The British Property Federation (BPF) has recently released a ‘general election manifesto’ which proposes a number of policies designed to provide a ‘turbo boost’ to the UK property sector.
In the manifesto the BPF says that real estate “is central to our economic infrastructure” and “it provides flexible, modern space for businesses, supports research and innovation, and helps attract overseas investment to the UK”.
According to the document, the UK pension and insurance funds own £116 billion of UK commercial property, of which £75 billion comes from directly owned commercial real estate and £41 billion is via investment schemes.
Here are a few of the highlights from the manifesto regarding the commercial property sector:
Rental costs are one of the important factors for commercial property occupiers and the document, calls for a flexible rental market which would be more beneficial for companies who wish to expand or relocate their business, without issues of large fixed costs. This in particular would benefit small businesses.
The manifesto says that business rates have lost touch with the property market. Business rates continue to rise with inflation even where rents fall causing difficulties in struggling towns. Ideas to improve this situation are:
It also advises that large mixed-use developments should get more recognition as nationally significant infrastructures, so, in return, the properties can be delivered to market more quickly.
It stresses that GP surgeries, hospitals and care homes are in dire need of renewal, by taking an approach to funding that “will unlock essential investment to modernise the healthcare estate”.
Melanie Leech, Chief Executive of British Property Federation, said regarding real estate in the UK: “We need it to create flexible, modern space for business, to strengthen the UK’s global competitiveness, and to regenerate the towns and cities in which we live and work”.
She goes on to say that the manifesto shows “the ways in which the industry is committed to building on its successes and strengthening the UK’s future”.
Meanwhile, Bill Hughes (pictured), President of the BPF and head of Real Assets at Legal & General Investment Management, commented: “Never has the real estate sector had such a pivotal role in the future health of the UK economy. Alongside infrastructure, it is a key driver of growth, productivity, employment and a long-term determinant of the quality of the built environment in which we live.
“It is essential that the next wave of politicians fully recognise the issues that will allow the industry to deliver the necessary and crucial investment into the UK and to deliver on the ground”.
To read the BPF’s Manifesto 2015 click here.
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