In a month of political change, we’ve been thinking about how the real estate industry is likely to be impacted.
As a parting comment from voters to the Conservatives (for now, anyway), save for Rishi Sunak, every one of the party’s former prime ministers lost their seat. The UK is desperate for an overhaul.
The Labour manifesto is one thing, but the great and the good advise us to look wider. Labour will also face potential opposition from new directions, following the increased MP representation from other parties, so will have to push hard and fast to fulfil its promises, particularly those affecting our real estate industry.
Amongst other proposals, Labour has committed to building 1.5m new homes (similar to Conservative promises), but is focussing on affordable housing, energy efficiency measures (investing an additional £6.6bn into more energy-efficient homes) and accelerating cladding remediation.
It’s no surprise that many consider planning reform to be a critical foundation for Labour to achieve its aims and for the UK to get back on a growth trajectory. Indeed planning, business rate reform, and affordable housing sat front and centre in Labour’s campaign. Labour has such a strong position in the Commons now, having doubled its MP presence, that ministers will have the power to overrule Councils and actually bring about development, pushing back on the stunting effect of nimbyism.
Labour has a massive challenge ahead of it in all respects, particularly around our public services and general infrastructure, having committed not merely to bolstering the NHS but to resolving transport issues affecting rail and road. About time too! Our recent Office Worker Survey and Productivity Research both highlight commuting as the number one deterrent to returning to the office. Fix that and watch the ripple effect on our workforce, office occupation rates and potentially the economy, too.
To achieve all it promises and all the country desperately needs, Labour will have to supplement traditional funding methods by proactively securing investment to counteract the current fiscal shambles; the real estate market has a key role in attracting that interest.
Regardless of one’s own political leanings, Keir Starmer is a dyed-in-the-wool administrator whose raison d’etre is to ‘get things done’. As long as he possesses enough political courage, we should see benefits not just for real estate, but for the UK generally.