In eight days’ time, the Conservative government will have been in power for 100 days. An arbitrary marker of time, but now does seem to be a good opportunity to take stock of what the government has delivered for the real estate industry since being in power.
Following a relatively uneventful summer Budget for the real estate industry, the announcement that has packed the biggest punch has been the package of planning reforms outlined in the government’s productivity plan. Welcome proposals included stronger enforcement of local plans, the inclusion of residential into the nationally significant infrastructure projects regime, and measures to encourage brownfield development.
One crucial factor that was overlooked, however, was local authority resourcing. Planning departments have been hit particularly hard by local authority cuts and proposals, such as lowering the threshold for the minimum number of applications a local authority can approve before it is put into special measures, will stretch them even further. We continue to make the case for government to examine how they might be better resourced ahead of the Spending Review in the autumn.
A less welcome part of the plan was the scrapping of the allowable solutions carbon offsetting scheme for domestic and non-domestic buildings. Since then, Green Deal funding has also been terminated. There are concerns that, in the government’s haste to remove perceived barriers to development, it is indirectly endorsing a regression in the quality of the nation’s housing stock. Tinkering with energy efficiency measures only creates uncertainty for investors.
On housing, we have yet to see much policy detail. The focus is clearly on providing homes for owner occupation, but with the build-to-rent sector gaining traction, we will be making sure that the vital role that build-to-rent has to play in creating much-needed homes is not forgotten.
It is good to see progress on the devolution front, with deals being struck across the country and the Cities and Local Government Devolution Bill set to make its way through the House of Commons. Having recently completed another round of regional meetings, the BPF is well equipped to make sure the interests of the real estate industry across the country are represented.
We have not yet had the results of the government’s administrative review of business rates, but we are keeping a close eye on developments. This is one area of policy where the government has a great opportunity to bring about bold changes, and we hope it will seize it.
Ninety-two days in and there is lots to keep us busy. Although not everything that we have seen so far has been satisfactory, the most important thing is that our industry is clearly high up on the government’s agenda.
Before the election, we set out our vision for a partnership with the new government, outlining the invaluable contribution our industry makes to the economy and our everyday lives. That these all-important first few weeks have seen a high level of engagement with our industry is a very positive step towards realising this partnership and all it can offer.
Melanie Leech is chief executive of the British Property Federation
