In modern society, an increasing import is placed upon the energy efficiency and performance of modern buildings, with the building industry as a whole being pushed to develop buildings which can support the nation’s need for reduced energy consumption and associated price inflation. Yet, in contrast to this, a recent
With the ever-changing nature of the property market, it can be very hard for homeowners to keep abreast of the latest, trends, predictions and spot the most appropriate time to sell, or not to sell, their properties. Yet there are a number of key concepts which can be highlighted for
For the final quarter of last year it has been reported that, surprisingly, tender prices have remained unaffected since the quarter coming previously, yet prices have been reported to sit 5.4% higher than they were on year previously. These figures a yearly inflation of prices which sits at almost half
Unphased by some of the major changes in tax this year, it has been reported (in recent research) that the majority of UK property investors (circa 56%, in fact) are resolute in continuing with plans to purchase further buy-to-let assets over the course of the next year. The news is,
It is expected that, by Autumn 2017, Bournemouth University will be able to commence its upcoming project to enhance and develop facilities available on campus through a £40m investment project. The arrangement, which has incorporates both the university and Threesixty Developments, looks to lay the foundations for a new 10,000
RIBA has recently sent an open invitation to both its members and students at Chartered Practices to be involved in its “Constructing Communities” instalment, asking them to submit designs for the event, with entries open until the 6th of April this year. Over the course of this summer, the invitation
On 1st April 2016 the National Minimum Wage (Amendment) Regulations 2016 will come into force, introducing the national living wage. This highly anticipated change in law, announced by the Government last year, aims to help Britain’s lowest paid workers improve their standard of living, bringing direct benefits to 2.7 million
In modern society, an increasing import is placed upon the energy efficiency and performance of modern buildings, with the building industry as a whole being pushed to develop buildings which can support the nation’s need for reduced energy consumption and associated price inflation. Yet, in contrast to this, a recent report from Innovate UK has criticised the actual performance of modern buildings, highlighting that the actual energy consumption is actually considerably higher than figures oft batted around. To highlight these results, a study was undertaken on a total of 49 cutting edge modern properties to assess the levels of energy consumption and how these sit with the predicted figures. In the study it was revealed that non-domestic buildings are actually regularly using 3.5 times as much energy as they have actually been built to use, meaning that they are unable to meet the expectations laid out from the design and build stages. While developers have been trying hard to push the envelope on modern construction from a sustainability perspective, It was concluded in Innovate UK’s report that many schemes have hit difficulties in the implementation of emerging technologies such as BMS. Additionally, it has also been highlighted that other common problems have included the way in which biomass boilers are controlled and metered, the provision of maintenance and also solar panels and water heaters. As such, whilst organisations are already trying hard to meet governmental expectations of energy use, Innovate UK has called out for contractors to utilise the information it has collated as a springboard from which they can develop new ways to improve building performance, reduce energy consumption and effectively feed the benefits of these efficiencies back into the wider economy. It also provided comment that EPCs are not able to offer reliable predictions on energy usage, with very little correlation between such EPCS and Display Energy Certificates.
With the ever-changing nature of the property market, it can be very hard for homeowners to keep abreast of the latest, trends, predictions and spot the most appropriate time to sell, or not to sell, their properties. Yet there are a number of key concepts which can be highlighted for homeowners who are presently trying to judge the market and if now is the “right time” to move on, or the right time to invest back into their property. House prices are already at record levels, which is something oft reported and monitored by both consumers and businesses alike. And while growth has clearly slowed down across the housing market, it is still predicted for house prices to continue to grow over the course of 2016 – a 4-6% increase has been predicted by Halifax, the UK’s largest mortgage lender, which can be attributed to the present housing shortage and expanding population. On the one hand, these facts make it sound like the perfect time to sell, yet, there are other things which homeowners are advised to consider. It is true that the mortgage lending market remains very active, however it has been noted that first-time buyers are having to wait longer and longer to get onto the property ladder due to requiring a far larger deposit before they can secure a loan. Whilst this may not seem to be directly affecting someone already on the property market, it is key to understand that the market for the sale of properties can only be as strong as the market for the purchasers of them – with it proving more difficult for people to raise the funds needed to buy housing, the demand (from those able to pay the rising house prices) is worryingly low. So, given the currently position, we are in a state where properties are perhaps at a very promising value for homeowners to cash in on their investments, yet, at the same time, unpromising in the sense that the value of a home may not be a price tag that the modern buyer can, in fact, afford to offer. This places homeowners in a position where it can be seen as a more effective measure to focus on making your properties more saleable through home improvements, both to prepare for the future, but also to bring in interest from those buyers who can actually afford the price tag.
For the final quarter of last year it has been reported that, surprisingly, tender prices have remained unaffected since the quarter coming previously, yet prices have been reported to sit 5.4% higher than they were on year previously. These figures a yearly inflation of prices which sits at almost half the value we’re used to, giving a positive indication of effective workload management at leading contractors despite surging amounts of work – a clear highlight of how well the industry is starting to perform. The report, put together by the BCIS, highlights its predictions of tender pricing increasing by some 3.3% over the course of the upcoming year, with further increases of 4.5-5.5% each year thereafter up to 2020 (perhaps even further). Additionally, it has been reported that the prices for materials actually fell by some 1.1% in the penultimate quarter of last year when compared to the quarter previous, with it coming in at 2.3% on a yearly basis. This has been perceived to be countering inflation of 1.1% during the same quarter of last year, and can be partially attributed to the sudden fall in crude oil and steel billet prices which will have contributed to the fall in material pricing. Yet, despite the recent fall in pricing, it has been estimated that the yearly rate at which pricing for materials will change will sit at around 2% by the final quarter of the year, then surging to circa 4% year-on-year for the next four years. Also, wages have been predicted to grow by 3-4% year-on-year for the next five years, with input costs expected to match this same rate of growth. This also sits well alongside the expected growth to be seen in new work output, which is expected to persist with its present growth rate and hit around 4% growth for this year, 3% next and back up to 5% by 2020.
Unphased by some of the major changes in tax this year, it has been reported (in recent research) that the majority of UK property investors (circa 56%, in fact) are resolute in continuing with plans to purchase further buy-to-let assets over the course of the next year. The news is, as expected, regarded as a bold move for such investors with reference to the previously reported market changes which will make it even more difficult for buy-to-let properties to effectively turn a profit (many reported to even have losses predicted). Of course, those looking to invest aren’t just diving in head-first, and it is instead reported that many are taking a responsible approach to their investment, with many establishing themselves as limited companies so as best to minimise the impacts of this year’s tax changes (circa 40%). Additionally, many other investors have laid out plans to increase rents at their properties to ensure a level of profitability also (some 33%). Yet, naturally, some investors have taken heed of the changes to both stamp duty and tax relief, taking a more cautious approach to their investment plans. Of those which have stated not to be securing any additional buy-to-let assets this year (the remaining 44%), a large portion (20%) attributed this to caps placed on tax relief, whilst most of those remaining (16% in total) referred to the changes made to stamp duty as one of the key causes of concern. However, following on from our recent nod to the industry changes, the news is well received, with a shade more confidence in the sector than was originally predicted. Naturally, the prospects highlight an unforeseen continuation in opportunity for industry lenders, who will be able to continue benefiting from the considerable interest in buy-to-let properties and commercial mortgages. How long this trend is to continue, however, is hard to say.
It is expected that, by Autumn 2017, Bournemouth University will be able to commence its upcoming project to enhance and develop facilities available on campus through a £40m investment project. The arrangement, which has incorporates both the university and Threesixty Developments, looks to lay the foundations for a new 10,000 meters squared facility within which it will be able to host its Faculty of Health & Social Science in addition to a vast student accommodation totalling some 550 beds as a separate development. And for these developments, a joint planning application is on the books, with the view to having it submitted this spring, thus giving plenty of notice for the completion of the facility by 2018, and the complementing accommodation for students by 2019. As part of the deal, Threesixty Developments has agreed that its sister organisation, The Student Housing Company will be in charge of running the accommodation facet of the development, yet with a guarantee that the University will be able to benefit from a referral agreement to secure further student accommodation for those who need it most – most specifically, this entails international students coming over for their first year at the university. Commenting on the development, Christian Davis, Development & Transaction Director at Threesixty highlighted the time and effort put into ensuring that both parties have been able to come to mutual terms which will benefit both, whilst also taking the university another step along the road to creating further academic and accommodation assets on the campus. Though there is still more to confirm with regard to receiving planning permission and guaranteeing positive impacts on the local community, the project, at this stage, is generally well-anticipated by key stakeholders. Jim Andrews, Chief Operating Officer at Bournemouth University commented: “We are delighted that this complex commercial transaction is now complete and we can focus in delivering world class facilities.”
RIBA has recently sent an open invitation to both its members and students at Chartered Practices to be involved in its “Constructing Communities” instalment, asking them to submit designs for the event, with entries open until the 6th of April this year. Over the course of this summer, the invitation is primarily for architects, students and the association’s members to showcase the quality of their designs throughout the London area (specifically along Peckham Levels through to RIBA’s HQ). The opportunity is effectively the association’s response to the widely regarded London Festival of Architecture theme of “community”, with RIBA contributing by showcasing projects capable of laying out the way in which structural architecture, both for short and long-term use, may be able to support more engagement from communities on varying levels. Ideas which architecture professionals may be looking to consider might target a number of key “community” concepts such as modern arrangements for residential property, the layout of combined working and habiting ideas, mobile enterprises, or even simple (and important) areas of any town or city – spaces for general public usage, activities and general community life. Of these ideas, RIBA will be assessing those submitted to pinpoint original projects capable of showcasing innovation on a technical level, as well as those capable of creating changes in the way that society and specific communities interact through architecture. In total, three winners will then be offered the opportunity to develop their idea on a one-to-one scale to then be installed at the RIBA HQ, with the goal to then being presented across RIBA. This is also then to be shown alongside the summer exhibition which will be in the Architecture Gallery, which is set to open on May 18th. To assist with the development of the scaled models of their designs, the construction of the structures will be undertaken by both the winning entrants as well as the RIBA Young People’s Forum.
On 1st April 2016 the National Minimum Wage (Amendment) Regulations 2016 will come into force, introducing the national living wage. This highly anticipated change in law, announced by the Government last year, aims to help Britain’s lowest paid workers improve their standard of living, bringing direct benefits to 2.7 million workers over the age of 25. The Government also predicts that the NMW will facilitate the granting of National insurance discounts and help small employers to guarantee their workers a minimum living wage. However, the scheme has come under fire recently, with critics arguing that it is nothing more than a tweak to the minimum wage regulations. From April 1st the new minimum wages will be: Age 25 and over – 7.20ph (now called National Living Wage) Age 21 to 25 – £6.70ph Age 18 to 21 – £5.30ph People younger than 18 – £3.87ph Apprentices – £3.30ph By comparison the Living Wage Foundation (LWF) set the national living wage at £8.25 per hour nationally and at £9.40 for the London area. The Living Wage Foundation base their figures on the public perception of the minimum income required and on detailed budgets. New research every two years enables their living wage to reflect changing social norms and there is an annual update which takes into consideration inflation. Employers who pay the Living Wage Foundation’s wage to all their employees can apply for their accreditation and there are currently more than 700 accredited living wage employers in London. Perhaps the real success story of the Government’s policy is the raised awareness of what constitutes a living wage and this is reflected in the fact that last year alone, 429 employers obtained accreditation from the LWF. The Greater London Authority’s report entitled “A Fairer London: The 2015 Living Wage in London”, showed the encouraging news that 85.5% of full time workers in the capital currently earn more than £9.40 per hour, although 50% of part time workers earn less. Employers whose margins are too tight to permit them to pay the living wage, will no doubt welcome this outcome, as should their employees. Certainly, it is preferable that a company remains operative and its workers in employment than for it to be pushed to breaking point by payments it cannot afford. On the other hand, those employers who are already accredited for paying the living wage, in sectors with broader profit margins, may well continue to reap the benefits of doing so, especially with regard to employee retention. As women still make up the majority of the part-time workforce, the pay discrepancy between part-time and full-time workers is likely to be reconsidered in the future, as part of the gender pay gap work by Government. It is unlikely that the issue of pay will recede as we all try to strike a balance between preventing employee exploitation and maintaining viable businesses. By Jacqueline Kendal, Head of Employment Law, RK LLP
