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About a year ago, people were surprised when Stuart Haire left his position as head of UK personal and private banking at HSBC and took on the role of chief executive at Skipton Building Society.
He ranked high on the global giant’s list of top executives, having held important positions at M&S Bank, First Direct, John Lewis Financial Services, and HSBC UK. In contrast to the powerful HSBC, Skipton was considered less significant. He smiles and nods when reminded of this. He recalls the occurrence clearly.
Despite being 49 years old, he has recently shared a remarkable set of annual figures that would make any financial giant envious. As he reminisces, he chuckles. “What people fail to understand is that if we were to convert to a public company – which we have no intentions of doing – Skipton would immediately rank among the top 100 biggest publicly traded corporations in the FTSE.”
This organization has a total of £37.2 billion in assets, over 1,300 branches, and 1.2 million members.
Skipton not only operates as a building society, but also owns Connells, the largest estate agency in Britain. Connells has over 80 high street brands, including Hamptons, Bairstow Eves, William H Brown, and Connells, and it is responsible for one in ten housing transactions in the UK. In addition, Skipton has a subsidiary for financial advice, a commercial estate agency, and an AI software company in New Zealand. According to Haire, the diverse range of businesses was a major factor in their decision to join Skipton. As a customer-owned company with no shareholders, Skipton offers a refreshing approach.
The company reported a pre-tax profit of £333.4m, a significant increase of over £30m. Mortgage loans also saw a growth of 6.3% to reach £6.7bn, allowing Skipton to increase its market share by 12.7%. This growth was achieved despite the stagnant state of the mortgage market for the majority of the year.
The amount of money saved increased by 15.4% to reach £26 billion. The share of the savings market also went up by 10.7%, despite the overall market growth being only 1.7%.
The percentage of mortgage payments that are three or more months late was only 0.23%, compared to the industry’s average of 0.91%.
The society, which is located in the charming town of Skipton in North Yorkshire and has been around for 170 years, has a history of being innovative. Haire, the society’s leader, is dedicated to keeping this tradition alive by introducing Britain’s sole deposit-free mortgage option, called Track Record. He has reason to be pleased, as the number of first-time homebuyers assisted has increased by 40%. The total value of applications for Track Record is over £62m.
It does not require a deposit. “If you can provide evidence that your rent is less than the potential mortgage payments, you are likely to receive a mortgage offer. Our goal is to support individuals who do not have enough equity saved to purchase their own home.”
Income Booster has been revealed as a feature that permits the combined incomes of multiple individuals to be used in the process of purchasing a home. This is another measure geared towards providing a boost to first-time buyers.
He has made Skipton’s primary concerns homes and finances. “There are far too many individuals in the UK who have an unfulfilled longing for homeownership. This applies to both those looking to buy and those seeking to rent. This must be addressed.”
“Having a home and financial stability are crucial for personal success and the prosperity of our nation. The Skipton Group plays a crucial role in the intersection of homes and money, and as such, we strive to promote cooperative transformation within the UK housing industry. Our goal is to enable more individuals to establish strong foundations and create opportunities, leading to sustained financial security, one home at a time, throughout Britain.”
He desires a loosening of planning regulations and an acceleration of the entire process. “We represent the largest real estate agency in the United Kingdom. As a nation, we require more housing.”
Some regions may be unaffordable for individuals purchasing a home for the first time, especially places like Skipton where there is added competition from owners of second homes. It is not only a matter of finances, but also requires efforts from both local and national government. This includes promoting more construction of houses in desirable locations through efficient planning permission processes.
In the previous year, Skipton was recognized as the top choice for mortgages by Which?. They also received the Your Mortgage award for being the best mortgage lender for first-time buyers, and were named the Best National Building Society at the What Mortgage Awards for the 10th consecutive year.
In the future, our goal is to create a beneficial influence by addressing the housing crisis in the UK and helping more first-time buyers achieve their dreams of homeownership.
According to Skipton, they have the potential to significantly transform the housing market and financial services industry. They believe that by utilizing their collective abilities, they can drive change, sway decision makers, and advocate for important issues affecting their members and society as a whole.
We have not forgotten about our savers. We are helping them by passing on over 75% of the expected base rate increases in 2023, which is more than what our competitors are offering. Even our lowest rate for instant-access accounts is higher than the average in the market.
Members who chose to save received an additional £148 million in interest compared to if they had selected saving products with average market rates. Their exclusivity as members allowed them to access unique offers not available to the general public.
“The enticing aspect of Skipton for me is its steadfast commitment to its members and its tremendous capacity to assist a larger audience.”
The only deposit-free mortgage available in Britain is offered by Skipton Building Society.
According to him, Skipton is a community that values simplicity and does not prioritize luxuries. This value is deeply ingrained in its DNA and stems from its origins in Yorkshire. As a major employer in the local area, the company is committed to giving back and donates one percent of its profits to charity. The company is also conscious of its past and the responsibility it holds.
Haire, originally from Glasgow, playfully refers to himself as “a scumbag” in this area. He was taught to remain humble and never let his ego interfere, a value shared by the people of Yorkshire who are known for their strong work ethic and pride.
In the coming year, he predicts that rates will continue to be elevated. “They may decrease, but not by a significant amount.”
The economy is expected to experience minimal growth, according to his prediction. Confidence is beginning to come back, with indications of positive signs emerging. Mortgage applications have risen by 14%, viewings by 12%, and sales by 12% in the housing market. This suggests that confidence is on the rise.
You notice that unlike HSBC, the Skipton has provided him with a sense of mission and purpose.
Cannot reword.
