The prospective arrangement between the Conservative minority government and the DUP gives a “glimmer of hope” for greater freedom of movement and a softer Brexit, according to Fiona Fletcher-Smith, executive director of development, enterprise and environment at the Greater London Authority.
Speaking at the opening keynote debate of the London Real Estate Forum this morning, Fletcher-Smith said “We are taking some glimmers of hope in the influence of the DUP on the government. The DUP is desperately interested in cross-border trade and the number of young people who turned out to vote will have an impact on policy development.”
Restrictions on freedom of movement could affect both the occupational market and the skills available to the construction sector, which could cause damage to the property industry.
Deloitte vice-chair Angus Knowles-Cutler stressed the importance of technology in the property sector and its ability to create jobs, and also advised that the views of non-British workers in London needed to be taken into account in order to retain the best international talent.
Croydon Council chief executive Jo Negrini expressed concerns over policy still remaining uncertain due to the ongoing political instability, particularly in relation to housing and finance.
“I am most concerned about what is going to happen with government policy – not just with the property market, but as a local authority to help us assist developers de-risk their schemes,” she said.
“There is no long-term financial strategy to help us take informed decisions about what we will do with our infrastructure in the borough [Croydon],” she added.
“We are noticing construction starts are slowing down, but the upside is people are talking to us about proper mixed-use again.”
Fletcher-Smith said: “Where we would often expect pressure on strategic industrial land which would flip to residential, now it is competing on an even keel which would help workspace need.”
But Ballymore UK managing director John Mulryan warned this could hinder attempts to address housing need.
“There is less land in the city which is viable for industrial development – that is going to become more of a problem with trying to increase the house sales in the city.
“This is also a challenging market for developers with construction costs rising. Unless something changes we will see less development,” he said.
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