Major construction sector deal puts real estate in the spotlight of the UK economy
The UK government has confirmed major sector deals in construction, AI, life sciences, and automotive as it anticipates the wellbeing of the economy to be driven by these crucial areas. The news was confirmed by the government’s Industrial Strategy White Paper, published last week. Public-private partnerships, private investment, technology and innovation and the creation of new jobs and houses are the main pillars of the construction sector deal.
British Property Federation (BPF)
The British Property Federation (BPF) has seen great potential in the sector deals and seeks to enhance the role of the real estate industry in the UK economy by proposing another sector offer.“Real estate underpins and enables all economic activity in the UK, and the industry has come together to demonstrate how we can ensure our sector can reach its full potential and play a significant role in the future success of our nation said Melanie Leech the Chief Executive of the BPF.
With this deal, BPF seeks collaboration with the government to optimise the contribution of real estate in the UK economy mainly by building capability and capacity, targeting growth opportunities, and proofing the industry for the future. Prime Minister, Theresa May, has promised to change the existing housing market conditions and respond to the lack of housing options in many parts of the UK. Consequently, the deal will allow real estate agencies and experts to increase housing and construction, rely on more private-public partnerships, and ultimately respond to future challenges.
Theresa May stated that the industrial strategy
“identifies the industries that are of strategic value to our economy and works to create a partnership between government and industry to nurture them. In doing so, it will help propel Britain to global leadership of the industries of the future – from artificial intelligence and big data to clean energy and self-driving vehicles.”
The BPF hopes to attract £120bn of new investment in housing and build 500,000 additional homes by 2030. To achieve this, the deal is also heavily backed up by private investment that envisions a more resilient construction and real estate sector. Planning a long-term strategy to safeguard the delivery of more high-quality affordable housing and putting in place effective processes is the main framework of the deal.
The proposed deal also includes A £2.5m research programme to drive innovation, technology-driven initiatives, and investment. £34m of the government’s £64m national retraining scheme will go on construction training, according to last Wednesday’s announcement of the Autumn Budget. The strategy contains £170m plans to transform the construction sector by creating 50,000 new jobs and boosting productivity.
“Our success both supports and depends on, other sectors. We welcome the announcement of a sector deal for construction – as the funders of construction activity, our proposal is complementary to, and supportive of, the construction deal and we look forward to a near discussion with Ministers” Leech stated.
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