The general election is now exactly two months away. With opinion polls pointing at a slender Labour lead, but the bookmakers suggesting that the Conservatives could boast the most MPs come May, the result is truly too close to call.
One thing we do know, however, is that regardless of the political make-up of the next parliament, there will be a host of new MPs who need educating on the virtues and benefits of a thriving real estate industry.
This is something of a never-ending struggle for trade associations, but is particularly important for ours. This is not only because the need to balance the UK’s books means tough choices and because levying taxes on our industry must not be seen as consequence free, but also because real estate is prone to be misunderstood. This is, perhaps, surprising, given its enormous relevance to our daily lives.
It is with this in mind that we have launched our BPF manifesto – Manifesto 2015: A Vision for British Property – which we will use to start the process of teaching those entering parliament about our industry: what it is, why it is important, and the ways in which it enables our towns, cities and communities to thrive.
The headline figures are easy to state. Considering the full spectrum of real estate, we employ more than a million people. The value of UK real estate is more than £1tn and it contributes an economic rent worth an estimated £100bn to the economy each year – more than 6% of UK GDP, and dwarfing the contributions of other sectors.
But numbers do not often tell a good story. An important part of our vision for real estate includes the idea that what we provide is a crucial component of the UK’s infrastructure. Not only is this true – infrastructure is defined in the dictionary as “the basic physical and organisational structures needed for the operation of a society or enterprise” – but it also describes the role of real estate in terms that the wider world can more readily understand.
Real estate is integral to the UK’s economic infrastructure, providing access to the spaces and services that are necessary for businesses to thrive. We provide social infrastructure in the form of roofs over people’s heads, hospitals and affordable homes. We are also an integral part of the UK’s digital infrastructure. The “cloud” does not swirl mysteriously above our heads – it is located in a shed, probably somewhere in the Thames Valley.
The question then is, what does the next government do with this insight? We propose a partnership that will allow the industry to build on its successes and help the next government to deliver its aspirations – from boosting economic growth to meeting the housing challenge and strengthening the UK’s position in the global economy.
It is not a message that we can deliver alone. Luckily, because real estate is integral to place, development is always a local as well as a national issue. Every town or city has a story to tell about how urban regeneration can lead to happier, healthier and more sustainable communities, and has an MP who should listen.
It is clear therefore that we, and you, have a huge amount to shout about. Our manifesto lays out recommendations that will ensure that government creates the right environment for investment, and creates the right conditions on the ground that will let us deliver.
We are lucky that, thanks to our members, there are many examples of innovative development that show how important real estate is to the UK.
Our manifesto is the start of a conversation designed to ensure that this does not go unnoticed by the next government, whoever they may be.
Melanie Leech, chief executive, British Property Federation
