Councils must encourage new development, says RICS chief

Robert Peto, president of RICS, said councils need to acknowledge the benefits of development schemes rather than finding reasons to reject them.

Mr Peto made the comments during a visit to Leeds where he met representatives from the property industry and local authorities.

He said: "Members (of RICS) want to sit down with local authorities and when they ask if they can build something, they want the local authority to think 'Why not?' instead of 'What are the reasons to oppose it'.

"Local authorities are starting to realise their role needs to be bigger alongside business but it needs to continue."

Colin Harrop, regional director of RICS, added: "Planners need to help developers by making the process quicker and we are starting to see that because planners are not as busy at the moment but there is more that can be done."

The future of planning remains uncertain ahead of the Government's comprehensive spending review this month and the introduction of local enterprise partnerships.

Mr Harrop said: "It is so unclear what shape local enterprise partnerships will take that people don't know whether planning will be helped or not by their introduction. Everyone is just waiting for more information. The spending review could also have an impact on planning and local authority decision making."

Mr Peto said the region's property professionals are concerned about where future demand for large office spaces will come from as major relocation of government departments looks unlikely and the private sector side also remains quiet. "The message I am getting from people in Yorkshire is patchy," he said.

"Most of the time developers have got to find an occupier to drive a scheme because the banks are not funding speculative development. Speculative building will come back but not for a while yet."

He also expressed concern about where cuts would fall when the Government's spending review is revealed later this month. "My concern is that it is very easy to make cuts on capital expenditure," he said.

"Research suggests that every 1 that is spent in the property industry generates 2.40 for the economy. You are investing in the future if you put your money in the right place. It's quite short-sighted to put a knife in major infrastructure."

Mr Peto called on the Government to help the industry by investing in projects that will earn money in the long term.

He said: "My concern is that the Government is going to make cuts in the wrong places."

Looking to the year ahead, Mr Peto said the economy would remain difficult for the property industry but he was optimistic about the challenges ahead.

"We have been in far worse situations than we are at the moment and we will get through it but it will take time," he said.

ROBERT PETO CV

Robert Peto is vice chairman of capital markets at property agents DTZ and was chairman of DTZ UK for nine years to 2008. Mr Peto ran the Middle Eastern office from 1983 to 1986. He became the president of the Royal Institution of Chartered Surveyors in July 2010 in the first contested president-elect selection since 2005.

RICS revenues come mainly from professional subscription fee renewals.

He has been chairman of the RICS Valuation Standards Board and RICS International Valuation Professional Group. He is also a member of the Bank of England Property Advisory Group and IPD Index Consultative Committee.