Gross mortgage lending in the UK reached £18.2 billion in May, some 4% higher than April’s £17.6 billion and 14% higher than May 2015, the latest data shows. The figure from the Council of Mortgage Lenders, which represents the vast majority of home lenders in the UK, was the highest
The government has committed to spend £180m over the next decade improving military infrastructure on the islands. VolkerStevin will upgrade Mare Harbour and the contract is a design and build deal. The upgrade, due to be completed in September 2017, will ensure the harbour is suitable for larger vessels. Future
Keystone Property Finance has announced today that as well as refreshing both its buy to let and bridging offerings, it has widened its reach with the introduction of ranges for auction purchases and commercial property. The Auction Finance Range has been launched today and is aimed at borrowers looking for
Dutch proptech investor Real Estate Partners has bought We Are Pop Up. The pop-up retail agency fell into administration last month after it failed to find new equity investors. Real Estate Partners, which is run by managing partner Leon Goldwater, paid around $200,000 (£138,000) for the platform, which has offices
London’s new mayor of London Sadiq Khan has accused his predecessor of letting down Londoners and “leaving the cupboard bare” when it comes to delivering affordable housing in the city. Above: Sadiq Khan Khan also blames Boris Johnson for a construction skills crisis. He said that annual construction apprenticeship starts
Work Starts On Site At Major New Retail Scheme Sheffield based contractor JF Finnegan has been appointed by Helical Retail Limited to deliver Cortonwood Shopping Park, the 120,000 sq ft new retail extension to the 50 acre Cortonwood Retail Park near Rotherham, South Yorkshire. Work has now commenced on site
Rail links to the Port of Liverpool will be upgraded as part of a scheme to improve the port’s capacity. The Department for Transport will invest in adding a second line on the Bootle to Port link, increasing the line speed and improving signalling at Earlestown West. The schemes are
Changes to Network Rail’s Enhancements Delivery Plan (EDP) following the Hendy Review – including further delays to ETCS commissioning on the East Coast and Great Western main lines – mean that phase 1 milestones are likely being pushed back to CP6, “inevitably” creating uncertainty about the entire delivery of the
FROM RECYCLING FLOORING FOR TRAFFIC CONES TO RE-USING SOLVENTS FOR FUEL, PORTAKABIN ANNOUNCES MORE SUSTAINABILITY INITIATIVES The Portakabin Group, the UK’s leading modular building specialist, has announced more sustainability commitments and initiatives to help its customers further reduce their carbon footprint. Waste streams from the manufacture of its modular buildings
Britain’s builders endure tough April as construction activity slows ahead of June’s European Union membership referendum Data suggests economy is losing momentum as EU vote on June 23 nears After weak manufacturing report yesterday, Services PMI due tomorrow Official numbers showed UK economic growth slowed in the first quarter Builders
Gross mortgage lending in the UK reached £18.2 billion in May, some 4% higher than April’s £17.6 billion and 14% higher than May 2015, the latest data shows. The figure from the Council of Mortgage Lenders, which represents the vast majority of home lenders in the UK, was the highest May figure since 2008 when gross lending reached £23.7 billion. CML senior economist Mohammad Jamei pointed out that, as expected, lending continued to be somewhat dampened in May, reflecting the earlier rush in the first quarter to beat the stamp duty change on second properties. ‘Looking ahead, there is likely to be considerable uncertainty as a result of the European Union referendum decision. We expect this to affect sentiment and reduce activity below levels that would otherwise be expected in the near term, as both buyers and sellers adopt a wait and see attitude until the dust begins to settle,’ he explained. ‘Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance,’ he added. According to Adam Tyler, chief executive officer of the National Association of Commercial Finance Brokers (NACFB), a wait and see attitude and increased caution is likely among buyers and sellers alike due to the referendum result. ‘Our own view mirrors that of the Council of Mortgage Lenders in that market fundamentals still look sound and the sharp imbalance between supply and demand will prevent a material decline in prices,’ he said. ‘Sentiment may have shifted dramatically over the past few days but the structural imbalance between supply and demand is as strong as ever. Demand naturally tapered off in the buy to let sector following the stamp duty surcharge but it may experience a bounce after Friday’s referendum result,’ he explained. He also pointed out that current market, political and economic volatility could benefit buy to let as investors once again look to bricks and mortar as a safe investment and the fact that Bank Rate is now more likely to go down than up in the near term will provide further support to the property market. ‘Understandably, there’s a lot of hysteria surrounding the trajectory of the property market but our own view is that the reality will prove to be relatively benign,’ he added. Source link
The government has committed to spend £180m over the next decade improving military infrastructure on the islands. VolkerStevin will upgrade Mare Harbour and the contract is a design and build deal. The upgrade, due to be completed in September 2017, will ensure the harbour is suitable for larger vessels. Future work to come includes investment in a power station at Mount Pleasant Camp as well as new services accommodation at the three Radar Heads. There are currently around 1,200 military and civilian personnel based in the Falklands supporting defensive air, naval and land asset. VolkerStevin managing director Rob Coupe, said: “We are delighted to be working on the Mare Harbour contract in the Falklands for the DIO. As a specialist in marine construction works, we look forward to working on this design and build project for the roll-on roll-off facility upgrade. “We have worked previously with the DIO and are currently working on a similar project with them at Portsmouth so are happy to be able to build on this existing partnership. We’re so pleased to be working as part of this investment to modernise military infrastructure on the Islands and look forward to starting.” Source link
Keystone Property Finance has announced today that as well as refreshing both its buy to let and bridging offerings, it has widened its reach with the introduction of ranges for auction purchases and commercial property. The Auction Finance Range has been launched today and is aimed at borrowers looking for money in a hurry to purchase both residential and commercial property at auction. The range includes a ‘valuation bypass scheme’ which will facilitate speedier completions. This means that on some applications a valuation of the proposed purchase will not be required and lending decisions can be made in just a few hours with funds released within five days is necessary. Borrowers can choose between three, six, nine and 12-month rates starting from 0.75% pcm up to 70% LTV. The Commercial Mortgage Range, also launched today has been designed for both investors and business owner-occupiers looking to purchase a wide range of property across a variety of sectors including business, retail, leisure and industry. With rates starting at 7.99% up to 70% LTV, lending will be based primarily upon the 180 day market value, although 90 day valuations will be used for borrowers with medium levels of adverse credit. Steve Olejnik, sales director of Mortgages for Business and Keystone said: “These new products are an exciting addition to the Keystone suite and are a direct response to investor feedback. I am particularly pleased to announce the introduction of short and medium term solutions for difficult to place commercial transactions. We will continue to offer solutions to both individuals and limited companies, including those with impaired credit and non-standard construction types.” Keystone has also refreshed its Short Term Finance Range to include rates for commercial property starting at 1.15% per month to 70% LTV. Rates for residential property have been reduced and now start at 0.75% per month, down from 0.85% pcm. For commercial property up to 70% LTV is available as standard and up to 75% LTV on referral. The minimum loan size has been reduced to £30,000 from £50,000. The Solutions Range which offers finance for buy to let property has also been updated. It now offers both interest only (3-15 years) and capital and interest (6-25 years) terms. Rates have also been reduced and now start at 7.16% to 75% LTV, down from 7.99%. All four ranges have rates for borrowers with prime and light-to-medium adverse credit profiles and all products are available to both individuals and limited companies. Funding is provided by Together Money.
Dutch proptech investor Real Estate Partners has bought We Are Pop Up. The pop-up retail agency fell into administration last month after it failed to find new equity investors. Real Estate Partners, which is run by managing partner Leon Goldwater, paid around $200,000 (£138,000) for the platform, which has offices in London and New York. All the content from this weekís magazine, including this article, is available in the new app. Nicolas Russell, former chief executive of We Are Pop Up, said: “Real Estate Partners has acquired We Are Pop Up and it is going to take it forward across Europe with its other existing businesses, which is a great opportunity for the platform.” Last year, We Are Pop Up used crowdfunding to launch online retail property letting platform ShopShare, which was included in the sale.
London’s new mayor of London Sadiq Khan has accused his predecessor of letting down Londoners and “leaving the cupboard bare” when it comes to delivering affordable housing in the city. Above: Sadiq Khan Khan also blames Boris Johnson for a construction skills crisis. He said that annual construction apprenticeship starts in London average just 7% cent of the national total and that a total of 100,000 planned apprenticeships starts were missed during the previous mayor’s second term. Immediately after taking over from Boris Johnson last week, Khan asked officials to produce an urgent audit of City Hall’s preparedness to tackle the housing crisis. Khan said that the audit revealed affordable home delivery at near-standstill. Last year, the previous mayor delivered the lowest number of new affordable homes since current records began back in 1991 – just 4,880 – and left a legacy of just 13% affordable homes coming forward through planning permissions granted under his watch, according to Khan. Khan found a flawed process for identifying public land for homes. The previous mayor’s work to produce a digital ‘Doomsday Book’ of public land ncludes scores of sites that will never be built on, including 10 Downing Street, City Hall and the British Museum, found Khan’s audit. Khan has pledged to build new homes on land owned by City Hall, including Transport for London land, and intends to fast-track scores of sites that are suitable for development. He wants to see 50% of all new homes in London being genuinely affordable, also plans to bid to develop other public sector land across London. He has said that he will work with Government ministers to ensure a far more active role for City Hall in identifying surplus public land that can be used for the construction of the new affordable housing London needs. He said: “London gave me the opportunity to go from the council estate where I grew up to being able to buy a family home we could afford. But today, too many Londoners are being priced out of our city. One of the first things we did when we got to City Hall was open the books and look at what was already in the pipeline and it seems the previous mayor has grossly let down Londoners by leaving the cupboard bare when it comes to delivering affordable housing. “I am determined to fix London’s housing crisis and ensure that all Londoners have the opportunity to rent or buy a decent home at a price they can afford, but the scale of the challenge is now clearer than ever and we’re not going to be able to turn things around overnight. “We will be outlining our plans in the coming months, but one of the first things we can do is work with Transport for London to fast-track their numerous surplus sites for development that have previously just been sat on.”
Work Starts On Site At Major New Retail Scheme Sheffield based contractor JF Finnegan has been appointed by Helical Retail Limited to deliver Cortonwood Shopping Park, the 120,000 sq ft new retail extension to the 50 acre Cortonwood Retail Park near Rotherham, South Yorkshire. Work has now commenced on site to construct the new £36M retail park which will create over 300 new jobs for the local area. Helical Retail has already secured pre-lets to leading national retailers on 10 of the 11 units, all of whom are new retailers to the area. M&S, JD Sports, River Island, H&M, New Look, Arcadia, Poundland, CJ Clarke, Wilkinson and Frankie & Benny’s form the new line up at Cortonwood Shopping Park leaving just one 4,000 sq ft unit available via letting agent Edgerley Simpson Howe. JF Finnegan has commenced work on site on a programme of works which will involve the demolition of a vacant 150,000 sq ft warehouse, formerly occupied by UPS, following which site preparation works will take place ready for the development of 11 new retail units totalling 120,000 sq ft for occupiers to be trading by Autumn 2017. The contract continues JF Finnegan’s long-standing involvement at the former colliery site, having constructed all 250,000 sq ft of retail units in the previous phases over the last 20 years. Occupiers at the flagship retail park include B&Q, Morrisons, Next, Argos, Asda Living and Boots. Helical Retail’s Adrian Russell said; “Our aspirations for a new retail development to enhance the existing offering at Cortonwood have been long awaited by the local residents and we are delighted to have now reached the stage where work is starting on site. By attracting new retailers to the area, the scheme is bringing significant capital investment and new jobs to the locality in addition to adding to the vibrancy of an already successful retail destination. We appointed JF Finnegan due to their historic involvement with Cortonwood and their strong reputation and are looking forward to seeing work progress on site.” Dawa Singh, Head of Pre-Construction at JF Finnegan, said; “Over the years we have witnessed the transformation of Cortonwood into one of the region’s most acclaimed regeneration projects and shopping destinations. We have been working alongside Helical Retail and their Project Managers PMS (Wessex) Limited for some time to develop the plans for the new extension which will ensure the continued success of the development. Our teams are now undertaking preparatory works on site.”
Rail links to the Port of Liverpool will be upgraded as part of a scheme to improve the port’s capacity. The Department for Transport will invest in adding a second line on the Bootle to Port link, increasing the line speed and improving signalling at Earlestown West. The schemes are due to be complete by 2019 and will double the number of trains that can enter the port every day to 48, or two every hour. Transport minister Andrew Jones MP, who visited the Port of Liverpool today to view two new options for increasing road capacity to the port, said: “We are determined to improve access to the Port of Liverpool so we can deliver a Northern Powerhouse by creating new jobs and an economic boost to the region.” The rail upgrades will be used to support the Liverpool2 port development, which will allow the port to simultaneously handle two vessels carrying the equivalent of 13,000 20ft containers each. It can currently only support vessels carrying up to 4,000 containers, and the new development is expected to create 1,000 new jobs in the area and up to 5,000 more in the wider supply chain. Warren Marshall, group planning director at Peel Ports, which operates the port, said: “Upgraded road connections are essential but it’s also important to recognise the benefits of other modes.” Port of Liverpool also recently opened a biomass terminal, which will supply up to 3m tonnes of wooden pallets from North America for rail transport to Drax Power Station in Yorkshire.
Changes to Network Rail’s Enhancements Delivery Plan (EDP) following the Hendy Review – including further delays to ETCS commissioning on the East Coast and Great Western main lines – mean that phase 1 milestones are likely being pushed back to CP6, “inevitably” creating uncertainty about the entire delivery of the Digital Railway, Hitachi has said. In its evidence submission to the Transport Select Committee’s inquiry into rail technology, Hitachi Rail Europe outlined a series of concerns around the many ambitions for delivering the Digital Railway proposals. It cited, for example, reductions in the ETCS Cab Fitment Fund, delays to ETCS commissioning and the revision of the Innovation Fund for CP5 from £52m to £19m and the Strategic Research and Development Fund from £50m to £13.5m. “Beyond the above references to ETCS infrastructure plans, there is no mention of Network Rail’s plans to implement an accelerated vision for a digital railway, including the traffic management pilot scheme in Norwich and Great Yarmouth. This is in contrast to Network Rail’s Digital Railway plans for CP5 and CP6-7, as well as the DfT’s focus on digital solutions,” the company added. Hitachi, which has been contracted to provide the Traffic Management System (TMS) for Thameslink as well as a portfolio of train builds across the country, argued that rolling out TMS can increase railway capacity by around 40%. But the current plan “lacks the pace, prioritisation and scope needed to meet passenger and freight growth”, as has been pointed out by the Digital Railway Programme Steering Group. “There is a real need to address the capacity challenges for fare paying customers today – by rolling out TMS capacity enhancement can be achieved more quickly,” the company said. “This current plan is based on making the most use out of existing signalling infrastructure and achieving the lowest whole-life cost approach. It therefore fails to account for the range of economic benefits that could be derived from a faster programme of implementation.” It added: “Given the various complex elements involved in a digital railway, an effective joined-up approach to ERTMS is crucial. The current slow development of ETCS-enabled signals means that ETCS-enabled trains and TMS developments cannot fully take advantage of the capacity and reliability benefits proposed.” While the full business case of the accelerated Digital Railway programme is still being drawn up – with a target submission date of September for the CP6 initial industry plan – there is already “too much uncertainty” around the programme at present, Hitachi said, as well as around subsequent tender opportunities. In addition to that, a lack of information about existing assets and access to date is “discouraging the supply chain from investing in research and development, new services and skills”. “It is also a barrier to businesses within the supply chain to developing collaborative working arrangements on digital solutions,” it added. “Given the complex technologies involved, it is vital that suppliers across each of the different digital railway systems collaborate to better understand the challenges and interoperability of their technologies, and achieve stated milestones. “Likewise, supplier input needs to be greater on the Digital Railway Programme Steering Group. At present, industry representation is largely comprised of train operating companies, rather than those who would be providing the technology.” As well as including greater supplier input in the steering group, the entirety of Network Rail’s Digital Railway team must also operate “with a degree of separation” from the rest of Network Rail in order to “prevent any operational conflict with the day-to-day rules and organisational structure”. Greater supplier input and training To break down current barriers to achieving a digital railway in the UK, Hitachi recommended that Network Rail and the DfT publish a clear programme of works for this programme for CP6 and beyond, as well as develop a supplier steering group linked to the current general steering group “to drive collaborative and innovative approaches”. “In order to deliver the accelerated Digital Railway proposals, more extensive supplier collaboration is required at a technical level, and decision-making level within the Steering Group,” it said. “International expertise from companies such as ProRail can help to understand some of the challenges experienced with implementation in other European countries, looking at lessons learned and the most appropriate actions necessary to improve procedural developments.” But the Digital Railway programme will also require a digitally-talented workforce, Hitachi said, of which the requisite skills exist in the industry at the moment, but not in the necessary amounts to “bring innovation to scale”. “Greater visibility on plans for rolling out the digital railway will allow the supply chain to invest in the talent and training required,” it added. As well as placing greater focus on suppliers, Network Rail must work closely with TOCs to develop efficient plans for training on integrated systems. Read more about this in the April/May edition of RTM, where leaders from Network Rail and NSAR discussed the fundamental need to support suppliers to invest in skills and training.
FROM RECYCLING FLOORING FOR TRAFFIC CONES TO RE-USING SOLVENTS FOR FUEL, PORTAKABIN ANNOUNCES MORE SUSTAINABILITY INITIATIVES The Portakabin Group, the UK’s leading modular building specialist, has announced more sustainability commitments and initiatives to help its customers further reduce their carbon footprint. Waste streams from the manufacture of its modular buildings at its international production centre in York have been increased from 18 to 26 and now include: • Used vinyl flooring recycled for traffic cones and other plastic products • Take-back schemes for batteries, fluorescent bulbs, printer cartridges and new vinyl flooring offcuts • Waste streams for plastics increased from 3 to 5 and mastic tubes are now recycled • 5 metal waste streams for recycling different grades of steel, aluminium and copper • Waste from solvents is re-used as furnace fuel. The Group has invested £100,000 in a new high-tech saw machine which uses advanced technology to optimise material usage, further reducing waste. Derek Carter, Chief Executive of the Portakabin Group said, “Our objective of zero waste to landfill at our York factory was successfully achieved in 2013 – and since then we have won a number of awards for environmental excellence. However, we are firmly committed to continually raising the bar and achieving even more improvements to our waste management processes and sustainability performance.” “Our teams across the business are constantly looking at new ways to increase recycling, reduce waste, further improve the recycled content of our products and the re-use of our buildings when they reach end of life. This is all outstanding work which gives our customers even greater confidence in the sustainability of our approach and in the reduced carbon footprint of all of our buildings.” Other new waste minimisation initiatives: • The Group’s 50 UK Hire and Visitor Centres now separate out paper and cardboard for recycling, and plasterboard on the larger sites • Investment in specially-designed containers to hold and protect components for the modular manufacturing process. These ‘stillages’ are then sent back to suppliers for re-filling, removing the need for packaging • The introduction of a new reporting structure to achieve further reductions in energy consumption and waste, and demonstrating the importance Portakabin places on leadership in this area • Increased use of internal education programmes to continually raise awareness of waste management best practice among staff at every level • An active Corporate Social Responsibility (CSR) programme which instigates and promotes community recycling initiatives across the Group – such as collections for local clothes banks and for the distribution of spectacles to developing countries; the donation of carpet tiles and furniture to local schools and libraries following an office refurbishment, and timber offcuts to help Portakabin volunteers transform an area of wasteland into an allotment for local children • The extension of a programme to segregate and recycle six streams of office waste. This is now being rolled out across the whole of the York headquarters site, following successful trials • Portakabin now has compactors for general waste and bailers at its York manufacturing centre to put cardboard, soft plastics, plastic bottles and plastic strapping into bails. This reduces transportation and carbon emissions by achieving higher tonnage with each truck movement. These latest initiatives follow a host of existing commitments, which include Portakabin sourcing its steel supplies locally. 79 per cent of the steel used in its modular manufacturing process continues to be supplied from within the UK, which is more sustainable, strongly supports British manufacturing, procures steel of the highest quality, and minimises the carbon footprint of Portakabin buildings. www.portakabin-group.co.uk
Britain’s builders endure tough April as construction activity slows ahead of June’s European Union membership referendum Data suggests economy is losing momentum as EU vote on June 23 nears After weak manufacturing report yesterday, Services PMI due tomorrow Official numbers showed UK economic growth slowed in the first quarter Builders had a tough time in April as growth in the construction sector slowed to its lowest level for almost three years, amid ‘clouds of uncertainty’ ahead of next month’s EU referendum. The closely-watched Markit construction sector purchasing managers’ index showed a reading of 52.0 last month, down from 54.2 in March, and the weakest it has been since June 2013. A reading above 50 indicates expansion. The latest weak data comes after a Markit PMI report yesterday showed a surprise contraction in manufacturing activity last month, and added to evidence that the upcoming referendum is taking its toll on the UK economy. The figures caused a further sell-off in the pound this session, after a sharp reversal yesterday against both the dollar and the euro. At lunchtime, sterling was trading at €1.2603 versus the euro and $1.4466 against the dollar, extending earlier falls after the data, having opened at €1.2665 and $1.457 respectively this morning. Currency traders will be watching tomorrow morning’s services PMI closely, and another miss could spell further woe for sterling. This morning’s PMI figures follow a string of bad data for the UK economy over the past month. Last week official numbers revealed that UK economic growth slowed to 0.4 per cent in the first quarter, down from 0.6 per cent growth in the previous three months, and economists are now expecting output to ease back further in the second quarter. Tim Moore, senior economist at Markit, said: ‘UK construction firms reported their worst month for almost three years in April, meaning that the first quarter slowdown is unlikely to prove temporary.’ He added: ‘Softer growth forecasts for the UK economy alongside uncertainty ahead of the EU referendum appear to have provided reasons for clients to delay major spending decisions until the fog has lifted.’ However the figures should have come as no surprise to markets. Last month, the Bank of England warned that there were signs the EU membership referendum vote was weighing on investment and commercial property sales. David Noble, group chief executive at the Chartered Institute of Procurement & Supply, said: ‘Fears over weaker UK and global economic growth dealt a blow to confidence in the construction sector, leading to delays in new spending commitments. ‘The prospect of the EU referendum and its outcome in June are likely to add to uncertainty too, with many construction firms preferring to wait and see what happens before making any decisions.’ The Markit report also revealed a renewed drop in confidence amongst the sector. Construction firms reported a ‘general unwillingness to commit to new projects’ among clients, according to the survey. Builders have also been taking on more sub-contractors rather than hiring staff to tide them over until the outlook becomes clearer. Howard Archer, chief UK and European economist at IHS Global Insight, said the construction PMI adds to the rapidly mounting evidence that the UK economy is stalling. He predicts UK growth will slow further, to 0.3 per cent in the second quarter, or even 0.2 per cent if the services sector also begins to suffer.
