A new strategic alliance is due to automate the payment management system in the construction industry. Payapps Limited and Autodesk will bring their innovative solutions to the UK, Ireland, Australia, New Zealand, and North America, offering customers real-time accounting and faster payment cycles during the construction process. “Construction companies are
With high inflation rates on the cards Ratings Experts tell Government it’s even more important to abolish downwards transition to support beleaguered sector Business rates experts at Colliers are urging the government to remove fears that the expected cut to business rates bills for the retail sector in England will
Buying your own home is one of the biggest financial decisions of your life and that means you don’t want to leave anything to chance when you consider the amount of money that is involved. Your mortgage lender will be lending you some of the money you need to buy
Leading data specialists, Insight Data, reveal construction industry insolvencies have spiked in 2022. From looking closely at the total number of companies registered on the organisation’s unique Construction File database, which contains large construction firms with a turnover of over £5million, Insight Data found there has been a 12% drop
Privately owned hotel company Crimson Hotels has recently acquired The Trafalgar St. James Hotel in Central London. With this purchase, the five star hotel will become the second Hilton Curio Collection acquisition for Crimson Hotels, alongside 100 Queen’s Gate Hotel in South Kensington. Consisting of 131 rooms, The Trafalgar St.
Prologis, a leading owner and developer of UK logistics real estate, has continued its focus of strategic investments in London and the South East markets with the acquisition of two additional sites at Erith and Croydon. Totalling over 330,000 sq. ft. on 20.4 acres, the two distribution centres are let to Ocado and Royal Mail and form key parts of their distribution networks, being two of the largest low density last mile logistic facilities inside the M25. The assets, on Church Manorway, Erith and Beddington Farm Road, Croydon are located
The firm has secured 85% of their 2022-2023 budget (in fees) by August 2022 , just 3 months into the financial year, a staff increase of 18% with 20% of staff having received a promotion within the last year. Award-winning engineering consultancy Harley Haddow has reported a stellar year for
One in seven (14%) tradespeople now get the bus to jobs because they can’t afford to drive Tradespeople set to increase prices by 24%, on average Over a quarter (29%) now only accept hyper-local jobs in order to reduce their fuel usage Rising fuel costs are hitting UK tradespeople hard,
The latest market analysis by Revolution Brokers suggests that the total level of investment into the British commercial real estate sector is set to cool in 2022, having enjoyed a 40% year on year increase between 2020 and 2021. Last year, just shy of £50bn was invested into the commercial
Industry analysis by Landlord Action, housing law specialist and part of the Hamilton Fraser Group, has revealed that the number of rental property repossessions carried out on behalf of landlords across England and Wales has increased by one thousand four hundred and eighty seven per cent annually, following the end
A new strategic alliance is due to automate the payment management system in the construction industry. Payapps Limited and Autodesk will bring their innovative solutions to the UK, Ireland, Australia, New Zealand, and North America, offering customers real-time accounting and faster payment cycles during the construction process. “Construction companies are looking for ways to increase profitability through cost efficiencies and reduce risks by implementing improved compliance processes. The adoption of back-office technology is becoming more critical to automate what has been historically very time-consuming and error-prone manual processes in managing subcontractor billing. By partnering with Autodesk, we are extending the technology benefits to customers of both companies to help improve their accounting and AP processes,” said Geoff Tarrant, Executive Chairman of Payapps. Payapps provides contractors in ANZ and UKI with solutions that improve the entire subcontractor payment management process from the inclusion of schedules of values all the way through to electronic payment. Meanwhile, in North America, it will be GCPay that will provide general contractors with the same benefits and will also manage the lien waiver exchange with their subcontractors through electronic payment processing. If construction companies digitise and automate the payment process, as well as implement real-time payment exchange, they can decrease risk and take steps to improve profitability. “The payment process in the construction industry is a tedious and administratively burdensome one for both general contractors and their trade partners,” commented Sidharth Haksar, Head of Construction Strategy and Industry Partnerships at Autodesk. “By collaborating with Payapps, we’re able to empower Autodesk Construction Cloud customers to benefit from automating a very spreadsheet-driven workflow to reduce payment cycle time and eliminate potential errors as well.” Autodesk Build, the comprehensive field and project management solution that is part of Autodesk Construction Cloud, currently integrates with many of the same leading ERP systems in North America as Payapps does with its GCPay solution. Through these integrations, Payapps and Autodesk feed and receive data to and from those ERP systems, for real-time accounting and payment management. As part of the strategic alliance, Autodesk and Payapps will work together to identify additional integrations that will benefit each other’s common customer base. Building, Design and Construction Magazine | The Home of Construction Industry News
With high inflation rates on the cards Ratings Experts tell Government it’s even more important to abolish downwards transition to support beleaguered sector Business rates experts at Colliers are urging the government to remove fears that the expected cut to business rates bills for the retail sector in England will be significantly watered down by transitional relief – to the cost of around £2.68 billion for the sector alone over the three years of the new 2023 list. And the highest inflation rates since the early 1990s have been making the situation worse. With August CPI announced today at 9.9% and expectations it will be 11% for September, Colliers is urging the government to announce it will pass on the expected reductions in business rates bills following the next revaluation in April 2023 immediately, rather than to phase them in slowly over the three years of the new list. In the first commercial property revaluation since 2017, retailers who currently pay about £7.625 billion of the £26 billion tax are expecting substantial reductions in one of their biggest outgoings, since in most regions of the country rental values for the retail sector have fallen sharply in recent years. However, as part of each revaluation, the government decides whether to implement transitional relief which phases in reductions and increases. The retail sector overall has a total rateable value of c£15.8 billion, which according to Colliers is expected to drop toc £12.64 billion* following an estimated average 20% drop in rents. On paper this should mean that next year from April 2023 businesses in the retail sector should be paying c£6.46 billion in business rates. Yet if phased reductions are introduced due to a downwards transition policy, Colliers estimate the sector will in fact pay c £8.11 billion, £1.65 billion more than they should be and for some retail businesses, because of levels of inflation, higher bills than they are paying now. And over the three years of the list, retailers that should be paying a total business rates bill of c£21.45 billion will in fact be pay c £24.13 billion if downwards transition is introduced – an extra £2.68 billion more. According to Colliers downwards transition following the last revaluation in 2017 was one of the key factors in keeping rate bills higher in the struggling retail sector than they should have been and led to the closure of retailers such as ToysRUs and Laura Ashley- even before the pandemic hit. John Webber, Head of Business Rates at Colliers said, “We have been campaigning for the removal of downwards transition and have strongly made our arguments to government in their recent consultation on the topic which closed in August. “Many retailers have been battered in the last few years, and really need to see the reductions on their business rates bills immediately in 2023- not phased in slowly. The sector is already coming under immense pressure following the energy crisis and high business rates could tip many over the edge. Operators in the sector will be considering their business plans now for next year and will be looking closely at their future business rates liabilities, particularly now the Covid-related reliefs have come to an end. Some may well end up making drastic decisions. He continued, “Our figures – based on an average 20% drop in rental values – are actually very conservative. For many stores particularly in shopping centres and on non-prime high streets, rents have fallen further reaching 40% or even 60% falls. For these businesses an out of step phased reduction of their business rates bills will be disastrous. “There is no downward transition in Scotland or Wales, so why is it considered sensible for England?”* “It is essential the new Prime Minister take this issue seriously and provides reassurance that rates bills next year will immediately reflect the lower rents we are seeing in the market today – providing incentives for businesses to keep or expand space and for property investors to invest in the sector. Without this reassurance, the government’s “levelling up agenda” will be meaningless and the revival of the high street will be pie in the sky thinking.“
Buying your own home is one of the biggest financial decisions of your life and that means you don’t want to leave anything to chance when you consider the amount of money that is involved. Your mortgage lender will be lending you some of the money you need to buy the property and they will want assurances that the title is free and clear of any liens. This gives them the security they require and gives you peace of mind that the property is yours as long as you make all of your payments. When you use someone like the Sunnyside-Title-Company they can arrange the insurance you need to protect you and your lender against a claim being made against your property that challenges your ownership rights. Here are some key points to consider about what title insurance is and why it is needed. Title insurance allows you and your lender to manage risk The fundamental purpose of title insurance is to get protection from the prospect of any potential title risks or flaws that come to light. You don’t want to discover that there is a potential problem with your property title or that a subsequent ownership claim is made that threatens your security. Title insurance provides protection from these threats by transferring the financial risk of a claim being made to the title insurance provider. This gives you and your lender peace of mind. What type of title insurance do I need? There are two types of title insurance. Lenders and owners’ title insurance. As the description implies, both products serve a specific purpose. Lender’s title insurance is usually required by your mortgage company as a protection for the security they are taking against your property in return for lending you money. Owner’s title insurance might be considered more optional but it is just as important. It gives you protection against any previous ownership or title issues coming to light at a later date. What you are doing with title insurance is transferring the risk to the title insurance provider and giving yourself an added layer of financial protection in the process. What does a typical policy cover? A typical title insurance policy will cover critical property ownership aspects such as encumbrances and liens. It also covers potential issues with the title paperwork. A policy also often aims to protect you from financial loss or harm caused by forgery or fraud. It should also usually cover issues arising from a failure to observe restrictions or limitations recorded in the title. Exclusions that you need to know about You are not covered for unreported liens that are not revealed in public record searches. You also won’t be covered for environmentally-related risks or a number of government privileges on your property. How long does protection last? Title insurance is normally valid for the length of your mortgage term with lender’s title insurance. Buyers’ title insurance typically remains in place throughout your ownership of the property. When you consider what is at stake and what a typical title insurance policy costs it should be considered a small price to pay for the peace of mind it can offer to you as a homeowner.
Leading data specialists, Insight Data, reveal construction industry insolvencies have spiked in 2022. From looking closely at the total number of companies registered on the organisation’s unique Construction File database, which contains large construction firms with a turnover of over £5million, Insight Data found there has been a 12% drop this year, compared to August 20211. Research from the Office of National Statistics also supports these findings as it reported that construction industry insolvencies were 58% higher in March 2022, when compared to pre-pandemic levels2. Alex Tremlett, Operations Manager at Insight Data, said: “The construction industry has faced unprecedented times in the last few years, and unfortunately companies like Midas and many more were unable to survive the fallout caused by the Covid-19 pandemic. “Whether a company has folded, restructured, merged or changed strategy to stay ahead, suppliers who are active in the new build or commercial markets may find their well-established relationships could be disappearing. “Companies may find themselves unknowingly wasting time, money and resources marketing their products and services to decision makers who have changed role or organisations that may have ceased trading or merged with someone else. So, it’s more important than ever that companies use reliable prospect data to help make informed business decisions.” For those companies operating with the construction sector supplying building products, equipment, training or business services, Insight Data has developed a specialist database to make it much simpler to pinpoint high-quality prospects during these challenging times. The Construction File database has comprehensive information on over 5,000 senior decision-makers in 1,100 organisations of the UK’s largest construction firms including property developers, house builders, main contractors and property maintenance companies. To guarantee the Construction File continues to be the most reliable and accurate database ever developed for the UK building and construction industry, Insight Data’s dedicated research team work tirelessly to continuously research, update and validate the data. In fact, they make over 20,000 calls each month to ensure users have access to the latest company details, business locations, contact details for senior decision-makers as well as the most relevant website and email addresses. Insight Data is one of the UK’s leading business-to-business data providers who specialise in the wider construction sector. Its unique market intelligence enables companies to create highly targeted marketing campaigns for prospective customers and helps to build a more successful, profitable and valuable business. For more information on Insight Data and its specialist Construction File database, visit: https://www.insightdata.co.uk/marketing-data/construction-database-file/
Privately owned hotel company Crimson Hotels has recently acquired The Trafalgar St. James Hotel in Central London. With this purchase, the five star hotel will become the second Hilton Curio Collection acquisition for Crimson Hotels, alongside 100 Queen’s Gate Hotel in South Kensington. Consisting of 131 rooms, The Trafalgar St. James Hotel is situated in Trafalgar Square, a great location for tourists and business people coming into London. It is within easy walking distance to many of London’s key tourist and cultural attractions, including Covent Garden, Soho and the Southbank. Moreover, the hotel is bolstered by strong amenities, comprising several food and beverage outlets, such as a rooftop bar with unparalleled views. A new destination restaurant will soon open on the ground floor, which will be operated by a high-end Asian restaurant group. Following the Crimson Hotels acquisition, The Trafalgar St. James Hotel will be headed up by Federico Ciampi, the current General Manager of 100 Queen’s Gate, who has been promoted to the role of Cluster General Manager, making a welcome return to a hotel he managed four years ago. “We are delighted to have acquired The Trafalgar St James Hotel with the property making a welcome addition to our portfolio of London hotels. We are looking forward to working with the hotel team, under Federico’s leadership, to firmly establish the property as one of the best in the capital,” commented Alykhan Kassam, CEO at Crimson Hotels. The acquisition of The Trafalgar St. James marks the second Curio Collection by Hilton property in its portfolio alongside 100 Queen’s Gate Hotel, a five-star boutique hotel situated in South Kensington. Founded in 1995, Crimson Hotels owns and manages nine hotels, totalling over 2,000 bedrooms. Crimson Hotels properties range in style, from top-level luxury hotels in cultural locations that build on prime location, history and fantastic amenities, to budget options for convenient, comfortable and enjoyable travel. Building, Design and Construction Magazine | The Home of Construction and Property News
Prologis, a leading owner and developer of UK logistics real estate, has continued its focus of strategic investments in London and the South East markets with the acquisition of two additional sites at Erith and Croydon. Totalling over 330,000 sq. ft. on 20.4 acres, the two distribution centres are let to Ocado and Royal Mail and form key parts of their distribution networks, being two of the largest low density last mile logistic facilities inside the M25. The assets, on Church Manorway, Erith and Beddington Farm Road, Croydon are located in two London markets that continue to see excellent customer demand whilst servicing significant, growing conurbations. Erith is considered a major growth area for jobs, transport and industry, providing easy access to central London and M25 connectivity to the wider motorway network, whilst Croydon is a densely populated south London location popular with a number of last mile delivery customers. The purchases of both assets will add to Prologis’ existing holdings in these markets. Paul Weston, Regional Head of Prologis UK: “Our purchase of these two prime distribution facilities shows our continued confidence in the UK’s logistic sector and reconfirms our strategic focus in London and the South East. We welcome Ocado as a new customer and look forward to working with them. It’s great to expand our strong relationship with Royal Mail at a location well known to both parties.” Erith was acquired from a UK fund, whilst Croydon was acquired from a segregated mandate client of CTI Real Estate. Prologis was advised by JLL on Erith and Knight Frank on Croydon. Gerald Eve and Acre Capital advised the vendors. Matthew Howard, Fund Manager at CTI Real Estate Partners: “We are delighted with the sale of Mail Centre Croydon, which continues our client strategy of recycling capital into a more diversified pool of higher yielding assets.”
The firm has secured 85% of their 2022-2023 budget (in fees) by August 2022 , just 3 months into the financial year, a staff increase of 18% with 20% of staff having received a promotion within the last year. Award-winning engineering consultancy Harley Haddow has reported a stellar year for growth after winning a number of high-profile project wins including appointments for the Royal Academy of Arts and the Clifton Street & Holywell Row Site in Shoreditch amongst others. The work at the Royal Academy is to support their partners Knight Harwood in the refurbishment of the RA schools’ studios within the lower ground and ground floors of Burlington House. The Clifton Street & Holywell Row site in Shoreditch will deliver industry leading new-build commercial office scheme with a focus on low energy and carbon design alongside a holistic sustainability strategy. Against the challenging backdrop of ongoing supply chain issues and cost of living crisis, the UK-based firm has continued to lead the way in driving buildings forward to becoming Net Zero and surpass targets set by the UK government. Working alongside the Horniman Museum and Gardens in London and Art Fund Museum winners, the firm provided energy and carbon analysis and technical options appraisal for their Net Zero Masterplan. The company has also attracted interest from lucrative student residences in North England, including to provide low energy and net zero carbon ready residences that will be certified as BREEAM Excellent, demonstrating exemplar sustainable performance. Over the last year, Harley Haddow has taken its learning into new territories and opened office space in Manchester and relocated to a bigger Net Zero conversant office in London. With five offices across the country, the firm now holds a roster of 118 staff throughout, spanning a range of expertise from operational roles to marketing and bid management. Eager to harness their team internally, the firm reported 20% growth of staff promotions from within in the last year. Guy Willis-Robb, Director, at Harley Haddow said; “It’s rewarding to have expanded our operations across the country and to be working in so many key markets. Last year was a challenging one for many businesses and it doesn’t look to be easing any time soon. However, thanks to the resilience of the industry, we’ve had the opportunity to scale up our current business model and work and bid for some amazing projects. “A surge in student residencies and repurposing old buildings has shown us that the market isn’t slowing down just yet but it’s crucial that we continue to reiterate the importance of responsible practices and thanks to our expanding team, we know we can keep making a positive impact.”
One in seven (14%) tradespeople now get the bus to jobs because they can’t afford to drive Tradespeople set to increase prices by 24%, on average Over a quarter (29%) now only accept hyper-local jobs in order to reduce their fuel usage Rising fuel costs are hitting UK tradespeople hard, and nine in ten (90%) say they are being forced to increase their prices to keep their businesses alive. With petrol and diesel reaching record levels and topping £2 per litre in some areas, IronmongeryDirect, the UK’s largest supplier of specialist ironmongery, surveyed 500 tradespeople to reveal the impact this is having on the industry. Almost every respondent (96%) said that their livelihood is reliant on their vehicle, and workers drive over 5,000 miles a year for jobs, on average. This annual mileage will now cost individuals almost £500 more for diesel vehicles, and over £450 for petrol users, than it did this time 12 months ago. Almost half (47%) of tradespeople say that their profits are being affected by the fuel crisis, and a third (33%) say that their company is struggling to cope. Understandably, many are increasing their prices to keep up. Nine in ten (90%) tradespeople say they will up their quotes as a direct result of the fuel costs, with the average increase standing at 24%. Some trades are increasing them more than others, and scaffolders are planning the most significant hike (39%). The trades planning on increasing their prices the most because of rising fuel costs are: # Trade % increase 1 Scaffolder 39% 2 Roofer 35% 3 Bricklayer 34% 4 Building Surveyor 30% 5 Electrician 28% 6 Plasterer 27% 7 Carpenter 26% 8 Joiner 25% 9 Builder 22% 10 Plumber 22% 11 Painter Decorator 16% 12 Landscaper 16% Some tradespeople plan to stop driving altogether, and one in seven (14%) say that they are now using public transport to get to jobs, because they can’t afford the fuel. For those who have no choice but to continue driving, motoring experts Euro Car Parts have shared their top tips on how to increase your fuel efficiency and save money: 1) Manage your revs The most fuel-efficient RPM to change up a gear is 2,500 for a petrol vehicle and 2,000 for diesel. So next time you’re changing gear, keep an eye on the revs count, stick to that number and the pennies you’ll save will soon stack up. 2) Slow down on high-speed roads The most efficient speed to drive at is between 55-65mph, and driving at 70mph compared to 80mph on a motorway could save you 25% more fuel. 3) Turn your engine off Keeping your engine idle whilst stationary still burns fuel, so if you know you’re not going to be moving for a while, turn it off to conserve your petrol or diesel. Dominick Sandford, Managing Director at IronmongeryDirect, said: “The fuel crisis is affecting all of society, but people who drive regularly as part of their job, like most tradespeople, are being hit particularly hard. “Worryingly, its independent traders who will feel the most impact, as their profit margins are likely far narrower than larger corporations, who may be able to ride out the wave. “Hopefully prices will begin to fall before too long, but in the meantime, reducing mileage and increasing fuel efficiency will help to slightly soften the blow.” For more expert advice on how to reduce your fuel costs, and how much rising prices will affect your profits, visit: https://www.ironmongerydirect.co.uk/blog/how-tradespeople-can-reduce-their-van-fuel-costs
The latest market analysis by Revolution Brokers suggests that the total level of investment into the British commercial real estate sector is set to cool in 2022, having enjoyed a 40% year on year increase between 2020 and 2021. Last year, just shy of £50bn was invested into the commercial sector, with the revival of a pandemic-stricken London market driving this activity with £21.2bn worth of investment alone. This equated to a 40% increase in commercial real estate investment when compared to 2020, with an average of £4.162bn invested every month. As of July this year, £22.2bn has already been invested into the British commercial property sector, an average monthly total of £3.172bn. Based on this rate of investment, Revolution Brokers estimates that total commercial real estate investment should stand at almost £38.1bn by the end of the year. While this is higher than the £35.7bn invested in 2020, it would mark a year on year decline of -24% versus the £50bn invested in 2021. But what’s behind this annual decline in investor appetite for commercial property? It would seem an oversaturation of stock available on the market may be to blame. Between 2019 and 2020, the level of commercial real estate listed for sale across Britain fell by -26%, with this heightened demand also pushing up the average asking price of commercial plots by 6%. This trend continued between 2020 and 2021, with available stock falling by a further 14% year on year, with the average asking price this time climbing by a notable 34%. However, the level of stock available on the market in 2022 has actually climbed by 7% versus last year, with this additional supply also causing the average asking price to drop by -17% year on year. Founding Director of Revolution Brokers, Almas Uddin, commented: “While the residential property sector has boomed during the pandemic, the commercial landscape has been far more complicated, with Covid restrictions hitting the hospitality and office sectors particularly hard. Despite this, the commercial sector enjoyed a notable level of investment in 2021, as many anticipated the impending uplift that work and leisure spaces enjoyed following a return to normality. This market activity has remained robust so far in 2022 which is a reassuring sign, however, we estimate that it will sit below the benchmark set last year. This isn’t unusual following a period of particularly high investment and an influx of stock to the market has also reduced the asking prices of these commercial plots. Of course, this does present a good opportunity for the savvy investor to strike while the price is right and bolster their commercial portfolio for a better price than they would have been able to a year ago.” Data Tables Full data tables available online here.
Industry analysis by Landlord Action, housing law specialist and part of the Hamilton Fraser Group, has revealed that the number of rental property repossessions carried out on behalf of landlords across England and Wales has increased by one thousand four hundred and eighty seven per cent annually, following the end of the tenant eviction ban implemented to protect the nation’s renters during the pandemic. Tenant evictions and their wider welfare within the rental market have long been a hot topic within the sector. In fact, the Government released their latest plans to improve rental sector standards on 16 June via The White Paper – A Fairer Private Rented Sector. One of the primary initiatives includes the abolition of Section 21 evictions, which will provide tenants with greater security and prevent landlords from evicting them without establishing fault on the side of the tenant. The latest government data shows that over the last year (2021-22), some 12,965 rental properties were repossessed on behalf of the nation’s landlords. This marks a 1,487 per cent increase on the previous year, but while this may seem like a concerning trend for tenants, there’s one important fact to consider. During the pandemic, tenant evictions were banned to safeguard those struggling financially between March 2020 and May 2021. As a result, only cases where it was deemed necessary were processed, meaning that there were just 817 rental properties repossessed during 2020-21. In fact, the 12,965 repossessions seen over the last year is actually fifty six per cent fewer than the 29,347 recorded in the pre-pandemic year of 2019-20. What’s more, the level of rental homes being repossessed on an annual basis had already been declining steadily year on year, down from 35,046 in 2017-18 to 33,113 in 2018-19. But it’s not just the total number of repossessions that’s on the slide. The latest data shows that total repossessions account for just twenty six per cent of all initial claims made by landlords. While this was far lower for obvious reasons during 20-21 at just four per cent, it’s a lower proportion than 2019-20 (28 per cent), 2018-19 (28 per cent) and 2017-18 (27 per cent). Eddie Hooker, CEO of the Hamilton Fraser Group, who operate industry schemes such as mydeposits, the Property Redress Scheme and Client Money Protect, as well as Landlord Action says: “At first glance, it would appear as though the floodgates have opened where the repossession of rental properties is concerned, but this isn’t quite the case. Following a year where tenant evictions were banned except for in certain circumstances, there was always going to be a spike in repossessions as a backlog of cases finally started to be processed. However, we’re yet to see the level of rental homes being repossessed return to pre-pandemic levels and there are also a lower proportion of initial claims making it to this final, last resort stage. While delays due to the backlog of cases may certainly be one cause, it’s also fair to say that the nation’s landlords have largely acted with empathy and understanding following the pandemic, understanding the problems facing many tenants and looking to help them rather than turf them out on their ear.” Paul Sowerbutts, Head of Legal at Landlord Action “At Landlord Action we have prepared ourselves for the expected spike in property repossessions and are busier than ever. Whilst we expect this trend to continue into both the third and final quarters of this year due to the cost of living crisis, we also expect repossessions levels to remain high into next year as well.” Hamilton Fraser: Landlord possession actions : Landlord possession actions Data relates to landlords of all types across England and Wales. Source: Gov.uk
