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Search forThe Big Interview: George Aldersley of Greenacre Homes
Tuesday, August 05, 2008, 07:00
The ability of Greenacre Homes to ride out the worse of the financial storm is, chairman, George Aldersley believes, down to the decision he took when he founded the company 18 years ago not to get involved in the world of speculative development.
Mr Aldersley decided even in housing market boom years, he would steer clear of the quick fix of cashing in on soaring house prices to stick to working with housing associations to meet their needs for affordable and special needs accommodation.
The policy also reflected his own social conscience by providing homes for people who could not get mortgages.
He said: “I had worked in the construction industry and had seen the effects of boom and bust before and didn't want to get involved in that.”
It is a policy which has plainly worked, for while continuing to operate on the relatively modest scale in Croydon and other London boroughs, Greenacre has been in constant demand to provide good quality flats and family homes for a range of housing associations.
Based in Shirley Road, Shirley the company now has an annual turnover of some £50m, has 17 sites comprising more than 500 homes under construction and a further 31 under negotiation.
Mr Aldersley said: “What we are really pleased about is that not only have we been able to survive but we have also grown over the years.”
He puts much of the blame for present downturn in the housing market on mortgage lenders relaxing rules on how much money they were prepared to dish out to borrowers.
He said: “When I started there were strict rules which meant lending was restricted to two and a half times the annual salary.
“In recent times they have been lending three, four and even five times annual salaries and now when housing prices are dropping the result is negative equity.”
And with loans now drying up, he added, builders in the speculative market were seeing demand dry up as well and were facing having to cut back and lay off staff.
He said: “The big firms are in terrible trouble.”
Despite the market fall, demand from housing associations for affordable homes has carried on largely unaffected and Greenacre's long established reputation for offering one price for a job and sticking to it, is ensuring it continues to pick up contracts.
Mr Alderlsey said: “If the crunch really does come we are still going to be in a very reasonable position.”
Now 65, Mr Aldersley is semi-retired, leaving a lot of the day-to-day running of the business to his two managing directors, Dave Simmonds and Chris Owen.
He said: “I still get involved as chairman but I now spend some more time enjoying life with friends and playing a bit of golf.
“I am a very lucky man.”
Bucking the trend: George Aldersley, chairman of Greenacre Homes, a company still thriving despite housing market downturn. CCRIS010808C04
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