At yesterday’s London Real Estate Forum, a renewed sense of optimism was evident as industry leaders discussed the promising opportunities ahead for the sector. For the first time in 14 years, with a new government in place, practical steps are being proposed to support and drive growth in the built environment. Here are some of the key themes discussed during the conference.
Opportunities in brownfield regeneration
Housing was of course a central theme. Mark Allan, chief executive of Landsec, highlighted the potential in brownfield regeneration and retrofitting. He emphasised the need for developers to prioritise higher-density housing to make brownfield projects financially viable. Unlocking more brownfield land could provide a substantial boost to housing supply.
Addressing London’s housing challenges
Despite the Government’s ambitious target of building 1.5 million new homes over the next five years, there are significant challenges that still need addressing. The current market conditions, characterised by high-cost inflation and persistent supply chain issues, make this goal seem unattainable.
Fiona Fletcher-Smith, chief executive of L&Q, spoke on the unique challenges facing London. Fresh from the Labour Party Conference, she remarked that this is the first time in many years that a government is seriously addressing housing issues. However, she underscored the stark realities of living in the capital, where the average salary required to rent a home is now £76,000. She stressed that affordable housing is crucial to sustaining the city’s infrastructure and retaining talent.
The need for affordable housing
Affordable housing remains a critical topic. The current economic climate has made it increasingly difficult to maintain profitability on these developments. Nick Walkley from Avison Young pointed out that government intervention is essential, as the private sector alone cannot bear the financial burden of building affordable homes, particularly given the necessary infrastructure investments.
Elizabeth Oliveira from Muse advocated for a shift in focus towards the viability and transparency of affordable housing projects, rather than concentrating solely on the planning process.
Reforming the planning process
There were also numerous discussions around the recent National Planning Policy Framework (NPPF) consultation. Millie Dodd, founder of Just Build Homes, is set to transform the planning process with a new platform aimed at engaging supporters of housing developments. She argued for a simplified planning system to attract the next generation and underrepresented groups, as Gen Z, while most likely to support new housing, are the least involved in planning processes. She argues to build new homes for the next generation, we first need to engage them.
Sustainability
While sustainability has been a watchword of the industry for many years, it was instructive that several businesses are now putting their money where their mouth is and showcasing some truly radical approaches to leaving a positive environmental and social legacy with their developments.
In a panel on the circular economy, FORE Partnership’s Basil Demeroutis, Civic Engineers’ Gareth Atkinson and Willmott Dixon’s Kemi Owoeye described how they worked together on a project to completely reuse the 1930s steel beams from the former House of Fraser HQ on London’s Oxford Street in a separate office refurbishment near Tower Bridge – the first time that pre-Second World War steel was used in a modern UK construction project.
Separately, representatives of British Land explained how they intend for the REIT’s Canada Water development to be the most sustainable large-scale regeneration project in the UK, such as through the construction of the Paper Garden on the site of the former Printworks – constructed entirely from reclaimed materials.
A positive outlook
Despite the many challenges, the overall mood at the forum was positive, with a clear appetite for change and a shared sense of purpose. It remains to be seen how the Government’s proposals will be implemented, but the real estate industry appears ready to seize the opportunities ahead.
