As the Housing and Planning Bill wends its way through parliament and media scrutiny of the UK’s housing crisis intensifies, the residential side of our industry continues to have its feet held to the fire. Local government takes its share of flak over housing provision, too – and it is an issue that must be taken seriously.
Tackling the homes shortage is vital for a number of reasons, not only as future generations struggle with housing costs, but also because of the wider economic impact. Some of our members, and organisations such as London First, are concerned that the ever-rising cost of living will lead to “brain drains”, damaging the business prospects of cities such as London as talent leaves seeking cheaper accommodation and better living standards.
As the representative body of the property industry, we have our work cut out, and will continue to work closely with government and our innovative members to ensure sustainable solutions are brought forward.
The challenges are wider than the much-publicised housing crisis. When we make our representations to government, we are always careful to emphasise the importance of the glue that holds great places together – commercial real estate.
To most people, commercial real estate means tall, glassy office buildings. Offices are important – they are the heart of most businesses in the UK – but in reality, commercial real estate is much, much more.
Commercial real estate is the schools, hospitals and shops that serve communities. It is your child’s student halls, the cinema where you watched Spectre, the shed where your Christmas presents wait.
The logistics sector is a good example. Encouraging local authorities to allocate adequate land for industrial buildings not only means you get your Amazon delivery on time, but it means a substantial contribution to GDP, and the creation of large numbers of well-paid, skilled jobs.
Even more important, the qualities of commercial real estate can have a significant effect on our health and wellbeing. We launched a report last week which showed that encouraging investment in healthcare real estate could lead to improved patient care – with the potential of 3,000 fewer patient deaths, and 3,800 fewer falls a year.
The role of commercial real estate, and its importance for the UK’s productivity, is something we will promote even more in the new year, when we publish a report by Toscafund that examines the value and definition of commercial real estate.
People want to spend their time in places where they can live, work and relax, and it is our responsibility to ensure that central and local government understand this. While we have enjoyed some wins – such as the inclusion of housing schemes of fewer than 500 units within the NSIP (nationally significant infrastructure projects) regime – there is more the government could do ensure everyone has the opportunity to live and find employment in a well-planned, attractive area.
Our members pride themselves on good placemaking, and that means commercial real estate must be given every bit as much attention as housing.
Melanie Leech is chief executive of the British Property Federation
