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LIZ HAMSON EDITOR-IN-CHIEF, BE NEWS

Will the next government breathe fresh life into the living sector?

WHY has housing plummeted so far down the political agenda? That’s the question many in the living sector have been asking in the run-up to the general election.

There are no easy answers as to why the normally hot campaigning issue has been so conspicuous by its absence from political debate.

Yes, other priorities have distracted politicians and yes, in the wake of the pandemic and Brexit, there is no money to fund previous housing targets (if there ever was). But that hasn’t stopped politicians before, and now, with Humza Yousaf having stepped down as Scotland’s first minister and prime minister Rishi Sunak’s position looking increasingly precarious, the gap between what they regard as populist politics and what actually is populist appears to be growing even wider, with housing just one of many casualties. So, where does that leave the sector?

For all the hype over single-family housing, little has actually been delivered and, as far as those who attended

the ‘Deploying Capital in the UK Living Sectors’ session I chaired at SPACE PLUS’s ALT/RESI event in April were concerned, the smart money is on purpose-built student accommodation, with build to rent likely to experience mixed fortunes in the year ahead.

This mixed outlook is reflected in the data. According to JLL’s UK Living Capital Markets Review, investment in UK living totalled £12.6bn in 2023 – down 30% on record levels of activity in 2022. However, it noted an improvement in Q4 and the latest Knight Frank Land Index & Housebuilder Survey found that Britain’s housebuilders saw a recovery in buyer interest and land purchasing activity in early 2024.

Could the outlook improve further? This April, Labour, who most think is nailed on to win, set out five ‘golden rules’ to “get Britain building”, encourage development on ‘grey-belt’ land and deliver on its pledge to build 1.5 million new homes within the first five years of government.

Time will tell if the rhetoric proves to be empty or not.

WHAT’S INSIDE

IN APRIL this year, new biodiversity net gain (BNG) regulations came into force covering small developments in England. As a result, more than a million SME builders must now invest in measures that increase local biodiversity by 10% to secure planning permission for developments.

Earlier this year, the same laws were introduced covering large sites. The statutory requirements are party of the Environment Act 2021 and require property developers to produce a ‘biodiversity gain plan’ (BGP) for development sites. Once ready, the BGP must be approved by the local planning authority before development is allowed to commence.

The plans have been widely welcomed by environmental campaigners and there has also been a lot of support for the proposals from within the built environment industry.

Oliver Lewis CBE, founder of Joe’s Blooms, which was founded in 2022 to help small developers comply with the new BNG regulations, believes the new rules are a “significant milestone for the housebuilding sector and for the country’s natural environment”.

He adds: “With small sites now a part of BNG, nature recovery will be at the heart of development in local communities and around the country. It’s important that developers of all sizes are supported to deliver on this ambitious plan to create more green spaces and enhance biodiversity, and at Joe’s Blooms we want to make it as quick, affordable and hassle-free as possible. If the sector as a whole gets this right, BNG is an opportunity for the country to lead the world in how to enhance nature through the planning system.”

One large developer in favour of the plans is Grosvenor, which started voluntarily applying BNG to its developments in 2022.

No pain, no gain

Experts have largely welcomed new BNG laws, but some are concerned they could slow down the delivery of much-needed new homes. Simon Creasey reports

“The expansion of BNG requirements to small sites from 2 April is welcome news,” says Drew Davy, senior sustainability insights manager at Grosvenor Property UK. “While not perfect, the regulations are among the world’s most ambitious and signal an important step forward in how we value nature in real estate.

“It’s crucial that all developments and construction projects – regardless of their size – place biodiversity at their heart. Be it to help reduce urban heat island effects or mitigate flood risk, increasing biodiversity is a core component of climate resilience.”

Davy believes developers shouldn’t just look to hit the government’s minimum BNG target –they should push for biodiversity gains

that go even further. “Where possible, we must also aim for greater uplift than the minimum 10% mandated by government and prioritise onsite interventions as much as possible –rather than near or off site, especially in urban areas,” he says.

“We’re already seeing repercussions of the climate crisis across the UK’s built environment. The real estate industry must now embrace regulatory change to improve wildlife corridors between assets, decelerate biodiversity loss and improve our climate resilience as a result.”

Despite the fact the introduction of the new laws was flagged a long time ago, research published by the government in June 2022

suggested only 5% of local planning authorities felt their current ecological resource was adequate to scrutinise all applications that might affect biodiversity and less than 10% felt that their expertise and resources would be adequate to deliver BNG.

Not ready

Research conducted by BDB Pitmans earlier this year found many local authority planning departments were still not ready to implement the new BNG rules. The law firm issued freedom-of-information (FOI) requests to all 317 local and 10 national park authorities in England and found just five had landowner Section 106 agreement templates in place for BNG sites.

We’re already seeing repercussions of the climate crisis across the UK’s built environment

Drew Davy, Grosvenor Property UK

Angus Walker, a partner and planning law specialist at BDB Pitmans, says: “We recognise that the BNG regime is still in its infancy, but the results of this FOI request do suggest that local authorities are at best not fully prepared or, worse, that they do not understand the regime at all.”

The findings of BDB Pitmans’

research, coupled with the government’s 2022 survey, has raised concerns as to whether the new laws can be introduced effectively.

As Rob Wall, assistant director at the British Property Federation, explains: “The property sector has a huge role to play in protecting and restoring nature, and many developers are already delivering BNG across their existing assets and new developments. The new mandatory BNG regulations will place an additional burden on already overstretched local authority planning departments.

“This is why we are calling on the government to set out a new long-term strategy for resourcing the planning system to ensure that planning departments have the capacity and capability to deliver on all fronts including on BNG.

“We will also be closely monitoring the implementation of BNG to understand the impact on development. This will include looking at local authorities’ approach to allowing BNG off site and to going beyond the 10% BNG minimum and monitoring how the market in BNG units is developing.”

It is still early days for the new regulations and many industry experts believe that local authorities will be able to rapidly improve their expertise and BNG obligations as they start to handle a higher volume of applications.

However, some are still concerned the new BNG laws could inadvertently act as a brake on residential development and the delivery of much-needed new homes in England, in particular. The property industry will be keeping a close eye on the situation over the coming months to see if these fears are realised.

ELENA

DIJOUR | SHUTTERSTOCK

It’s time to rethink social value

Delivering

social value requires strong leadership and genuine commitment, but the benefits for developers, communities and policitians alike are clear-cut

Rich Tyrie, chief executive, GoodPeople

IT should be easy.

Construction and built environment employers in this country are facing a chronic and increasingly acute skills crisis. According to the UK Trade Skills Index 2023, the construction and trades industry needs 937,000 new recruits over the next decade. This astonishing figure is necessary to cope with the combined impact of Brexit, rapidly changing skills requirements and an ageing workforce.

Growth in demand for net-zerorelated skills will further exacerbate the construction skills challenge. According to research around London’s net zero skills requirements, we need 163,000 years of labour, just to retrofit the existing housing stock in 12 central London boroughs alone.

Despite the red lights flashing around skills shortages for over a decade, the UK’s construction workforce continues to decline in numbers and is failing to backfill with new entrants. The lack of long-term planning and investment into skills will continue to come home to roost, with labour/build costs increasing as a result.

Meanwhile, our communities – in which developers often have long-term interests – face growing

crises: cost-of-living challenges; the inexorable rise of insecure work; stagnating wages; and growing unemployment, especially among our young people. This can’t be good news for owners or operators of long-term assets: functional, resilient communities on your doorstep are good for asset values; communities in an ever-downward social and economic spiral are not.

planning in return for their investment and commitment to delivering social value. They invest into their local community; locals benefit from skills and access to decent work and the lasting benefits that investment delivers; and politicians benefit from happier, healthier and more resilient communities. Developers’ assets thrive. A virtuous circle. Everyone, in theory, wins.

Despite the emphasis on social value, the gap between rhetoric and reality is stark

Whether speaking to communities or politicians, a range of good-quality jobs for local people is seen as one of the major benefits of development. Whether that’s driven by social value or Section 106 targets, developers are rightly seen as being among the main catalysts for delivering good, inclusive local growth. Local residents also get it: in return for new developments in their area, they expect access to economic opportunity for them and their families. The promise of jobs is, after all, one of the main carrots dangled during planning.

In theory, this should be a match made in heaven: developers secure

But the reality is often different. Having delivered impact programmes for 12 years, we’ve seen the evolution of this agenda since the outset. Despite the growing emphasis on social value, the gap between rhetoric and reality is stark. While it’s great to see such lofty ambitions, seldom do we see the commitment – and corresponding resources – to back them up.

Even when asset owners are genuinely committed to doing this well, by the time commitments have cascaded down through complex contracting processes and supply chains, the original intention to ‘do the right thing’ has been lost.

And the result? The virtuous circle is broken: the promise of jobs and impact doesn’t materialise; sceptical local authorities increasingly levy fines for non-delivery; local communities are more resistant to new development; and an available labour force shrinks and becomes ever more costly.

GoodPeople is a London-based social enterprise focused on delivering impact in the built environment. Its programmes – designed in conjunction with local stakeholders – deliver to local priorities, while generating measurable social, commercial and reputational benefits for clients. These include community engagement, social value strategy (from pre-planning through to delivery) and impact measurement and reporting. www.goodpeople.co.uk

It just makes good business sense to do this better. So what are the ingredients for creating meaningful community impact? What does good look like?

For the past decade, we’ve been designing – and delivering –social value and Section 106 impact programmes. While one size doesn’t fit all, there are common themes that you might want to consider:

Leadership and commitment:

Buy-in and support needs to come from the top, and that commitment needs to be consistent across all delivery partners, whether landowner, developer, main contractor or subcontractor.

Commitment to taking social value seriously shouldn’t be a stretch strategically. After a decade of austerity, the state faces the triple bind of increasing demands on public services, budgets that have decreased significantly in real terms and a corresponding lack of delivery resources to tackle problems.

The private sector has a role to play here, and this agenda isn’t going to go away, especially with the likelihood of a new Labour administration later this year.

Stakeholders expect it also: whether its attracting investment from institutional investors who want to see an ESG return, clients who want responsible suppliers or being

able to attract the next generation of talent – for whom this social stuff really matters – it’s important to be clear about your commitment to this agenda from the outset.

Commissioning and procurement:

Embedding an impact focus into the procurement process is essential. From market warming events, through tenders, to pre-start meetings and beyond, having a clear process in place ensures all partners in the development are contributing.

Drawing on the leadership point above, securing commitments from contractors at a senior level during the tendering process makes all the difference. Think you can retrofit your social value aspirations once the horse has bolted/the contract has been let? Think again.

Asset-based development:

Think not what community can do for you; think about what assets you can bring to bear. Do you have space that local community groups are crying out for? How can you creatively fill your jobs with local people? How might you support your tenants to better engage with the local community? What local partners do you want to support and partner with? How can you support local economy encouraging diverse local businesses into your supply chain?

Working out your role in the rapidly changing social value landscape is not simple. It requires leadership, genuine commitment and partnership working with a host of different actors, but the benefits are increasingly clear-cut. And as the number of social and environmental challenges we face continues to stack up, doing this well could just well be the gift that keeps on giving.

IRENE MILLER | SHUTTERSTOCK Sponsored

An untapped powerhouse

Real estate technology has the power to not only revitalise tired urban spaces but also to help create sustainable, happy communities

Guy Windsor-Lewis, chief executive, Locale

THE clock is ticking towards another general election and one of the things we are yet to really understand from any party is their stance on housing and real estate. One of the key markers is GDP and yet the past 13 years have seen 17 housing ministers revolve around the door and some pretty flimsy policies to say the least.

Many have talked a good game about growth and the need to boost productivity, but inaction seems to be the main course served on our platters. And yet housing demand is outstripping supply, Nimbyism does not seem to be abating and we continue to see archaic methods to both build and manage communities.

So are there are any answers? I see real value in mixed-use developments. Lifeless grey city centres and high streets once home to buzzing commercial environments, and a few too many supermarkets and not enough local stores selling locally produced products, are now crumbling and fracturing our communities. Combine that with the challenges of struggling commercial buildings and the desire for cost-

effective, value-for-money residential homes, and this surely has to be the model for the country.

An innovative approach to urban design, it seamlessly blends residential, commercial, retail and cultural spaces, creating vibrant and dynamic environments that cater to the needs of the entire community –the village life planted into urban city and town centres.

Think back to the days of the pandemic when so many people were dependent on others in their community for their groceries, medicine and a simple chat: the value and security of a community cannot be underestimated.

Increasingly, discerning lifestylefocused residents continue to place pressure on developers to create unique and flexible spaces. They need to be walkable and bike-friendly, with good transport connectivity and shared mobility options readily available. With a particular demand for amenity space, residents and visitors want a more meaningful connection to the outdoors and community spaces.

Amenities, such as community centres, galleries, outdoor gyms and pop-up spaces, enhance physical and mental health, which is at the forefront of design coming out of the pandemic. Modern mixed-use developments

can be the powerhouses of growth and productivity while also becoming the fabric of close-knit communities. Given the significant changes in the way we live and work since Covid, modern mixed-use schemes can become both national and regional hubs – the beating heart for highquality urban living, co-working, eating, last-mile logistics, online shopping and leisure facilities.

Reliance on tech

We are craving multifunctional, sustainable city design that can also integrate neatly with technology to enhance the living experience. Our daily lives rely so heavily on technology – from contactless payments and online banking via an app to on-demand streaming services for our TV and entertainment – so why not from where we live?

Real estate technology, if thought through and applied in the right way, can transform mixed-use

Oval Real Estate’s mixed-use development in Digbeth in the heart of Birmingham

Sponsored by

developments. But having technology alone isn’t enough. Tech is not meant to replace the human connection to our homes and communities; it is meant to create efficiencies for those running them and create seamless experiences for residents and visitors alike – and having this understanding is crucial to its success.

It is also worth mentioning that with the vast range of tech available, choosing the right tech that actually suits its stakeholders is vital. While having the latest smart tech gadget might look cool, it might not actually solve some basic fundamentals. Getting the basics right, on one hand, might not seem sexy but is actually the backbone of a successful mixed-use community. This might be ensuring the visitor management, helpdesk or even your access control infrastructure is fit for purpose.

At Locale, our platform is laserfocused on the occupier experience. Our portfolio spans over 80m sq ft

CONNECTING PEOPLE WITH THE SPACES THEY SHARE

Locale is the key to smarter building management, letting you achieve more meaningful connections with your customers, more efficiently than ever before.

across UK commercial, residential and mixed-use real estate. We have collaborated with clients to evolve our offering, ensuring building operations can be streamlined and enabling more effective occupier engagement and direct communication via bespoke content streaming.

At Oval Real Estate’s mixeduse scheme in Digbeth in the heart of Birmingham, we have tackled the challenge of direct occupier communication, especially as many of the buildings are multioccupancy. Oval required a system that would separate the different

needs of occupiers – such as permit requests, maintenance issues and room bookings – while remaining streamlined. The Locale app has become a one-stop shop for staff and occupiers to access when they need to communicate with each other.

At 3 Piccadilly Place in Manchester, Locale has been deployed to streamline building operations and direct occupier communication via bespoke content streaming. Using the new Locale platform, occupier engagement has been revolutionised and client retention levels have soared.

While the technology that was initially implemented served its purpose, we have also evolved the technology in line with the needs of occupiers and residents. Again, similar to how we upgrade our phones and agree to regular software updates for our apps, real estate technology has to evolve. We collaborate with clients and listen to their challenges and are constantly looking at introducing new services, ease of use and purposeful integrations that we know will make a difference. This is why our client retention levels are at a five-year high (92%) and usage across our platform has surged 30% in the past year.

Create a mixed-use blueprint that has sustainable technology integrated within it – not only will this repurpose and revitalise fledgling urban areas, but it will also deliver equitable futureproof communities that naturally evolve and become sustainable, efficient and, most importantly, happy.

Guy works closely with the senior leadership team ensuring strategic priorities are on track. He keeps a close eye on the day-to-day operations of the business, while acting as a strategic liaison point for many clients. He regularly meets people from across the real estate and tech industries.

Working smarter

Property lawyers must ditch the traditional methods upon which they have relied for many years and leverage digital tools to avoid becoming obsolete

Andrew Lloyd, managing director, Search Acumen

THE use of technology in real estate law hugely accelerated during the pandemic, not unlike most industries. In just a few years, we witnessed a change that heralded the fixture of hybrid working, and a digital-first expectation by consumers that saw many industry practices quickly become obsolete. We learnt, in a relatively short period, that the capabilities of tech to drive traditional processes were phenomenal.

Particularly in the property industry, this has presented a barrier for professionals who have relied upon traditional methods for decades. The recognition of the process-level benefits of tech is monumental for a sector like property law, with deeply ingrained, longstanding, often paperled methods. Law firm leadership now needs to develop its understanding of tech in a more nuanced way.

The improvements and efficiencies we see at the surface by implementing technological solutions are underpinned by advanced deep tech. These complex algorithms –often the product of years of research and development in university or institutional tech labs – form the back end of even the simplest tech platforms or products.

We can easily highlight a few examples in the property law sector that as an end user appear relatively

simple, but required phenomenal complexity to develop. For instance, take our data snapshot solution: this advancement enables real estate lawyers to access a 360-degree snapshot of all relevant data used throughout a property transaction. This removes the need to compile, compare and contrast a multitude of property datasets when managing the transaction process, as our system does this automatically through its understanding of the data needed, and its ability to automate the data collection and presentation process.

Behind this product there are advanced machine learning

One of the early mistakes to avoid is seeing digital transformation as a tick-box exercise

operations at play to analyse and distil datasets and automate their presentation for the end user.

The product is a single screen with an ultra-clear presentation of around 75 datasets. We have found this simplicity to be of huge benefit for property lawyers who are often juggling complex matters with hundreds of data points at any one time. The ability to reduce what could be hundreds of pages of documents into one snapshot saves not only hours of time and therefore cost to

the firm, but lawyers’ patience too.

Nicola Reeve, head of commercial property at Talbots Law, has seen the leaps in efficiency it can bring first hand. She says: “Incorporating Search Acumen’s data snapshot tool into our workflow has proven to be a gamechanger for our firm. We’ve essentially streamlined our processes. It has prevented duplication of unnecessary work and avoids the delays caused by having to order searches right at the start, getting us to the heart of what’s relevant much quicker.

“It has been an essential asset for us when acquiring fast-food restaurants on behalf of our clients. In some cases, we might be purchasing over 12 stores at once, so its ability to consolidate complex information into a comprehensive report helps us avoid redundant efforts. The tool’s identification of potential issues preemptively safeguards operations – an important advantage when navigating the intricacies of nationwide store acquisitions.”

Tangible benefits

It is great to see clients like Talbots Law see tangible and exciting commercial benefits from advanced technology solutions like Data Snapshot. While in the background we’re managing a substantial data processing operation, sifting through vast and varied datasets from different organisations across the UK, we continually launch new products to support solicitors.

Commercial longevity in a world

defined by significant economic and social change will continue to be vital to competitiveness. The Spring Budget provided some clarity about the government’s plans to stimulate the market in the near future. For example, the chancellor reiterated his support for the ‘golden triangle’ areas of London, Oxford and Cambridge, branding them as the “Silicon Valley of the UK” and promising £92m of investment for the life sciences sector.

More monetary investment in these areas is likely to attract higher transaction numbers, as businesses gravitate to growth areas and help to keep the property sector moving. As a property data provider, we

understand the potential to capitalise on this investment, and the need for providers like us to be ready to provide accurate and reliable data in a business environment where speed, efficiency and cost-effectiveness are paramount.

The addition of open-source generative AI has opened a vast number of doors across the industry, with a myriad of possibilities now at the sector’s fingertips. Following the launch of ChatGPT in November 2022 and other generative AI tools that followed suit, the pace of change suddenly hit lightning speed. That was a year ago, but I still see many firms hold back on what should be

Search Acumen is a UK-based legal technology company that specialises in providing the latest search, data and automation techniques to conveyancers and real estate lawyers. Passionate about providing smart digital solutions that offer improved productivity and efficiencies, Search Acumen provides market-leading platforms that allow conveyancers and real estate lawyers to complete every step of the property transaction process under one roof.

the most exciting time for business development of their careers. One of the early mistakes to avoid is seeing digital transformation as a tick-box exercise that can be ‘completed’. For long-term success, the journey will be ongoing, requiring commitment, collaboration and investment. This partnership, between tech firms and businesses, will continue to shape productivity over the coming years.

The only limits will be in the pace of innovation and the ability of firms to adapt to the tech that could transform their work. Choosing the right partner to explore this journey will be a crucial decision and one that will shape the future of every property law firm.

Andrew’s enthusiasm for growing businesses has kept him engaged in the online property data sector for over 18 years, where the power of advancing tech, passionate leadership and a customer-driven approach have translated into helping create a business that grew from start-up to market leader in just five years.

Cultivating the future

Experiential farms – an innovative new feature for commercial buildings – grow fresh, healthy produce for occupants while promoting sustainability and community engagement

Patrick Dumas, founder and chief executive of Square Mile Farms

IN the evolving modern city life, our surroundings are vital in creating a shared sense of purpose and belonging. Commercial offices and residential developments are now challenged to go beyond the conventional, offering social and environmental benefits that resonate with their occupier communities.

The wave of new amenities, ranging from fully stocked kitchens to cinemas and other recreational spaces reflects the growing emphasis on creating vibrant, engaging environments. These amenities, particularly those aligning with ESG principles, are emerging as the latest frontier to distinguish the best commercial urban real estate.

Further, the proliferation of building certifications such as WELL, BREEAM, Fitwel and LEED reflect the desire to not only showcase but also quantify the social and environmental impact of buildings to potential occupiers.

This shift reflects a broader industry commitment, and occupier expectation, that buildings contribute positively to both individuals and communities.

Experiential farms offer a unique new amenity for landlords and developers seeking distinctive and captivating spaces. These indoor installations grow fresh, healthy produce for building occupants while promoting sustainability and community engagement.

What is an experiential farm?

An experiential farm uses modern soilless hydroponic techniques and energy-efficient LED lighting to

grow fresh, healthy produce inside commercial buildings. The absence of soil erosion, pesticides and transportation, coupled with efficient water and energy use, makes this an exciting solution to produce nutritious food sustainably, right in the heart of where people live and work.

Occupants are encouraged to take home or enjoy on site the leafy greens and herbs harvested from their farms, fostering a sense of connection with both the environment and fellow occupants.

A growing demand

Forward-thinking developers, landlords and occupiers are recognising the benefits of farming on their buildings and communities and are already integrated experiential farms into their buildings.

Using its leading-edge farm technology and expertise Square

Mile Farms integrates farms into all manner of spaces, from prominent installations in lobbies and communal areas to disused rooftops or basements that become exciting new growing, and gathering, places. Experiential farms transform underutilised spaces into distinctive features that enhance the overall appeal of the building.

The benefits of experiential farms

1. Cultivating engaging and enriching experiences: experiential farms encourage direct engagement among building occupants. Regular participation in harvests, the ability to vote on upcoming crops and involvement in collaborative farming initiatives create a shared sense of purpose and nurture team spirit and community cohesion. Beyond the production of healthy food, experiential farms serve as platforms for building awareness and educating individuals on health, wellbeing and sustainability.

2. Driving positive change: experiential farms serve as catalysts for change by shedding light on global food production challenges and championing local, sustainable solutions. By improving the understanding of healthy and sustainable agricultural practices, these farms inspire individuals to make more informed eating choices and even grow their produce at home. Experiential farms empower individuals to actively contribute to positive environmental changes.

3. Attracting occupiers: not only do they look good, smell good and taste good, they also provide a platform for conversation about sustainability activities by the building owners, such as decarbonised heating systems and waste stream management, which are often invisible to people in the building.

Transforming the urban landscape for good

At Square Mile Farms, we believe farms have the power to transform urban environments for the better.

With offices and residential buildings first off the block, our vision extends across the built environment to include schools, hospitals and public spaces – a comprehensive integration of farms into communal urban spaces.

Indeed, we imagine a map of an ever-growing farm network that measures the impact on nutritional benefit, water conservation, improved air quality and other measurable outcomes, in real time, for everyone.

Sponsored by

The journey begins now

As more and more experiential farms are installed across the UK, we hope to see urban communities that are more connected, healthy and sustainable. Transformation of the built environment is happening – one farm at a time.

Get in touch with Square Mile Farms to plant the seeds of your farming journey today.

Patrick is the founder and chief executive of Square Mile Farms. Prior to starting Square Mile Farms, he was a consulting partner at EY and a strategic adviser to companies and governments across the globe.

Square Mile Farms grows fresh, healthy and sustainable produce in the heart of where people live and work. It currently operates a growing network of 100 experiential farms across the UK in partnership with some of the world’s largest landlords, building managers and corporates. In 2023 alone, it held over 1,000 harvests involving 13,000plus people, collectively providing 55,000 servings of produce for its farm communities. Square Mile Farms expects to double the size of its farm network in 2024.

Harnessing social value

By reimagining how the built environment is used, it is possible to realise greater value from existing assets and accelerate positive contributions to local communities

SOCIAL value has become the new currency for conducting responsible business at all stages of the real estate lifecycle. But more than ever before, real estate professionals are being asked to consider how in-use buildings can drive sustainable and socially responsible change.

There is growing demand for solutions that capture and communicate the value an asset creates for society and local communities, especially as investors understand the potential of social value in helping them to secure additional funding.

Furthermore, social value should be viewed as an essential means of building stronger relationships with surrounding communities. From a property’s available facilities to its contracted services, to mentoring programmes and mental health provision, there are many potential opportunities to improve a building’s standing within a local region.

These can have a positive impact on business growth, too. Whether it is improving occupier and visitor satisfaction, increasing footfall, strengthening community relations

or helping with recruitment and retention rates, and positive publicity, social value can generate additional new business value as well.

Taking all this into account, the best means of achieving these socially conscious ambitions will depend on the specific needs of the local community in which a building is based, and how that in-use asset is therefore best positioned to fulfil these needs. So, when looking to establish a social value strategy for existing assets, where should real estate professionals begin?

Delivering long-lasting change

When getting started, it is always worth remembering the true meaning of social value. Many think of it as the ‘S’ in ESG. However, ESG frameworks are used to assess an organisation’s impact in terms of their environmental, social and corporate governance. In the case of ESG, the focus is on reducing a business’s impact on communities. In contrast, social value seeks to go beyond compliance, demonstrating how a building can make a positive contribution to a local environment and its people.

Many mistakenly believe that measuring an asset’s social value is more difficult to do, too. Instead of counting carbon emissions to

OUR MISSION

Our mission is to make social value count in every organisation and local community worldwide.

Social Value Portal is an online social value measurement and reporting platform with support and consulting services that ensures its members optimise performance and report validated data effectively.

tackle environmental compliance, organisations must weigh up wellbeing improvements or consider how procurement can be more socially responsible.

Yet with the right approach, rigour and transparency, there is no reason social value in the built environment can’t be reported on like financial accounts. These are trusted because they use a rigorous, consistent standard, and there is a high level of transparency around how they are calculated. The same can be true of social value reporting for existing assets.

Rethinking existing assets

When it comes to considering social value for in-use assets, the contributions of the building itself are a given. It is too late to incorporate social value as part of the design

Nathan Goode, chief strategy officer, Social Value Portal

Sponsored by

phase. Instead, value can be derived from how the asset is managed, serviced and occupied, increasing the societal benefit of the building as a result.

For example, who is employed in this building? How have they been recruited? Can spaces within the building be used in innovative ways? Might they, for instance, be used for community-based initiatives or non-profit purposes? Can the means of travel to and from the building be improved? How about the spaces between existing assets, such as streets, pathways or parks? Can they be enhanced?

What is needed is a consistent, rigorous and transparent means of assessing existing real estate assets and analysing their social value performance. It was this need that led Social Value Portal to

Value can be derived from how the asset is managed, serviced and occupied

develop the Real Estate Social Value Index (RESVI).

How does RESVI work?

RESVI consists of two halves: a qualitative review (part 1) and a quantitative assessment (part 2).

Part 1 is a standardised questionnaire, covering topics such as governance, work, economy, community and planet. It targets a building’s four main stakeholder groups – the asset manager, the property manager, suppliers and

occupiers – and assesses the social value maturity for each category, providing an overall social score for the building once the questionnaire has been completed.

Part 2 collects information about a building’s social value activities and assesses these against the Social Value TOM System, the most widely used framework for measuring and reporting on social value in the UK.

Once a submission is validated by an independent third party, action plans can be produced to drive more value from existing assets. Recently recognised as contributing to the Global Real Estate Sustainability Benchmark (GRESB), RESVI has transformative potential for decisionmakers at a time when they are being urged to amplify their contributions to local communities.

Used by the likes of UnibailRodamco-Westfield and Ellandi, those that choose to take advantage of RESVI can quickly identify areas for improvement, empowering them with the evidence they need to take action.

Connecting communities with value In-use real estate assets have the chance to play a vital role in creating communities that thrive. By adopting tried-and-tested frameworks, decision-makers can pinpoint where their social value efforts should be concentrated and develop action plans to make their ambitions a reality.

The outcome? Existing buildings have a bigger purpose, and everyone enjoys the rewards.

To find out more, please visit www.socialvalueportal.com/who/realestate/ or call +44 (0) 203 747 6555

Social Value Portal recently hosted a webinar, ‘Social Value in Real Estate’, with guest speakers from Catalyst and Longevity Partners. Watch it here

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