Real estate bosses warn RICS it has reached a ‘critical point’

Some of the biggest names in UK real estate have written an open letter to the Royal Institution of Chartered Surveyors urging it to grasp a “generational opportunity to modernise” in the wake of a corporate governance scandal. The Property Advisors Forum – formerly known as the Windsor Group – sent the letter to Nicholas Maclean, interim chair of RICS’s governing council, following the publication of Alison Levitt QC’s review into the dismissal of four non-executives in 2019. Forum members, led by chair George Roberts, head of UK and Ireland at Cushman & Wakefield, say a further forthcoming review into the governance, purpose and strategy of RICS is now “pivotal to its future relevance”, adding that it is at “a critical point”. Outlining what they believe to be the principles and priorities that the institution should now focus on, they add: “[RICS should be] the recognised expert body and advocate for change in the built environment – RICS should be the thought leader in key societal, environmental and economic issues of most relevance within the built environment.” Alongside Roberts, the letter is signed by Allsop’s Scott Tyler, Avison Young’s Jason Sibthorpe, Etienne Prongué at BNP Paribas Real Estate, Carter Jonas’s Mark Granger, CBRE’s Ciaran Bird, Tony Horrell of Colliers, Nigel Shilton at Deloitte, Gerald Eve’s Simon Prichard, GL Hearn’s Bruce Wilson, Stephanie Hyde at JLL, Alistair Elliott at Knight Frank, LSH’s Ezra Nahome and Savills’ James Sparrow. The letter in full Dear Nicholas, In the Executive Summary from Alison Levitt QC, she states that “Whilst those that provided evidence disagreed about many things there was one subject which united them all, namely the sense of pride they felt at being members of RICS”. Now is the time for us to come forward as some of the leaders of the largest firms of chartered surveyors to work with the leaders of other major firms and SMEs to together rebuild the Royal Institution of Chartered Surveyors (RICS). The Property Advisors Forum (PAF) welcomes RICS’ acceptance of the recommendations in her report and its commitment to change. We also welcome the forthcoming external review of Governance, Purpose and Strategy, which we consider to be essential. We are, though, under no illusion that RICS is at a critical point and that this review is pivotal to its future relevance. Given the seriousness of the position in which RICS finds itself, we believe we have a duty to be public in setting out what we believe is required of the institution. To that end we are publishing this as an open letter reflecting our views. It has been a frustration to PAF that despite a great deal of positive engagement with RICS, especially over the recent past, like most we were unaware of the now apparent and deep-rooted issues, which unquestionably must have constrained much needed progress in many areas. Now is a generational opportunity for RICS to take steps to modernise. We want to work together now with RICS Governing Council to rebuild the Institution into a strong leadership body. We have no doubt that if change is decisive and meaningful this will be embraced across the membership and be in the public’s best interest. We believe RICS should be guided by the following principles: Strive for continuous improvement in all that it does and demonstrate measurable impact in all its activities. Future success rests on an ability to deliver value and benefit for the full work cycle of all members and stakeholders. As an organisation that has Governance as one of its key functions, RICS itself needs to adhere to the highest levels of stewardship, governance and transparency in all its activities and culture. In its capacity as regulator of our industry, RICS must ensure that regulation is relevant, practical and orchestrated with a deep understanding of the real estate markets. The focus of RICS should therefore be on the following: To be the recognised expert body and advocate for change in the built environment – RICS should be the thought leader in key societal, environmental and economic issues of most relevance within the built environment. It should have strong links to appropriate public and private sector stakeholders in helping to influence and shape policy. Promoting the built environment to tomorrow’s talent – RICS should be the centralising influence in developing effective outreach programmes to schools, colleges and universities. It should undertake its mission of raising career awareness with the goal of attracting new and diverse talent into the industry. Equipping current and prospective members to be effective in a changing world – RICS must be a champion for diversity and inclusion within the built environment. It should act to ensure that the content of accredited courses is relevant to the needs of employers and their clients. We note Ms Levitt’s comment that with “courage and imagination”, the second review “will be able to put RICS into the position of moving forwards in unity in the public interest”. As leaders of our respective organisations, we recognise and welcome the part we have to play in helping support this change and will seek to work constructively with RICS to promote the above agenda. Yours, The Property Advisors Forum   To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews Photo © Jeff Blackler/Shutterstock