While politics at the national level have been changed irrevocably by the decision of the Supreme Court, at the local level there are also substantial changes.
One result of the government’s ten year austerity campaign is that local councils have learnt to be more self-sufficient and commercial property has provided the resources to put this into operation.
It may well be that some councils will come unstuck on their property purchases, but the prospect of cash flow form rents and business rates is very attractive and is the one area of economic activity they can embrace.
The attractions are not just financial but councils can play a more active part in ensuring the economic health of their urban areas through judicious investment and development.
Portsmouth and Southampton have really embraced involvement in the property market in a significant way. The purchase by Portsmouth of the Lakeside North Harbour complex is a major deal and Southampton’s development of the former Toys R Us site shows their desire to ensure economic success.
That has paid off in Ashford where the council has spurred new development leading to improved commercial and leisure facilities.
It has set a gold standard for the rest of the country.
This concept has taken hold in many other parts of the UK, notably in Southampton with an active view of commercial property. It has also gained traction in places like Warrington and Fareham. But there are plenty of other towns in need of a boost, such as Worthing has become a sad sight with empty shops in the centre.
It seems to me that councils can only gain from this process, even though they may get some investment decisions wrong. That is because they become more sophisticated organisations with a real handle on what their areas need. Of course, their pension funds have always invested in commercial property and they once played the major role in providing housing.
Now there is an opportunity for a progressive policy that can only enhance their skills and, hopefully, their wealth.