The latest research from Benham & Reeves Residential Lettings confirms that student rents have surged by 55.5% over the past 20 years, compared to 24% for non-student properties, as students turn away from traditional student digs for more luxurious flats and private halls of residences. Despite the advent of university
The mayor of London has paved the way for 10,000 new homes in east London, with the aim of half of these being affordable. Source link
Employees and others behaving badly – when are you liable for their misdeeds? Solicitor Mark Clinton reports. Above: Mark Clinton is a partner at Thomas Eggar, recently merged with Irwin Mitchell LLP Vicarious liability is the term used to describe a situation where someone is held responsible for the actions
Anglian Water Business has confirmed it is likely to rebrand in preparation for the opening up of the non-household retail market, given its existing prominence in the competitive business retail market in Scotland. As well as Anglian, which currently holds nearly a quarter of Scottish market share,
Shareholders rose up against the pay of Britain’s bosses on Thursday in the most dramatic day of protests against chief executive rewards in four years. From London to Glasgow and Dublin, investors rebelled against remuneration packages at some of the UK’s largest listed companies. More On this topic IN UK
Framework Initiative will be made available to public bodies across England and Wales. A London housing association has launched a £2.4bn framework for public bodies to use for fire safety remediation works. Hyde Fire Safety Works and Services Framework, which is being procured by Hyde Housing Association, will cover a range
Research into Migration in the UK Construction and Built Environment, the Construction Industry Training Board’s (CITB) new Green Paper, has revealed that less than a third of employers have taken action to deal with the impact of the UK leaving the EU. The key findings of the research include: one
Four smart motorway projects worth £500 million are due to begin over the next 18 months in North West England. Over 100 miles of extra lanes will be developed across the region’s motorway, with work starting this summer on a three-mile stretch of the M62 near junction 12. Temporary narrow
The second phase of the £32 million flood alleviation project for Perry Barr and Witton near Birmingham is underway. The scheme will be reducing the risk for 1,400 properties currently at risk of flooding from the River Tame, including 950 homes. Part of the Environment Agency’s programme of £2.6 billion
Technology has transformed many different industries within the last few years and this is starting to become true for the construction industry. Nowadays, technology has paved the way to increase the efficiency and accuracy of projects whilst reducing the amount of manual labour that is required. As such a key
The latest research from Benham & Reeves Residential Lettings confirms that student rents have surged by 55.5% over the past 20 years, compared to 24% for non-student properties, as students turn away from traditional student digs for more luxurious flats and private halls of residences. Despite the advent of university tuition fees, students are no longer prepared to live in substandard accommodation and are demanding well maintained and decorated properties with high speed internet, ensuite bathrooms and state-of-the-art kitchens. Benham & Reeves undertook a survey of its offices and their respective student properties and tenants. Over the course of two decades, the average monthly spend on rent has increased while the number of sharers has markedly decreased. Marc von Grundherr explains: “Part of the reason we see student’s expectations and therefore requirements changing is because of demographics. With the abolition of student grants and the introduction of tuition fees, many young people from lower income backgrounds have eschewed university degrees and gone straight into the workforce. Those who have sought university degrees tend to be more affluent while simultaneously, universities have topped up student numbers by welcoming greater numbers of overseas students. These groups simply aren’t prepared to live in traditional “student houses” with 5 rooms to one toilet and a very basic kitchen. They want to continue to live at the same standard they have at home. Private halls of residence have increased in popularity in response, many with rents approaching £400 per week. Unsurprisingly, many students are also turning to studio and one bedroom apartments that command a similar rental value.” A five bedroom house in Pembroke Road in Earls Court which has been let through Benham & Reeves Lettings to a succession of Imperial College students for 20 years exemplifies the trend. Whereas initial groups of students moved in in year one and stayed for three years – sometimes even longer – today they only tend to stay one year and move out to smaller flats so they can be on their own or into a two bedroom flat. Officially, the length of tenancy has decreased from 2.6 years in 1996-2006 and is now averaging 1.1 years. Finer tastes are not the whole story, though. Increasing regulation by councils, including a clampdown on Houses in Multiple Occupation (HMOs) has meant that the larger homes that were traditionally shared by four or five students are now rare. More typically, students will live in a new build, two-bedroom flat with just one other person. Landlords for these properties do not need an HMO license provided they are let to no more than two unrelated or unmarried tenants. The consequence of fewer people sharing one home also means that rents are invariably higher as well as utilities and other associated costs. Overseas investment is another factor. Traditionally overseas clients bought for their children while studying – these properties were then retained as rental investments. Analysis conducted by Benham & Reeves Lettings found that 98.7% of clients who did this found that by the time their children finished their studies and left the UK, the increase in the property value had covered the total cost of the education and in 44% of cases, had also covered the costs of their living expenses including flights. Marc von Grundherr concluded: “I think there is also a greater social change, as well. Today’s students have grown up in an era of easy credit, cheap flights and mass luxury. The idea of slumming it is completely foreign to them. They would much rather go deeper into debt than shiver in an unheated house. Parents also have more concerns about their children’s safety and don’t want them living in a questionable part of town. The television series ‘Fresh Meat’ may have only recently gone off the air but the premise of six students sharing a run-down Victorian house already seems dated.” Source link
The mayor of London has paved the way for 10,000 new homes in east London, with the aim of half of these being affordable. Source link
Employees and others behaving badly – when are you liable for their misdeeds? Solicitor Mark Clinton reports. Above: Mark Clinton is a partner at Thomas Eggar, recently merged with Irwin Mitchell LLP Vicarious liability is the term used to describe a situation where someone is held responsible for the actions or omissions of another person. The Supreme Court handed down two complementary judgments in March that respectively address the two main questions that determine when this type of liability might arise. The first question, addressed by the Supreme Court in Cox v Ministry of Justice, relates to the nature of the relationship between the wrongdoer and the person who is vicariously liable for his wrongdoing. It is generally understood that an employer may be liable for the acts or omissions of his employees. However, vicarious liability can arise even where there is no employment contract. How then does one identify when a relationship can give rise to vicarious liability? The second question, addressed by the Supreme Court on the same day in Mohamed v WM Morrison Supermarkets plc, relates to the nature of the wrongful act. Where the relationship is one which gives rise to vicarious liability, it is also relatively well understood that the liability does not arise in respect of every conceivable act or omission of the wrongdoer. However, where does the law draw the line? The result in that case may have come as a surprise to some. Briefly the facts in Cox v Ministry of Justice were as follows. Mrs Cox was injured while working in the kitchens in Swansea Prison when a prisoner accidentally but negligently dropped a sack of rice on her back. She sued the Ministry of Justice for compensation. The court at first instance found that there was no vicarious liability because the relationship between the prisoner and the Ministry of Justice was not akin to that between an employer and an employee. The Court of Appeal overturned this decision and, on further appeal, the Supreme Court agreed that vicarious liability may extend beyond the traditional employer/employee relationship. In this case, the Ministry of Justice was vicariously liable. The court said: “A relationship other than one of employment is in principle capable of giving rise to vicarious liability where harm is wrongfully done by an individual who carries on activities as an integral part of the business activities carried on by a defendant and for its benefit (rather than his activities being entirely attributable to the conduct of a recognisably independent business of his own or a third party.” In reaching its conclusion, the Supreme Court recognised that workers may be part of the workforce of an organisation even though they are not employees of that organisation. This can arise, for example, where agency staff are used or where one organisation borrows a worker from another organisation (thus relevance for construction here). In this case, by assigning activities to the prisoner, the Ministry of Justice had created the risk of a tort being committed, and it made no difference that it had a statutory duty to provide this work to the prisoner. In the Morrisons case (discussed below) it was said that the development of the law as to the type of relationships that give rise to vicarious liability is ‘A response to changes in the legal relationships between enterprises and members of their workforces and the increasing complexity and sophistication of the organisation of enterprises in the modern world’. It is certainly true that there have been tremendous changes in how enterprises are organised and it would be well worth considering where vicarious liability might arise in your organisation and whether the insurances you have in place will cover you in all such instances. The rather shocking facts in Mohamed v WM Morrison Supermarkets plc were as follows. Mr Mohamed went into the kiosk at a petrol station owned by Morrison Supermarkets and enquired as to whether some documents on a USB stick could be printed there. He received a curt and rude response to the effect that they could not. He objected to the way he had been spoken to and was ordered to leave. He returned to his car and was followed by the employee who proceeded to assault him violently. The question for the court was how one defines the boundary between actions for which an employer is vicariously liable and those for which he cannot be held liable. The Supreme Court held that there are two matters to be considered. The first is what functions or field of activities have been entrusted by the employer to the employee, in other words, ‘what was the nature of his job?’. This question is to be addressed broadly. It is then necessary to decide whether there is a sufficiently close connection between the wrongful conduct and the nature of the employee’s job to make it right for the employer to be held liable under the principle of social justice. In this case, the employee’s job was to attend to customers and respond to their queries. Was there a sufficiently close connection between those duties and what happened on the forecourt? The short answer is ‘yes’. Inside the kiosk he was carrying out those duties, although not in a way his employer would have wanted. It was within the field of activities assigned to him. There was then an unbroken sequence of events ending with the assault. Notwithstanding the fact that the employee left the kiosk, followed the customer contrary to express instructions and then acted in a way that the employer would obviously not condone, the employer was liable. Aside from defining clearly the extent of workers’ roles, it is difficult to see what employers can do to reduce the risk of liability where employees discharge their duties negligently or otherwise in a manner which might give rise to liability. It is perhaps just one of the hazards of employing people. About the author: Mark Clinton is a
Anglian Water Business has confirmed it is likely to rebrand in preparation for the opening up of the non-household retail market, given its existing prominence in the competitive business retail market in Scotland. As well as Anglian, which currently holds nearly a quarter of Scottish market share, Utility Week understands that at least one other water and sewerage company (WASC) is in the process of rebranding its business retail arm. The news follows an announcement by Northumbrian Water that it would rebrand its non-household retail business as ‘Wave’, which it hopes to establish as a “major player in the market”. Northumbrian’s new brand will be led by managing director of business retail Lucy Darch. It retains the company’s corporate colours, and its hexagonal shape is inspired by Northumberland’s castles. From 1 April 2017 all non-household customers in England will be able to choose their water and sewerage retailer. Currently only businesses that are supplied with more than five mega-litres of water a year can choose their water retailer. Of the water-only companies (WOCS), Affinity Water, Bristol Water, Essex and Suffolk Water, Sutton and East Surrey Water and Cholderton and District Water all tell Utility Week they plan to remain in the market, with South East Water and Cambridge/South Staffordshire Water refusing to comment. And of the WASCs, eight of nine say they will not exit the retail market, with Southern Water saying it is “undecided”. In January Portsmouth Water became the first to reveal that it would exit the business retail market when competition is introduced, handing the baton to Scottish supplier Castle Water. And, earlier this month, Severn Trent Water and United Utilities (UU) stated their intention to team up and create a new, separate, and yet-to-be-named retail business. Read Utility Week’s analysis: Severn Trent and United Utilities ally: the dawn of a new era? Source link
Shareholders rose up against the pay of Britain’s bosses on Thursday in the most dramatic day of protests against chief executive rewards in four years. From London to Glasgow and Dublin, investors rebelled against remuneration packages at some of the UK’s largest listed companies. More On this topic IN UK Companies Engineering group Weir, pharmaceutical company Shire and building materials business CRH all suffered large protests. FTSE 250 company Weir experienced the biggest setback at its annual meeting in Glasgow as 72 per cent of voting investors rejected its pay policy — the biggest reverse on a binding vote on executive pay since they were introduced in 2013. The decision means the group will have to keep its existing pay structure and offer investors another vote on its pay policy at its annual meeting next year. Charles Berry, Weir chairman, said: “It is obviously disappointing. It is a big no vote. We consulted extensively but our pay proposals were rejected because they do not follow UK guidelines.” Melanie Gee, chair of the company’s remuneration committee, said: “We will have to go back to our shareholders to discuss this to assess what is the correct next step.” Investors voted against Weir’s plans because they offered restricted share awards, which are not subject to performance targets. This deviates from market guidelines, say some investors and advisory groups. With FTSE 100 drugmaker Shire suffering a 49 per cent vote against its pay plans at its meeting in Dublin and CRH a 40 per cent protest, also in Dublin, some investors warned that growing resentment could spark protests in the US and continental Europe. Paul Lee, head of corporate governance at Aberdeen Asset Management, said: “It is a year when people have toughened their views in the UK and against UK-listed companies. It is getting noticed overseas. We have had some big protests here and we might see more overseas too.” In the case of Weir, investor anger was soothed to a degree as the group had offered a restricted shares scheme that has been floated as a possible alternative to long-term incentive plans by a working group of the Investment Association, which represents UK shareholders. Shire said it was pleased to have won backing for its remuneration report, albeit by the slenderest of margins with 50.55 per cent in favour. Responding to the vote, Shire said: “We remain firmly committed to a constructive and appropriate dialogue to fully understand shareholder views as we compete in a global market place.” We will have to go back to our shareholders to discuss this to assess what is the correct next step – Melanie Gee, Weir remuneration committee Shareholder dissent at Shire was focused on the 25 per cent pay increase granted last year to Flemming Ornskov, chief executive, taking his fixed salary to $1.69m. His overall pay rose fivefold to $21.6m in 2015. This led two big shareholder advisory groups, Institutional Shareholder Services and Glass Lewis, representing 25 per cent of investors, to recommend a vote against the remuneration report. Hans Hirt, a director at Hermes Investment Management, said: “We do not support the increase in salary of 25 per cent for the CEO, particularly given that his overall bonus potential is more than 10 times his basic salary and his total remuneration was over $21m (£14m) last year. You need JavaScript active on your browser in order to see this video. “We believe that an incremental approach to salary rises is more appropriate and should reflect shareholder value creation over the longer term.” CRH also narrowly secured shareholder approval for its remuneration package for its top executives. Just over 40 per cent of the votes cast by shareholders at the company’s annual meeting opposed the new pay package, which included a big rise in the bonus being paid to chief executive Albert Manifold. In London, FTSE 100 groups Barclays and Schroders saw small protests with the bank registering 6.4 per cent of votes cast against its remuneration report, while Schroders saw 4.3 per cent oppose its plans. In the case of Schroders, the bigger rebellion was against the elevation of Michael Dobson to chairman from chief executive with 14.9 per cent of voting investors opposing his appointment. Schroders has a big family investor base that controls 47 per cent of its shares and was supportive of Mr Dobson’s appointment as chairman. Additional reporting by Vincent Boland, Madison Marriage and Martin Arnold Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link
Framework Initiative will be made available to public bodies across England and Wales. A London housing association has launched a £2.4bn framework for public bodies to use for fire safety remediation works. Hyde Fire Safety Works and Services Framework, which is being procured by Hyde Housing Association, will cover a range of works, goods and services relating to fire safety. The framework, which is open to public bodies across England and Wales, is divided into 11 lots covering different types of remediation works to help make buildings more fire safe, with each of the lots being worth around £200m. The framework covers everything from supply and repair of fire doors, to the installation of sprinklers, to cladding remediation works. Each lot will run for four years, with between two and 10 bidders expected to be invited to tender. Firms can submit bids for all lots. Companies have until 5 August to register their interest, with shortlisted firms expected to be invited to tender on 18 August. Hyde Fire Safety Works and Services Framework Lots Lot 1 – Supply, installation, removal, and repair of fire doors Lot 2 – Supply, installation, removal, and design of fire safety signage Lot 3 – Supply, installation, removal, and maintenance of fire alarm, detection and suppression systems. (Lot 3 is split in to Lot 3A and Lot 3B to differentiate between fire detection and fire suppression systems) Lot 4 – Supply, installation, removal, and maintenance of emergency lighting Lot 5 – Design, supply, installation, removal, and maintenance of sprinkler systems and dry/wet risers. (Lot 5 is split in to Lot 5A and Lot 5B to differentiate between Dry Risers and Wet / Charged Risers.) Lot 6 – Provision of fire proofing and stopping works and services Lot 7 – Provision of cyclical and reactive electrical testing, servicing, and maintenance services Lot 8 – Remedial Works, upgrades, installations, and testing of electrical systems Lot 9 – Removed from framework Lot 10 – Design, supply, installation, removal, and inspection of cladding Lot 11 – Incident Management and provision of Business Continuity Planning advisory services to mitigate and plan for potential threats Lot 12 – Management Contractor to manage any of Lots 1 to 11 for clients and/or direct delivery
Research into Migration in the UK Construction and Built Environment, the Construction Industry Training Board’s (CITB) new Green Paper, has revealed that less than a third of employers have taken action to deal with the impact of the UK leaving the EU. The key findings of the research include: one in three construction employers are feeling the impact of Brexit (up 9% since last year); almost half expect the recruitment of skilled workforce to become more difficult over the next two years, with just 4% expecting it to get easier; less than a third has taken action with regards to Brexit; only 8% of employers who have started making Brexit contingency plans said they will increase training; and the most important goal employers have in the run-up to Brexit is to keep hold of the workers they currently employ. “With Brexit approaching, construction employers are expecting the recruitment of skilled workers to get harder as they anticipate restrictions on access to migrant workers. However, few employers are making firm plans to address this and instead are focusing on retaining their existing migrant workforce,” said Steve Radley, Director at the Construction Industry Training Board. Mr Radley added the paper highlights the need for a “twin-track strategy – investing in the domestic workforce while enabling employers to continue to secure the vital talent of migrant workers”. “With an estimated 158,000 construction jobs to be created between now and 2022, it is critical that industry works together to deliver its part of this strategy,” he said. CITB is the Industry Training Board and a partner in the Sector Skills Council for the construction industry in England, Scotland and Wales. Its job is to work with industry to encourage training, which helps build a safe, professional and fully qualified workforce, by offering support and funding.
Four smart motorway projects worth £500 million are due to begin over the next 18 months in North West England. Over 100 miles of extra lanes will be developed across the region’s motorway, with work starting this summer on a three-mile stretch of the M62 near junction 12. Temporary narrow lanes will be introduced to allow contractors to work at the side of the motorway, and a 50mph speed limit will be needed for the safety of drivers and workers. The roadworks will be gradually extended to junction 10 by the autumn and the smart motorway scheme is due to be completed by spring 2020. Speed limits of 50mph will also be introduced between junctions 10 and 18 on the M60 later this summer as the remaining section of the North West’s first motorway goes live. Overnight resurfacing work will continue into the autumn on parts of the M60 once the smart motorway is operational. “Smart motorways have been proven to be effective at tackling congestion, with the smart motorway on the M62 in West Yorkshire saving commuters an average of 30 minutes each week,” said Mike Bull, Highways England’s smart motorways programme manager for the North.”We’ll be starting work on four new smart motorways in the North West over the next 18 months and will do everything we can to keep disruption to a minimum, including only closing parts of the motorway overnight when traffic levels are much lower.” The other schemes include a 20-mile stretch of smart motorway on the M6 in Cheshire, which will provide 40 miles of extra lanes for drivers by spring 2019. Work will also start in spring next year on a four-mile smart motorway on the M56 near Manchester Airport and on a 10-mile stretch on the part of the M6 that links the M62 near Warrington to the M58 near Skelmersdale. Additionally, a new 19-mile smart motorway will be created over the Pennines on the M62 between Rochdale and Brighouse. The route will link up with other schemes on the M62 to create almost 60 miles of smart motorway between the North West and Yorkshire, with construction work due to start in autumn 2019.
The second phase of the £32 million flood alleviation project for Perry Barr and Witton near Birmingham is underway. The scheme will be reducing the risk for 1,400 properties currently at risk of flooding from the River Tame, including 950 homes. Part of the Environment Agency’s programme of £2.6 billion investment into flood defences across the country, the second phase of the project will provide additional flood storage at Forge Mill in Sandwell Valley. Work in the Country Park will include new fencing for improved animal pens at Forge Mill Farm, extending it as a visitor attraction. There will also be improvements carried out to the entrance into the park for pedestrians, cyclists and horse riders entering from the Old Newton Road. “It’s great to see first-hand work starting at Perry Barr and Witton – a fantastic scheme which not only proves the value of partnership working but which also promises to improve public spaces too. A keen cyclist myself, I’m pleased to see that as well as reducing flood risk the project will improve cycle paths and parkland in the area – a win-win for everyone,” said Emma Howard Boyd, chair of the Environment Agency. The main aspects of this phase are the building of the new embarkment, the installation of the river outlet and the temporary re-diverting of the river. “This excellent new scheme will better protect 1,400 more properties from flooding and will improve access to the wonderful Sandwell Valley Country Park for both local residents and tourists,” said Environment Minister Thérèse Coffey. “With funding coming from the government, local councils, the Arts Council and crowd funders, this project is a great example of how by working together, we can help protect our communities and improve our environment,” she added. The first stage of the project included improvements to the existing upstream flood storage area at Perry Hall Playing Fields, as well as improvement works in Perry Barr and Witton, such as wall repairs and wall raising along Brookvale Road, construction of walls along Tame Road and installation of a flood gate at the Atlas Industrial Estate entrance.
Technology has transformed many different industries within the last few years and this is starting to become true for the construction industry. Nowadays, technology has paved the way to increase the efficiency and accuracy of projects whilst reducing the amount of manual labour that is required. As such a key time in the industry, it is worth taking a look into the future to see what could be in store for construction over the coming years. Augmented and Virtual Reality One of the most exciting changes on the horizon is the introduction of augmented and virtual reality. We are already seeing this being used in some places, but it will become a key part of the construction process in the coming years. Augmented and virtual reality will help to provide a detailed overview of the entire project and prevent costly mistakes which will also result in fewer delays. Next Generation Equipment There will also be the introduction of next-generation tools and equipment which will greatly improve the speed, accuracy and efficiency of various tasks throughout the construction process. Construction can be a dangerous industry and one where human error has always been a huge concern, but these next-generation tools will cut down on errors and make sure that projects are completed properly. The transition to these tools will be made much easier with the equipment that is constantly being developed today from places like SGS Engineering. Changing Workforce It is understandable that people will have concerns about machines replacing jobs in the construction industry as more and more technological advances are made, but it is important to remember that the industry will still require intelligent and skilled workers that can utilize this technology and see the big picture. Labour shortage is a key problem at the moment, but the new demands of the industry will mean that there are many long-term career options in this industry for the skilled and technologically capable up and coming generation. Green Construction There is currently a huge focus on green technologies in a global bid to reduce the impact of global warming and this is something that the construction industry needs to pay attention to. It is very easy to see sustainable materials and environmentally friendly construction methods being the norm in the near future to meet the inevitable tough environmental regulations. Improved Public Image The construction industry does not have the best public image right now with many viewing it as a pre-historic industry which is resistant to change. When new technologies, new tools, a changed workforce and green construction is introduced, this will all change and it will be seen in a completely different light by the general public.
