‘Data infrastructure and innovation alone are not enough to level up’

COMMENT On 2 February, the government published the Levelling Up white paper, which places data and innovation at its heart. Nearly eight months on and while we have seen a huge change in politics, moving forward the aspirations of the paper must hold true – as must the role of smart places in achieving them. The paper is 305 pages long and covers a lot of ground – literally and metaphorically. To quote it, levelling up will require us to: (i) boost productivity, pay, jobs and living standards by growing the private sector, especially in those places where they are lagging; (ii) spread opportunities and improve public services, especially in those places where they are weakest; (iii) restore a sense of community, local pride and belonging, especially in those places where they have been lost; and (iv) empower local leaders and communities, especially in those places lacking local agency. Key to achieving all of these is the property sector and the wider built environment. Property is one of the largest employers in the UK, and sufficient housing and infrastructure are essential to future levelling up. Property income also drives both the local and national economy, often in partnership with local authorities, and the property sector is at the heart of creating vibrant and successful public spaces. Part to play It is hard to imagine achieving any of the levelling-up aspirations set out in the paper without the property sector playing a major role. It is therefore a little surprising that it isn’t mentioned more often in the paper itself. “Offices” don’t get a mention, nor does “real estate”, and “property” is only referred to six times. Unsurprisingly, “housing” is the focus of the paper in relation to the property sector, with a total of 154 mentions. Counting the number of times a word is mentioned is hardly a definitive reflection of the content, but it does provide an indication of the focus. To quote the former prime minister Boris Johnson in his foreword: “We’ll… harness the incredible power of data not just at a national and regional level but all the way down to neighbourhoods.” Perhaps unsurprisingly then, data is mentioned 166 times and innovation 170. In 2019, I was commissioned by the British Property Federation to write a report about the state of digital transformation in the UK property sector and what needs to happen next. One of the key findings of the report was that on a world stage, the UK has world-beating national data infrastructure and innovation. They are some of the key strengths that the UK has for attracting talent and investment, and now against the backdrop of the levelling up paper they are going to become even more important. Making progress However, the paper also identified that having these strengths alone is not enough – they need to be used effectively. Whether to inform planning policy, improve the transaction process or increase office productivity, the effective use of data by both government and the property sector is essential. A lot of progress has been made in the years since the report was published. On the government side there are several initiatives around the better use of data in property – for example, DLUHC and the Geospatial Commission are leading many great projects around this. The sector-led Real Estate Data Foundation is also starting to join the dots between the great work being carried out by individual and more established industry organisations. Smart buildings and smart cities have evolved from theory to practice. Team effort But there is still a long way to go, and much more engagement with data and innovation is needed by both the public and private sector – both individually and together. Away from the political angles, levelling up as an aspiration has to be the right way to go for the UK. To achieve this, the government and the property sector must better leverage the data that we have available and continue to innovate. Depending on when you are reading this, the former prime minister, the former secretary of state and the former housing minister all encouraged the better use of data. Let’s hope their successors continue to drive this message about data for the sake of levelling up. Dan Hughes is the founder of Alpha Property Insight Image © Telling Photography