EDITOR’S COMMENT Given that he became chief executive of one of the country’s largest listed real estate companies just as the Covid-19 pandemic hit hard in 2020, it’s safe to say Landsec’s Mark Allan is accustomed to taking on big gigs in tough times.
This week he became president of the British Property Federation, just as the trade body celebrated its 60th anniversary (sort of – the actual anniversary is in October, but its annual conference and AGM were this week).
What a time. It’s hard out there for real estate investors at the moment as values plunge and deals dry up – the H1 London office investment stats put out by JLL this week looked so grim that one other big agency tells us it might not even bother to publish its own take.
But anyone who has spent any time at all in the company of Allan knows he isn’t one to dwell on the downside, or to get distracted only by near-term dealmaking. He’s a bigger picture sort of leader, a “here’s our overarching course of action” kind of guy. He has described today as a “pivotal time” for the sector and flagged the issues that are front-of-mind for him.
First, real estate must be prepared to help the country’s economy and society face some big challenges, Allan says: “issues that can’t be fixed by simple three-word slogans no matter how much we’d like them to be”.
Next, a general election is coming, and real estate must be ready to “make its case”, he says. The good news? Government is listening.
“The business engagement that we’re getting from all of the main political parties, but in particular Labour and the government, is at a higher level than I’ve seen it probably for a decade,” Allan told me in one of a series of interviews with BPF presidents past and present for a special feature this week. “So I do feel that the business community at large has an opportunity to engage productively and constructively in influencing manifestos. I think there’s a big role that the sector can play.”
Past BPF presidents I spoke with over recent weeks had all used their time at the helm to try to drive change in similar ways, whether that was Ian Marcus pushing for the introduction of the REIT regime to the UK in 2007 or Helen Gordon speaking up for commercial landlords at a time in the Covid pandemic at which it felt like government couldn’t care less.
No one pretends an organisation like the BPF will always get it right – Marcus said his view is that the organisation should be more proactive in positioning itself to government, rather than reacting to problems as they arise. But the stories from its past leaders underscore the importance of real estate having a body that can amplify the sector’s collective voice in times both good and bad.
From a trade body in celebration mode to one with greater challenges to address. Over the past week we have asked you to give your views on what the RICS should be focusing on next as it tries to put another scandal behind it – this time over the mass resignation of its standards and regulation board.
Today you can read the results of our poll. Some 40% of respondents said the RICS should be dismantled and replaced, making that the most popular option for next steps.
Others think a clear-out at the top would do the trick. “The RICS should have a full-scale reform, including the removal of all the current directors, CEOs and various heads,” said one respondent. Or as another put it: “Get rid of the men in grey suits – before it is too late.”
None of the options are easy, of course – “easy” would be to do nothing. But any organisation speaking for an industry or profession has to do so from a position of authority. Maybe in this instance it’s time for a new voice.
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
