Landlords are warned to take a closer look a t the upcoming EU Mortgage Credit Directive, the new piece of European Union legislation which, in effect puts a halt to “risky” mortgage lending. And placing an additional emphasis on landlords, the legislation also reassesses the definition of landlord mortgages as
Confident that Horizon will be able to adhere to the previously stated timeline for construction at Wylfa, Alan Raymant, Chief Operating Officer, has openly expressed his views to the Welsh Affairs committee, pushing some of the key doubts associated with EDF’s Somerset project aside and clarifying his confidence. The Hinkley
Taking a step forward and presenting itself as a role model to the wider sector, Wakefield Council is presently the first UK local authority to confirm and sign a brand new minimum standards charter for construction projects. The charter, which lays out a pledge to ensure a range of “minimum
Mixed feelings have been portrayed on the Edinburgh property market’s recent position. While, on the one hand, figures provided by Strutt & Parker have shown that premium property sales have successfully achieved yet another year of growth up to this January, it is also notable that the average sale price
Ever since the inauguration of the Social Value Act in 2013, the importance of ensuring quantifiable social benefits through all levels of service delivery has been a key consideration for, not solely the third sector, but also for the public sector. As of its originally announcement, the act has been
Increasingly, all aspects of the supply chain are facing increased pressured to act with responsibility and sustainability always at the fore. As such, many construction contractors, service providers, designers, architects and even material suppliers are being faced with conditions for work relating to the approach that they take to minimising
Landlords are warned to take a closer look a t the upcoming EU Mortgage Credit Directive, the new piece of European Union legislation which, in effect puts a halt to “risky” mortgage lending. And placing an additional emphasis on landlords, the legislation also reassesses the definition of landlord mortgages as a former of consumer lending, thus bringing down harsher boundaries for receiving mortgages (specifically in cases where they may not be able to afford them). With new affordability checks in place, mortgage lenders will have to ensure that all borrowers can afford repayments, not today, but onto and into the future, taking into account predictions of rate increases of up to six or seven percent. And while this is something which may actually be deemed as common sense, it yet remains something which has been overlooked with regard to landlord mortgages, most specifically because of their classification as not being consumer lending; until now, that is. Additionally, the new regulation will have a particular effect on those remortgaging their properties too, where homeowners looking to consolidate and reduce their monthly payments may actually be told that the rates they would wish to remortgage to (naturally, lower than they are presently paying) are too high and unaffordable to them – a peculiar situation indeed, but one which may see a reduction in remortgaging, putting a little extra strain on those struggling to pay off their mortgages at present rates, yet also potentially encouraging people to take alternative methods of consolidating their outgoings. Most specifically, the change is expected to have a considerable effect on what are known as “accidental landlords”; those who have had no intention of renting out a property they have purchased, but, for a variety of reasons, have decided to do so – likely due to the need for extra income and asset utilisation. Yet, starting in 2017, landlords will no longer be able to claim tax relief on their mortgage repayments and, as opposed to extracting mortgage interest repayments from their taxes, will instead be charged a rate of 20% on the amount. In effect, this could result in taxes actually being paid on losses..
Confident that Horizon will be able to adhere to the previously stated timeline for construction at Wylfa, Alan Raymant, Chief Operating Officer, has openly expressed his views to the Welsh Affairs committee, pushing some of the key doubts associated with EDF’s Somerset project aside and clarifying his confidence. The Hinkley Point project came under scrutiny following the reported resignation of Thomas Piquemal, its Finance Director after an apparent quarrel over the decision made by EDF to continue on with a decision on a final investment next month. His reasons, as might be expected, highlighted his views that this decision may place the company in a position of severe financial concern. However, regardless of the delays being incurred on EDF’s project, Alan Raymant is adamant that this will have no bearing on the timetable arranged for Horizon, highlighting that, while the Hinkley Point project is of great import, it is not, however in a position where the two projects’ success are tied together. He commented, “We observe with interest and look to learn from that project but we’re not dependent upon it.” Highlighting one of the key differentiators between the project at Wylfa, as opposed to Hinkley Point, Alan Raymant explained that the Horizon plant is set to utilise highly advanced boiling water reactor technology, which is a technology already to have a tried-and-tested success rate as reported in Japanese plants. Construction for the project is expected to commence by the year 2018, however this date remains an estimation and depends upon the Office for Nuclear Regulation’s design assessment as well as the forming of an agreement on the strike price with the government itself. Yet, once again maintaining optimism, the company is confident that an arrangement will successfully be made with the government and so, the project will see no hitched in this department either. Of course, with keen backing from Hitachi, which bought Horizon in 2012, the company’s commitment to the project and its completion is also notable, with there still being room for discussion for additional investors to chip in to the £10bn project.
Taking a step forward and presenting itself as a role model to the wider sector, Wakefield Council is presently the first UK local authority to confirm and sign a brand new minimum standards charter for construction projects. The charter, which lays out a pledge to ensure a range of “minimum standards” are rigorously stuck to throughout the course of construction projects within which the council is involved, shows the council’s dedication to ensuring best practice, and responsible practices. In line with the charter, construction firms wishing to work with the council will be required to agree to the terms of the charter which, in effect exist to guarantee a standard level of employment conditions for all workers across the construction projects. Though by no means to point fingers in any directions, the charter will be used to put a stop to industry practices deemed unacceptable such as self-employment programmes, umbrella companies and any other forms of employment which are frowned upon. In addition to ensuring correct industry practices for employment practices, the charter also contains mention as to the key role which trade unions play in supporting safe, productive sites within which those employed can work. Effectively, this incorporates the laying out of a clear expectation on employers to employ workers under industry-recognised collective agreements as a means of best practice, but also now of policy. Of course, whilst the benefits are inherently targeted towards those employed for projects (or at least those acting responsibly), it is also key to note that the move will also make ground in ensuring that all those projects being undertaken on behalf of the council are being undertaken by skilled workers, in a safe working environment and to a high standard of work – after all, one cannot forget the importance of high quality workmanship as a key performance indicator across all manner of construction project.
Mixed feelings have been portrayed on the Edinburgh property market’s recent position. While, on the one hand, figures provided by Strutt & Parker have shown that premium property sales have successfully achieved yet another year of growth up to this January, it is also notable that the average sale price of such properties did, in fact, fall markedly. 148 premium properties (of values above £300,000) were reported to be sold in Edinburgh over the course of January, which represented a nice increase from the figures last year, which came in at 131, which also built upon from the previous years of 136 for 2014, and 109 for 2013. In total, some 535 premium properties were sold across Scotland this January, which is a considerable increase from last year’s figures of 494 sales. Again, 5,330 traditional properties valued at less than £300,000 were also sold, which was, again a considerable increase on last year’s figure of 4,144. And while these two increases show an improved market for the purchase and sale of properties, suggesting a buoyant market sector, it has also been reported that the average house value for Scottish properties fell as low as £163,610, a reduction as opposed to last year’s figure of £166,682. In line with the falling value of Scottish properties, the average sale price of premium properties also fell, clocking in a £227,899 this year, as opposed to £236,696 last. Additionally, the share of the market which premium properties made up also fell, from 23.9% to 21.1% specifically. Yet, Strutt and Parker’s Blair Stewart stresses that this is nothing to be worries about, with the price drops only being of a marginal amount, while the considerable increase in the number of sales is very encouraging. Highlighting that the market for premium properties has actually enjoyed sustained growth over the last few years, Blair Stewart went on to comment that, “It has shown strength in the early months of 2016.”
Ever since the inauguration of the Social Value Act in 2013, the importance of ensuring quantifiable social benefits through all levels of service delivery has been a key consideration for, not solely the third sector, but also for the public sector. As of its originally announcement, the act has been requiring for all public bodies (both in England and Wales) to pay heed to the services being procured and assess the social, economic and environmental impacts of all such works – this, in effect going far above and beyond the staple benefit of what a building might bring, but also those consequences throughout the planning and construction cycle. Of course, though it has been in place ever since 2013, change has not instantly been seen, yet it has been reported that there is an increased awareness amongst public bodies now, that social value and the benefits, or consequences of works must be regarded as the utmost import. Yet, at the same time, there is relatively low awareness of the import of this process across procurement, and ensuring that even this stage of the development process must be defined. Lord Young commented that such awareness, “Appears to be relatively low when considered against the number and value of procurements across the public sector.” And yet, whilst the act only enforces social value for the public sector, it has been noted that private companies have also increasingly shown an interest in ensuring the delivery of social value over the course of contracts. With this in mind, the benefits will of course be seen to flow up the supply chain on public sector contracts also, and the growing social responsibility displayed by leading construction contractors is well worthy of praise. For the future, one of the key areas to be encouraged next is facilities management, where there is still plenty of room for development in the arena of ensuring social value. Yet, as the concept remains one quite fresh with regard to facilities management at present, industry professionals have been reported to push the envelope on incorporating facilities management in the agenda also.
Increasingly, all aspects of the supply chain are facing increased pressured to act with responsibility and sustainability always at the fore. As such, many construction contractors, service providers, designers, architects and even material suppliers are being faced with conditions for work relating to the approach that they take to minimising their environmental impacts, as well as providing sustainable solutions for clients so as best to support the future growth of the sector. Whilst, to some degree, this is seeing many organisations make a clear push towards effective corporate social responsibility (always a good thing), the most notable achievement is the ever-increasing emphasis placed on the effective utilisation of local labour, contractors and increasingly, suppliers. Whilst many construction companies do indeed have a list of dedicated suppliers for key materials, subcontractors and specialist services, it is increasingly being seen that many projects will maintain a healthier balance of those contractors involved, with a clear mixture of national and local supply chain partners. What this effectively means is that, whilst national supply chain partners are still, in effect prospering, the doors yet remain open for smaller, local businesses who wish to engage in incredible feats of construction. Beyond face value, this not only means that local businesses are able to access more areas of work, should they pursue it with the right contractor, but it also gives such businesses the chance to work on key local developments which may form a part of the communities within which they work. Additionally, as is usually the case with smaller supply chain partners, a keenness to impress main contractors has also been observed which, firstly has helped to support the delivery of high quality works and services yet, secondly also allows for easier relationship development between main and sub contractors who recognise the need to make an impression on any and all works which they secure.
