COMMENT As we look ahead, it’s important to reflect on the year that has passed. After all, many of the challenges that dominated headlines in 2022 are likely to carry forward into the new year and beyond. Changing global economic forces and political unease, both at home and abroad, will mean we continue to face new obstacles. This is at a time when the cost-of-living crisis will start to become even more real for families up and down the UK.
While these challenges remain significant, I am optimistic about the role our sector can play in helping the country navigate them – but only if, alongside our partners in government, we sharpen our focus, talk less and do more. I believe that three areas in particular will play a significant role in shaping whether the next 12 months are a success: cities, carbon and communities.
Cities
It’s no secret that cities across the UK need greater attention and investment if we are going to meaningfully “level up”. For too long, regions outside of London have lagged behind their international peers. You only need to look across the Channel to see the scale of the problem, where cities from Barcelona to Munich or Milan significantly outperform UK cities with similar industrial mixes and populations.
Levelling up has been on the agenda for years but we have wasted too much time talking without taking action and focusing on the wrong areas. So far, policy-makers have prioritised towns over cities, meaning great swathes of the UK risk being left even further behind. With local budgets under more strain than ever, now is the time to think strategically about how investments can bring the most value to the most people. Not only will investing properly in our cities improve economic productivity and deliver a thriving urban landscape, it will also drive prosperity in the surrounding areas. I believe that by turning our attention squarely to cities we can deliver consistent growth and have a direct impact on the day to day lives of millions of people.
And it is important to recognise the real estate sector is central to delivering on the promise of levelling up. It can’t happen without our commitment. The results could be transformative; by generating economic activity in areas at risk of decline we can bolster the health and wellbeing of local residents, deliver better jobs and improve people’s quality of life. As a result, we can create destinations of choice which attract new families and talent, fuelling more economic growth.
Carbon
On carbon, our sector has made great strides towards greener, cleaner places. But without turning targets into results, the future of our industry – and the world in which we operate – is in jeopardy. I firmly believe that addressing and reducing carbon emissions is a moral and commercial imperative. Given the scale of the issue, action is urgently needed but we must resist the urge to look for short-term fixes, and focus on ensuring any progress we make can be sustained well into the future.
Earlier this year we unveiled our carbon manifesto, which sets out what we have done so far as a business, what’s next for us and how we believe the government can support and accelerate a transition towards net zero. Since then, the reintroduction of Jerome Mayhew MP’s Carbon Emissions Bill gives parliament the tools needed to accelerate our transition towards net zero, and I hope it will be prioritised by government. We recognise the journey to net zero won’t be easy, but with the new year comes a new opportunity for us to join together with our peers and supply chains to make this vision a reality.
Communities
For me, the final piece of the puzzle is communities. As a landlord, our success is intrinsically linked to shaping places that bring communities together, helping them thrive into the long term. Places that offer opportunities for the people who live there, helping to retain talent and drive greater economic prosperity for all. Working closely with the communities who live near and use our spaces is key to making sure they are successful in the long term. Bringing people from different backgrounds into decision-making processes can only improve how we do business.
This also extends to our industry. It’s not controversial to say real estate rarely reflects the communities where we operate and we haven’t done enough to improve socio-economic diversity. This lack of representation not only hampers our ability to attract and retain the best talent, but also our ability to engage meaningfully with the communities we serve and create truly inclusive places where all feel welcome. With the launch of our Realising Potential fund next year, we hope to make our own contribution to addressing this.
These areas – cities, carbon, communities – are all intrinsically linked. I firmly believe that if we can focus our efforts and unite around a shared purpose, we have a unique opportunity to improve economic productivity across the UK and meaningfully impact the lives of people up and down the country.
Mark Allan is chief executive of Landsec
