Rising to the challenge of uncertain times
BPAA President Julian Harbottle
We now have a new government: potentially, an opportunity for fresh thinking. It’s still early days to judge the wider impact this will have, but any hopes that this might swiftly lead to a much-needed, more pro-business environment to boost the economy were sadly dashed in the Budget. The impact of some of the measures are reflected in the sector reports.
The broader macro-economic situation is, critically, not encouraging new development: the residential, industrial and office sector reports all point to continuing high borrowing costs dissuading a lot of the expected new starts. Construction costs are playing their part too: Bristol, quite astonishingly, now has the 10th highest building costs of any city in the world, according to the Arcadis 2024 International Construction Costs report.
We have new faces in City Hall, with the Green Party replacing the City Mayor in a new Cabinet-led administration. How will this impact the property sector? You can find that out in our interview with Cllr Tony Dyer.
Disappointingly, the delays to development are not easing the city’s long-term chronic shortage of homes, or the high cost of renting – which is adversely affecting its residents as well as the council’s budgets. Quite how Bristol can play its part in achieving the Government’s national target of 300,000 new homes a year when the sector is dogged by viability issues remains to be seen… but the interview with Cllr Dyer does hold one or two clues.
Causes for optimism
All that said, the bigger picture is not entirely one of doom and gloom. The continuing growth in rental levels in both the office and industrial sectors, allied to low vacancy rates, should act as a spur to developers in the coming year – and, encouragingly, occupiers are continuing their “flight to quality” in order to recruit talented people.
There should be diggers on site at some major new housing projects around the city, while the 400-acre Brabazon development (featured in this edition) will be adding more towards its total end target of 6,500 new homes.
M&S is making a welcome return to Broadmead, and Bristol continues to be a location where innovative new leisure and retail offers take root, while the ambitious new Galleries mixed-use scheme has moved a step further forward.
We remain an attractive target for investors: as 2024 came to a close, Bristol saw one of the largest deals ever transacted in the city.
Liaison activity
Against this backdrop of challenging circumstances, the role of the BPAA is more important than ever before.
We have continued to build on our relationships with the planning authorities in the sub-region, and are now seen as a valued and trusted partner in informing their decision-making processes far more than ever before.
That does not mean we will not be critical of decisions or attitudes that we feel will be detrimental to the clients we represent or the interests of the city. But we need to recognise that, as hard as it is being a developer, running a local authority is not easy either – especially at a time of severe financial constraints.
We have continued to strengthen our ties with other organisations that share our interests and values – notably the Bristol Property Inclusion Charter and the Bristol Forum for Built Environment – and this year’s inaugural property lecture marked a fruitful step forwards in that collaborative approach. Our shared outreach work to local schools is one way in which we can increase the diversity of our profession – starting at grassroots level.
We also held constructive meetings with the Department of Business and Trade as well as Invest in Bristol and Bath – including being part of an IBB briefing to some 40 local council officers.
The valuable partnership with UWE continues to play a key role in encouraging talented young property graduates to remain in the city – the report on that is to be found inside; and we made our voice heard at a major RSS Southwest event in 2024.
Membership activities
Away from work, being a BPAA member has never been more sociable. Our committee and other members have worked incredibly hard this year to deliver a series of superb activities – including some new events – that have cemented the bonds between members as well as raised vital funds for my chosen charity of the year: Penny Brohn UK.
Finally, can I close with my heartfelt thanks to all of you who made my year as President possible as well as inspiring. As a relative newcomer to the city’s property scene (a modest 21 years with Savills), I feel incredibly honoured and privileged to have been asked to lead such a brilliant organisation.
Everyone who takes on this role will attest that it’s a demanding task… but incredibly rewarding. The whole year has been spent on a steep learning curve, but I have thoroughly enjoyed the journey and meeting the many other people in our city helping to shape its fortunes.
