David Cameron’s backing for starter homes, George Osborne’s growing push for devolution and the appointment of Lord Adonis to lead an independent Infrastructure Commission have ignited property industry interest in politics in recent weeks. So I struck gold in my first visit to the Conservative Party conference last month, when I spent three days in Manchester speaking at fringe meetings, meeting central and local government officials– and running the gauntlet of protestors.
I suspect few property people have been to a party conference, but it’s different to a visit to MIPIM or the local industry bash. Networking for business purposes is replaced by lobbying for political impact, and I was struck by how many large corporations sponsored events.
Here is my take on the news from the conference that will affect the property sector.
Housing
The housing shortage took centre stage. At a London First dinner on the first night, 100 people were asked to name their three top priorities for the new London mayor to tackle. Housing was the clear leader.
Most people in the industry will have welcomed encouragement for starter homes. But it is crucial that the government does not overlook other forms of tenure in its desire to create new homes for owner-occupation, and that it recognises the additional homes that can be delivered by the build-to-rent sector.
Build-to-rent homes are designed and built specifically for renting, offering longer tenancies, other flexibilities (to personalise the home, for example), good onsite amenities and good transport links for easy commuting.
While any encouragement of development on brownfield land is welcome, it is also important to take a balanced approach. We can’t just zone all brownfield land for housing, because the people living in these locations will also need suitable employment opportunities and growing cities will need urban distribution and other light industrial space to function.
Devolution
I welcome devolved power, but we have to ensure all regions benefit and the strong don’t become stronger and the weak become weaker.
Councils will need to be trained to maximise their new spending powers, ensuring devolution works. Taking over key elements of infrastructure – for example, co-ordinating utilities companies – requires balance and skill.
What Britain doesn’t need is a patchy level of service from council to council, or to impose a mayoralty on places where the idea wouldn’t work.
You only have to look back at the weaker regional development agencies created under New Labour to see that a “one-size-fits-all” approach does not work.
I was struck, however, by comments made by Oxford Properties’ Europe head Paul Brundage in a British Property Federation seminar on devolution. Originally from Canada, Paul explained how in the 1990s Canada saw devolution transform the country’s government.
Infrastructure
It doesn’t matter how many powers you devolve, if the government doesn’t make the right infrastructure investments the whole exercise will come to nothing.
I fully support the appointment of Lord Adonis to head the new Infrastructure Commission, because long-term decisions need to be taken out of politicians’ hands.
As a supporter of the expansion of Heathrow, I also drew encouragement from the creation of the commission as I as feel it is a clear indication of the government’s drive to make the UK a competitive place for business.
Strategic rail freight, powerful and reliable broadband, Crossrail 2, a new trans-Pennine link, upgrading the Midland Mainline and easing congestion hot spots in London also had support.
The property industry is getting better at engaging with government – and with the challenges laid down this autumn it is crucial that we help shape these changes in the housing, local government and infrastructure worlds.
David Sleath is chief executive of SEGRO
