The politics of property – opportunities in Real Estate

Politics has dominated the news in 2024 & we now have a new government for the first time in 14 years. What does this mean for professionals pursuing a career in Real Estate?

Politics & property are intrinsically linked, both in obvious ways such as legal reforms directly affecting the sector but also indirectly through the government’s economic policies. Our future leaders will need to engage with these issues, whatever their political persuasion, in order to take effective strategic decisions about development, management & investment.

For those interested in policy, and the intersection of politics & industry, the Real Estate world presents a range of opportunities to get involved with work that has a direct impact on where (and how) we live and work. For example, property consultants must understand the key factors affecting particular types of property and use this knowledge to help clients to come up with innovative solutions to complex property needs. Asset managers are responsible for the performance of real estate investments and oversee property portfolios to maximise returns for investors. They can be involved in analysing market trends, negotiating leases and making high-level strategic decisions. Investment analysts evaluate investment opportunities through financial modelling, monitoring market trends and considering how government policy might impact upon the future outlook for the Real Estate sector. Other professionals in wide ranging roles (such as lawyers, surveyors, planning experts, estate agents, civil servants and housing professionals), must all engage with policy to deliver results. 

Real Estate covers a diverse range of sectors but it was residential property that featured most heavily in the manifestos published in the run up to the recent General Election. However, housing is also relevant to those operating in the commercial real estate world with the ‘living sector’ becoming a core component of real estate investors’ portfolios. The living sector covers all types of living, from student, to build to rent, co-living, single-family housing, traditional homes for sale, retirement living and everything in between. It is easy to see the direct impact of government policy in this area, with development targets and reforms affecting all stages of the building lifecycle from planning to the occupation phase. The government has pledged to build 1.5 million new homes but the success of promised planning reforms will be a key factor in determining whether these numbers can be delivered. The industry also needs to grapple with policies affecting existing housing stock. A high-profile example of this is building safety where major changes were introduced following the Grenfell tragedy for the protection of leaseholders and occupiers, with the government indicating that further reform is on the horizon. Energy efficiency remains a topical issue, both from the perspective of environmental sustainability & also reducing fuel poverty for occupiers, and we can also expect significant change by way of further leasehold reforms in the future.

Working in Real Estate is about relationships as well as buildings, and professionals can also get involved in industry groups which may seek to influence government policy. The proposed new Reserved Investor Fund (RIF) provides an example of this as several industry organisations, such as the British Property Federation and the Investment Property Forum, have voiced support for the initiative. This new fund, if progressed by the government, will be an onshore vehicle that aims to help encourage domestic and international investment in essential UK projects such as affordable housing, regenerating town centres and working towards net-zero goals.

Real Estate is an industry that intersects with all aspects of society and there are many exciting career opprtunities for those who are interested in how policy is applied in practice. The electoral candidates in the 2024 General Election included a surveyor, a property fund manager, a planning solicitor and a former town planner. So, if you are passionate about influencing people’s lives, who knows where a career in the Real Estate industry might lead..?!

This article was written by Laura Sheftel and published by Estates Gazette.