Talking to friends across the industry, one thing is clear, few of us are sad to see the back of 2024, the year that brought seismic shifts globally and here in the UK, where a new government has set ambitious goals for transformation.
To prepare for what lies ahead, we asked some of our esteemed colleagues in the business of real estate, what they thought would be the one big change to come this year, in one sentence; some stretched that concept a tad and one response was initially, “oh blimey”! Here, though are some thoughts for you, 2025, about what you can expect.
A return to stability and opportunity
Stability for the UK perhaps, but what about the impact of US politics? “A Trump presidency will have far-reaching impacts in 2025, affecting the property sector in multiple ways: from the impact on the Government’s economic policies to trade flows and the impact on access to materials, to customer confidence.” (Melanie Leech CBE, Chief Executive, British Property Federation).
Optimism about inward investment is shared across the industry
It is clear the Labour government has a big task ahead of it, meeting the challenges of political change around the globe. However, the overriding sentiment amongst those we approached is upbeat.
“A stable political environment, reducing interest rates and a reminder of the strong fundamentals of the UK will result in increased activity from overseas investors in the UK real estate market.” (George Roberts, Head of UK & Ireland, Cushman & Wakefield).
The positivity about inward investment was echoed in, “…the biggest change will come about as a result of change elsewhere, making the UK stand out in Europe as comparative political steadiness and the safest haven for capital and with some sectors - retail in particular - firmly discarding the past and rising phoenix-like as a solid investment bet.” (Vivienne King, Founder, Impactful Places).
Stability will be a key watchword for the UK in 2025 and in comparison, with other traditional investment locations. Remit’s benchmark service – rent payments (ReMark), Return to office (ReTurn) and research to follow up on a range of 2024 projects such as our Office Productivity research will be essential in supporting investment decisions.
Pension funds
“UK Pensions” was the pithy response to our question from John Forbes. We’ve been working with John throughout 2024 and know that he is passionate about the changes brought by the change of UK Pensions from Defined Benefit, to Defined Contribution. We’ve watched the news in 2024 as the Asset Management teams of the major pension funds have started to restructure themselves, focus on different sectors, and prepare for greater flexibility to reduce costs.
We see more of the same happening in 2025 and the advent of useful Artificial Intelligence gives us yet more options. Our Boardroom AI workshops have proved popular with senior leadership teams and have already identified significant savings.
Planning for progress
Another key area in which to prepare yourself is the drive to change archaic planning regulations; “Labour’s planning bulldozer will clear the ground for those seeking opportunities in the land market.” (Peter Bill, Journalist) and “Government follow through to resource the planning system to facilitate processing of applications and decision making.” (John Duxbury, Head of UK Asset Management, M&G Real Estate), were just two of the predictions we received on this topic.
In 2024 Remit was involved in the first phase of a 27Ha mixed use development – our client wanted to design-in the efficient management of the new community and optimise its operational structure in light of ESG and consumer requirements. We see a far greater emphasis on this preparation work in prime new development and are well placed to help.
Sustainability in the spotlight
Talking of Environmental issues… these should, and will, continue to feature front and centre and our prophets felt so too, “… an increasing and tightening focus on environmental performance without the clarity needed to manage that issue. Measurement should also factor in the entire life cycle of the building.” (Simon Elmer, Steward of the Bedford Estates).
2025
In 2024 we developed our new tagline – “Improving the Business of Property for Now, and for Future Generations.
Well, 2025, this open letter is to welcome you and the flurry of activity you are predicted to bring – but keep an eye on the long term for future generations. We are ready and waiting to be even busier!
Hello, 2025. We’re ready for you.