Business and strategy

2021 has been a transformative year for Glenveagh’s capital efficiency strategy with significant progress made in this area.

Market overview

Ireland’s economy has shown remarkable resilience throughout the Covid-19 pandemic, with GDP growth in 2020 and 2021 demonstrating the country’s economy as a global outlier. Demand for housing has never been stronger. This demand is being driven by economic growth, population growth and weak supply which has created a pent up demand that has been building for a decade.

Mortgage approvals increasing

Ireland’s domestic demand % growth rate - 2022

Housing stock now at historic lows

Further legislation will support future housing supply

New legislation enacted will positively impact the delivery of housing. A commitment to accelerate housing delivery is reflected in the measures introduced.

Shared Equity Scheme
  • Enacted as part of the Affordable Housing Act 2021
  • The State may take up to 30% equity in a property
Help-to-Buy expansion
  • Expansion of Help-to-Buy from €20,000 to €30,000
  • Scheme extended in Budget 2022
Cost Rental
  • New rental tenure in the Affordable Housing Act 2021
  • State funding to allow for subsidised rents and first units were delivered in 2021
Affordable Purchase
  • 36,000 affordable units will be delivered by 2030 as part of the Housing for All programme
  • Eligible people are means tested, and / or may be current local authority tenants
Social housing delivery
  • 5 year increase in social housing stock of > 50,000
  • Housing For All includes social housing as one of the key priorities
Planning reforms
  • Large-scale Residential Developments system (LRD) has replaced the Strategic Housing Development (SHD) system
LDA Act 2021
  • Sets out wide-ranging functions of the Land Development Agency (LDA)
  • Expected to ensure faster delivery of housing on state lands

Stakeholder engagement

Employees

During November 2021, 71% of employees participated in the Great Place to Work Culture and Engagement Survey. Monthly updates are provided to the Board by the Chief Executive Officer on various HR KPIs, key employee priorities and the plans to address these priorities. HR initiatives are also presented to the Board by the Head of HR, several times a year.

Suppliers

All our supply chain partners sign up to our standardised processes and procedures covering; site set up, health & safety, environmental requirements, procurement and valuation processes, and logistics, planning and coordination. The Environmental & Social Responsibility Committee (ESR) Committee also updated the Board on its activities twice during the year.

Shareholders

During 2021, the management team held over 140 investor meetings and participated at six investor and industry conferences. The Board and Committee Chairs and the Company Secretary also engage directly with shareholders, when necessary, on specific topics, and where relevant, provide feedback to the Directors.

Customers

We engage with our customers through our redeveloped customer website, which provides advice and tips on each step of the home buying journey together with a best-in-class digital home viewing platform. Our Customer Care Department is also available to provide support throughout the customer journey and we conduct monthly customer satisfaction surveys and bi-annual brand surveys to obtain customer feedback.

Communities

At Glenveagh, we play a vital role in building sustainable, lasting and thriving communities. Engagements with local authorities is via one-to-one meetings and workshops, while engagements with local community groups is via town hall meetings and consultation events which are facilitated by our community engagement officer. A community engagement strategy, including the ‘Building Lasting Communities’ initiative, was launched in May 2021.

Government and regulators

We engage with government departments, State agencies and local authorities on an ongoing basis directly or through membership of trade associations. We also attend and contribute to webinars and policy consultation events. Our environmental health and safety teams work closely with state agencies via health and safety and environmental audits, and our planning teams engage with local authorities through the planning application process.

Read more about our stakeholder engagement  

We have assembled a starter home and affordable private rental sector (PRS) focused landbank with affordability and value for money at its core.

Our sustainable business model

Inputs for value creation

Talented and dedicated people

Talented and motivated employees with the expertise and dedication to deliver our commitment to expand access to home ownership and create flourishing communities.

A strategic landbank

A landbank focused on starter-homes and the private rental sector with affordability and value for money at its core. Our landbank was acquired at attractive rates in the context of both cost per site and site cost as a percentage of net development value.

Strong relationships

A recognised and trusted partner, we have built strong relationships with our partners, communities, suppliers and customers.

A strong financial position

Financial capital underpinned by a strong balance sheet and forward sales; rigorous investment appraisal process.

A trusted brand

An established and trusted brand built on a customer-focused and high quality approach.

Value created

Customers and communities

A seamless customer journey, high quality homes and developments designed to promote people’s health, happiness, and wellbeing. Our customer satisfaction score in 2021 was 89%.

Employees

We create a great place to work, where the health, safety and wellbeing of our people is central. We aim to attract and retain the best talent through growth and development opportunities.

Society

High quality housing built in a way that minimises the impact on the environment, including using land in the most efficient way, driving down waste, reducing emissions during construction and delivering A-rated energy-efficient homes across all our developments, while contributing to economic growth at local and national level.

Shareholders

The creation of the leading Irish homebuilder focused on growth and capital optimisation to drive a fair return for shareholders. Completions and revenue growth of 36% and 68% versus 2019. Return on equity target of 15% by 2024.

Suppliers and subcontractors

Meaningful long-term relationships with suppliers and subcontractors who meet our high standards increasing quality while minimising cost price inflation.

Business model and organisational structure

Glenveagh is focused on strategically located developments across Ireland with a focus on the Greater Dublin Area (GDA) and Cork. We provide homes for our private, institutional and State customers via three business segments – Suburban, Urban and Partnerships. We operate as a single business, capitalising on scale advantages and investing sustainably across each segment to deliver a fair return on capital.

Each business segment benefits from our proven delivery platform and industry leading central resources.

These central resources span the entire process outside of construction delivery. Our single underwriting team is complemented by centralised sustainability, planning and design, manufacturing, procurement, construction management and corporate functions.

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