Joseph Mews Property Group announces appointment by Consortia Developments Birmingham property investment group Joseph Mews has been appointed by London-based property development company Consortia Developments. The newly formed group, which is based within the Jewellery Quarter, is to work with Consortia Developments to bring the new Lockside Wharf apartments in
In normal circumstances the construction industry is a bellwether sector for the wider economy and it’s not difficult to work out why. When homes, offices, factories, and roads are being built, it’s the most visible sign of confidence in the economy because people are funding their construction for others who
MORE than 250 jobs could be created under plans to expand Tyne Tunnel Trading estate to create additional high-spec industrial and retail facilities. UK Land Estates, the largest commercial property and investment company in the North East, has submitted plans to North Tyneside Council which aim to transform the 5
LabTech has agreed the sale of the 300,000 sq ft Grade-II listed landmark, Victoria House, WC1, to a leading global real estate investor in a transaction valued in excess of £420m. Robert Akkermann, Chief Investment Officer of LabTech, says: “We acquired this building with the vision to transform the iconic
CBRE Investment Management has completed a transaction to provide forward funding investment to RJR Securities for the development of a new 188-bedroom Maldron Hotel on Chapel Street in Manchester City Centre. Dalata Hotel Group plc, the largest hotel operator in Ireland with 45 hotels across the UK and Ireland, has
Research from London lettings and estate agent, Benham and Reeves, has revealed that it’s not just London house prices that have climbed considerably in recent times, with the total paid in council tax by London homeowners and tenants hitting almost £5bn a year – £1.2bn more per year compared to
Alternatives market rebounds strongly and ESG continues to drive pricing Leading independent property advisory firm, Lismore Real Estate Advisors today released its comprehensive review of the Scottish investment market for the final quarter of 2021 and predictions for 2022. Despite the ups and downs faced during 2021, the Scottish investment
Property developers and intermediaries will collectively waste over 14,500 days searching and applying for loans in 2022, predicts development finance comparison site, Brickflow. Brickflow co-founder and head of lending, Ian Humphreys, says while it traditionally takes around 70 hours to search for lenders and complete a development finance application, his
CHAS, the supply chain risk management expert, highlights ten issues that will affect construction supply chains in 2022. 1. The Building Safety Bill The Building Safety Bill, currently making its way through Parliament, is set to change how certain buildings are constructed, maintained and made safe. It will include regulatory
Joseph Mews Property Group offering residential developments to buyers launches this week A new property investment group has this week been launched in the Midlands, which will target both investors and landlords. The Joseph Mews Property Group has been set up by former SevenCapital director Andy Foote – who formerly
BDC 319 : Aug 2024
Joseph Mews Property Group announces appointment by Consortia Developments Birmingham property investment group Joseph Mews has been appointed by London-based property development company Consortia Developments. The newly formed group, which is based within the Jewellery Quarter, is to work with Consortia Developments to bring the new Lockside Wharf apartments in Birmingham City Centre, to market. The canal-side development, based on Scotland Street, was formerly an office building. Work has already begun to convert it into 16, one-bedroom and two bedroom duplex apartments. There will also be roof extensions, which will house four penthouse-style apartments, and a new building on the adjacent car park, creating an additional 45 homes, three of which will be affordable. Olly Clayton, Partner at Consortia, said: “Lockside Wharf is one of the most exciting new developments for Birmingham city-centre. This is why we’ve partnered with Joseph Mews to help bring it to market. “Aside from their extensive past performance in the city’s development sector, they understand what it takes to help deliver a high-end project such as Lockside Wharf in an increasingly competitive central Birmingham market. “With Lockside Wharf covering nearly 45,000 sq.ft of waterfront space minutes from the highly desirable Jewellery Quarter and Brindleyplace, it represents a truly thoughtful restoration – a unique addition to the local market composed of beautiful warehouse-style apartments. We can’t wait to see Lockside Wharf take shape and how Joseph Mews will help bring this stunning new development to an entirely new audience.” The Joseph Mews Property Group, which officially launched at the start of the year, was set up by former SevenCapital sales director Andy Foote Andy said: “We are really proud to be working alongside such a well established company, and on such a great scheme right in the heart of the city we love so much. Consortia Developments are really creating a fantastic addition to the city with Lockside Wharf being redeveloped, and we are looking forward to working with them to bring such incredible homes to market.” Lockside Wharf is expected to complete in the second quarter of next year. For more details about Joseph Mews email Sales@Joseph-Mews.com or visit www.joseph-mews.com.
In normal circumstances the construction industry is a bellwether sector for the wider economy and it’s not difficult to work out why. When homes, offices, factories, and roads are being built, it’s the most visible sign of confidence in the economy because people are funding their construction for others who are willing to pay to live in them, use them or employ people to work in them. But circumstances are nowhere near normal, and they haven’t been for some time. Just as the effects of Brexit are starting to kick in, the stop-start impact of the Covid pandemic has made predictions about the health and even the direction of the construction industry – and the wider economy – extremely difficult to make. Just as new figures appeared to show signs of supply shortages easing, Omicron emerged, threatening to scupper any progress made in unblocking bottlenecks. Added to that are soaring energy costs – with warnings that fuel bills could rise by 50% by the Spring – which have contributed to inflation rising to levels not seen since the start of the 1990s. With those external pressures bearing down on the sector, it’s understandable that forecasters are expecting material shortages to drive up tender prices this year and next. According to global construction consultancy Mace, UK tender prices are expected to be 4.5% higher this year, compared with last, and 2.5% higher than it predicted last September. While Mace expects inflation to slow next year, tender prices will be 3.5% higher than in 2022 and even the elimination of Omicron and the smoothing of Brexit related road bumps are unlikely to alter that. The main short-term issue for the construction industry continues to be widespread material and labour shortages, which is driving price growth. Last month Arcadis warned that rising energy costs could push construction tender prices up by between 4% and 5%. News from the Timber Trade Federation (TTF) at the start of the month that timber supplies and costs are expected to stabilise – due to more regular demand for housing and imports increasing to pre-pandemic levels – will be of little comfort. Price volatility always leads to delay and inaction, as project sponsors and developers hold off on inviting tenders, more in hope than expectation that the picture in six months or a year will be clearer. Contractors across the UK have already had to contend with rising tender prices caused by higher material costs, with some projects being halted and retendered. According to the Chartered Institute of Procurement and Supply’s latest snapshot of 150 construction companies across the UK, many are reporting delays to decision making by clients, contributing to the slowest sector growth for three months. There was some good news with the number of firms reporting supplier hold-ups falling from 47% in November to 34% in December, as fewer shortages of building supplies improved delivery times, but there’s no guarantee that trend will continue. However, those forecasts don’t take account of measures that can be taken by the industry or government to assist. As the recent vaccine rollout demonstrated, we are at a stage far in advance of where we were at the start of the pandemic in dealing with and working through the pandemic. Business resilience and continuity plans are more developed, allowing companies across the supply chain to work through the imposition of restrictive measures with less disruption. Last year companies were hampered by the triple whammy of fuel supply, lorry driver shortages and supply chain delays while also dealing with the impacts of Covid, Brexit and labour shortages. Many have learned from the experience and put in place contingencies to ensure those factors can be dealt with more efficiently and expeditiously. As costs for fuel, energy, labour, and materials rise, bidders are altering their commercial assumptions, insisting on more flexible change control provisions in contracts, with clearer and more detailed clauses that reflect the potential for external factors to cause disruption and delay. Amid this uncertainty cost consultants are proving their worth by providing valuable insights into likely market rates and supply trends as well as offering advice on cost saving and adding value to projects. Governments are playing their part with the commissioning of public sector infrastructure projects and long-term housebuilding targets. Governments at Westminster and Holyrood have long championed small-to-medium sized enterprises (SMEs) enjoying a greater share of public procurement business but this needs more urgent attention. It’s clear from research and anecdotal evidence that SMEs find the public procurement process challenging and many need additional support with bid submissions. Brexit and the Covid pandemic have introduced changes to the way everyone does business and the construction industry is no different. Given its importance to the economy, it is monitored and used as a gauge of how the wider economy is performing and the message, we should be sending out is that the future can be a lot brighter than current statistics suggest. Ryan Gilluley is managing director of GCM Ltd, a Lanarkshire-based firm of cost consultants, claims and disputes experts for the construction and engineering sectors.
MORE than 250 jobs could be created under plans to expand Tyne Tunnel Trading estate to create additional high-spec industrial and retail facilities. UK Land Estates, the largest commercial property and investment company in the North East, has submitted plans to North Tyneside Council which aim to transform the 5 hectare site of the former Corning’s glass works on the Tyne Tunnel Estate into more than 14,000 sq m of industrial-led units. The site, which is part of the 2 million sq ft Tyne Tunnel Trading Estate in North Tyneside, will be developed into a mix of industrial and trade units, along with two drive-through outlets providing much-needed amenities on the estate. On completion, the development is expected to create up to 270 jobs. The £12.5m expansion would also support an extra 45 jobs in its construction phase and could help create more than £2.8m worth of extra economic value for the area every year. With direct access to the A193 linking to the A19 – which forms part of the National Strategic Highway Network – the estate is easily accessible with good transport links. Keith Taylor, managing director at UK Land Estates, said: “This is an exciting development that we’re hoping will bring future investment and create jobs in several industries. “It is a strategic site with excellent connectivity to the north and south thanks to massive investment made in the local road network over the last five years removing bottleneck junctions on the A19 and providing an upgrade to the Tyne Tunnel. It is situated perfectly to serve businesses in North and South Tyneside and Newcastle areas as well as markets to the north and south of the region. “With the site being derelict for decades, it’s an exciting opportunity to develop the land into an attractive site which will provide ambitious businesses with best-in-class units to grow and expand. “This would expand our footprint on the Tyne Tunnel Trading Estate and add another set of high-quality, easily accessible industrial units to our portfolio.” The development will be built in phases with a first phase of the road infrastructure works and the two drive thru units, which will then be followed by the development of the industrial units in response to demand with units varying in size from 1,820m2 to 7,030m2. Occupiers would also benefit from their close proximity to local amenities such as Silverlink Shopping Park and Tesco Extra. Research by leading property agency Knight Frank, indicates that supply chain disruptions, depleted stock levels and the impetus for greater resilience is driving demand from companies for industrial and logistics property. In addition, a number of online retailers continue to have requirements for facilities to accommodate increased sales volumes and, due to falling vacancy rates, options are extremely limited. Mark Proudlock, Partner at Knight Frank, said: “Rarely have we experienced this level of demand with such little stock to offer. “This development of new units designed to meet the needs of companies seeking to expand, as well as new companies looking to invest in North Tyneside, would be extremely welcome.”
LabTech has agreed the sale of the 300,000 sq ft Grade-II listed landmark, Victoria House, WC1, to a leading global real estate investor in a transaction valued in excess of £420m. Robert Akkermann, Chief Investment Officer of LabTech, says: “We acquired this building with the vision to transform the iconic landmark into one of the largest and most impressive workplaces in central London. We now believe that it is the optimal time to take advantage of the lack of supply of similar assets in the city.” Eylon Garfunkel, Chief Executive Officer of LabTech, added: “LabTech is a dynamic organization that is constantly reappraising its portfolio to ensure it maximises every opportunity and we are currently looking for new investment opportunities in the UK market.” LabTech’s leading flexible workplace provider LABS will continue to operate 70,000 sq ft in Victoria House for its enterprise clients. LabTech is an international real estate investor and developer, with circa 20 acres of real estate in central London, including Camden Market and the recently opened Camden Market Hawley Wharf mixed-use development in Camden. Victoria House was acquired by LabTech in 2018 for £300m.
CBRE Investment Management has completed a transaction to provide forward funding investment to RJR Securities for the development of a new 188-bedroom Maldron Hotel on Chapel Street in Manchester City Centre. Dalata Hotel Group plc, the largest hotel operator in Ireland with 45 hotels across the UK and Ireland, has agreed a 35-year lease on the new property to trade under the group’s Maldron Hotel brand. The land was sold by Telereal Trillium, with JLL acting for their team. CBRE acted as funding advisor for RJR Securities, with Gleeds as Development Manager and Squire Patten Boggs as their legal advisors. Avison Young represented CBRE Investment Management. McAleer & Rushe has been appointed as contractor to deliver the new Dalata Maldron Hotel, which will be situated in the Chapel Street/ Embankment Quarter. Currently used as a surface overspill car park by BT, the site will be regenerated into a 17-storey hotel with 188 bedrooms, coffee lounge, bar, restaurant and gym facilities. Richard Peskin, Chairman and majority shareholder of RJR Securities, commented: “I was associated with many interesting development projects during my career at GPE and this one, due to my personal involvement, has certainly been among the most exciting. Over two years ago we identified this site, being close to Manchester’s luxury and prime leisure core, as an ideal location for a hotel. Now, with the secure forward funding provided by CBRE Investment Management, we are able to fulfil our ambitions. My thanks go to them, along with the various teams who, in the most trying and complex of circumstances, demonstrated their commitment in getting us over the line with the land acquisition, planning, pre-letting and building contract for this top-class project, which will commence next month”. Shane Casserly, Corporate Development Director at Dalata Hotel Group plc, said; “We are delighted with the confirmation of the funding for our Maldron Hotel on Chapel Street in Manchester City Centre and look forward to construction commencing in the coming weeks. With Clayton Manchester City Centre just opened and a Maldron under development on Charles Street, Manchester is a market that we know well, and view our new hotel on Chapel Street as an ideal addition to our portfolio in the city.” Will Kennon, Executive Director for CBRE, said: “Despite the obvious challenges that the hospitality sector has faced due to Covid, we are witnessing a selected return of investor appetite for the sector, and this project attracted strong fund interest owing to the combination of; undoubted location, indexed lease to the strong financial covenant of Dalata and the first-class project delivery team.” Murray Burdis, Senior Strategy & Disposals Manager for Telereal Trillium, said: “We are delighted to conclude the sale of this surplus car parking site to RJR Securities and their development partners. This ambitious scheme will maximise the site’s potential and continue the regeneration of Chapel St and the wider Deansgate area with renowned hospitality provider Dalata and a new Maldron Hotel. We look forward to seeing the project commence in the coming weeks.” Peter Devlin, Contracts Director at McAleer & Rushe, comments: “We look forward to commencing construction next month and thank the teams at RJR Securities, CBRE Investment Management, Dalata Hotel Group, and all stakeholders involved for entrusting us with the safe delivery of the scheme. This is a credit to our team’s renowned expertise and reliability in delivering quality turnkey hotel developments and adds to our growing portfolio across major cities in the UK.”
Research from London lettings and estate agent, Benham and Reeves, has revealed that it’s not just London house prices that have climbed considerably in recent times, with the total paid in council tax by London homeowners and tenants hitting almost £5bn a year – £1.2bn more per year compared to just five years. Last week it was reported that inflation has surged to a 30 year high and with gas and electricity costs set to climb higher yet, the cost of living has become increasingly difficult for many. Those living in London already face some of the highest house prices and rental values in the nation, with the capital also home to the highest household expenditure and this squeeze on affordability has no different when it comes to the amount of council tax they pay. Household council tax costs The research by Benham and Reeves shows that the average Londoner pays £1,374 in council tax per year, up 26.8% in the last five years, Richmond is home to the highest council tax cost per property at £2,065 per year while Southwark has seen the largest increase over the last five years at 36.8%. Total council tax costs In total, London’s current council tax bill is a huge £4,993,798,878 per year based on the average cost per household and the total number of dwellings across the capital. Barnet is home to the highest sum of council tax paid on an annual basis, with £258.5m paid across the 146,730 homes in the borough. Croydon is also home to one of the highest total council tax bills at £252m per year, followed by Bromley (£225m), Ealing (£195m) and Lambeth (£1782m). But it’s not just the increasing cost of council tax per household that is pushing up this total, in the last five years an additional 150,000 homes have been built within London which has contributed to a £1.2bn increase in the total sum of council tax paid across London. Tower Hamlets has seen the largest annual increase in council tax costs over the last five years, with the total sum paid per year increasing by 48.6%. Southwark (45%), Barking and Dagenham (41.4%), Lewisham (41%) and Croydon (38.9%) are also amongst the boroughs to have seen the largest uplofts in the total sum of council tax paid. Director of Benham and Reeves, Marc von Grundherr, commented: “Council tax is one of the core costs that many homebuyers fail to consider when looking to buy a home and the sum owed each year can differ drastically depending on where you choose to live. Much like our home insurance or energy bills, it’s also subject to change and the average London homeowner has seen council tax bill increases squeeze their cost of living by a further £300 a year in the last five years alone. So it’s an important one to consider when it comes to the ongoing affordability of your home, as unlike an expensive phone contract or comprehensive TV package, it can’t be dodged.” Data on council tax costs per dwelling sourced from Gov.uk: Live tables on council tax Data on total dwellings in each borough sourced from Gov.uk: Live tables on dwellingsTotal council tax bill and change based on the current average cost of council tax per dwelling (2021/22) multiplied by the total number of dwellings vs five years previous (2016/17)
Alternatives market rebounds strongly and ESG continues to drive pricing Leading independent property advisory firm, Lismore Real Estate Advisors today released its comprehensive review of the Scottish investment market for the final quarter of 2021 and predictions for 2022. Despite the ups and downs faced during 2021, the Scottish investment market has fared surprisingly well with investment volumes trading at circa £1.345bn, a 24% increase on the total for 2020. The emergence of the Omicron variant and the return of restrictions continues to bring challenges across the entire property market and global economy but quarter 4 trading remained strong at £520m, up 27% on Q4 2020. Key transactions included the £32.2m sale of Sainsbury’s at Inglis Green Road, Edinburgh by Inglis Property LLP to Urbium Capital Partners LLP, the off-market sale of Scania at Eurocentral by West Ranga Property Group to DVS Property for £10.725m and the £58m sale of Exchange Place One in Edinburgh to CBRE Investment Management. Chris Macfarlane, Director of Lismore comments: “The wall of overseas capital chasing stock continues and pricing reached pre-pandemic levels in the food stores, logistics and retail warehousing sectors. However, challenges remaining for significant parts of in-town retail/leisure and investors continue to grapple with offices, other than those of the very best quality or which can be adapted to meet more challenging ESG credentials. “When looking at market themes, one part of the market which was hit hard initially but which has rebounded (in part) very strongly is the alternatives sector, covering PBSA, management contract hotels and serviced apartments. The strongest, well-located assets have seen occupancy levels recover and while net operating income might not be quite back, investor interest has been stirred by their resilient qualities. “In terms of pricing, foodstores, convenience stores and distribution have seen the strongest sharpening of yields of between 50-100bps over the quarter. Core-plus opportunities have been relatively limited but we are seeing a softening of pricing around Grade B offices as investors come to terms with increasing levels of capex and ESG challenges. The only sector really offering “value-add” pricing is the shopping centre market where risk remains but the best assets are starting to find their level, at between 50-90% discount to purchase levels. “UK institutional activity remains very focused on longer income defensive stock including retail warehousing and distribution, although we have seen a welcome return by an institution to the Edinburgh office market for the first time in a number of years. “Overseas investors continue to target Scotland (Edinburgh in particular), with buyers from the Middle East and mainland Europe all remaining active but the overwhelming weight of capital has been from North America. The level of distressed selling continues to be very limited with the more opportunistic buyers looking further up the risk curve, either direct development, vacant buildings or shopping centres.” With a seemingly brighter 2022 looming, the latest investor research undertaken by Lismore predicts that the top three performing sectors in 2022 will be retail warehousing (36%), distribution (28%) and multi-let industrials (17%). Although prime yields have begun to harden, retail warehousing still offers some good value given the rapidly changing retail market and strong occupational demand. The support for foodstores has fallen significantly (6%), perhaps an acknowledgment that a lot of the performance in the sector has come during 2021. The office sector was the most poorly backed by respondents, with concerns over capex requirements and future working habits being mentioned as headwinds for the sector. A significant majority (69%) of respondents in Lismore’s research expect to be net buyers in 2022, with 21% neutral. Investment managers and property companies look to be most acquisitive with 83% and 73% respectively anticipating they will be net buyers in 2022. Just over 50% of funds and private equity respondents expect to be net buyers. Only 10% of respondents expect to be net sellers, suggesting another year of limited stock and inevitable pricing pressures for the best opportunities. The Lismore review also features an in-depth interview with James Dunne, Head of UK Transactions at abrdn, who comments: “The pandemic has highlighted the benefits of having a diversity of income and sectors within a portfolio. The breadth of the alternative sectors provides an increasingly significant part of the real estate investment market, with the hotel sector offers an interesting pattern in durability. However, this recovery trend has been narrow and will continue to be driven by the best assets and the best locations significantly outperforming the market. “The extended stay market (apart-hotels and serviced apartments) was already growing and the ability to pivot from more lucrative short term stays to a longer term model provided certainty of income and meant that the sector showed very strong resilience throughout the worst of the pandemic and therefore a strong rationale to invest both for the protection in the downside but also the predicted performance in a more normal market. “We are still in the early stages of the attitudinal transformation of real estate from providing space as a product to embracing space as a service. The most visible area where we have seen an ongoing shift to a more service real estate environment is the office sector. This has been accelerated and is an area that could continue to develop rapidly with the long term return to the office. The retail sector will have to continue to adapt if it is to stay relevant to the demands of consumers and offer more experiential retail, most likely digitally enabled to lead a partial, targeted recovery in the sector. “The one thing we can be sure of is that the evolution of how real estate is used and provided and the increased ‘hotelisation’ of all sectors will continue apace over the next few years and we as investors have to continue to not only adapt to but drive forward.” The full Lismore Quarterly Review is available to download from: HERE
Property developers and intermediaries will collectively waste over 14,500 days searching and applying for loans in 2022, predicts development finance comparison site, Brickflow. Brickflow co-founder and head of lending, Ian Humphreys, says while it traditionally takes around 70 hours to search for lenders and complete a development finance application, his tech platform helps users perform the same task in 20 hours or less. Ian estimates developers and intermediaries spend nearly a third of their time searching for development finance; Brickflow uses algorithms, searching over 120 data points across 36 lenders, presenting finance options within two minutes. Developers are able to choose their preferable lending options, use online onboarding tools and access expert help, where necessary, to complete applications which can be sent to up to five lenders in the deal forum’ (similar to a competitive tender). Conversion rate from Heads of Terms to completion is over 90%. Ian comments: “Development finance lending topped £9.3 billion in 2020 and if we assume an average loan figure is £4 million, it equates to 2,325 development finance applications taking 50 hours longer than necessary. When you divide this by an 8 hour day, it’s a staggering loss of time. “Add to this the frustration of nearly one in three SME house builders citing a lack of finance as one of the biggest barriers to progressing projects and it’s clear Brickflow is a no-brainer.” He concludes: “According to YouGov research, saving money and spending more time with the family are popular New Year’s resolutions for Brits so I’m pleased we can help people achieve this.”
CHAS, the supply chain risk management expert, highlights ten issues that will affect construction supply chains in 2022. 1. The Building Safety Bill The Building Safety Bill, currently making its way through Parliament, is set to change how certain buildings are constructed, maintained and made safe. It will include regulatory reforms on fire safety and quality of construction products and will introduce a developer levy. Virtually everyone involved in the design, construction and management of higher-risk buildings will be affected. It is expected that the Bill will receive Royal Assent between April and June 2022 with the provisions coming into force in stages. The HSE will oversee the new building safety regime and is already urging affected parties such as designers to prepare. For more information, subscribe to the HSE’s free BSR eBulletin here: https://public.govdelivery.com/accounts/UKHSE/signup/15087 2. New framework for Environmental protection The Environment Bill became the Environment Act 2021 when it received Royal Assent on 9th November 2021, introducing a post-Brexit framework for environmental governance, primarily in England. The Act paves the way for further laws and guidelines such as legally binding targets around air pollution, biodiversity, water quality and waste which will be defined in due course. Businesses of all sizes can prepare by reviewing how they currently monitor and manage environmental processes and ensuring environmental management remains high on their agenda. 3. Net Zero targets From 1st October 2021, it became mandatory for all companies bidding for government contracts worth more than five million pounds a year to commit to achieving net zero emissions by 2050. Under the new rules, set out in Public Policy Note 06/21, in-scope organisations need to produce a carbon reduction plan detailing where their emissions come from and what environmental management measures they have in place. While some large companies already self-report Scope 1 (direct) and Scope 2 (indirect owned) carbon emissions under the Streamlined Energy and Carbon Reporting regulations, the new targets require them to go further. This includes committing to achieving Net Zero by 2050 and reporting Scope 3 emissions such as business travel, employee commuting, transportation, distribution and waste. The requirements currently only apply to government contracts, but they could become an advisory part of the Common Assessment Standard in 2022. 4. Focus on Diversity & Inclusion Diversity & Inclusion is an issue steadily rising up the supply chain agenda, with construction clients increasingly looking for evidence that contractors are proactive in this area. A progressive Diversity & Inclusion strategy will look to create a positive workplace environment where everyone feels valued and people are treated as individuals according to their needs. This may, for example, include making reasonable workplace adjustments to accommodate those with disabilities or those that have different work/life commitments. To help companies improve their approach to Diversity & Inclusion, The Supply Chain Sustainability School offers a free Fairness, Inclusion & Respect toolkit which can be accessed here:https://www.supplychainschool.co.uk/topics/fir/ 5. The standardisation of Social Value The concept of social value has been around for a while but it is set to become more defined in 2022. Within construction, social value usually covers how a build can add value in terms of its wider social, economic, and environmental benefits, but there is growing demand for more consistent measurement of social value. The Social Value Portal’s National Social Value Measurement Framework – also known as the National TOMS – provides a consistent method of reporting and measuring social value. Construction companies can find out more about how they can implement it in their business practices here: socialvalueportal.com/national-toms/ 6. The increase in digitalisation Digitalisation has been a slow burner for the construction industry, but according to McKinsey , Covid-19 was a turning point with 50% of companies surveyed saying they have increased investment in digital transformation to meet the demands of the next normal. Central to the construction industry’s digital transformation is Building Information Modelling (BIM), which offers digital modelling for all components of the construction process from tools, people and materials to mapping work areas, reducing defects and identifying health and safety hotspots. The ability to move the planning of build projects online allows a more collaborative way of working with stakeholders having access to data and documents from anywhere and at any time. Guidance on implementing BIM, designed to help construction businesses on their journey to digital transformation, is available from the UK BIM Framework and is updated quarterly. 7. The skills shortage Figures from the Office for National Statistics (ONS) show a record leap in job vacancies, estimated to be 1.2 million in September 2021 across all industries. The skills shortage has been a growing concern within construction due to workers reaching retirement age and not enough people entering the industry to replace them. Furthermore, the industry has seen a 42% decline in EU workers. The skills shortage makes it even more critical that efforts to diversify the industry and attract a wider range of people to construction roles pay off. It also reinforces the importance of looking after existing staff and contractors. In recent months CHAS has seen record use of the CHAS Jobs Board, a free resource that allows construction clients to quickly and easily find local accredited contractors. Find out more here: www.chas.co.uk/blog/jobs-board-now-live/ 8. Materials shortages The Department for Business and Energy and Industrial Strategy’s Monthly Statistic of Building and Components consistently showed month-on-month price rises throughout 2021. The Construction Leadership Council reported improvements in product supply in some areas, and the Timber Trade Federation (TTF) are now receiving record-breaking timber imports; however, supplies are still likely to be under strain in 2022. A shortage of HGV drivers to deliver materials remains an issue, with take-up low for the government’s 10,500 visas for overseas lorry drivers. An FMB survey shows jobs are still being delayed as a result. 9. COVID-19 Covid-19 is still circulating with outbreaks and the impact of new variants difficult to predict. Businesses will therefore need to remain COVID-secure and continue to manage the risks of the virus in 2022.
Joseph Mews Property Group offering residential developments to buyers launches this week A new property investment group has this week been launched in the Midlands, which will target both investors and landlords. The Joseph Mews Property Group has been set up by former SevenCapital director Andy Foote – who formerly led the distribution side of that business as SevenInvest – and already has three new UK residential developments on its books. The developments will be announced later this month by the group alongside the four new developers they will be working with. Joseph Mews will assist these developers in bringing these new developments to market across some of the most exciting investment locations in the country. Andy is well known within the Midlands, having led SevenCapital’s global distribution team through more than £900 million in sales for the past eight years. Now, he is expanding that distribution team, SevenInvest, into the Joseph Mews Property Group. Joseph Mews Property Group will sit within his existing group of companies, including Alexander Daniels, The Brain Tumour Charity, BMS Ltd and Nub & Ho Properties. With a focus on helping clients to build wealth through property, the business will also provide industry-leading market research, in-depth investment consultancy and outstanding customer service that Andy has successfully led teams to deliver over the past few years. Andy said: “Myself and the team are incredibly excited to be taking on this new challenge, which will allow us to extend our reach to new audiences and partners around the globe while providing an outstanding standard of care and exceptional investment opportunities for clients. “Our focus will be on delivering quality developments alongside quality developers, working closely with capable and trusted partners to bring the most exciting projects to our investors.” Based in the Jewellery Quarter, Joseph Mews Property Group was named after Andy’s son who passed away in 2007 to a brain tumour aged just nine-years-old. For more details about Joseph Mews email Sales@Joseph-Mews.com or visit www.joseph-mews.com.
