On May 18, Account Director Harriet Knowles attended the Estates Gazette Annual Property Summit in Manchester. Here, she summarises the main points and take away questions from the event. For more information on anything discussed below, contact Harriet on email@example.com.
Amongst many graphs, figures and predictions, some headline points stood out from the economic and market forecasts, including references to Brexit, office rents and inner-city land values.
The Brexit vote hasn’t caused investment to plummet as some predicted, those who were in the middle of schemes are carrying on. However, things will undoubtedly get more challenging for complicated, long-term projects. The main investors are certainly less inclined to fund large schemes in their entirety and are looking to fund individual elements instead. The increase in international investment in the UK regions was a point that stood out. As it stands, 43% of large schemes outside of London are now all or part funded by non-domestic capital.
Land values are starting to rise in key regional cities. While seen as a good thing from a viability perspective, an increase in office rents may become an issue for Manchester’s competitiveness – will higher rents result in occupiers looking at other key northern cities such as Leeds and potentially Sheffield?
The issue of how European Regional Development Funding is going to be replaced was a hot topic of debate. Eamonn Boylan, Chief Executive of Greater Manchester Combined Authority, waxed lyrical about how the North West Evergreen Fund had provided debt finance to underpin several key developments. There was talk of a ‘crisis’ looming if ERDF isn’t replaced by the UK Government.
The week following Andy Burnham’s election as Mayor, it was interesting to hear Eamonn Boylan speak. His tone, while positive, was discernibly less celebratory and more focussed on what issues Greater Manchester still needs to grapple with. The new GM administration is going to have much more of a focus on addressing Greater Manchester’s economic divide. The focus will be on connecting disadvantaged communities to the opportunities in central Manchester. Boylan stated that development plans and measures of effectiveness will be about whether “someone from Collyhurst or Moss Side feels any benefit from what’s going on in the city.”
On the issue of housing, he restated Greater Manchester’s need for 225,000 new homes over 20 years. The draft Spatial Framework will be reviewed again with an aim of reducing the impact on the Green Belt; he explained that one way to limit Green Belt release is to go for urban intensification in Manchester and also to build within the regional towns. They will go back out to consultation on the GMSF in September.
All in all, the event provided useful insightful into the context of development in North of England, with a specific focus on Greater Manchester. Eamonn Boylan’s perspective on making development relevant and meaningful to the communities it affects, and to ensure that investment has maximum reach, felt particularly poignant as something we at Counter Context strive to achieve for all of our clients.