Politics can be an enabler, but right now it feels like a distraction and ultimately a cost to property. From Scotland to Surrey and all points in between it appears political uncertainty is
putting the brakes on growth.
So how are politicians curbing growth? Take Scottish independence. At this week’s Glasgow Question Time, Savills UK investment director Bruce Patrick told the audience that institutions had “paused” investment since Easter. There was a new breed of buyers moving in, he said, but not enough to replace the deserters.
Speaking to attendees afterwards, others endorsed the point. One architect had seen work slow around the same time, others expected – urged – the hitherto lacklustre no campaign to come in “hard and late” in the debate. “If you think six months of uncertainty is bad now, imagine 10 years of it in the event of a yes vote,” ran that argument.
Meanwhile back in London, infrastructure and transport connectivity were being debated with mayor Boris Johnson and chairman of the government’s Airports Commission Sir Howard Davies trading blows.
The commission won’t announce its findings until after the general election; the lack of political will to address the UK’s air connectivity needs is depressing. Worse, the creeping realisation that this is an issue that may never be properly addressed is shaming. As the referee of the debate – Tony Travers of the London School of Economics – said, government would have to behave “out of character” to get a new airport or one of the other expansionist options built. Inertia is the new normal.
Politics has seldom mattered more in recent times. And that’s why Estates Gazette has put together this politics special issue.
It’s all here: from the latest efforts to save the high street (in our Retail & Leisure supplement) and the independence referendum (Scotland supplement), through to an interview with former mayor of New York Rudy Giuliani and analysis of the main property-baiting policies being mulled in Westminster. Listen too to our interviews online with the likes of communities secretary Eric Pickles, high street minister Brandon Lewis and shadow chancellor Ed Balls. Find them all on EGi.
Spending so much time evaluating political issues in recent weeks has led me to a depressing conclusion. Uncertainty will continue as big decisions are dodged. That is now an accepted fact of (political) life.
¦ Winning politicians over to property’s cause is one of the prime challenges facing whoever succeeds Liz Peace as chief executive of the British Property Federation in the autumn. Peace has made major strides on this front but there is no getting away from the fact that property is far less influential than many other sectors of UK plc.
This industry is underrepresented in parliament – just 2% of MPs are drawn from property or construction despite its accounting for 10% of GDP. This industry would rather give money (£5m in the last five years to the three main parties and, increasingly, to UKIP) than build careers in politics.
But donations aren’t enough and that makes effective lobbying a necessity. The BPF has done that, to mostly good effect, over recent years. However, it can always be more effective, and more visible, and maximising its impact will be a key challenge facing Peace’s successor.
A long list is currently being shortened by headhunter Odgers Berndston, though standout candidates are hard to identify at this stage. But here’s a test for the new broom.
This week Danny Alexander made a major speech on independence – and why it should be resisted. He did so at a Scottish Institute of Chartered Accountants conference. If the new head of the BPF can convince government to use its annual conference for major policy announcements that impact on property and beyond, he or she will have passed an important test.
Damian.Wild@estatesgazette.com
