Housing, devolution and keeping up with the northern powerhouse were the hot issues generating debate at last week’s Birmingham Question Time.
Just weeks before the Midlands engine rolls into the MIPIM conference in Cannes, 150 property practitioners heard an expert panel discuss whether a West Midlands Combined Authority would have a positive impact on the region’s housing supply.
Birmingham has a housing shortfall of circa 100,000 homes, and it was agreed this was a fundamental issue for the region. Building more residential space – either for sale or for the private rented sector – and open-mindedness by local authorities was key, the experts concurred.
Debating in The Studio events venue on Cannon Street, they did not agree on the remedying effect of a combined authority.
Barry Allen, head of Savills’ Birmingham office, said: “As I understand it, although planning powers could come down to a combined authority, they will not take them.
“Therefore, in terms of housing delivery, my view is a combined authority won’t have a direct impact on numbers.”
It was a stance in contrast to fellow panellist Duncan Sutherland, regeneration director of Sigma Capital – one of the biggest providers of housing in the regions – who argued a combined authority would “have a massive role to play”.
“The region’s housing supply and the infrastructure required will come through the combined authority and the LEP. If Birmingham wants economic growth it needs to look at its housing stock,” he said.
Sutherland, who is also a non-executive director on the board of HS2 and an advisory board member for the UK government’s Regeneration Investment Organisation, said that Sigma has a £200m pot to invest in private rented housing in the Midlands, and a target to build 10,000 homes across the UK over the next five years.
“We’ve built 1,000 in the North West, where Liverpool and Manchester’s local authorities have been instrumental and welcomed us because they want economic growth. In the West Midlands we have a problem in that we cannot get sites, and that’s a real issue for us.”
He added that a “change in perception” in how PRS works is necessary to attract investment.
“It is a different offer. There’s a real discussion that needs to take place here with the city council and the combined authority about how we do this.”
John Clancy, the newly elected leader of Birmingham City Council, assured Sutherland that talks had already taken place on this issue.
“The combined authority will establish a land commission and part of that process will be trying to bring land forward as part of that process and there will also be a land remediation fund,” he said.
Clancy added that matching capital and bringing new capital to the city was vital to create the right circumstances for growth to happen. He suggested the formation of “Brummie Bonds”, and not “going cap-in-hand to London”, could be a way forward.
Carol Coombes, chief executive of Cracking Leadership, said dealing with the housing shortage should be inherent in the role of the combined authority.
“We don’t have the luxury of getting this wrong. We need to diversify housing supply – there are certain dealbreakers in terms of talks around the table and this, for me, is one of them,” she said.
The debate turned to Birmingham’s ongoing rivalry with Manchester, though the north’s threat to the city’s economic future was widely dismissed by the panel.
“Birmingham needs to forget about the northern powerhouse,” said Citibase chief executive Steve Jude. He said that with the redevelopment of New Street station and the relocation of HSBC’s head office from London, Birmingham could genuinely be considered the second city ahead of its northern rivals.
“The northern powerhouse is a fantastic brand, which happens to be in George Osborne’s constituency, but I am not sure what is actually going to be delivered. Birmingham has got it all going on already, but it’s not branded well,” Jude added.
Clancy said: “Birmingham is the most investible city in the UK and the sixth in Europe. We are ready to take off. We will match Manchester and overtake it.”
And that confidence would show in the built environment, said Michael Whatley, real estate partner at law firm Mills & Reeve. Batting away a suggestion from one of the audience that large-scale developments such as Arena Central and Paradise Circus could stifle other schemes, Whatley said: “That’s about developing confidence in Birmingham and the wider West Midlands.
“You wouldn’t say Brindleyplace has prevented developments elsewhere in Birmingham. It is about increasing the overall brand of Birmingham and improving the city core as a place where people want to do business, and we should be very positive about that.”
Andy Mielczarek, head of distribution UK at HSBC, said Birmingham offered a lifestyle to its staff that could not be found in London.
The global banking giant announced last year it would relocate the head office of its ring-fenced bank to Birmingham, moving 1,000 head office roles from the capital and adding to its existing workforce of 2,500.
“The dialogue we are having is that it is much better to live here than other places in the UK,” Mielczarek said.
He added: “Birmingham doesn’t do a good job of branding.”
Do mayors matter for business?
Andy Mielczarek: “They matter to government. Partnership working is important.”
Duncan Sutherland: “It’s good to have a figurehead. I wouldn’t knock the mayor situation. Liverpool has had a mayor for five years now and that’s changed the city phenomenally. Liverpool was a mess from a corporate point of view. Joe Anderson took it by the scruff of the neck… and gave a real focus to everyone.”
Click here to listen to the event, follow the debate on Twitter using #egqtbrum and look at the picture gallery of the event below
