Since the work from home guidance ended earlier this year, it has been fantastic to see so many people return to our great capital. Whether it is to take in a show in one of our world-class theatres, enjoy a meal, stay in a hotel, or to return to the office, London is coming back. Our team have had the pleasure of attending physical events over the last month, and the buzz in the networking areas spoke to an enthusiasm for rebuilding those important connections that we have missed so much over the last two years.

The buzz gives me confidence that the economy will recover from the pandemic, but it is the pace of that recovery that matters. And we all need to play our part in accelerating it wherever possible.

At our flagship Building London Summit on May 11 we will focus on how the capital’s real estate market can accelerate the economic growth that our country needs. In conversations with members and experts in this space, the same questions keep being asked: as the country beds in its new, post-pandemic, hybrid working model, how can the commercial property sector adapt? And how can our changing landscape be harnessed for growth?

Turning to our wider work in the built environment, London First recently published a report in partnership with CBRE, which demonstrates the mixed fortunes of the sector over the pandemic years. Demand for office space – often a benchmark for economic performance – fell 9% in the last year. However, this was offset by a rising clamour for higher-quality, larger spaces as businesses anticipated hybrid working and sought a larger space to support work and wellbeing.

It is no surprise to any of us looking at our Amazon bill that the logistics sector has been thriving – the proliferation in lockdown-deliveries has led to a dramatic increase in demand for logistics space. A combination of Brexit and the pandemic has seen occupiers looking to safeguard against further external shocks by hoovering up available space – leaving the capital at risk of running out of suitable spots in the southeast in just five months.

Of course, there are opportunities too. A potential excess of office space could be used for investors to breathe new life into these assets – using these properties flexibly could illuminate our high streets. We would like to see enhanced compulsory purchase powers, which will lift our High Streets. However, we all know that this will require further planning reforms, and that planning reform is never easy – but the fate of the Planning Bill and its Levelling Up replacement keeps cropping up in discussions with members. How this plays out is important for cities across the UK, and for the capital. Further devolution of planning powers could boost competitiveness and empower towns and cities when it comes to regeneration of communities and their assets.

Of course, no discussion of the built environment is complete without a look at the residential sector. London on its own needs 65,000 homes built every year to meet demand and clear the backlog. Governments of every form have focused on the need to build more, but to build thriving communities of the future, housebuilding cannot be considered in isolation. Commercial development to maintain employment growth in line with any increase in housing stock must be factored in the round – doing so would enable planning reforms, with a focus on levelling up, to benefit the whole UK.

Businesses North and South agree that local people know best how to develop their local area to improve economic growth. It is important for the future prospects, not just for our capital, but for the country, that the conditions are put in place for the built environment sector to succeed with the support of planning reform and devolution.

Author: Paul Drechsler CBE – Chair at London First