Sadiq Khan wins London: the property industry reacts
9th May 2016
Reactions from the property
industry on Labour candidate Sadiq Khan’s landslide victory over Tory rival Zac
Goldsmith in the London mayoral election
Labour’s Sadiq Khan was voted in as Mayor of
London on Saturday after taking 57% of the total final vote, compared to rival
Zac Goldsmith’s 43%.
The result gives Khan biggest
personal mandate in British electoral history.
He beat Goldsmith by 315,529
votes, receiving a total of 1,310,143 votes compared to Goldsmith’s 994,614.
Turnout was 45.6%, up from 38% in 2012.
Guy Grainger, UK chief executive, JLL
“Sadiq has pledged to be the most
‘pro-business Mayor of London yet’ which is a promising boost for London’s
position as a global leader.
“Property is a vital component to
consider in any business or personal decision – from the impact that office
space can have on workforce productivity, to the affordability of housing &
making buildings sustainable.
“Housing is top of the agenda and
London will watch with eager anticipation to see if Khan can deliver 50,000
homes per annum and we will help him try to get there.
“Khan’s focus on affordability was a popular
vote winner but the real test will be the delivery of these homes at a time
when the capacity and cost of construction industry is so testing.
“We wholeheartedly support
Sadiq’s London First commitment, but off-plan investors from all around the
world are still vital to underwrite development finance and get construction
Miles Gibson, head of UK research, CBRE UK
“After the brouhaha of the
election campaign, Sadiq Khan’s focus now shifts to securing London’s status as
a global city.
“Adverse global economic
conditions, a failure to attract global talent and a risk of London becoming a
less open and less cosmopolitan place are of course risks outside the Mayor’s
direct control – not to mention June’s referendum – but each needs a careful
plan to manage their impact on the capital.
“There are however key areas,
specifically housing planning, investment in infrastructure and ensuring
London’s placemaking continues to be world class, which must be capitalised
upon if it is to prove a successful term in office.
“To date there has been little
detail on how the new Mayor’s manifesto will be funded, in particular the
infrastructure investment and proposed surface transport improvements.
“It’s the detail behind these
numbers which is most eagerly anticipated by the property industry.”
Patrick Flaherty, chief executive – UK & Ireland, AECOM
“New London Mayor Sadiq Khan
arrives at City Hall to face the challenge of improving London’s
competitiveness to maintain its position as a leading global city.
“Housing, infrastructure and the
ability to compete effectively for foreign direct investment all require his
“The mayoral office plays an
important role in promoting London as a viable location to invest. Yet a cloud
of uncertainty hangs over the capital due to decades of dithering, delay and
inaction over aviation capacity in the South East.
“The UK lags behind global rivals
with nearly double the aviation capacity, significantly impeding its ability to
compete on the global stage.
“Khan has opposed expansion at Heathrow throughout his mayoral
campaign. There is now a real risk of the runway debate going back to square
“The damage this would do to the
economy and the UK’s competitive standing would be irreversible for several
generations. London cannot afford further political procrastination.”
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Claire Fallows, partner at Charles Russell Speechlys
“Sadiq Khan’s ambitious
housebuilding targets for the capital, with an aim to construct 80,000 homes a
year, are likely to be limited by his goal that half of new homes built on
brownfield sites be ‘affordable’.
“This could well adversely affect
development activity as some sites will become financially unviable.
“Sadiq’s victory in the mayoral
election falls against the backdrop of the government’s commitment to
increasing housing delivery, with the Housing and Planning Bill still passing
through parliament and the government pushing to get its promise to build
200,000 starter homes into law.
“The emphasis on discounted
starter homes in the bill will change conversations between developers and
local authorities on affordable housing and we anticipate tension ahead where
some authorities still seek the delivery of affordable and social rented units
to meet their housing needs.”
Ian Anderson, executive director at planning consultancy Iceni Projects
“London’s Mayoral election is
over, but Khan’s housing policies suggest that London’s housing crisis is set
“Both main candidates declared
that housing was their number one priority, yet dodged the real debate: how do
you provide homes for 10m people whilst vetoing a
review of London’s city limits?
“Yes, our new Mayor should focus
on developing brownfield land, but they should do so knowing that restricting
development to these areas will see London continue its poor rate of
housebuilding and do little for affordability.
“Khan needs to rally the industry
to bring his plans to fruition and, whilst his policy may well be fit for our
Nimby- inclined electorate, they are not the body of people that Khan needs to
be planning and providing for if London is to deliver on its full potential.”