LREF 2019: How can property help British business post-Brexit?

LISTEN: As the UK hurtles towards Brexit, the property industry is poised to act – even if no one yet knows what the future of this country might look like. The sector could be well placed to help businesses thrive once Britain leaves the bloc, promoting and improving UK cities and helping the country to remain a desirable place in which to live and work. At present, it seems that the most likely scenario is that Britain will leave the European Union without a deal. But Melanie Williams, head of real estate sector at DWF, says the sector is being affected by a lack of certainty. “We are really worried about Brexit, and want to make sure that we can deal with the situation and to have some certainty,” she says. Jason Hawthorne, director at VuCity, agrees: “I think we are going to be forced into a no-deal situation – I think we are all agreed on that. But even that would mean that we know what the outcome is, and we can work from that.” So if a no-deal is on the cards, what can the property industry do to help British businesses? “On a positive note, our industry is very used to working in difficult, unpredictable situations,” says Martyn Evans, creative director at U+I. “I think that we can work very nimbly to get through almost anything.” He says London will continue to be a draw. “[People] will want to live in this city because it is a great world city. Our industry is very much at the heart of maintaining the quality of our built environment.” Regional difficulties The value placed on London as an economic centre is unlikely to change, but outside the capital things could be harder in a post-Brexit environment. “Let’s not forget about the regions – I worry about the regions massively,” says Williams. “Actually, we could end up with a scenario where we have a larger division if we’re not careful.” Tim Lowe, managing director of Lowe Guardians, suggests the UK should move towards a German model, where there are a number of large cities instead of just one, and that the government could help to encourage businesses to move to the regions by giving tax cuts. “I don’t know why the government isn’t more progressive about saying we want businesses to come to the North West, for example,” he adds. “We have to be able to deliver the ability for people to work and access different jobs outside central London,” says Martin Saunders, director at Avison Young, adding that if Britain is to flourish then retaining the talent in the existing UK workforce will be vital. “We need to make the best use of the resources who live and grow up in London or the rest of the UK. Are we giving them the opportunities to start and grow businesses in places they want and where they need to be, where they live?” Diversification of the workspace offer outside London is essential, he says – the industry must provide a range of different work environments, and make sure they are located in interesting, dynamic places. “What we should be thinking about is not trying to second-guess the particular product that will support the life sciences or the creative industries,” says Saunders. “Actually, what we should be creating is places where businesses can come together and interact. That’s where innovation will happen.” Infrastructure is key Making sure the regions are well served with infrastructure will be crucial to their future success. “If you decide you are going to hold a party then people will come, and it’s the same with infrastructure,” says Williams. “If you decide that you’re going to put the infrastructure in then the businesses will come and support that.” But funding infrastructure projects is costly, so how does the industry go about convincing the government that putting money towards transport and development projects is the right thing to do? “We have to change the language,” says Evans. “It has to be not about government ‘spending’ and government ‘cost’.” Ultimately, Williams says, the industry needs to be ready to innovate in order to keep Britain at the forefront of the business world, equipping the industry to future-proof in order to remain competitive. “Things are moving so quickly in the world that what we identify as normal now is just not going to be here in 10 years’ time – people aren’t going to have cars really, people are not going to live and work in the same way that they do now. We may not even have leases any more.” Hawthorne agrees that planning British cities which are ready for the future lies at the heart of helping the country to thrive – and that being flexible will help. “For me, being able to forward-plan and start to look at change is going to be hugely important, because the faster we can do that, the better we can make decisions.” The panel Tim Lowe, managing director, Lowe Guardians Melanie Williams, partner, DWF Jason Hawthorne, director, VuCity Martyn Evans, creative director, U+I Martin Saunders, director, Avison Young In partnership with     Photo: Planet Observer/UIG/Shutterstock