propertytalk Live! - Bank lending and planning reform key to unlocking development

propertytalk Live! - Bank lending and planning reform key to unlocking development

An increase in bank lending and reform of the planning system will be key if UK development is to continue its recovery into 2011, the MIPIM property conference in Cannes has heard.

Speaking at a breakfast summit hosted by the British Property Federation and global agent Jones Lang LaSalle as part of the UK Country of Honour Programme, delegates heard that while the global credit crisis had taken its toll, the property industry had found its feet in prime markets such as London.

However, greater partnership working – between banks, developers and local authorities – would be needed to kickstart growth in many regional markets, with government’s reforms of planning and local authority finance seen as key to enabling the UK to create a strong, private sector-led recovery.

Chris Grigg, chief executive of British Land, which has started London’s largest Central London office development programme to deliver 2.2 m sq ft of space by 2014, told the seminar: “The key question for all property companies, while banks remain cautious over lending, is whether or not they have the balance sheet strength to commit to development projects. Many financially strong property companies have already committed to significant development programmes.

“If we look beyond London, planning restrictions are certainly limiting development, particularly in out of town retail, but extension and repositioning are still providing opportunities. At British Land we are seeing occupiers increasingly ready to commit to good space in good locations, and as this tenant confidence returns we hope banks will increase their exposure to the sector and to development."