BTR: Resilient Now and in the Future

If you missed our Sustainability Summit on Friday 12th March, I would commend you to watch back the sessions, now available via our partner platform, Unissu.  I think you will conclude, much as I did, that the sector is showing great resilience in the face of current challenges compared to some peers, but that further engagement is needed. As Damian Wild reminded us in our Challenge Session, The real estate industry uses 40% of energy, accounts for 20% of all water use and uses 20% of all materials.  The message on environmental performance appears to be gaining ground in the sector, but as Damian also noted the industry’s social performance is more difficult to quantify and yet is becoming subject to increasing oversight when developments are planned.  A topical case in point in the few days has been tragic case of Sarah Everard, and the circumstances surrounding it coming to the fore around International Women’s Day, with many calling for a consideration of how the fears of those who feel unsafe in public spaces can be alleviated.  Finding ways to address emergent industry and society needs and use cases, by bringing together industry experts to collectively puzzle them out, are particular motivations behind our work on a Best Practice Guide, which will be bearing fruit later this year.  

It has been striking in the last week or two to note movements or reconfirmed commitments by the likes of Hammerson and John Lewis to commit to the Build to Rent Industry (see news items below). The extension of moratoria in the last few days until at least the end of May, and more likely June, continue to store debt in the system for asset classes with poorer retention, but as Mark Bladon observes in the Bloomberg piece we link to in the newsletter below, there are still some regulatory and other risks associated with BTR that could be mitigated.  

Resilience, therefore, to me is about more than just retention of customers and about anticipating what comes next. If the last year has taught us anything, it’s best to be prepared. 

Finally, a thank you to all members that supported the UKAA’s participation in Landaid’s Sleep Out to Help Out.  I am pleased to say that as a collective we raised over £3000 for the cause (over four times our target amount), contributing to a total raised so far of over £300,000 among all participants. 

I wish you all a good week.  On with the newsletter… 

Best Wishes,

Dave Butler