Commentary

Two challenges govt must overcome to succeed

3 December 2024 10:26 Promoted Content Comments (0)

The built environment is at the heart of Prime Minister Keir Starmer’s growth plans – but addressing project viability and the skills gap remain key to rebuilding Britain, writes Iain Gamble of Brabners.

These were two of the main issues highlighted during Place North Question Time earlier this autumn. Panellists, including Salford City Mayor Paul Dennett and Homes England’s Mike Palin, discussed the optimism within the real estate sector after the Autumn Budget promised a significant commitment to infrastructure spending, including £500m for affordable housing. With plans since announced to unlock further funding through pensions reform, our sector is vital to Labour’s vision for the future.

While we await the detail of these reforms – as well as an update on the National Planning Policy Framework consultation – there remain issues for us to address to ensure any fresh investment is deployed effectively.

Cost challenges

One of our biggest delivery challenges is the cost of remediating brownfield land. While critical to future housing plans, remediation continues to create a significant viability gap for many projects. Public funding to bridge this gap remains essential.

One solution would be to extend grant funding over a longer period, to give developers the certainty needed to plan effectively – particularly as the lead times associated with regeneration projects can transcend parliamentary cycles.

Similarly, we are also seeing viability issues linked to regulatory changes introduced to support net zero and building safety. This is being mirrored by a shift in resident demand towards safer, more sustainable spaces that better reflect the needs of local communities.

While this is undoubtedly a step in the right direction, such changes will inevitably have an impact on viability.

It’s encouraging to see so many developers taking steps to foster dialogue with local communities to inform a people-led approach to regeneration. There is growing recognition in the sector that these voices need to be heard to make projects successful, but consultations and implementation of recommendations will add to the cost burden for developers in an already challenging landscape.

Mind the skills gap

The skills gap is another key issue. The government’s housing target of 1.5m homes will be difficult to meet if there simply aren’t enough skilled workers to deliver them.

At Place North Question Time, Landsec’s Laura Percy spoke about how we need to look not just at the skills needed for the work of today, but also those that will be pertinent to the jobs of tomorrow. Bradford Council Leader Cllr Susan Hinchcliffe echoed her sentiment, putting skills as one of the top three items an authority must get right to be successful, alongside transport and culture.

The government’s creation of Skills England is a step in the right direction, by bringing together employers, educators, and policymakers to ensure technical education is fit for purpose and what growth sectors should be the focus.

As an industry though, it’s important we continue our work to remedy this rather than rely on government and the education system alone to fix things. Our upcoming Building Links event on 4 December will provide a forum for construction and property professionals to consider practical solutions.

True North

All of the above requires greater collaboration and a united front in the North. The role of devolution and metro mayors can’t be understated as mechanisms to achieve a more sustainable, innovative and equitable future – but neither can the influence of the private sector, particularly when local government budgets are stretched.

Better collaboration between both is a key objective of our True North network. Launched last year to unite the region’s most influential and driven voices, the network now has more than 300 members.

Earlier this year, we also launched the True North Advisory Council to open up meaningful dialogue with the region’s political stakeholders. Currently, the council is focusing resources on four key areas: purpose and social impact, skills, and the future, innovation, and sustainable growth – priorities that tie directly into the real estate sector.

If you are keen to support regeneration and its role in unlocking the potential of the North, I’d encourage you join us at this critical juncture where policy, funding and regulation are evolving at pace.

For more information, visit: brabners.com/true-north.

Real change involves more than just polite words. At Place North Question Time, those gathered were hungry for action. So are we at Brabners. Join us as we campaign for a better future for the North.