The upheavals of recent years have exposed major challenges for the property and development sector emphasising the importance of digital to enhance efficiency and lower costs. Many believe that to maximise growth across the sector digitalisation in all forms is logical, yet thus far, uptake has been frustratingly slow.
Paul Davis, Co-founder at leading PropTech intelligence company Nimbus, describes how the insights from data and technology are essential to safeguard the future of construction.
While there is evidence that digital tools and data platforms are helping to unload the pressure within the construction industry, the full potential of these is still not being realised. This is leading to developers, investors, architects and planners missing out on prime opportunities.
Efficient planning
To help remove obstacles to growth after the difficulties of the COVID-19 pandemic, the UK Government ushered in significant updates to planning and digital tools are proving themselves to be ideals for making the best use of these changes.
To recap these changes, to revitalise empty office spaces on the high street, in 2020, the Government introduced Use Class E, bringing multiple businesses, commercial and service use classes under one roof. As change of use within the same use class does not constitute development it therefore does not require planning permission, thus making development easier.
For example, a business owner could turn their office into a gym, then into a shop and then revert to an office, all without having to obtain planning permission (subject to site specifics) allowing property owners more freedom to adapt to public demand free from time-constraints and red tape.
Furthermore, in 2021, Class MA was introduced. Replacing Class O (office to residential) and Class M (retail to residential) allows a change of use from Class E to residential, subject to prior approval, thereby providing more opportunities for residential developers, particularly amid a housing crisis. The Government has also scrapped the previous 1,500 square metre limit and the requirement for a building to be vacant for three months before submission, further enhancing processes for property owners and developers.
Tools for success
These planning updates have revealed a greater need for digital tools. Acquiring sites within specific class uses, in sizes and at locations that have specific planning policies is challenging. Locating specific planning policies and then finding buildings that fall within those areas, makes acquisition particularly time-consuming and potentially expensive.
Technology in the sector has therefore become a vital element in making it far quicker and easier to unlock this data. Digital mapping tool Nimbus, for example, enables users to view planning policy for any building just by clicking on the site. It can also provide a snapshot of the financial viability of a building for both commercial or residential uses; a huge benefit to property owners and developers looking to find the best way to grow in today’s market.
While the benefits of tools such as this seem clear, it requires a real change in behaviour to seek out, understand and trust data in this way. Traditionally, local agents were the main source for finding properties marketed for sale or to let and get a deal. Nimbus makes it easy to see properties available on the market and apply a filter to rule out those that don’t work as a solution so you can quickly focus on those that do. In addition, it enables users to easily source off-market property data offering a direct option to target building owners, avoiding competition, and enhancing deals.
Looking ahead
In any conversation about technology, Artificial Intelligence (AI) and its impact on the PropTech sector cannot be ignored.
While AI has been used to support successful data gathering, cleansing, insight creation and analysis, AI I still not quite there yet – but there is certainly room for it to take off.
While AI cannot yet replace consultancy work from experts there is potential for it to support that work. An important factor for the industry to understand is that AI, and technology in general, is not going to take people’s jobs but enable them to make better use of their time and help them achieve their aims and ambitions – and Nimbus provides several examples.
With the time saved from utilising data to source ownership and planning information, the whole sector will benefit from improved productivity. Individuals can focus on other important tasks and offer new services that would otherwise have been impossible. The aim of PropTech is not to make construction completely digital for the sake of it but to take away the heavy lifting and enable businesses and individuals to boost their offerings and open more lucrative opportunities. Investors can find better deals, property professionals can speedily gather the information they need to provide great advice, and surveyors can work quicker allowing them to spend more time building relationships – something technology will never replace.