The latest research by Warwick Estates has found that detached homes have been outperforming all other property types for at least 15 years, showing that, while recent growth has indeed been strong due to lockdown, detached properties have always been central to the success of the UK housing market. The
Next-generation property and finance services consultancy adds specialist risk and insurance advice to its offering Cape Insurance launches as part of ARMCo group ARMCo, the specialist finance and property consultancy offering lending, corporate support, land procurement and property development, has announced a new addition to its offering with the launch
A new Proptech engine, which transforms viability for SME housebuilders and their lenders, has issued more than £600m worth of instant Sales Guarantee proposals in its first three months. LDS has reported that its online engine, which launched in January, supplied a total of £603,200,000 worth of Sales Guarantee proposals
The latest research from Warwick Estates has revealed that while house prices are currently at an ‘all time high’, they’re yet to surpass their pre-financial crash peaks in all but three UK regions, when taking inflation into account. The average house price across Britain currently sits at a dizzying £253,382
The pandemic has impacted almost every industry in one way or another, and while construction firms were allowed to continue in times when others weren’t, the period has still proven challenging. But with a recent uptick in activity and a wider return to normality on the horizon in the UK,
When the nationwide Covid-19 lockdown came into force in March 2020, every sector in the UK was caught off-guard, and non-more so than the construction industry. However, as the months progressed and construction was allowed to resume – albeit in a more streamlined way, the construction industry was able to
Trinova and Europi snap up Cuprum and The Stamp Office in £44m office acquisition swoop A joint venture between TREOS (the discretionary fund vehicle of Trinova Real Estate) and Swedish real estate investor, Europi Property Group, has purchased two major Scottish office investment assets in Glasgow and Edinburgh over the
Plumbers face more delayed payments than any other trade Experts share advice for securing late payments UK tradespeople are seeing over £1,000 of payments per year withheld by customers following a completed job. The research, conducted by IronmongeryDirect, found that an average £1,062 is owed to tradies across the UK. A third (33%) said they were waiting for over £1,000 from customers for completed
Thanks to many changes in society as a whole, there are very few people who still have any patience. Everyone expects everything instantly or at least quickly. This is because we don’t have to wait for many things. You can instantly stream almost any movie or song directly to your
Unique approach to solutions provision with unrivalled proposition from industry experts A unique firm to assist businesses and help them prosper in the ‘new normal’ with an innovative approach to property and finance-based services has launched today. ARMCo is the brainchild of Birmingham-based business founder and investor Russell Martin, and
The latest research by Warwick Estates has found that detached homes have been outperforming all other property types for at least 15 years, showing that, while recent growth has indeed been strong due to lockdown, detached properties have always been central to the success of the UK housing market. The past year has seen property prices rise at remarkable speed and none so much as detached homes. It has been reported that the value of detached homes is outperforming all other property types as buyers seek out bigger homes with gardens as a result of being locked down for the best part of a year. However, the research by Warwick Estates shows that, while recent growth has indeed been strong, detached properties have historically outperformed all other types of home for the past 15 years. Since 2006, the value of detached homes in England has increased by 63%, equivalent to a rise of £158,165. This is more than semi-detached (60%), terraced (62%), and flats (57%), although all have proved a solid investment. With bigger rises still, the value of detached homes in Scotland has increased by 65%, or £112,410, while semi-detached (59%), terraced (58%), and flats (36%) lag behind. It’s worth noting that Scotland’s percentage rise is bigger than England’s, but due to the vast difference in property prices in each region, England’s pounds-and-pence growth is the greater of the two (£158,165). In both Wales and Northern Ireland, the trend remains the same, with the value of detached homes rising by 39% and 18% respectively, more than all other property types. Regionally, London has seen the most extraordinary price growth with a rise of 119% over 15 years, followed by the South East (81%), East (77%), South West (60%), and the East Midlands (55%) completing the top 5. One interesting point to note, and the only anomaly in the data, the value of detached homes in the South West has risen by 60%, but so too has the value of semi-detached homes. This makes the South West the only region in the UK where the rising value of detached homes has been matched by another property type. Finally, it’s hard to ignore the difference between price growth in London, number one on the list, and the North East which sits at the very bottom. With just 19% growth in the value of detached homes, the North East trails 100% behind London, further demonstrating the historic regional disparity that exists in the UK. COO of Warwick Estates, Emma Power, commented: “Detached properties appear to be flavour of the month right now with buyers keen to find bigger homes in the wake of COVID-19 lockdowns. But this data shows us that the important role detached homes now have in driving our market forward is not a new phenomenon: they have long been the backbone of residential property. ”The vast gulf between growth in London and growth in the North East is, of course, concerning as it highlights, once again, something we’ve known for a long time about the very different fortunes of our northern and southern markets. But, we can feel quite optimistic that things will soon have more balance as, in recent months, the North East has shown some very strong growth while London’s market has sputtered. It won’t remain that way for long, of course, but as we move forward, I’m hopeful the gap will be somewhat narrower.” Table shows the best performing property type based on house price increase in the last 15 years Location Detached Price Change (£) Detached Price Change (%) Semi Detached Price Change (£) Semi Detached Price Change (%) Terraced Price Change (£) Terraced Price Change (%) Flat Price Change (£) Flat Price Change (%) Scotland £112,410 65% £62,960 59% £49,805 58% £29,914 36% England £158,165 63% £94,937 60% £84,137 62% £85,888 57% Wales £76,748 39% £47,342 38% £38,292 37% £16,863 16% Northern Ireland £33,058 18% £19,080 15% £8,649 9% £747 1% By Region London £532,161 119% £332,134 115% £293,223 123% £209,081 97% South East £267,909 81% £160,624 77% £124,196 75% £70,064 49% East of England £201,956 77% £134,020 75% £109,692 74% £66,130 50% South West £163,023 60% £106,604 60% £85,601 58% £47,856 37% East Midlands £109,528 55% £69,496 54% £56,347 53% £29,753 30% West Midlands region £118,046 50% £68,835 49% £54,265 47% £24,949 23% Yorkshire and the Humber £91,671 45% £53,218 42% £41,005 40% £19,705 18% North West £97,559 45% £60,447 44% £40,387 40% £26,089 24% North East £37,780 19% £21,043 18% £13,865 14% -£908 -1% House price data sourced from the UK House Price Index – Feb 2006 to Feb 2021 (latest available data)
Next-generation property and finance services consultancy adds specialist risk and insurance advice to its offering Cape Insurance launches as part of ARMCo group ARMCo, the specialist finance and property consultancy offering lending, corporate support, land procurement and property development, has announced a new addition to its offering with the launch of Cape Insurance – a niche risk and insurance adviser for property investors, developers and the construction sector. Cape is headed up by managing director Henry Gallacher, who brings with him a wealth of experience gained working for large global insurance brokers Willis Towers Watson, JLT and latterly Marsh for over 10 years, where he advised large corporate firms on risk and insurance before choosing to specialise in property, development and construction. Henry explained: “The property sector is vast with a variety of risks and challenges to success. Cape’s aim is to help property investors, developers, owners and managers find the opportunity in these challenges, with insurance solutions that help manage, mitigate or transfer risks, and optimise profitability. Cape has been founded at a time when many of the independent brokers in the insurance market are being acquired by larger players – creating a consolidated landscape with fewer firms and less real choice. This means we are well positioned to offer a unique service with a human touch, offering a customer-focused approach underpinned by vast knowledge and experience in these sectors. We work closely with clients to define their risk profile, and then find the optimal solution to ensure every project, transaction and deal progresses smoothly and profitably. “The pandemic has changed the way we live and will begin to change the built environment significantly. As property is likely to be re-purposed in line with this evolution – such as office space, retail property and changing residential demands – the opportunity for players in the property and construction markets is enormous. Cape is perfectly placed to enable these opportunities to be capitalised on. From financing and planning development projects through to construction, along with key landlord and investor risk considerations, we offer a broad spectrum of advice outside of the normal,” he added David Totney joins Henry at Cape as co-director, bringing with him more than 30 years’ experience gained in finance industries. Additionally, Cape has joined with the Willis Towers Watson network, giving it access to world-leading resources, knowledge and the market leverage of WTW, while maintaining the service proposition of a specialist, independent broker delivering a unique proposition for clients. Cape is part of the ARMCo group, which is head-quartered in the heart of Birmingham’s finance district, from where the firm delivers its local, regional and national offering. ARMCo founder Russell Martin commented: “We are delighted to launch Cape within our group, which significantly enhances our overall offering of synergistic property and finance services. Henry’s vast and specialist expertise is a real asset to the group, and will aid businesses coming to ARMCo for help in overcoming challenges they face today, such as access to finance, navigation of land procurement and development, and sourcing risk solutions. Our expertise across the group helps them maximise growth opportunities and have an exceptional experience, thanks to our central services approach that encompasses a human touch, passion and commitment of strong leaders and highly collaborative partnerships.” The ARMCo group comprises Finance 4 Business, Liquidity Club, Innovation 4 Business and Walker Doble – as well as new firms Atlas Land & Planning, Midshore Partners, Chordis Capital and Cape Insurance. These are operated by industry experts Russell Martin, David Pinnington, David Totney, Philip Moore, Rebecca Doble, Marc Walker, James England and Rob Lankey and Henry Gallacher. The group offers expertise on financial solutions including asset, bridging and development finance, tax solutions and MBOs – helping SMEs in a range of sectors, property developers (including allied trades and professionals) and investors.
A new Proptech engine, which transforms viability for SME housebuilders and their lenders, has issued more than £600m worth of instant Sales Guarantee proposals in its first three months. LDS has reported that its online engine, which launched in January, supplied a total of £603,200,000 worth of Sales Guarantee proposals for new housing developments in the first quarter of 2021. LDS’ target for the year is to issue £4billion of proposals. Enabling SME housebuilders to construct more homes is seen as key to help solve Britain’s housing crisis as larger developers are reaching capacity. In April the Housing Minister Christopher Pincher said: “A successful SME sector is crucial in our shared objectives of planning reform and increased housebuilding.” In March the Chair of Homes England Peter Freeman said one of his top 10 priorities is “ensuring SMEs play a greater role in housing delivery.” Access to finance has been a growing problem for SME housebuilders, with the Federation of Master Builders reporting that 42% of SME housebuilders were involved in sites that stalled for financial reasons in 2019. In 1988, SME housebuilders were responsible for 40% of new build homes, compared to around 10% today. This equates to a drop of 75% in the number of homes built by SME housebuilders in just over three decades. The unique LDS Sales Guarantee removes all speculative and exit risk for housebuilders and their lenders by underwriting the financing of sites, guaranteeing that housebuilders can call on LDS to complete on any unsold units. This catalyst opens up increased access to finance and the ability for increased output. LDS can also release 10% of the guarantee value to the housebuilder unsecured and at zero interest. The combined effect of increased leverage and the LDS cash release reduces housebuilder cash contributions by an average of 77%. This in turn enables housebuilders to bring forward up to four times more new housing from the same cash base. The response to the new Proptech engine since its launch shows the strength in demand from the sector, with SME housebuilders keen to bring forward new sites – if they can unlock financing. A recent SME housebuilder to bring forward a site through LDS was D T Joseph Developments Ltd. A Sales Guarantee and a £424,656 cash injection were provided by LDS enabling the development of 16 new homes with a GDV of £6m. In Terrington St Clement, Norfolk, a local developer and construction company was able to acquire a site after LDS provided a Sales Guarantee and a £720,000 cash injection which was used towards the site purchase. Plugging the financing shortfall has enabled the developer to bring forward 44 new homes, including 9 affordable units, with a GDV of £10.6m. For this transaction, the Sales Guarantee is estimated to have increased the developer’s return on investment by 137%. The £603m of proposals requested between January and March 2021 spanned 67 sites, consisting of 1,551 new homes across England and Wales. The sites range in size from 10-59 units, with GDVs of between £3m-£38m per site, with the average at around £9m. Lenders, brokers and housebuilders can create a free, no obligation Sales Guarantee proposal in around two minutes using the LDS online Proptech engine. A Sales Guarantee allows them to remove speculative risks, increase access to finance on improved terms, release cash, and completely transform viability. Mark Hawthorn, CEO of LDS, said: “We are pleased, although not surprised, to see interest in Sales Guarantees growing rapidly. “The response in the first quarter since the Proptech engine was launched gives me huge confidence we will meet our goal of £4bn in Sales Guarantee proposals for 2021. “The adoption of Sales Guarantees by the market is driven by simple facts – they remove risk, reduce cash requirements, and increase returns. The compelling duo of higher returns and lower risks completely transform the viability of sites for both housebuilders and lenders, allowing much-needed new housing to be brought forward. “SME housebuilders tend to build on smaller brownfield and infill sites in already-established areas, which hold huge potential for additional homes across the country. By helping them to unlock development finance and boost their output, we are driving the revival of the SME housebuilding market and helping the Government meet its target to build 300,000 new homes each year. Daniel Lloyd, Founder and Owner at D T Joseph Developments Ltd, said: “LDS transformed the financing of our Spring Meadow development in Ramsbottom, enabling us to move forward and provide 16 high-quality and energy efficient family homes for the people of Ramsbottom and surrounding areas. “As an SME, receiving a guarantee that someone will buy the new homes you’re building is a weight off your shoulders as it significantly reduces the risk from our development and enabled us to secure better rates of lending. “The Sales Guarantee and the initial cash injection completely transformed the viability of the development and increased our capacity for future developments. LDS gives us the potential to build more much-needed homes – we are already looking at other sites long before we would previously have been able to.” LDS is part of Landmark Group, a national investment company founded in 2000.
The latest research from Warwick Estates has revealed that while house prices are currently at an ‘all time high’, they’re yet to surpass their pre-financial crash peaks in all but three UK regions, when taking inflation into account. The average house price across Britain currently sits at a dizzying £253,382 according to the latest figures from the Land Registry. That’s 34% higher than the market peak of £189,199 in September 2007, before the worst property market crash of recent times brought the market to its knees. However, while the market is currently running red hot as a result of the stamp duty holiday, the research from Warwick Estates shows that it hasn’t quite reached the same level as 2007. Warwick’s research shows that when adjusting for inflation the average house price of £194,764 prior to the financial crash would be the equivalent of £276,250 in today’s market. This means that the current average property price of £268,291 still sits some -3% below historic highs. The North East is the region currently further off the pace when compared to its pre-financial crash peak of £139,400. While property prices currently sit 1% higher today at £140,606, they are actually -29% lower when taking inflation into account. Scotland (-17%), the North West (-15%), Wales (-15%) and Yorkshire and the Humber (-15%) are also home to some of the lowest property values when accounting for inflation and comparing them to their 2007 peaks. Just three regions are currently home to a higher average house price when compared to their 2007 peaks and when adjusting for inflation. Prior to the financial crash, the average London house price hit £298,596 before the market crashed. Today, this has increased by 69% to £503,308. Even when adjusting for inflation, the current average London house prices sits 4% higher than the pre-financial crash peak seen at the start of 2008. The East of England and the South East have also seen a stamp duty boost push house prices higher than their 2007 peaks. Even after adjusting for inflation, the average house price is now 4% higher in the East of England and 2% higher in the South East. COO of Warwick Estates, Emma Power, commented: “The market is currently performing very well with house prices climbing to historic highs across all areas of Britain thanks to the additional boost of the stamp duty holiday. We’re also seeing market values sit some 34% higher than their pre-financial crash peaks and so the overall market remains in very good health indeed. However, when taking inflation into account, we’re yet to see a full return to form across all regions of Britain and, in fact, homes across just three regions are worth more than their 2007 price peaks when adjusting for inflation. That said, with the market moving at a current rate of knots and likely to do so for the remainder of the year, it might not be long before the entire market surpasses the pre-financial crash peaks of 2007.” Location Date of pre-financial crisis peak Average house price Financial crisis peak – average price inflation adjusted Current peak – date Current peak – average price Nominal change – financial crisis vs current (%) Inflation adjusted change – financial crisis vs current (%) London 1/1/2008 £298,596 £423,677 1/1/2021 £503,308 69% 19% East of England 1/11/2007 £209,624 £297,435 1/1/2021 £309,243 48% 4% South East 1/10/2007 £238,845 £338,896 1/2/2021 £345,075 44% 2% East Midlands 1/9/2007 £159,537 £226,366 1/2/2021 £213,967 34% -5% South West 1/9/2007 £212,666 £301,751 1/2/2021 £279,242 31% -7% West Midlands region 1/8/2007 £165,807 £235,263 1/2/2021 £215,451 30% -8% Yorkshire and the Humber 1/10/2007 £150,233 £213,165 1/2/2021 £182,220 21% -15% Wales 1/8/2007 £150,316 £213,283 1/12/2020 £181,879 21% -15% North West 1/12/2007 £152,427 £216,278 1/2/2021 £184,351 21% -15% Scotland 1/5/2008 £145,641 £198,725 1/11/2020 £164,541 13% -17% North East 1/7/2007 £139,400 £197,794 1/1/2021 £140,606 1% -29% England 1/9/2007 £194,764 £276,350 1/2/2021 £268,291 38% -3% Great Britain 01/09/2007 £189,199 £268,454 01/01/2021 £253,382 34% -6% Data on house prices sourced from Gov.uk – UK House Price Index, based on the house price peak of each region prior to the financial crash and the change between then and the latest house price peak in 2020/2021
The pandemic has impacted almost every industry in one way or another, and while construction firms were allowed to continue in times when others weren’t, the period has still proven challenging. But with a recent uptick in activity and a wider return to normality on the horizon in the UK, optimism is building for the sector’s recovery. This cautious confidence comes on the back of a significant contraction in output in the first half of 2020. Even after the government stated construction work should resume with new safety measures in place, commercial activity has been slower to bounce back due to retail store closures and uncertainty around the future of offices. At the same time, areas such as private housing have been more buoyant due to pent-up demand and government incentives such as the stamp duty holiday. So what does the road ahead look like for the construction industry overall? Forecasts of recovery Private housing work is expected to remain strong throughout 2021 and into 2022 thanks to factors such as the rise in homeworking and homeowners reinvesting pandemic savings. Public housing output is also due a boost thanks to a backlog in cladding safety work. But these aren’t the only reasons behind the industry’s hopeful outlook. Commercial projects and infrastructure work have also displayed growth as the UK prepares to fully reopen for business on the back of a so-far successful vaccination campaign. Examples include HS2, one of the largest construction projects currently underway in Europe, and various offshore wind and nuclear works. In fact, the surge in construction activity between February and March of this year was the largest in any month since September 2014. Potential bumps in the road Despite the positives mentioned above, construction output is still only projected to reach pre-pandemic levels in 2022. The industry’s recovery is also somewhat reliant on a wider economic resurgence – which could still be dampened by new Covid variants and a rise in unemployment when the furlough scheme finally ends. There is then the worry that construction firms will have to deal with a potential global shortage of goods and materials as other industries and nations lag behind. Increased import costs and timeframes linked to Brexit are also looming large for many companies. Those in commercial sectors will also be waiting nervously to observe to what extent there is a return to office work. Onno Adriaansens, co-chair of the European Real Estate Group at global consultancy firm RSM, asks: “If office demands get scaled back, what happens to the thousands of half-built high rises all over the world? Do we convert them to residential? Whatever the case, real estate cannot simply ‘get through’ the COVID-19 crisis without a significant evolution.” Ultimately several questions like this remain. But for the time being at least, the future looks reassuringly bright for the UK’s construction industry.
When the nationwide Covid-19 lockdown came into force in March 2020, every sector in the UK was caught off-guard, and non-more so than the construction industry. However, as the months progressed and construction was allowed to resume – albeit in a more streamlined way, the construction industry was able to if not bounce back, at least claw back some lost ground. The pandemic also revealed the need to accelerate initiatives and highlighted shortfalls within the sector. Most notably, the repatriation of migrant workers demonstrated the sector’s vulnerability to labour shortages and supply chain disruption. Supply chains The sudden imposition of lockdown measures highlighted how little stock construction sites and suppliers hold in the UK. From cement and paint shortages to timber holdups and multi use silicone sealant products such as caulk. While there have been calls to address the issue of precarious inventories, this is a difficult challenge to solve because much of the manufacturing capacity for construction materials has moved offshore, and given the ongoing complications with Brexit this will be a long-term issue. Repatriating elements of the supply chain will come at a cost and the industry need to be prepared to pay the additional expense of having local sourcing options if it wants a secure supply chain, which will of course impact the sectors overall growth. Commercial and residential projects The stripping back of project teams as a result of the pandemic revealed the potentially inefficient nature of many construction workforces. This realisation meant that rather than cutting construction jobs, it’s time to deploy them in a more efficient way, especially in large-scale commercial projects. Prior to the pandemic commercial construction centred heavily around office sector building, however, given that new figures suggest that fewer than one in five employees want to return to the office full-time, we could see a greater shift towards residential projects. As more people continue to work from home, new build sites could focus their attention on work from home set-ups as commuter villages become more popular. Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said: “The residential sector had been relatively immune to the effects of lockdowns and pandemic disruptions, but it too was beginning to show signs of weakness for the first time in over six months.” Growth forecasts In early 2021, the construction industry saw a 14.0% rise following an estimated contraction of 14.3% overall in 2020 caused by the sharp fall in the first half of last year. It’s also estimated that the output is only expected to recover to pre-Covid level in 2022. There is also a risk that one the furlough and self-employed support schemes end, there may be a sharp rise in unemployment that could potentially dampen this recovery. It’s not just potential unemployment and knock-on Covid pandemic that could affect growth, but delays in the supply chain.
Trinova and Europi snap up Cuprum and The Stamp Office in £44m office acquisition swoop A joint venture between TREOS (the discretionary fund vehicle of Trinova Real Estate) and Swedish real estate investor, Europi Property Group, has purchased two major Scottish office investment assets in Glasgow and Edinburgh over the past few weeks. Cuprum was built in 2010 and is of Grade A quality, offering excellent floorplates, extending to 96,267 sq.ft over eight floors, plus 37 car parking spaces. It is fully occupied, with the headline tenants being AXA Insurance (UK) plc and Teleperformance Ltd. It is also home to SAS Software Ltd and Citres Ltd. Set on Argyll Street, in the western edge of Glasgow’s International Financial Services District (IFSD), Cuprum is very well connected to key city centre amenities and transport links. The Stamp Office was originally built in 1819 and comprises a 52,177 sq.ft, seven storey classical Georgian building with four floors situated above Waterloo Place and three lower floors overlooking Calton Road to the rear, and adjacent to Edinburgh’s Waverley station. Located in the heart of Edinburgh, the Category A listed building has been comprehensively redeveloped behind a retained facade to provide Grade A open plan office accommodation on all levels. It is 85% occupied and tenants include Scottish Legal Complaints Commission, The Scottish Ministers, Covance, Queryclick and Senvion. Colin Finlayson, Director of Lismore, who advised Credit Suisse on the sale of Cuprum and a UK institutional owner on the sale of The Stamp Office, said: “We are seeing increased activity in the Scottish market, with investors like Trinova and Europi being drawn by renewed occupier activity, attractive yields and favourable exchange rates, along with the potential to add value. “Cuprum attracted significant interest from both overseas and UK investors. It offers excellent tenant covenants and secure income. The Stamp Office offers an opportunity to reposition a quality office building adjacent to the St James Quarter.” Martyn Brown, Director of CBRE, who advised the purchaser on Cuprum said: “We are pleased to have secured this quality, ‘value add’ office investment for Europi and Trinova. The asset offers clear asset management initiatives over the next few years, which will be implemented by our client, whilst taking advantage of the strong fundamentals that the Glasgow office market has to offer.” Alasdair Steele, Partner of Knight Frank, who advised the purchaser on The Stamp Office said: “The Stamp Office is in a prime office location, with exceptional nearby amenities and easy access to public transport. As organisations move towards a return to the office, with the right strategy and refurbishment programme the building can be turned into exactly the type of offering that occupiers are looking for: good quality, accessible and affordable accommodation in a prime city centre location. It is very rare to find a building like this in Edinburgh and we are delighted that it is now part of Europi and Trinova’s portfolio.” Lismore Real Estate Advisors represented Credit Suisse and the UK institutional owner on the sale of Cuprum and The Stamp Office respectively. CBRE advised the purchaser on Cuprum and Knight Frank advised the purchaser on The Stamp Office.
Plumbers face more delayed payments than any other trade Experts share advice for securing late payments UK tradespeople are seeing over £1,000 of payments per year withheld by customers following a completed job. The research, conducted by IronmongeryDirect, found that an average £1,062 is owed to tradies across the UK. A third (33%) said they were waiting for over £1,000 from customers for completed jobs, whilst nearly one in ten (7%) are owed over £3,000. Nearly two thirds (61%) of tradespeople have had payments withheld by customers, which occurs twice per year on average. More than one in ten (12%) however, experience withheld payments more than five times a year. Only 6% of tradespeople say that the payment issues are resolved within a week, whilst more than one in five (22%) have had to wait more than a month to be paid for a job. Plumbers were found to be the most likely to have to deal with payment problems, experiencing withheld cash 2.6 times per year on average. Landscapers, meanwhile, experienced the fewest issues, with an annual average of only 1.2 times. Trades most likely to have payments withheld (times per year) Plumber: 2.6 Electrician: 2.4 Builder: 2.3 Bricklayer: 2.2 Carpenter: 1.9 Surveyor: 1.8 Joiner: 1.7 Painter & decorator: 1.6 Plasterer: 1.3 Landscaper: 1.2 Builders are owed the most, with an average of £1,375 withheld by customers, with nearly half (45%) saying they had over £1,000 of outstanding payments. Bricklayers (44%) and carpenters (40%) are experiencing similar rates of withheld cash. Plasterers were found to be owed the least, with an average of £535 outstanding, followed by landscapers (£615). Female tradies were found to receive payment quicker than their male counterparts, experiencing higher rates of payment within a week (8% vs 4%) and within a fortnight (34% vs 20%). However, women were also found to be owed higher sums of money, with an average of £1,168 outstanding, compared to £972 for men. When it comes to age, millennials (25-34 year olds) are more likely to experience withheld payments than older tradespeople, with an average of 2.5 payment issues per year, compared to 1.6 for 55–64-year-olds and 1.7 for over 65s. People in this age group were also more likely to be owed larger sums of money, with millennials owed the most at £1,258 compared to other generations. Despite this, invoice problems were solved quicker for younger generations, with 14% of millennials waiting more than a month for payment, compared to half (50%) of 55–64-year-olds. Alison Werner from the UK’s leading business coach for trades and construction industry, The Trades Coach, said: “Be sure to display your full terms and conditions in the original quote, as well as your website. This should include a full breakdown of costs and a clause for late payments. Regular communication will also help address any misunderstandings as they arise and will also be looked upon favourably in the rare event of legal proceedings. “There might be a reasonable reason why a customer is late paying, so it’s important not to assume the worst and firstly find out what the issue is. Having a telephone conversation is the best place to start and then follow this up with an email and regular email reminders. If payment is still not received after several months, you should consider hiring a debt recovery company who will take a small commission to recover payment on your behalf.” Dominick Sandford, Director and Head of Merchandising & Marketing at IronmongeryDirect, said: “Withheld payments are an annoyance that every tradesperson has to deal with at some point or another, but when significant amounts are owed by customers it can become a serious threat to your financial security. “It’s shocking to see how much tradespeople are waiting on and how long they’re having to wait for their payment following a job. We hope our useful tips help tradies get paid quicker and without any hiccups along the way.” For more tips on dealing with outstanding payments and your legal rights, visit: https://www.ironmongerydirect.co.uk/blog/expert-tips-for-handling-unpaid-invoices
Thanks to many changes in society as a whole, there are very few people who still have any patience. Everyone expects everything instantly or at least quickly. This is because we don’t have to wait for many things. You can instantly stream almost any movie or song directly to your phone in a moment. This availability to get instant gratification has changed the way many industries handle business. The Traditional Way to Sell a Home Until recently most people sold their homes by using a real estate agent. When you sell your home in the traditional way you contact a real estate agent and they come out to look at your home and make suggestions for repairs and improvements that can make the house sell for a larger amount and quicker than it would if sold as-is. A realtor makes a commission of the sales amount so they will encourage you to do a lot of work for your home to increase the value before placing it on the market. Once you finish paying for all the work the realtor will have pictures of the home taken and list it on MLS. MLS the system relators use to post all homes that are for sale. Then it is a waiting game there is no way to know how long the home will sit on the market before it sells or if it will ever sell. There is also no way to know for sure how much the home will sell for and once it finally sales you still have to subtract several other fees. You will need to account for your realtor’s commissions, closing cost, all the money you spend to keep your home on the market, and all the repairs you made. The New Way to Sell a Home There are now companies online that allow you to sell your home from the comfort of your couch. When you choose to use one of these companies, you will not have to make any repairs or improvements to your home. You simply go to the companies website and provide them with your address and they will do the rest of the work. Most of these companies will have you cash offers to buy your home within a week. These companies do their research on your home and find out what it would sell for in perfect condition. They then advise several investors that they work with the condition of your home and the possible value. These investors then compete with offers to buy your house and the company sends those offers to you. If you chose to accept an offer you can close quickly and you get one hundred percent of the selling price in your pocket. Sundae is a great example of one of these companies. When you chose them to help you sell your house they can give you a guaranteed timeline and a guaranteed amount of profit. The traditional way of selling a home does not allow for either of these to be a sure thing. This makes selling your home with companies like Sundae a great choice for someone who hates the unknown. If you enjoy a gamble maybe the traditional way is right for you but knowing you can walk away with money sooner than later is always an attractive offer. Now that you know companies like Sundae offer a new way to sell your home online, it is time for you to look into the process. You can get offers on your home without making any kind of commitment to make the sale. This will allow you to at least see what you could walk away with without sinking any more money into your home. Look into one of these companies so that you can know what your options are and maybe have your house sold faster than you thought was even possible.
Unique approach to solutions provision with unrivalled proposition from industry experts A unique firm to assist businesses and help them prosper in the ‘new normal’ with an innovative approach to property and finance-based services has launched today. ARMCo is the brainchild of Birmingham-based business founder and investor Russell Martin, and combines specialist lending, corporate support, land procurement and development, and insurance services – catering for a rapidly evolving business landscape – to benefit clients with truly holistic and tailored solutions. ARMCo is based in the heart of Birmingham’s finance district, where its HQ is the base from which the firm delivers its local, regional and national offering. It has a strong foundation: Russell formed Finance 4 Business, a specialist broker for finance transactions, 15 years ago – and used his experience, expertise and connections to form four further businesses which have grown strategically year on year, offering agile and integrated solutions to clients. With four new firms offering synergistic services added to the group, this forms the complete ARMCo offering. Jon Preston has been appointed as Chief Operating Officer at ARMCo. Jon brings a wealth of experience, having worked at a UK-based lender which underwent a £26m MBO last year with Foresight Group, a leading independent infrastructure and private equity investment manager. ARMCo founder Russell Martin explains: “We are living in uncertain times and a post-pandemic world looks very different for a lot of businesses. Overcoming challenges such as access to business finance, sourcing sector-based specialist risk and insurance solutions or navigating land procurement and development opportunities will have presented complexity before Covid, but the ‘new normal’ will be more challenging for many. “The combination of expertise at ARMCo means we can deliver bespoke solutions for our clients to help them maximise growth opportunities and give them an exceptional experience. Our adept approach ensures that even the most complex of transactions are navigated with integrity, proficiency and pace. The combination of a human approach, passion and commitment of strong leaders and highly collaborative partnerships, combined with a central services approach, presents an unrivalled proposition in the UK – particularly with Jon at the helm, leading and propelling the group,” he added. The ARMCo group comprises Finance 4 Business, Liquidity Club, Innovation 4 Business and Walker Doble – as well as new firms Atlas Land & Planning, Midshore Partners, Chordis Capital and Cape Insurance. These are operated by industry experts Russell Martin, David Pinnington, David Totney, Philip Moore, Rebecca Doble, Marc Walker, James England and Rob Lankey and Henry Gallacher. The group offers expertise on financial solutions including asset, bridging and development finance, tax solutions and MBOs – helping SMEs in a range of sectors, property developers (including allied trades and professionals) and investors. One such business benefitting from ARMCo’s expertise is Fitzpatrick Group Ltd – a housing delivery service provider with a requirement for finance provision to aid its expansion into a number of specialist sub sectors. The firm’s Managing Director, Mark Fitzpatrick, explains: “I have worked with Russell for more than a decade, initially through Finance 4 Business (F4B), through which I have had in excess of 25 loans arranged for me, across many disciplines and through a multitude of different lenders, from commercial mortgages, Buy-To-Let and bridging loans, to development and asset finance. The attention to detail, end-to-end service and dedication has been a staple feature of the service. “The evolution of ARMCo has seen the inception of some great businesses led by fantastic people, with whom I have transacted on many occasions, with great satisfaction and results. The launch of ARMCo makes absolute sense and I have no doubt Russell and his team will go from strength to strength.” Russell concluded: “Success in any business involves being able to navigate a market, identify business opportunities and be agile enough to be able to plug gaps in the market. I have applied that formula to my businesses, and the ARMCo offering can now support businesses in realising their ambitions, as we all try to navigate our way through these turbulent times. We are a group of companies built on strong relationships, not transactions, and I’m delighted to have such robust and proven expertise on board at ARMCo. We have ambitious expansion plans, and will be adding more companies to provide further synergy within the group.” For further information about ARMCo visit www.ARMCo.partners.
