This op-ed was written in response to a comment piece by Palace Capital’s chief executive Neil Sinclair, which EG published on 19 January: Root-and-branch reform of RICS is long overdue.
2020 forced us to adapt and transform homes into schools and workplaces. Our own mini commercial sector, all under one roof. But now, as fatigue kicks in and desire for shopping, eating out and even returning to the office grows, there is – as we know – huge opportunity to make substantial change for the better in how the UK shapes the future commercial sector. And a lot of this will likely come as much from behind-the-scenes efforts as those that are more visible.
RICS continues to work with the government and stakeholders on some of the biggest issues that not only impact those who operate in the sector, but all of society. Wider questions on the future of our towns and city centres has been central to RICS’ political engagement for many years. With our unique position of working across the whole property life cycle as well as our public interest remit, we bring balance and perspective to crucial conversations.
From the start of the first lockdown, we worked quickly to provide comprehensive guidance for our professionals, providing clarity on how they could carry out their duties safely. This guidance provided reassurance across the commercial market and enabled vital work of inspections, site visits, valuations and surveys to continue. We also worked closely with the government on developing its code of practice – to encourage commercial tenants and landlords to work together to protect viable businesses. It encourages tenants to pay their rent in full if they are able, and advises that others should pay what they can, while acknowledging that landlords should provide support if they too are able to do so.
We have made it clear that relationships between landlords and tenants have in many instances fractured and there is a need for a comprehensive review of the statutory framework that exists. The government’s review of commercial landlord and tenant legislation is a step in the right direction to make change, and we will play an active role in looking at the future of commercial property and its role in the regeneration and renewal of local communities.
RICS’ goals are usually simple, but the path is sometimes hard. We encourage collaborative working to seek long-term resolutions to issues faced by UK society. This is no different in the commercial sector as we promote cooperation between landlords and tenants to find solutions and provide them tools to support where there are gaps in the process. Our recently launched commercial rents independent evaluation service builds on this spirit to diffuse current tensions and bring forward meaningful negotiations to resolve rental disputes.
As the commercial property sector continues to come to grips with the profound socio-economic impact of Covid-19, RICS is naturally looking ahead to see what trends have been accelerated and how this will impact future use of, and demand for, buildings.
Whether we love it or hate it, homeworking will be an everlasting part of our lives. To understand the impact that working from home has had on people and to make sure any return to the workplace is permanent and not temporary, we are working closely with firms such as Leesman to develop robust data to help us lead our future decisions.
Eventually we will emerge from this crisis, but our perception of buildings, their location and what constitutes value will be profoundly changed. Issues such as the growing prominence of sustainability, mental health and employee wellbeing have not gone away; they are more relevant than ever before. RICS is developing standards to reflect this.
Future will always bring change, and the UK needs a fully functioning commercial sector for a solid economy. RICS will continue to lead and challenge on the biggest topics that will eventually change the way we visibly live and work.
Paul Bagust is head of property standards at RICS
