Paul Richards
Chief Executive Officer, The Association of Real Estate Funds
The built environment is crucial to national success, and it seems too obvious to point out.
Let me provide numbers: it’s 24% of the economy (on a GVA basis) and employs 12% of workers.1 Recent calculations show that the commercial property industry pays £18 billion in tax2 and its investments are worth almost £1 trillion.3
UK real estate helps propel economic growth
On some measures, UK real estate is bigger than UK financial services. Perhaps it’s time we started thinking of real estate — the buildings that surround us — in the same way as the financial conurbation: a collection of villages joined by common interests and infrastructure.
After all, it’s the homes, warehouses, laboratories, primary schools, offices, data centres, doctors’ surgeries and other essential assets that push economic growth upwards and carbon emissions downwards. And builders, developers, architects, property funds and other real estate villages have a material interest in the sector’s success.
I’m writing as chief executive of the Association of Real Estate Funds — the trade body for investment funds that finance such buildings. Fairly soon, we’ll combine with peers to create a new association, Real Estate:UK, to better demonstrate the value of the built environment and to harness the sector’s opportunities.
After all, it’s the homes, warehouses, laboratories, primary schools, offices, data centres, doctors’ surgeries and other essential assets that push economic growth upwards and carbon emissions downwards.
Ensuring a balance and pipeline of investments
British defined benefit pension schemes used to hold more property. But, as their members retire and pass away, they’ve reduced this holding, so it’s vital we encourage replacement finance.
One AREF member recently devised a brand-new fund type to help solve this. As his idea becomes reality, we’re likely to see investments in more social and economic infrastructure — hopefully even large institutions addressing the issue of homelessness.
As AREF becomes Real Estate:UK, our members will continue investing for a more secure financial future for their fund holders, representing millions of hardworking people. They’ll also continue investing in a more secure future for our society and environment.
[1] McKeogh, N. The Built Environment Sector. NLA.
[2] Property Industry Alliance. (2024). Property Data Report 2023.
[3] IPF Research Programme. (2025). The Size and Structure of the UK Property Market: End-2023.
