30 Jun 2020
30 June 2020, London: The British Property Federation (BPF) launches today its Covid-19 recovery roadmap Building a Shared Recovery, to enable the real estate sector to deliver the private sector investment that will be essential to support the Government’s ambitious investment plans and its ‘levelling up’ agenda.
The BPF’s Building a Shared Recovery is an holistic framework with immediate and longer-term policy suggestions – to feed into both the Chancellor’s recovery measures in July and the Autumn Statement later this year – to better support investor-developers, the construction sector, and businesses and communities across the UK.
The BPF urges the Government to adopt the plan’s recommendations, as real estate investor-developers currently plan to reduce vital investment in the UK by £1.2bn in the financial year 2020-2021.
BPF members – the UK’s leading property investor-developers – were surveyed for their intended spend pre-Covid-19 on new development projects in the UK during the financial year 2020-2021 and, when considering the impact of coronavirus on the economy, whether they have since revised the total volume of intended spend.
Respondents revised their intended spend by £1.2bn – a total of £3.9bn has been reduced to £2.7bn.
The survey included investor-developers with interests in retail, offices, mixed-use and residential property.
Building a Shared Recovery has been published in full on the BPF website here, and includes –
To support town centres – to drive more investment into creating more responsive, fit-for-purpose high streets and urban centres, new government policy should include:
To support housing supply – to drive more investment into the delivery of new high-quality homes, new government policy should include:
Mitigating climate risk must be central to recovery.
The Government has yet to be clear about how it is going to align Covid-19 recovery policy with its ambitious environmental goals, but we urge Government to ensure that it is an exemplar in its own investment programme and considers how all of its policies – including those contained in this BPF Building a Shared Recovery roadmap – can be used to incentivise faster progress towards net zero carbon and environmental net gain.
Melanie Leech, Chief Executive, British Property Federation comments:
“The Government’s ambition to invest in infrastructure and the built environment is welcome but will only be delivered in partnership with private sector investment and activity.
“Real estate investors are clearly concerned about the year ahead as they are impacted by Covid-19 and the Government’s action to restrict their commercial rights, and as they divert resources to support their residential and commercial tenants. Any reduction in new development in our towns and cities will apply significant pressure on construction jobs and local economies.
“Commercial real estate will be at the heart of delivering economic and social recovery, levelling up the country and rebalancing regional economic inequalities. Getting people back to the workplace, and onto our high streets and into our shopping centres, supporting new entrepreneurs, and unleashing the capital that is ready to invest in new homes, environmental improvements and business premises should be central to recovery.
“The proposals in our Building a Shared Recovery plan should help to reassure investors of the Government’s support for the real estate sector, and to enable the sector to maximise its role in supporting the UK’s future. With the right policy framework, underpinned by a new sense of bravery and creativity to support us in overcoming the challenges ahead, we stand ready to work as supportive partners investing in people, property and places.”