CEO believes we need to rethink how we tackle the issue
“The definition of insanity is doing the same thing over and over again and expecting a different result,” so said Albert Einstein (apparently). Those words widely attributed to the acclaimed genius, might well be applied to the challenge of affordable housing.
Certainly, Brian Brodie, the recently-appointed CEO of start-up bank, Bevan Money, suggests so – he favours taking a fresh approach to an issue that blights the homeowning aspirations of so many prospective first-time buyers.
Brodie (pictured) is settling into his new role at Bevan, which describes itself as having a clear social purpose; with a vision of helping more public sector workers out of renting and onto the property ladder. He is leading the emerging lender, which will be based in the north of England, through the final stages of regulatory authorisation.
“There is still a woeful supply of affordable housing and it seems like we have been trying to address this ever since I first started working in this market,” said Brodie, who has been in the financial services industry for more than 25 years.
“I think we really need to think about this differently and try a new approach, rather than doing the same thing time and again, hoping for a different outcome.”
He told Mortgage Introducer: “We have to address our supply issue. The cost of housing is becoming more and more unobtainable for people. I have three daughters who all live in London and getting on the housing ladder is extremely hard, only compounded by rapidly increasing rents.
“This is why we will offer a product to help the Bank of Mum and Dad support first-time buyers – the mortgage market needs new borrowers for it to prosper.”
How is the housing market faring?
Brodie commented that he is not a great supporter of government intervention as “short-term measures to win votes often have unintended consequences”, but he considers the market overall is improving.
“After a difficult period, the market is starting to show signs of growth,” he suggested. “House prices are starting to edge up and there is undoubtedly more housing stock coming on the market.”
Bevan submitted its application for a banking licence last May and plans to provide mortgages, funded by retail deposits, designed to meet the specific requirements of public sector workers.
The business was founded by Mel Lane, who - in common with Brodie - has many family members working in the public sector.
READ MORE: Aspiring bank Bevan Money aims to boost public sector workers
How difficult is it for public sector workers to get onto the property ladder?
Bevan believes the ‘one size fits all’ approach of the large banks inadequately meets the specific needs of too many key workers amongst an estimated 5.9 million-strong workforce.
“This community has been underserved by the market in many ways and that is a real social injustice,” he said. “Bevan was created to change this. I was attracted by the quality and clarity of the mission as well as the energy and professionalism of the people in the business.
Brodie was appointed as CEO in February - joining from Freedom Finance, where he was group CEO and, most recently, chairperson. He has also worked as a senior adviser at Pollen Street Capital and held Director roles at Virgin Money, Royal Bank of Scotland, Bank of Scotland and HML.
“I see my role as leading the development of the business and delivering on our mission,” he explained. “With Mel, I see my role as recruiting a team with passion and skill who can execute the business plan. As this is a commercial business, I also need to ensure we focus on getting to profit as quickly and as safely as possible.”
