Fusion21 has launched a £1.1bn workplace & facilities framework, to meet the facilities management needs of a range of public sector organisations Designed to meet the facilities management needs of a wide range of public sector organisations in the blue light, central government, education, health, housing and local authority sectors,
North West growth and regeneration Group, Torus, is delighted to unveil another major development in Cheshire West, The Coppice at Rossbank, which will deliver 130 affordable family homes for Ellesmere Port. A mix of 2, 3 and 4-bedroom homes and 2-bedroom apartments, built as part of a larger 260-unit development,
Scotland has ambitious environmental goals. It is five years since the Paris agreement. The race to zero emissions is a driver for new types of thinking across all industries, and especially the sector I work in – the built environment . In my role as architect director at BDP’s Glasgow
Has your insurer insisted you comply with the CIREG (Construction Insurance Risk Engineers Group) best practice document: ‘Managing Escape of Water Risk on Construction Sites’? If so, does your site fulfil the requirements that are highlighted? One of Whitecode’s clients will have an excess increase to a six-figure sum unless
In June 2017, a 220-bed Holiday Inn Express opened in Manchester — just 38 weeks after construction began. Modular construction continues to reach new heights, but the industry must still consider ways to make commercial buildings stronger, safer and more environmentally friendly. Here, Nick Cowley managing director of aluminium building
Vital Energi have been awarded a £6.58m contract to deliver ThamesWey Energy’s Woking Power Station project which will create a state-of-the-art Combined Heat & Power energy centre providing low-carbon heating and power to local businesses and residents. When complete, the energy centre will produce enough heat and power to supply
Indeglas, recognised as a leading supplier of interior glass screen solutions, has completed a £1.04m contract for Do & Co, a global gourmet entertainment and airline catering company based at Heathrow’s Segro Park. Fitting out the building to the clients extremely high specifications involved Indeglas designing, supplying, and installing specialist
Britain’s van drivers would love to see a bridge from Scotland to Northern Ireland and a tunnel under the North Sea to Norway, according to experts. Specialist vehicle suppliers LeaseVan.co.uk looked at which potential future engineering innovations would be most welcomed by the UK’s van drivers with a second Channel
Rental data from one of London’s largest co-living property operators has today revealed a marked increase in young renters heading to the Capital throughout September 2020; a 192% increase in signed rental contracts with those under the age of 24, when compared to the pre-lockdown months of January and February
Once the lockdown restrictions eased during summer 2020, the UK housing sector experienced a mini boom. Far from damaging the property market, the lockdown had both exacerbated pent-up demand for property while also kindling a fresh demand for properties outside city centres, especially dwellings with a garden or a spare room
Fusion21 has launched a £1.1bn workplace & facilities framework, to meet the facilities management needs of a range of public sector organisations Designed to meet the facilities management needs of a wide range of public sector organisations in the blue light, central government, education, health, housing and local authority sectors, the framework is aligned with market requirements. Opportunities are available for both large organisations and SMEs. Lots 1 and 2 are multi-sourcing options that allow the appointment of a service provider to deliver multiple services (bundled or TFM) incorporating elements of physical asset management, service management and process management. Lots 3 to 6 offer individual services and will allow interested suppliers to bid for lots specific to their capability. The full lot structure includes: Lot 1 – FM principal contractor Lot 2 – FM managing agent Lot 3 – Cleaning & washroom services Lot 4 – Security services Lot 5 – Waste management Lot 6 – Building engineering services (M&E) The framework includes flexible call-off processes with options for both direct awards and further competitions. ‘In response to market demand’ Peter Francis, director of operations at Fusion21, said: “Set for launch in February 2021, this framework has been developed in response to market demand – reflecting feedback provided from both our members and the supply chain. “It marks the next stage in developing Fusion21’s FM offer which has grown from strength to strength over recent years. “Fusion21 is an established framework provider that is well respected throughout the public sector. “Our procurement teams are experienced technical experts in their fields that understand the needs of suppliers when tendering and a contributor to our success is how we work for the mutual benefit of our suppliers and members. “We welcome applications from interested organisations that meet the criteria set out in the tender documents are now available on the Delta e-Sourcing Portal. The submission deadline for the framework is 9 December at noon.
North West growth and regeneration Group, Torus, is delighted to unveil another major development in Cheshire West, The Coppice at Rossbank, which will deliver 130 affordable family homes for Ellesmere Port. A mix of 2, 3 and 4-bedroom homes and 2-bedroom apartments, built as part of a larger 260-unit development, all homes at The Coppice at Rossbank will be available via Shared Ownership, Rent to Buy and Affordable Rent. The development builds on Torus’ expanding portfolio in Cheshire West, with schemes currently in development in Lostock Gralam and Kingsley. Combined, these developments represent a £9.2 million investment to date, with over 70 mixed-tenure properties created to meet the region’s shortage of affordable housing. This expansion showcases the Group’s ongoing commitment to Cheshire West and to building the homes people want and need, exactly where they need them – supporting the development of sustainable, thriving, multi-generational communities. By building a mix of homes, all of a mixed size and tenure, The Coppice at Rossbank is suitable for future homeowners, at any stage of life, and will see first time buyers, families and downsizers alike given the option of owning the homes they truly want. Working to create homes and communities, The Coppice at Rossbank will grow and evolve with the people who call the development home and become a place people live for many years. Discussing the scheme, Group Head of Sales, Jeanette Grady, said; “We are proud to be building more homes in Cheshire West and increasing access to truly affordable housing solutions and this ambitious project will see high-quality homes built exactly where they’re needed. “This development is an important one for the area and will see the brownfield site regenerated to accommodate affordable homes suitable for first time buyers, young professionals, families and downsizers alike. “With demand for affordable housing now at an all-time high following the national economic downturn caused by COVID-19, it is vital that we continue bolstering access to options such as these so communities across Cheshire West are able to thrive now and in the future.”
Scotland has ambitious environmental goals. It is five years since the Paris agreement. The race to zero emissions is a driver for new types of thinking across all industries, and especially the sector I work in – the built environment . In my role as architect director at BDP’s Glasgow Studio, I have been involved in numerous education building projects across most local authorities in the last decade. Education can determine how people live the rest of their lives. So, providing a successful sustainable learning environment that promotes wellbeing is a contributing factor in allowing every young person to achieve their potential. Each of our school project designs starts with a blank piece of paper and the aim to create an inspiring place to learn but our work is also driven by Scotland’s ambitious net zero climate target. We are collaborating with local authorities and communities to create sustainable indoor and outdoor learning spaces in schools that show a commitment to teachers, students and the wider environment. The Scottish Government is supporting local authorities with funding initiatives including the Learning Estate Investment Programme (LEIP) managed by the Scottish Futures Trust (SFT). These initiatives are encouraging local authorities to lead by example and all of our clients are taking on this challenge with great enthusiasm and commitment. As well as creating inspiring spaces, we take a sustainable approach to our designs. Our first principles are to use passive design measures to reduce the energy consumption of the buildings we design. We consider things like building orientation, the form factor and a fabric first approach to envelope design right at the outset of the project. As a Passivhaus certified practice, it is great to see so many new school developments considering the benefits that passive design principles can bring. BDP’s track record in sustainable buildings and the many benefits they bring is demonstrated at the Enterprise Centre, a low carbon exemplar building for the University of East Anglia within the Norwich Research Park. The building, which completed in 2015, has achieved BREEAM Outstanding with a score of 90.8%, and also secured the Passivhaus standard. BDP provided full engineering design for this project. In Waid Academy in Anstruther, completed in 2017 for Fife Council, we designed and delivered a great community school that includes a high school, police station, library and a community hub. We applied the same sustainable approach to design at The Waid and a recent report tracking energy use since it opened, demonstrates the building is working within the SFT LEIP targets, which were not considered at that time. In a time where there is a heightened need to take learning out of the classroom, the use of sustainable, educational buildings and landscape is vital for varied, creative teaching methods. A sustainable campus provides a positive legacy for local authorities and demonstrates their commitment to providing a sustainable community environment. The LEIP targets set by the Scottish Government can be achieved without Passivhaus certification. Another great example of our sustainable design approach is the Maybole Community Campus for hub South West and South Ayrshire Council; a project that will provide a new secondary school and combine three primary schools together with early years provision. The campus also includes a community swimming pool and a full-size rugby pitch and is one of the first phase investment projects supported by LEIP. The design embodies sustainable principles and explores the possibility of incorporating a renewable energy source, such as wind turbines and photovoltaics, to exceed carbon neutral. Every school project starts with extensive consultations with the stakeholders – a process of collaboration that is central to BDP’s way of working. Our interactions with teachers and pupils demonstrate quite clearly that learners want buildings that help the environment. Young people, in particular, are more aware of the impact we have on our environments and so we have a moral obligation to create a learning environment that positively contributes to the future of students. We are learning lessons with each project and I’m so glad we can offer sustainable learning and teaching spaces that sit at the heart of community projects, providing a positive and lasting legacy. Lindsey Mitchell is Architect Director at BDP’s Glasgow Studio
Has your insurer insisted you comply with the CIREG (Construction Insurance Risk Engineers Group) best practice document: ‘Managing Escape of Water Risk on Construction Sites’? If so, does your site fulfil the requirements that are highlighted? One of Whitecode’s clients will have an excess increase to a six-figure sum unless they follow the guidance within this document. But how do you comply and what are the options? Alex Hill, Managing Director at Whitecode explains the issues. First of all, the question we should be asking is why the CIREG is publishing this guidance. In a couple of words, it is as a result of modern systems. Generally, it is rarely the fault of the system used – they are almost always installation errors. But as an industry, we didn’t have such failures when traditional systems were the order of the day such as soldered copper. Once upon a time copper was seen as something of an art form, a process which required a high level of skill and experienced workmanship. However, the clampdown on hot works on construction sites, due to the fire risk and cost of metals has driven the industry down a route of using plastic-based push-fit and clamped metal systems. Unfortunately, these modern systems have relegated soldered copper to the ranks of a bygone fashion; a once well-used solution that now doesn’t have much of a presence in the industry.Whilst Whitecode is in no way averse to modern systems – plastic and metal push-fit or compression systems have their limitations – the rise in large-scale water leaks caused by modern systems is difficult to deny. This constraint can be as a result of insufficient push-fit mechanism installation training. This lack of competence compromises both the performance and quality of modern solutions. What does this mean to construction clients? Whitecode is finding more of its clients and end-users are asking for permanent leak detection to remain in situ after the construction team leaves, to ensure continual building protection. The CIREG recommends the risk of water must be similar in status to project risk such as a fire. It’s hard to ignore the irony here; it was the fire risk that has, in our opinion, resulted in the gradual disuse of traditional systems including soldered copper. The CIREG instructs us to nominate a competent person for the management of escaped water and suggests we should appoint the M&E contractor to carry out this role. For us here at Whitecode, we would say this is akin to allowing a fox to guard chickens. Instead, we propose the building services consultant should be responsible for highlighting who the role is given to. This consultant must also create the water management plan and review the practices onsite as work progresses. He or she would subsequently provide a balanced, independent opinion of the work performed and the quality ascertained onsite. After all, our advice is covered by professional indemnity insurance. The plan should include: The nominated duty holders. Summary of the system. Management of water systems: System overview Design features System selections Quality assurance Installation standards Mitigation and detection Isolation of the water supply in the event of a leak Removing water from the building Testing regime Emergency procedures The key elements that site managers and designers might not be familiar with are the mitigation measures. These include, but are not limited to: The need to provide automatic water shut off devices. This detects when there is a problem so it can be shut down. All water supplies to be isolated once the site is closed. Weekly checks on automatic devices. Label all supplies once installed, not at the end of the project. This includes all temporary valves. On permanent systems, automatic devices should be fitted in the following locations: At the mains inlet Before any booster pumps On each floor Any other system such as LTHW, MTHW, chilled water underfloor heating In severe weather, all pipes should be drained down or trace heated. Whitecode suggests that these systems are likely to be left in situ once the system is no longer on a construction site. These are very honourable requirements, and it will take a large step change in our thinking as designers to make this a reality. With the CIREG providing conflicting advice as to how to mitigate the risk of escaped water on construction sites, rest assured that Whitecode and its wealth of experience are on hand to devise a management plan which reflects your needs. If you need advice or design for your site, head to: www.whitecodedesignassociates.co.uk
In June 2017, a 220-bed Holiday Inn Express opened in Manchester — just 38 weeks after construction began. Modular construction continues to reach new heights, but the industry must still consider ways to make commercial buildings stronger, safer and more environmentally friendly. Here, Nick Cowley managing director of aluminium building product supplier Endurawood, explains why modular builders should use aluminium to enhance their commercial construction projects. Considering the Census Bureau’s 2019 Survey of Construction states seven months as the average completion time for a single-family home, constructing an entire hotel in less than ten months is impressively rapid. As well as helping to produce more residential buildings, modular construction is aiding the production of many commercial buildings. School classrooms, restaurants, hotels and public offices are being constructed using modular methods of construction (MMC). MMC provide many advantages, such as quicker completion times and reduced waste, but considering the materials used in the project can optimise projects even further. Aluminium is lighter than many traditional construction metals, making it easier to manage on and offsite. This, alongside several other benefits, helps to support the quick completion times that modular builds are renowned for. Minimal maintenance Originally developed as a solution to quickly rebuild homes after the Second World War, modular builds face the misconception of being temporary structures. However, if the correct materials are considered at the start of a commercial project, the end result can be as durable as the modular build’s neighbouring shops and offices. While commonly used metals such as iron and steel must be treated with a substance containing a corrosion inhibitor, using a naturally corrosion resistant material will lengthen a modular build’s lifespan. Aluminium gains natural corrosion resistance from a layer of aluminium oxide that forms on its surface when it’s exposed to the atmosphere. This layer protects the material from further oxidation, enhancing its resistance against weather conditions and chemicals. Aluminium’s natural protection benefits commercial buildings for numerous reasons. Firstly, it increases the durability of the building, reducing maintenance and therefore keeping refurbishment costs down for the building owner. Secondly, using aluminium preserves the building’s design, making it appear newer for longer. In an increasingly competitive market, people are more conscious about appearance and design of the facilities they use. Rust can diminish the exterior of a building, making it less likely to appeal to customers than a building that looks brand new. Supporting sustainability Prefabricated buildings are far easier to disassemble and relocate to different sites, thanks to their pre-assembled parts. Therefore, if a building has become obsolete or disused, its modular parts can be repurposed so that they don’t go to waste. If modular construction techniques became the norm, the requirement for new raw materials would be substantially reduced. This makes modular buildings inherently more sustainable, but project managers can further boost the sustainability of their commercial project by considering material choice. Sustainable materials are especially important when designing new modules, which have not been recycled from past projects. Aluminium is an infinitely recyclable building material, meaning it can be reused multiple times without diminishing its original qualities. In fact, nearly 75 per cent of all aluminium ever produced is still in use today. Replacing emission-heavy metals with aluminium can help to reduce the carbon footprint of a commercial modular project. Choosing aluminium can further boost the sustainability of a building by reducing its energy output. Aluminium absorbs heat and is freeze and frost resistant, making options such as external aluminium cladding a thermally efficient alternative that could help to lower a building’s heating bills. Securing safety Finally, aluminium can improve the safety of a commercial building. Regardless of a building’s purpose, safety must always be at the forefront of its design. We’re aware of the disasters that have occurred when material safety standards have not been met, and it’s vital that these inconceivable mistakes never occur. While aluminium is not fireproof, it acts as a flame retardant when it starts to melt. This means that aluminium provides additional protection against the flames, reducing the potential damage to the building and those inside it. All Endurawood products are manufactured to meet international fire safety standards and its decking systems are highly slip resistant. Endurawood can be applied to many areas of a commercial building, such as decorative external battens to improve building design, for outdoor decking areas and for privacy enclosures to conceal building waste. Endurawood delivers safety in all conditions, providing the peace of mind for those involved in the construction and use of the building. Modular construction brings many advantages to the construction industry, but using materials that can enhance the method’s advantages is key. Aluminium can create a commercial property that is more sustainable, safer and with less maintenance requirements — achieving a build that can match the dizzyingly fast heights of modular’s existing success stories.
Vital Energi have been awarded a £6.58m contract to deliver ThamesWey Energy’s Woking Power Station project which will create a state-of-the-art Combined Heat & Power energy centre providing low-carbon heating and power to local businesses and residents. When complete, the energy centre will produce enough heat and power to supply the equivalent of 2,500 homes and it’s first customers will be the new Hilton hotel, shops and over 400 apartments currently being delivered as part of the Victoria Square development. The energy centre has been designed to be both scalable and highly flexible, capable of generating up to 10MW of heat, and adopting progressively lower carbon technologies over the next ten years. The energy centre comprises a three-storey building at the junction of Poole Road and Butts Road, with energy plant and equipment based on the ground and first floors and a new headquarters for ThamesWey on the third floor. The building is being constructed to be capable of upward extension of up to a further 17 stories of co-living space. When complete the flues from the energy centre will measure 29.3m. In addition to initial energy production by Combined Heat & Power engine and generator there will be gas boilers to add resilience and three large thermal stores which will serve the dual purpose of releasing stored heat during peak times of demand and adding an interesting architectural landmark to the development. Rob Callaghan, Regional Director for Vital Energi commented, “This is a fantastic project to be involved in as it will allow Woking to grow and develop in a sustainable way, utilising low-carbon heat to meet the town’s needs. This scheme was designed with long-term growth in mind and will be able to meet Woking’s energy needs well into the future, providing a resilient, low-carbon energy infrastructure.” The project is being delivered for ThamesWey by Galliford Try. The mechanical and engineering consultants on the project are Hulley & Kirkwood and Vital Energi have been working on the project since 2018 and recently won the contract to undertake the mechanical and electrical services installations. This energy centre will feed a new low temperature District Heating Network, delivering low-carbon heat to local buildings. In addition to delivering heat, the energy centre will also provide electricity via an 11kW network within central Woking.
Indeglas, recognised as a leading supplier of interior glass screen solutions, has completed a £1.04m contract for Do & Co, a global gourmet entertainment and airline catering company based at Heathrow’s Segro Park. Fitting out the building to the clients extremely high specifications involved Indeglas designing, supplying, and installing specialist glass screens to meet the demands of hot kitchens, food prep, packaging, cold storage and menu demonstration areas. Jeanette MacIntyre, Managing Director of Indeglas, said: “Before Covid 19 struck, Indeglas had invested in training and equipment to facilitate robotic glass lifting processes for this project due to the scale of the operation and the weight of individual glass panes. “The investment paid off, driving efficiency and ensuring safety whilst also enabling a speedy return from lockdown with one person/one robot squads operating effectively without the need for social distancing. “The scale of the building also assisted various trades to keep significant distance from each other. The main contractor, McLaughlin and Harvey, was pro-active and well-organised in implementing Covid 19 safety measures throughout. “Although the project was completely closed down for a number of weeks, and we were forced to work remotely without accessing our own office and storage facility, the entire management team worked tirelessly to interpret the new, emerging safety procedures required and partnered with the main contractor to ensure a safe, effective and economically viable return to work.” Indeglas is a member of the Finishes and Interiors Sector (FIS) trade association and has benefited from the work it has done in interpreting and simplifying the evolving legislative and economic impact of COVID 19 for SMEs within the interiors sector. It has also remained engaged with the initiatives of the Construction Industry Coronavirus (CCIV) Forum through both FIS and the Construction Scotland Innovation Centre (CSIC) and intends to continue its engagement with CICV. Established 20 years ago, Indeglas is a specialist contractor and sole distributor in the UK and Ireland for the products of award-winning glazed screen system, DEKO of Denmark. The company is a trusted partner to some of the UK’s leading construction companies with relationships built over many years. As the production of specialist and complex glass types for architectural application increases Indeglas bring a trusted collaboration of knowledge, supply partners, engineers and logistics specialists to the table, bringing sound advice to design, procurement, logistics and installation stages of a project. A dedicated maintenance service for completed installations is also provided throughout the UK.
Britain’s van drivers would love to see a bridge from Scotland to Northern Ireland and a tunnel under the North Sea to Norway, according to experts. Specialist vehicle suppliers LeaseVan.co.uk looked at which potential future engineering innovations would be most welcomed by the UK’s van drivers with a second Channel Tunnel connecting Suffolk to the Netherlands also featuring. They said routes better connecting remote parts of the UK with our cities, along with tunnels or bridges connecting Britain to mainland Europe and Ireland would offer more opportunities to UK businesses. There are currently around two million vans along with half a million HGVs on UK roads with a quarter of a million people identifying ‘van driver’ as their main occupation. Many of the vans are driven by small business owners and tradespeople such as builders and plumbers with many feeling better connections to other parts of the UK and Europe would afford them further opportunities. The experts said a road bridge between Scotland and Northern Ireland was something many of their customers would like to see as it would open up the island of Ireland and help businesses in both the UK and Irish Republic. The UK government was rumoured to be considering a Scotland to Northern Ireland road bridge last year with a feasibility study looking at two routes, Portpatrick to Larne or Kintyre to the Antrim coast, a stretch of around 20 miles across the Irish Sea. Similar super bridges in Scandinavia connect Denmark, Sweden and Norway and have helped to open up the economies there while in Hong Kong the Zhuhai-Macau bridge spans more than 30 miles of sea water. Other dream routes for van drivers include a tunnel underneath the Irish Sea from Holyhead to Dublin which would reduce journey time from 3hours 15 mins to just over an hour. Van drivers would also like to see a tunnel under the Bristol Channel from Ilfracombe in north Devon to Swansea in south Wales which would vastly reduce journeys in the south west. A bridge from Portsmouth to the Isle of Wight was another innovation which the LeaseVan.co.uk team said would make life easier for van drivers. While in the east of England a second Channel tunnel connecting Felixstowe with The Hague would ease transport to mainland Europe. The experts said a series of bridges and tunnels in Scotland could connect John O’Groats to Orkney and on to the Shetlands, turning the Northern Isles into a north Atlantic Florida Keys style archipelago. A further tunnel under the North Sea from Shetland to Bergen in Norway would open up Scandinavia and the Arctic Circle to both UK freight and tourism with thousands of Brits flocking to see the Northern Lights. A spokesman for LeaseVan.co.uk admitted the routes were little more than a wish list at this stage but said all of them would have economic benefits for the UK. He said: “Van drivers are the unsung heroes of the UK economy keeping the country running even during this global pandemic. These routes represent what we think would make their lives a whole lot easier – and open up major trading and tourism routes for Britons to enjoy. “Of course none of these innovations would be cheap. We have seen a figure of £20bn discussed for the Scotland to Northern Ireland bridge alone and that is perhaps the most simple of our proposed routes. “And as well as the required financial investment there are also the environmental concerns which would, of course, have to be seriously considered. “But if these routes do turn out to be feasible then they would have major economic benefits for the UK. “They would also make it a doddle for van drivers to pop over to Dublin for a day’s plumbing or even to nip to Norway for a plastering job. “They would also be good news for tourism, bringing many visitors to the UK as well as making it much easier for us to explore other countries.”
Rental data from one of London’s largest co-living property operators has today revealed a marked increase in young renters heading to the Capital throughout September 2020; a 192% increase in signed rental contracts with those under the age of 24, when compared to the pre-lockdown months of January and February this year. Released by Built Asset Management (BAM), the data suggests that young renters are increasingly heading to the Capital despite market fears of a London exodus having dominated discussions over recent months. Between 1-30 September 2020, BAM witnessed a 192% increase in signed rental agreements amongst young professionals taking out leases on co-living accommodation, when compared to the average number of contracts signed within this age demographic during January and February 2020. Of the under-24s taking out new co-living contracts for a BAM property in September, 62% were first-time renters in the capital. Additionally, 53% of under-24s opted for properties within W postcodes in the past month; at odds with the rest of the market, where SW postcodes remain the most popular amongst BAM renters. Co-Founder and Director of BAM, Alex Gibbs, shared his thoughts on the influx: “This is a really interesting trend, particularly when viewed in the context of the broader market data which actually shows a (probably temporary) net migration of young professionals out of London for the same time period. Recent data has shown that, statistically, under-24s are at the greatest risk of losing their incomes as a result of the pandemic, and that this age group is bearing the brunt of the mental health toll as a result of the country’s COVID response. Given that this demographic also reportedly experiences lower levels of fear around the concept of actually contracting COVID-19, it is perhaps unsurprising that these individuals are more keen and more willing to relocate into the Capital for work purposes when compared with professionals in other age brackets. Our findings here also marry neatly with data revealed by employers that remote working often presents the biggest challenge where new and emerging talent is concerned. More junior team members often require more face to face time as a necessity, in order to get to grips with things and to learn via osmosis. Landlords and investors within the co-living space can also take solace in the fact that research conducted this month showed that, long term, there is virtually no difference in the proportion of professionals aged 25-44 planning to remain living in London, as compared with pre-pandemic. It seems that perhaps their younger counterparts are just acting a little more quickly.”
Once the lockdown restrictions eased during summer 2020, the UK housing sector experienced a mini boom. Far from damaging the property market, the lockdown had both exacerbated pent-up demand for property while also kindling a fresh demand for properties outside city centres, especially dwellings with a garden or a spare room for a “wok-at-home” office. Simultaneously, the government proposed a radical overhaul of the planning system, which promises to free up more land for major housing developments. UK developers are currently taking Mark Twain famous advice to, “buy land, they’re not making it any more”. In anticipation of significantly looser planning laws, developers are now scrambling to secure suitable land for development. Landowners are therefore being approached with very attractive offers. However, these offers often come with strings attached. Some developers wish to effectively secure an option to develop land in the future, should planning be obtained and the market remains favourable. Other developers are willing to purchase land where permission is in place, but they often want to defer a substantial proportion of the payment for it. For example, a housing developer might offer to buy land from a farmer for £10 million, to be developed for housing. However, This attractively high offer comes with a caveats: More and more frequently the developer wants to make the payment in a number tranches spread over five years. (Typical arrangements vary between 2-5 years, usually involving 3 or 4 tranches of payment.) The developer may (with good reason) justify spreading out the payment by citing cashflow issues or uncertainty around planning permission or the timescales involved. Yet if the developer goes bust, the landowner may be unable to obtain the contractually agreed payment unless they have certain security protections in place. In such a scenario, how can the landowner best protect their interests? Landowners can protect themselves in several ways. Firstly, the sale could be structured so that it does not complete until all the payments are received. If that cannot be agreed, the landowner can be protected by placing legal charges on the land, which may enable it to be recovered in whole or part in the event of non-payment. Land Registry restrictions could also be placed on the land. It may even be possible to hold back a few houses, or a strategic part of the site, as security against non-payment by the developer. Where deferred or staged payments are agreed, the landowner should also ensure that they will not be adversely impacted by tax liabilities. There is a real risk that the landowner may become liable for the full Capital Gains Tax (CGT) – as calculated on the total purchase price – at the time of legal completion. However, if staged payments are in place, the seller may only have received part of the proceeds of sale and so may not have enough to pay the CGT bill. For its part, the developer will understandably want to ensure that any mechanism of security being used won’t hold up its plot sales or slow up the conveyancing process to the end user. In terms of how a staged payment deal is structured, the needs of the landowner and the developer can sometimes seem to be in direct opposition. However, it’s important that the parties do not lose sight of the fact that a mutually beneficial one should be attainable. When the respective parties’ advisors take a positive, collaborative approach, it is usually possible to find a solution which works to the benefit of both parties. Negotiating a workable deal invariably requires trust. Sharp practice by some developers (and occasionally the landowner!) can result in deals breaking down. Too often, the developer’s request to defer part of the payment comes after an option or contract has already been exchanged. Sometimes, a developer may attempt to present the landowner with a fait accompli in terms of the payment structure. It’s therefore advisable for landowners to obtain expert legal and tax advice early. Landowners are often unfamiliar with the tactics used by developers. In order to negotiate a favourable deal, landowners need to work with advisors who have recent experience acting for both developers and landowners. Even where the buyer and seller’s expectations are not completely aligned at the outset of a negotiation, good agents and solicitors can create solutions which work to the benefit of both parties. Robert Sprake is a specialist lawyer in real estate and residential property development at Excello Law www.excellolaw.co.uk
