Insights from Pro Manchester’s Property Lunch 2024

By Beth Rogers, The PHA Group

Last Thursday, October 10th, business leaders gathered for Pro Manchester’s annual Property Lunch to discuss the pressing issues facing the built environment sector.

This year’s event, which was sponsored by Bee Net Zero, focused on two critical themes: the housing crisis and decarbonising the commercial property sector.

To tackle these topics, we were joined by a range of industry experts:

• Suzanne Benson, Head of Trowers & Hamlin’s Manchester Office
• Dr Fran Darlington-Pollock, CEO of Greater Manchester Mayor’s Charity
• Andrew Fairman, Partner at MSB Solicitors
• Sasha Deepwell, CEO of Irwell Valley Homes
• Heather Gray, Global Sales Director at Clockwise
• Alex Edwards, ESG Director at Bruntwood
• Samantha Nicholson, Director of Manchester’s Climate Change Agency
• Steve Fernandez, Global and UKIMEA Building Retrofit Leader at Arup

Here are the key takeaways from the discussions.

Addressing the Housing Crisis

The UK is currently grappling with a significant housing crisis, with record-breaking numbers of children in temporary accommodation. Local authorities are bearing a heavy financial burden as a result, spending a staggering £2.29 billion on temporary housing solutions.

The situation has become so severe that hotels have transformed into permanent residences for many individuals and families as they wait for social housing.

Challenges in Social Housing

Sasha shed light on several challenges facing the social housing sector, including inflation and viability issues which are severely hindering the development of new housing schemes. The situation has been exacerbated by the exhaustion of funding from the affordable homes programme, which has put several social housing developments on hold.

This is particularly challenging for Greater Manchester, where the region’s housing associations are responsible for delivering a third of homes across its boroughs. These organisations now face considerable uncertainty in their development plans, potentially impacting the region’s ability to address housing needs effectively.

The Private Rented Sector

Andrew provided insights into upcoming legislation that will significantly affect the private rented sector.

The Renters Reform Bill, set to abolish Section 21, aims to provide greater security for tenants, while the introduction of a private sector ombudsman, along with more regulations, is also on the horizon.

While these changes are designed to protect tenants, Andrew outlined how the possibility of these new regulations could lead to fewer private landlords participating in the market, potentially adding to the housing crisis by further reducing available housing stock.

Potential Solutions

Fran and other speakers proposed several solutions to address the housing crisis, emphasising the need to unlock affordable and social housing through systemic reform, coupled with improvements in construction sector skills. Accelerating the planning system for affordable homes was highlighted as a crucial step too.

Drawing inspiration from Finland’s approach, speakers advocated for adopting a “Housing First” philosophy. This strategy prioritises providing stable housing as a foundation for addressing other social issues.

Additionally, there were calls to de-stigmatise social housing and strengthen the social security system, recognising that a comprehensive approach is necessary to tackle the multifaceted nature of the housing crisis.

Decarbonising our commercial assets

On the day of our Property Lunch, Manchester Climate Change Partnership’s also published its report Accelerating Net Zero: Retrofit of Commercial Buildings in Greater Manchester, which provides a decarbonisation pathway for the city’s existing commercial buildings.

It was only right, therefore, that our panel discussion on decarbonising commercial properties centred around the importance of retrofitting existing structures.

It’s estimated that 87% of existing buildings in the UK will still be in use by 2050, highlighting the urgent need for improved performance in our current building stock.

Alex emphasised that retrofitting often has a lower carbon footprint compared to demolition and new construction. This insight challenges the notion that new, energy-efficient buildings are always the most sustainable option.

Challenges and Opportunities

Speakers identified several challenges and opportunities in the realm of sustainable building. A significant knowledge gap exists in the industry regarding retrofitting possibilities, highlighting the need for education and training.

However, Steve also pointed out that quick wins can lead to substantial reductions in energy bills—often 20-30%—without the need for deep retrofits. This approach could make sustainability measures more accessible and appealing to property owners.

The speakers stressed the importance of tailored strategies, advocating that each building needs its own unique pathway to achieving net zero emissions. In addition, Samantha emphasised the crucial role of tenant engagement in optimising energy use and enhancing overall building performance.

Policy and Market Drivers

The discussion highlighted the need for supportive policies and market incentives to drive sustainable practices in the property sector. London’s requirement for third-party reviews of demolition proposals was cited by Steve as an example of policy driving a shift towards retrofitting.

Speakers also touched on the importance of rebalancing energy prices to make sustainable options like heat pumps more commercially viable.

On a positive note, Alex noted a growing “green premium” in the market, with an increasing number of customers inquiring about sustainability features in properties. This trend suggests that sustainability is becoming a key factor in property valuation and selection.

Looking Ahead

The event concluded with a call for increased collaboration between the public and private sectors, as well as a need for more ambitious action to meet carbon reduction targets. As Samantha noted, “The pace and scale of action needs to increase. There are no more silver bullets.” This statement encapsulates the urgency and complexity of the challenges facing the property sector.

The event provided valuable insights into the complex challenges facing the property sector, from addressing the immediate housing crisis to ensuring long-term sustainability. It’s clear that innovative solutions and collaborative efforts will be crucial in shaping the future of property in Manchester and beyond.

As the sector moves forward, balancing social responsibility with environmental sustainability will be key to creating resilient, equitable, and thriving communities.