In our latest impact chat, Social director Luke Cross speaks to Waqar Ahmed, outgoing group finance director at L&Q, one of the largest housing associations providing social and affordable housing in England.
Waqar joined L&Q in 1998 as a finance manager, before becoming director of treasury and investment in 2005, and ultimately executive director of finance in 2008.
He is one of the best-known figures in housing having spearheaded some of the most ambitious financial strategies in the sector. Waqar also currently sits on the board of Crisis and the National Housing Federation, having helped advise its finance policy group over the years.
Below are some of the key takeaways from the conversation:
What drew Waqar to the social housing ‘movement’ in the 1990s
Prior to joining L&Q, Waqar worked at Gwent County Council and was asked to sit on the board of Taff Housing Association. This is where he discovered his passion for housing, leading him to later join Network Housing Group in 1994 and subsequently, L&Q in 1998.
“Prior to that I never even knew there was a housing crisis, it was just never on the agenda.”
When questioned on the sector in the 90s, Waqar explains how the housing association sector was like a movement. He said: “There was a focus on how we all as a collective can contribute to tackling the housing agenda.”
The impact of private finance in housing – and ‘missed opportunity’ around development finance
Waqar explores how 1998 was the year private finance really took off in housing.
Waqar notes that private finance enabled two turning points in the sector: development risks and financial covenants, making the sector more viable and standardised.
“I do see private finance as a major contributor to where the sector is today,” he says.
However, he explores the missed opportunity of development finance.
“We were too comfortable using yesterday’s assets to secure lending for tomorrow’s development.”
How 2008 changed social housing finance
Waqar looks back on ways L&Q was able to combat the 2008 financial crisis.
Waqar says: “Whilst everyone else was probably scaling back on growth we took the opposite view and started to buy land and double the development process and take more risks.”
He adds: “Every time there’s a crisis, the sector pulls together and we find a new way of moving forward because that’s what we always do.”
The changing relationship between bankers and housing
Investors now see value in the housing sector- and the collective contribution of housing providers across the UK, he says,
Waqar touches on the positive change in communication between investors and housing providers. He explains that transparency provided through information like trading results and ratings is positively accepted by investors and maintains the relationship.
“Banks and investors like the contribution that the sector makes, not just in terms of our social impact but our transparency around governance, and they want to be involved.”
The future of the housing sector
When questioned on the future of the role of finance in the sector, Waqar predicts that the sector will need to think differently and look beyond traditional investors – including towards equity and off-balance sheet vehicles.
“We need to find a different set of investors who will start thinking about private equity or institutional equity as well as leveraging in debt specifically in development.”’
Looking back on his career at L&Q, Waqar hopes that there will be more disruptors with creative minds in the sector who are just as enthusiastic to encourage and maintain growth.