Real estate’s role in regional innovation

The real estate industry is set to play a key role in “levelling up” the UK’s regions – the new catchphrase in prime minister Boris Johnson’s government for tackling regional disparities. While ambitions to rebalance the regions are not new, the new government’s strong mandate has put an end to political stalemate, and offers a clear opportunity for real estate investors. The real estate industry underpins the successful delivery of the UK government’s ambitions to drive innovation, and to invest across the country in building physical infrastructure and regenerating our towns and cities. We build the places across the country where all of us live, work and relax, enabling both economic and social wellbeing, supporting quality of life and business. We contributed £101.2 billion to the UK economy last year, and through our investment and supply chain, we supported 2,191,000 jobs – equivalent to one in every 14 jobs in the UK. So, we have a lot to offer. The UK government’s presence at MIPIM 2020 demonstrates its commitment to ensuring a positive future for both real estate and the UK. The roster of events and seminars at the UK government pavilion will no doubt showcase the fundamental attributes that underpin the UK’s world class reputation. Equally, MIPIM this year is an opportunity to shine a light on the real estate industry’s commitment to enhance our contribution to the economy and our positive impact on society in the most responsible and sustainable way. The British Property Federation launched its campaign, Redefining Real Estate, in 2019 as a movement across the industry to rise collectively to the challenges facing us. It’s a long-term, rolling programme of action to ensure we can deliver better, net positive outcomes in local communities, create a productive economy that delivers for everyone in the UK, attract and nurture a diverse and skilled workforce, and respond to the global climate emergency. Expectations of what we can achieve are rightly rising. Citizens are increasingly looking to all business sectors to be a greater force for good, and our licence to operate depends on responding to the challenge our customers, and not least our children and grandchildren, have thrown down. Money is talking, too. Some of the largest investment funds in the world have sent a clear signal about their future investment strategies in relation to climate risk in particular, and increasingly all shareholders, investors and lenders are challenging businesses to demonstrate how they are delivering social value and responding to environmental challenges and climate risk. Our capacity for change and growth, however, will require effective partnership with the public sector at all levels. Government investment into key infrastructure including transport, digital connectivity, decarbonisation and housing, and local authorities’ ability to demonstrate leadership and deliver a compelling vision for the future, will be pivotal. The UK must also remain able to attract the skills it needs at all levels – from ensuring that businesses can attract and retain the brightest and best, to supporting the delivery of an ambitious programme of regeneration and much-needed new homes of all tenures. These are the foundations to levelling up the UK’s regions – and the right policy support and the industry’s commitment to step up will mean real estate continues as a high performing asset class and a major contributor to our cities’ and the UK’s future success, and UK real estate in particular will remain one of the world’s most investable propositions. Helen Gordon is president of the British Property Federation and chief executive of Grainger