Former British Property Association (BPF) figures have outlined what they believe should be a newly formed real estate lobby group’s priorities.
The new group, Real Estate:UK (RE:UK) was formed through the merger of the BPF, the Association of Real Estate Funds and the Investment Property Forum.
A new report argues that the merger can combine the BPF’s policy and advocacy experience, AREF’s expertise in capital, funds and regulation and the IPF’s research capabilities.
The Delivery Mandate: How Real Estate:UK can earn influence is a discussion paper authored by former senior BPF figures: Andrew Teacher ofLauder Teacher Associates, Peter Cosmetatos of CREFC Europe and Ian Fletcher who recently retired from his role as BPF policy director – real estate.
NEW PRIORITIES
It argues that RE:UK must rebuild the property sector’s political, media and investor voice after years in which the sector’s influence has weakened and damaging narratives have been allowed to take hold.
The report suggests housing should sit at the centre of RE:UK’s case because it is the part of real estate voters most readily understand and the clearest demonstration of how long-term capital can deliver public benefit. It says institutional housing can help close Britain’s delivery gap where planning, regulation and policy provide sufficient clarity and confidence.
The authors argue that the case also extends well beyond housing. Institutional capital provides real solutions to healthcare, research and development, logistics and supply-chain infrastructure challenges, as well as the data centres, defence and advanced manufacturing facilities needed to strengthen Britain’s economy. It requires the organisation – and its members – to come to the fore with real solutions and meaningful ideas that extend “beyond buildings”.
The report is being published on the eve of the inaugural RE:UK Annual Conference, which brings together many of the industry’s leading investors and decision-makers, including James Seppala, chairman of Europe and head of real estate Europe at Blackstone.
TOUGH QUESTIONS
According to the former BPF executives, RE:UK should begin by asking where real estate can help government solve a political, social or economic problem, rather than producing another list of demands from the industry.
It also calls on RE:UK to get ahead of regulation and help shape workable policy before positions become entrenched. The authors argue that sensible regulation can raise standards, protect customers and distinguish serious, professional operators from poorer parts of the market responsible for much of the sector’s reputational damage.
The report recommends a permanent in-house capability combining communications, public affairs, policy expertise and evidence-based research. Internalising these functions is critical for credibility and execution. Engagement and storytelling have been two of the sector’s biggest gaps, the report says.
Importantly, the new organisation must protect the technical expertise developed by the three predecessor bodies – which will be critical as reforms to pensions take hold. the report adds.
It also argues that membership should reflect the market as it exists today, including pension funds, private capital, overseas investors and specialist operators.
The paper makes six recommendations:
1. Lead with housing
2. Get ahead of regulation
3. Build a permanent engine room combining communications, public affairs, policy and research
4. Represent the market that now exists
5. Give external influence and internal delivery equal weight
6. Earn trust before claiming influence
The authors also warn that, without a co-ordinated argument connecting investment to housing, growth, jobs and public benefit, real estate risks losing both capital and political relevance
Teacher says: “The merged organisation brings together some highly skilled, passionate experts and the critical thing now is rebuilding the culture needed to fully leverage this talent and ensure the sector’s story starts cutting through again.
“The sector needs to spend less time talking about itself and more time asking what real estate can do for Britain’s growing pile of social and economic challenges. Housing should lead that case, but the opportunity is much wider: institutional capital can help government deliver better health facilities, logistics, innovation, defence infrastructure, retrofit and stronger places.”
