Sunak calls election: industry reacts

Some talked of relief and investor certainty, while others warned “there is no pot of gold”. Property leaders have largely welcomed the General Election called yesterday by Prime Minister Rishi Sunak for Thursday 4 July.

Speculation mounted throughout yesterday that Sunak was building up to calling an election several months ahead of the mandated end of the current Parliament, and so it proved, with the news confirmed at around 5.30pm amid a rain-lashed press conference.

With Labour ahead in the polls, change is expected. But property leaders across the region and nation are under no illusion about the scale of the bigger picture issues the nation faces, and the difficulty in tackling them.

Reaction

Kenneth Wood, Manchester-based managing director of construction and real estate consultancy Drees and Sommer UK: “You don’t have to work in Treasury to know that whatever the outcome on July 4 it’s evident there’s no pot of gold to address the many and varied challenges we face as a nation – especially in terms of improving our social infrastructure in areas like schools, health and housing while accelerating decarbonisation across the board.

“There’s a very obvious need for progress on issues such as the housing crisis, transport, planning reform, and attracting investment into UK Plc. It will be the sincere hope of everyone in UK property and construction that whatever administration the vote produces, it’s one that listens to our industry,  and proves to be an enabler of change for good.”

Dave Dargan, chief executive and co-founder of Starship: “Affordable housing must be a central focus in both parties’ pledges for the upcoming general election. Quality housing significantly impacts health, education and overall living standards – issues that are set to dominate the national debate in the next six weeks. Strong and committed leadership is essential to ensure more homes are built, with modern methods of construction playing a crucial role.

While both parties have pledged to meet the target of building 300,000 homes, it’s not just a numbers game, prioritising low-carbon housing is vital given the housing crisis has worsened. We need to provide homes that do not put energy cost pressure on families, as spending less on energy frees up more disposable income that ends up in the wider economy.”

Sean Keyes, chief executive of Sutcliffe: “There are three main pillars that impact us as a business: the economy, housing and the NHS – issues that also resonate with voters. In terms of the economy, all businesses desire low inflation, financial stability, global stability and a good, solid economy that is growing steadily. There’s no denying that the economy is currently stronger and more stable than it has been in years. However, we would like to see a more even distribution of government spending in the North.

Rico Wojtulewicz, head of policy and market insight at the National Federation of Builders: “Housing and construction were not mentioned as one of the Prime Minister’s successes and unfortunately this is because housing and construction have been failed by this government. If Britain is to grow sustainably, its next government needs to reform planning, understand the commercial impacts of its decision and most importantly, talk to those they will rely on to implement their promises.”

Melanie Leech, chief executive of the British Property Federation: “Investors need certainty. An earlier election will give us that and is a golden opportunity to reset the relationship between the real estate sector and the next Government, as called for in the BPF’s manifesto ‘Building our Future’.”

Jennet Siebrits, head of UK research at CBRE: “A general election was expected to take place in 2024, albeit later in the year, but was consequently already factored into our forecast overall. Bringing the election forward will give the UK certainty over the new administration sooner. From an economic and property market standpoint it is unlikely, at least for the remainder of this year, to result in any substantial change to market dynamics, although this will become clearer once the final manifestos are released. What the election will do is give one party a mandate for five years, and will provide a fresh start for the UK regardless of the outcome.”

Simon Atha, associate director for the Midlands and Nort at planning consultancy Boyer: “The housing crisis is a pressing issue that has plagued the UK for far too long. With a new Government potentially taking office on 4 July, there is hope that real change can finally be brought about to tackle this crisis head-on.

“First and foremost, re-introducing mandatory housing targets for local authorities is crucial. Local councillors should not bear the burden of determining housing need in their communities, especially when faced with opposition from a vocal minority opposed to housing. By setting clear and objective housing targets at the national level, local authorities can focus on delivering the necessary housing in their district, without being swayed by local political pressures.

Simon Harris, chief executive, Avrenim: “The upcoming general election is a critical movement in shaping the country’s future. Decarbonising the NHS estate and investing in renewable energy sources for large infrastructure will be central topics that will dominate the national debate over the next six weeks. For the facilities management sector, which makes up 3% of GDP, this period could be monumental.

“Political parties will now debate whether prioritising sustainability can be a winning strategy. I believe it can be. I think that the FM sector can significantly benefit the broader economy, especially as the incoming government is expected to prioritise the construction of new hospitals and large estates, while also investing in the upkeep of older buildings.”

• This is a developing story, and will be added to throughout the day