Inputs
Land
Land
What we do
We identify opportunities in popular locations suitable for family homes, where affordability levels allow ASP and sales rates to be maintained at or around current levels, and are at or above our gross margin and ROCE hurdle rates.
How we add value
Through innovative layouts and value engineering opportunities, we add value to land both pre and post purchase. Margins are further enhanced by the promotion of our strategic landbank, which enables land to be acquired at a discount to market value. Strategic land provides the Group with security of land supply and allows a more selective approach to be taken to the purchase of land on the open market.
Planning, design & innovation
Planning, design & innovation
What we do
We work with local communities to design quality homes in sustainable developments resulting in successful planning outcomes. We use standard housetypes across the Group, with vernaculars tailored to suit the needs of a particular location. These housetypes are developed by our in-house design team and accounted for 86% of 2020 private completions.
How we add value
Our developments add value to those communities where we build. This includes direct and indirect job creation, the provision of affordable homes, improvements to local road networks and the creation of new education and community facilities. Our housetype portfolio provides flexible layouts which can be adapted to meet our customers’ needs.
Procurement
Procurement
What we do
The vast majority of housebuild materials are sourced from national suppliers by our central procurement team, ensuring brand consistency and quality across the Group.
How we add value
Centralising the purchase of key housebuild components ensures price optimisation from national suppliers. It enables supplier performance, in respect of both quality and delivery times, to be more effectively managed.
Production
Production
What we do
Our construction sites are managed by suitably qualified employees with construction activities typically outsourced to local contracting firms, many of whom have worked with the Group for a number of years. The use of standard housetypes not only provide cost certainty to the Group but importantly increases familiarity of build for our construction team.
How we add value
The Group has a well defined Quality Assurance process which is further supported by reviews undertaken by the NHBC who inspect the key build stages of every home constructed. Our build quality is measured by both the HBF Customer Satisfaction Survey and NHBC Construction Quality Reviews.
Sales
Sales
What we do
Our in-house Development Sales Managers are based in our sales centres and are focused on securing reservations and exchanging contracts prior to homes being physically build complete. Increased use of digital marketing has allowed a more analytical and targeted approach to lead management and also enables customers to both reserve their home and select optional upgrades online.
How we add value
It is vital that we adapt our sales platforms to ensure that we continue to satisfy the demands of our customers. We were the first major homebuilder to enable customers to reserve online and in 2022, 50% of our customers reserved their home this way.
Customer service
Customer service
What we do
Our in-house regional customer service teams ensure continued contact with customers once they have moved into their new home. We provide quality new homes and excellent levels of customer service with all key build stages independently inspected by the NHBC, the Group’s sole warranty provider. This helps build trust between our customers and teams.
How we add value
We believe that excellent levels of customer service enhance the brand value of the Group, which assists both sales rates and selling prices. Personalised customer experiences, digitally or in person, are award winning in our sector.
