Name: Honor Barratt
Title: CEO, Birchgrove
What I do: The conventional answer would be that I build and operate beautiful homes for retirees that are exclusively to rent. And this is true. What I am really incredibly lucky to do is give a cohort of elderly people a new lease of life, by enabling them to live in a way that better suits their needs.
Why I got into the property industry: I didn’t get into property for property per se; I got into property for elderly people. I met my muse, Deirdre, when she was 72; she lived opposite me and helped me through all sorts of personal challenges. I realised how valuable and inspiring elderly people are and wanted to work with them. Deirdre is now 87 and is about to move into one of our communities, which I’m thrilled about.
How I did it: I was previously in TV, running a production company which was bought by Octopus in 2007. Octopus then asked me to have a look at one of their slightly struggling portfolio companies, in later living. That’s when I realised, aged 40, that this is what I should be doing – not vacuous television.
My first proper job: When I was 19, I sold timeshares in my year off. I learnt then how easy it is to sell to men and how difficult it is to sell to women: men find it incredibly difficult to say the words ‘I can’t afford it’ and admit something is just out of their reach, whereas women are perfectly comfortable saying no!
My first big break: I can’t deny that my first big break was through anything other than nepotism and privilege: a girl I went to boarding school with had a brother who worked at the BBC. We met at a party, and one of his mates said they needed a runner. I had no CV and no skills, but I started the following Monday.
My inspiration(s): Each of our communities has a prospective resident that inspires you to just keep going. There are points during the development process that are brutal, and you worry that the community won’t be good enough, or you’re not going to make your returns. But there’s always one character at each community that inspires you to get your head down, knuckle up and push through. These characters mean you’re working for someone, not an abstract idea. Eight nine-year-old Colin is my driver for our latest community – he told me he’s so excited to move in one day, and so he will.
The biggest challenge I’ve encountered to date: Launching an idea that has never been done before. Initially everyone is really interested – until they stand back and say ‘great, we’ll give you some money when you’ve done it’. This retiree BTR industry is so nascent that getting it off the ground was really challenging. The banks weren’t interested at all. But we’ve proven the model and concept, and now they’re biting our hand off.
My greatest achievement/proudest moment to date: Seeing how our communities provide a new lease of life. Gwen, who is 87, came and found me the other day to tell me how every evening she runs down to the bar to make sure she isn’t missing out socially. I thought: f*ck yes! There was that little moment of pride when you can get an 87-year-old to run back to the bar in a way she hasn’t done since she was 18.
The biggest misconception people have about the property industry: Every time someone walks into one of our buildings, they think: ‘Oh god, this isn’t what I was expecting’. They think retirement communities are brown, with old people sitting in chairs. They can’t believe we have a flamingo bar and a gym and that the residents are lifting heavier weights every week.
My biggest bugbear about the industry/the one thing I would change about the industry: The planning process. But not our planners as people, because I’m really impressed with how they are still able to operate in what is an incredibly adversarial environment, especially given the amount of grief we give then as developers. I couldn’t do it! But they do need help, and the process needs to be streamlined. Perhaps AI could help? Planning involves distilling an awful lot of technical information into a simple decision, which seems perfect for AI.
How big an opportunity does the UK later living sector present to developers/investors/operators: I genuinely believe the opportunities around the later living sector are limitless. But if there is one, I am particularly excited about it relates to homelessness. There are nine million empty bedrooms in the homes of over-65s tonight and we have 300,000 people who are technically homeless – either sofa surfing or on the streets. Later living helps elderly people downsize and free up space, thereby benefiting some of the most vulnerable in society.
What are the main barriers to growth and what needs to happen to enable the sector to overcome these barriers: We’ve all been conditioned since the 60s to see home ownership as the ultimate end goal. So seeing rental in retirement as something that is progressive, not regressive, is the first challenge. The sector also needs more investment and, by extension, competition. The scale of growing demand for retiree BTR means we can’t do it on our own! Thirdly, we need more resources to be piled into planning. As I mentioned – I very much sympathise with our planning officers, but one of our new developments has taken two years between plans being submitted and a spade being stuck into the ground.
Where I’d like to be in five years’ time career-wise: I wouldn’t want to be anywhere other than Birchgrove, and I think the people who employ me probably know I would do what I do for free. I know how impactful the retiree BTR model is for those it suits, and ultimately, I’d like a Birchgrove community in every town across the UK.
Who I’d invite, living or dead, to a dinner party: I once heard Torsten Bell speak. He is CEO of the Resolution Foundation and writes for The Guardian. Everyone else at the conference was wittering and Torsten was so insightful all I could think was: ‘please everyone stop talking – I just want to hear what Torsten has to say’. If I had him for dinner, I know I could get something out of his head that would make my business better.
What I do in my downtime: I think about my uptime. I think about Birchgrove night and day. This is a 24/7 business, and sometimes that means a call at 4am. My husband knows it and my children know it, but they’re very supportive.
The job I’d be doing if I was not doing this: When I retire, I’d like to sit on a planning committee. It’s a great form of democracy at work. I’d like to have read all the documents before the meetings, and to pay attention to policy, and be pro-development. So that will be my next job, but I will probably be 80 at that point.
My advice for someone just starting out: I often see people – and perhaps particularly women – overthinking and underselling themselves, telling themselves they’re not ready for a change or step up. The reality is, none of us are ever going to be completely ready. It’s never going to be the perfect time. So don’t overthink things, and you can make it up as you go along. Let’s be honest: we all to a degree make it up as we go along – no one really knows what they’re doing.
My motto/mantra: Try to say yes. With whatever you are doing, try and find a way to get to the yes.
