The housing sector is a critical pillar of society in the UK, playing a decisive role in shaping communities, ensuring social wellbeing and providing individuals and families with a safe, secure and well-maintained home. Local authorities are at the forefront of addressing the nation's housing challenges, tasked with making housing accessible, affordable, and sustainable in what is a challenging and demanding environment. This poses a dual challenge: meeting increasing regulatory demands while attracting the visionary leadership needed to drive meaningful change.
With the introduction of the Social Housing (Regulation) Act 2023 and the Labour Government's renewed housing targets, the pressure on local government to deliver safe, affordable, and high-quality housing has never been greater. Yet, the task of recruiting and retaining top executive talent in this demanding environment has become more difficult than ever.
The Social Housing Act has introduced a more rigorous regulatory framework, demanding a new breed of leaders who not only understand housing policy but can also drive the organisational changes necessary to meet these more rigorous standards. These leaders must ensure that housing services are not only compliant but also deeply aligned with the needs of the communities they serve. The challenge for us in executive search, and for authorities seeking new talent, lies in finding executives with the right blend of expertise and vision — leaders who possess the expertise to implement these sweeping changes while also being adept at managing the inevitable resistance that comes with transformation.
In our recent study of successful leadership behaviours and derailers from more than 1,000 public sector leaders, we revealed that chief executives, on average, demonstrated higher scores in eight out of 12 our Altitude behavioural measures. Three of these behaviours show the largest difference between chief executives and directors, offering valuable lessons for those executives striving to meet these increasing challenges, and the corporate leaders who are supporting them:
1. Engage and inspire – confident and visible, an inspiring ambassador
2. Influence and impact – achieves outcomes by winning hearts & minds
3. Courage and tenacity – optimistic, resilient and persevering
The link between these behaviours and the challenges the housing sector is currently facing is clear, particularly for change and transformation. We see from our data and interactions with public sector leaders time and again that those who can do the following will be able to tackle these challenges more readily than those lacking these strengths:
• maintain the engagement levels of their employees, communities and external partners
• bring others with them in the face of new and potentially disruptive changes in ways of working
• and show perseverance and courage in the face of such changes
Financial constraints add another layer of complexity. Local authorities are expected to enhance tenant satisfaction, safety, and transparency, all while managing tighter budgets. This financial tightrope requires executives who are both fiscally astute and innovative, capable of delivering high-quality housing solutions despite limited resources.
Beyond technical and financial expertise, successful housing leaders must be deeply committed to social justice and community engagement. The new regulatory environment places a renewed emphasis on tenant voices, requiring executives to foster a culture of transparency and responsiveness. These leaders must be able to demonstrate ‘influence and impact' with the communities they serve, ensuring that housing policies reflect the diverse needs and aspirations of their residents.
However, attracting such transformative leaders is only half the battle. Retaining them is equally challenging, especially in the public sector, where the pace of change can be slower, and resources more constrained. The pressures of these roles, exacerbated by the demands of the Social Housing Act, can lead to burnout or turnover among top executives. Local authorities must therefore invest in leadership development and create environments that support their leaders, nurturing the behaviours and skills we see as critical to success, and overcoming those that might derail them, not just for the immediate future but for the long term.
The competition with the private sector for top talent further complicates this picture. While the private sector may offer more attractive compensation and faster career progression, local government provides a unique opportunity to lead significant, impactful change in communities. This sense of purpose, combined with the challenges of navigating a period of regulatory and social transformation, can be a powerful motivator for candidates who are driven by more than just financial rewards.
This insight underscores the importance of having the right leaders in place – those who can manage transformation, inspire their teams, and steer organisations through challenging times. But also, the critical need for corporate leadership to continue to effectively support and develop executives through these challenges.
We acknowledge that the road ahead is undoubtedly tough, but with the right leadership, the opportunity to shape the future of housing – and the lives of those within these communities – has never been more within reach.
You can download the full CEO Personality report Behaviours that deliver and traits that derail from our website or speak to or any of our local government or housing practice team for further insight or advice.
Ben Parsonage is senior consultant, local government and Simon Wing is practice lead, local government and housing at GatenbySanderson
