kitchen specifications over the next year. In 2019, we improved communications with our local supply chain partners by regularly running supplier engagement days and attended eight ‘Meet The Buyers’ events across London and the South East. We also ran a successful supplier engagement day for the Aylesbury estate redevelopment, which was held at the Oval Cricket Ground in Lambeth.

FUTURE WORKFORCE We recognise the importance of investing in our industry's skill base and encourage our suppliers to employ local apprentices.

We work hard to develop and maintain strong relationships with our supply chain so that we can support each other.

Our supply chain extends to professional services, in particular recruitment linked to our growth agenda. Rachel Pells, our HR senior in-house recruiter, has increased our direct recruitment by 20% over the last year through our staff competitive referrals scheme. This incentives Team Hill to recommend past colleagues and suitable contacts into the business. In parallel we have reduced our list of key recruitment agencies to focus on strengthening relationships and ensuring excellent service.

D ELIVER IN G ON A PPR EN TICE S HI PS Our supply chain has become a vital component in achieving our target of 5% local apprenticeships. We believe strongly in giving young people opportunities in the construction industry and value the ongoing contribution they make to Hill.

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WE ARE TEAM HILL We have always advocated that our greatest asset is our people. Team Hill defines who we are and how we work, and one of our top priorities is to continue retaining a happy and motivated workforce to be the leading employer in the sector. We don’t take for granted how hard our staff work each and every day. It is always great to hear the stories of when a member of our team has gone above and beyond and exceeded the expectations of their role. We host two staff meetings every year across all regions, and we celebrate by rewarding great performance. This is an opportunity to internally recognise individuals who have gone the extra mile in their roles and also reward them financially. We were delighted to be placed at number 22 in the annual Sunday Times Grant Thornton Top Track 250 league table in October. Last year we featured at number 38, so 2019 saw a massive leap of 16 places. The ranking is the first time we have been in the top 10%, following our positions of 38 in 2018 and 47 in 2017. We are also the second ranked housebuilder in the Top Track league table, thanks to our innovative work in joint venture, our work building both private sale and affordable homes and our estate regeneration and refurbishment projects. The Times wrote the following about us: “Led by founder and Chief Executive Andy Hill, the company grew sales by 21% last year to reach £501.5m. In 2018, it built more than 1,550 houses and is on track to achieve its target of 2,500 a year by 2020.”

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22

in the annual Sunday Times Grant Thornton Top Track 250

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TEST OF TIME

We continue to be led by a strong board of directors, with a combined service of over 70 years. We were thrilled to recently appoint Tom Hill to the Holdings board. Tom joined Hill as a trainee 14 years ago and developed to head up Hill’s Investment Partnership with Cambridge City Council. He will now work with the existing board directors to prioritise the growth of the business. We also appointed two new Non-Executive Directors, Ann Santry CBE, former chief executive of Sovereign Housing Association and Naisha Polaine, Senior Advisor in the Department for International Trade’s capital investment division. As well as championing our established policies on good governance and diversity, Ann and Naisha will help us to facilitate the company’s expansion into the south west and support business growth. We will benefit greatly from their experience and knowledge of the sector, and their insights will be invaluable as we continue to grow and evolve into a £1 billion turnover business. We take great pride in our people and positively encourage them to train and gain relevant qualifications throughout their career and support their continued professional development. Cain Peters, Special Projects Regional Director, attained the professional title of MCIOB meeting the rigorous academic, professional and ethical standards required by the Chartered Institute of Building (CIOB).

MAKING THE GRADE Regional Director Cain Peters became a Member of the Chartered Institute of Building.

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Diane Collison was Hill's second employee and celebrated 20 years' service in 2019.

We are focussed on developing the very best people in the industry and we do this by providing training and development across all levels of the business. Last year our employees recorded 1,337 days of training ranging from management to new software, communication skills to legislation and compliance. We take pride in seeing individuals grow within their roles and the company and we are proud to report that 2019 witnessed a further 46 promotions across the group. Our employee numbers increased to a new record level of 589 and we received an all time high response rate of over 92% in our annual staff survey. This survey is of utmost importance to us as we analyse employee feedback to monitor our own performance as an employer. Our Employee Engagement Index has also increased year on year, and in 2019 reached a record 85.8%, nearly double the UK average (45%). In July our new Hill HR Hub went live to make it much easier for individuals and managers to access and use via any computer or mobile device. In line with reducing our carbon footprint, all payslips and P60 are available to view or download, and all expenses claims are entered online together with the uploading copies of any receipts, reducing processing time, paper and postage. We are proud to have 78 of our staff as members of our 10 Year Club, with an impressive joint 987 years’ service. Congratulations in particular goes to Diane Collison as 2019 was also her 20th anniversary with Hill. Diane started as the second employee after Andy and today is our fleet manager. Each year, we host a dinner to recognise members of staff who have over 10 years’ continuous service with the company and to thank them for their ongoing commitment to Hill. Each year we see this number grow and look forward to welcoming more members again next year.


M A N AGEMENT T RAINEE P RO GRAMME Our renowned management trainee programme had an impressive intake of 23 new students, bringing our current total of undergraduates to 106. The 2019 intake also saw an increase of 30% in female trainees, a real success story which we hope to build on over the next few years. Our management trainee programme was highly commended at the Housebuilder Awards 2019 for Best Training or Recruitment Initiative. The programme provides A Level school leavers an opportunity to experience the various roles on offer at Hill and to study for a degree, all whilst being paid a salary and having tuition fees covered. Currently we

PULLING TOGETHER Our management trainees enjoyed a team bonding day at the Lee Valley White Water Centre.

have students studying with four different universities – University of Greenwich, Westminster, Kingston and ARU Chelmsford. Juggling work and university study can be challenging but we were delighted that our nine 2019 graduates all achieved a first or 2.1. We take great pride in delivering this programme and want to actively encourage careers in construction and break the stereotypical myths of who should be working in the sector.

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Erin Coltman is one of our site manager trainees, and was awarded Trainee of the Year for 2019. “Hill provides you with the opportunities to display your ability and to prove yourself. They really want you to fulfil your own potential. With apprenticeships you often get the menial jobs, but Hill wants you to have the opportunity to get truly into the role.�

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EMPOWER IN G TEA M H ILL Over the last year we have empowered our workforce into four core working groups: y Team Hill y Diversity y Customer First y Social Value

EASTER BUNNY Easter is a time for treating the children of our staff with an enthusiastic Easter egg hunt.

E X PA N S ION In addition to our Holdings board growing, the appointment of two new non-executive directors and further management trainees, our group departments are also expanding. Our in-house legal team is growing and in 2019 we appointed Caroline Mortimer as Head of Legal, to support our Legal Director Amanda Miller. Caroline brings with her excellent experience having previously been employed by major law firm. We cannot meet our growth challenges without resources and funding. A key appointment at the beginning of 2019 was Rachel Pells as Senior In-house Recruiter. Rachel brings a wealth of experience having spent 15 years recruiting within the construction industry.

All four groups are aimed at innovating and establishing new policies and practices within Hill. We positively encourage all our staff to showcase their talents and passions by becoming involved in our work in communities and as part of our corporate outreach activities. In addition we have an active social committee who organise activities throughout the year for both staff and their families such as Easter egg hunts, through to the annual Christmas party for all our staff and their partners. We are grateful to our younger workforce who continue to keep us abreast of the latest trends, communication tools and expectations of a modern working environment. Through them we are learning to make greater use of social media platforms, in particular for recruitment and publicising the work of Hill. We have invested heavily in individual site marketing and branding, together with the associated social media assets, to broaden our reach through video and traditional still photography to widen the marketing appeal. This increased social presence has sparked many of our staff to share their experiences in the construction industry. One great example is Simon Redgrave, a site manager for CIP in Cambridge. He regularly posts on Instagram explaining the different stages of development on his projects.

INSTA UPDATES Site Manager Simon Redgrave likes to chart the progress of work with regular social media updates.

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T EA M H I L L WORK ING GROUP Our workforce is connected by a mutual understanding of the importance of supporting each other every day on the job, be it on site, on the road or in one of our offices. We consistently encourage our staff to create a safe environment for their colleagues to open up should they need to in an effort to reduce the stigma surrounding mental health, a real focus for Team Hill this year. In support of Mental Health Awareness Week, we invited our team to participate in wearing something green for a day to help raise awareness.

GOING GREEN Staff chose to wear green for a day to support Mental Heath Awareness Week.

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At the end of June the Fish Island Village team took full advantage of the outside space at their Hackney Wick development for an evening barbecue and to fundraise for Mates in Mind. The event brought the chance to discuss mental health in a safe and friendly environment, whilst enjoying refreshments from the barbecue. Over 150 people attended the event, including our site team, along with many of the site’s subcontractors. In 2019 we introduced our first Mental Health First Aiders (MHFAs) course to help break the stigmas associated with mental health problems which may discourage people from seeking help.


A LEVEL PLAYING FIELD

THIRTEEN MEMBERS OF STAFF ARE NOW FULLY QUALIFIED TO: y Provide comfort and hope to a person with a mental health problem y Listen non-judgementally y Signpost to appropriate professional help y Signpost to appropriate self-help measures y Be mindful of safeguarding procedures This course will be re-run this year to ensure we have a wider geographical coverage across the group. We have also reviewed and upgraded our group intranet known as HERO (Hill Employee Resource Online) which is used for holding all our health, safety and environment, HR and policy information, together with a way of communicating to all our staff about important news or announcements. This ties in with a proactive step to improve internal communications in a period of quickly changing legislation and policy.

We work hard to promote equal opportunities throughout the company and in all disciplines.

D IVER SITY WOR KIN G G ROU P We are committed to encouraging inclusion and diversity at Hill and to be a fair and inclusive employer so we can provide a level playing field for all employees. Our diversity working group brings together a range of employees, from trainees to directors, securing a range of ideas to expand and improve on the current processes in place. We strategically increased the number of school engagements and started including visits to girls schools, which has helped us engage with a more diverse future workforce. One of the positive steps we have made is taking the lead in being the first housebuilder to sponsor a project coordinator for Women into Construction. Hill was named Most Engaged Contractor - East of England at Women into Construction’s 2019 Annual Celebration.

MORE WOMEN INTO CONSTRUCTION We are keen to encourage more women into traditionally male roles and are delighted that 30% of our management trainees intake were females this year.

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16 . T EA M HILL "More needs to be done to promote construction as a career choice to women to achieve gender balance and to widen our industry's talent pool. I’m delighted to be working with Hill to put positive action in place"

RAISING AWARENESS WiC’s project coordinator for the Oxford-Cambridge corridor, Shelley Lawrence.

WO M E N I N TO CONST RUCT ION We are delighted to be platinum partners with Women into Construction (WiC), actively encouraging more women to take on construction roles. We sponsor WiC’s project coordinator for the Oxford-Cambridge corridor, Shelley Lawrence, expanding their reach into a new location. Shelley’s role is to attract women into the industry by providing coaching and raising awareness of female role models, and she has exceeded her targets by engaging with over 26 potential female employees. Shelley has also

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set up relationships with key partners within our supply chain to encourage them to help diversify their workforce. Shelley has established a successful collaboration with Cambridge Regional College to offer information sessions and construction related training for the women on the programme. This includes presentations from Hill women, helping women produce action plans for entering the construction industry, health and safety training to obtain their CSCS card and practical hands-on work experience in an industrial placement.


CU STO MER F IRST WO R K ING GROUP

COR POR ATE A N D SOCIA L VA LU E WOR KIN G G ROU P

One of the key areas for innovation for this group was our website. 2019 saw the launch of our redesigned Hill website to improve the user journey for each user type, including customers, partners and prospective employees.

The CSV team have focused on supporting Foundation 200 and have facilitated a number of events and actives linked to homelessness.

NEW FEATURES ON THE WEBSITE INCLUDE: y Refreshed design and layouts y Enhanced focus on quality y Stamp duty calculator y Team Hill profiles y Case studies within the Partnerships and Land & Planning pages y Specific pages for different supply chain user types

WEB UPDATE We launched a new website in 2019 to improve the user journey for all visitors.

A group of Hill staff supported the homelessness charity Shelter by taking part in a 10km night time fundraising walk through London, raising over ÂŁ7,500. The money raised will help Shelter to continue their vital work supporting homeless families across the country. Christmas can be a particularly harsh time of year for homeless people. In December all Hill offices, developments and site based staff collaborated to collect food, clothing and other necessities for homeless charities. To bolster our efforts, we decided not to give our customary corporate gifts and instead donated the money to local homelessness charities. We will continue our support of homeless people in 2020, with plans to take part in an annual sleep out event to raise money for youth homelessness for the YMCA in Cambridge. Members of Team Hill will sleep out for a night to raise awareness and generate sponsorship so that vulnerable young people may not have to.

PROVIDING SHELTER These employees braved a winter's night to tackle a 10km walk, raising ÂŁ7,500 for Shelter.

The group also aims to target the various customer experiences and interactions with Hill, whether they are home buyers, landowners or members of the public.

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CONTAC T HEAD OFFICE

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CRAWLEY OFFICE

NORFOLK OFFICE

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Suite 45 37 St Andrews Street Norwich Norfolk NR2 4TP

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Hill Annual Review 2019  

Hill Annual Review 2019