11th Feb 2014 12:48
LONDON (Alliance News) - The property industry should strongly consider working more closely with the public sector to develop schemes in the UK, industry experts urged Monday.
New development and regeneration opportunities are opening up as the economy recovers but taking advantage of them depends more than ever on the ability to form property partnerships and joint ventures that get the best out of both the public and private sectors.
Speaking at a British Property Federation conference, Mike Jones, Chair, LGA Housing and Environment Board, said, "The government has made some profound changes about the way local government is financed and [Communities Secretary] Eric Pickles has made it absolutely clear that for the foreseeable future which is probably the next five to six years councils are going to see a decline in income.
"The only way they are going to increase their income is by building houses and business rates. That means the more enlightened councils who are thinking about this actually want to talk to you guys in the private sector as they want your ideas, your thoughts, your support, your capital and your ability to take and manage risk," he added.
Jones said property companies should take advantage of local authorities assets to make profit.
However, the industry was warned to choose public partners carefully and not assume the "political make-up" of an authority will enhance or speed up the process.
"I think what you are looking for is finding the right people with the right common vision and combining commitment to make these schemes fly and of course the joint reward systems that are put in place," Andrew Savege, Head of Rengeration, Morgan Sindall said. "Because at the end of the day its not just about sharing the risk, it's about sharing the reward as well."
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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