The soaring cost of housing is perhaps the biggest threat to London’s economy, according to panellists at Estates Gazette’s latest Global Real Estate Debate. That and overpricing were the chief concerns among the heavy hitters who spoke at the session at the London Real Estate Forum.
But are those fears shared by the next generation? Estates Gazette asked some of our Rising Stars of 2015 what they thought of London’s prospects.
Knight Frank’s Tim Lowe, who last year sought to live in Zone 2 for less than £500 a month, said the lack of affordable housing was pricing out young professionals. “We need to see a coming together of politicians, local governance and property professionals in tackling this issue and providing a holistic and sustainable solution,” he said. “More public space needs to be made available and to the right projects.”
Labelling London “a fantastic place to live and work, with huge potential”, Victoria Lockhart, wellbeing and sustainability specialist at Arup Associates, said the issues facing the capital were broader than housing, with social equity and “liveability” the principal challenges.
“London needs to start responding to the liveable cities agenda, promoting inspiring public realm and healthy, safe environments in which people can thrive, if growth and prosperity is to continue in the face of an aging population, a war for talent, and shifting priorities across emerging generations.”
Previous speakers at EG events have cited Austin, Texas, home to the South by South West Media festival, as perhaps the fastest-emerging world city. For Lockhart, it is the likes of Copenhagen, Vancouver and Melbourne whose qualities London should look to match on a “much denser, larger urban scale”. She urged city leaders to ensure they were “evaluating people and social metrics alongside harder financial parameters, and putting the needs of communities at the centre of policy”.
Soho House’s Rosamund Allen said London’s delicate balance needed to be maintained. “Our capital is filled with a wonderful combination of innovative businesses, small-scale forward thinkers, large corporations and international investors, who all need to remain flexible and able to respond to the pressures on supply as resources come under strain. Power is shifting from buyer to supplier in the London market, and this will impact prices as well as material availability in the construction market.”
Manchester the magnet
For Ross Bailey, founder and chief executive of retail pop-up operator Appear Here, transport, as well as housing, is a top priority. “Fixing the housing shortage via a combination of new development and improved transportation is key to keeping the city liveable and accessible to the diverse mix of citizens necessary to keep the city vibrant.
“Many young workers who would have made their way to London a generation ago are opting for places like Manchester, Birmingham and Dublin, which offer many of the perks of big-city living at half the cost. The other modern global metropolises London competes with that still capture marginal young creative types are gaining on London fast.”
Ultimately, London needs to counter competing forces. “Failure to strike the right balance in this wave of development is the biggest threat to London,” Bailey said. “You can build big glass boxes full of multinationals and luxury condos anywhere. The trick is to figure out how to do it without sacrificing the character of the city and how we maintain the stream of new ideas and creativity that keeps London vibrant, keeps attracting those creatives and influencers.”
Estates Gazette is producing a printed review of this year’s London Real Estate Forum. Click here to request your copy.
