Activity levels at the very top of the London property market have stabilised after a tumultuous few years, the latest analysis reveals. Sales in the super prime market with homes valued at £10 million plus have been underpinned in many cases by the release of pent-up demand, says the report
Prime minister May’s announcement last month to spend £400m on the repair & refurbishment of 158 high rise buildings identified within England’s social housing estate has been widely welcomed by the construction industry and housing chiefs alike. However, the considerable war chest earmarked by government to bring these dwellings up
Investec, the asset management group, has announced it will offer a £43 million loan to the Labtech Group, a real estate development and investment business, to fund the development of a major 140,000 square foot (sq ft) mixed-use scheme in King’s Cross. Owned by Israeli billionaire Teddy Sagi, the business
The Property Redress Scheme (PRS) has today announced it is working with The National Approved Letting Scheme (NALS), to offer discounted membership to NALS firms. After Ombudsman Services: Property announced its decision to pull out of providing redress to the property industry, the PRS stepped in to help NALS firms
The latest ONS statistics on UK productivity show construction is yet to turn around productivity levels in line with other sectors. Last week, the Office of National Statistics (ONS) released the latest statistics on productivity. Across the economy as a whole output per hour increased by 0.8%, however the construction
Equistone Partners Europe Limited is known for being one of Europe’s leading mid-market private equity investors. The company has announced that they have invested in BFT Mast Climbing, which is a leading UK independent specialist for the specification, rental and installation of Mast Climbing Work Platforms, BFT Mastclimbing. Equistone has
Saint-Gobain UK & Ireland has announced that they have completed the acquisition of Scotframe Limited. This latest acquisition will increase the company’s involvement in the off-site manufacturing and closed panel construction market. Scotframe Limited is a respected and established business that works to manufacture and supply of full timber frame
There has been £5.8 billion of bad debt write-off from all of UK SMEs have been reported in the last financial year. This figure has inspired Nimbla into action. The innovative new insurtech start-up company has been looking into the different ways that they could rethink how smaller companies manage
Offsite Solutions, the leading UK bathroom pod manufacturer announced that they have secured £30 million of orders over the course of the past six months. This figure is not only excellent news for the company, it is also a record breaking order intake for the history of Offsite Solutions. The
The Government must agree on a Brexit deal by the end of March for the automotive industry to stay competitive, says the Society of Motor Manufacturers and Traders (SMMT). Mike Hawes, the Chief Executive of SMMT, urges the politicians to give more information to the industry about the deal so
Activity levels at the very top of the London property market have stabilised after a tumultuous few years, the latest analysis reveals. Sales in the super prime market with homes valued at £10 million plus have been underpinned in many cases by the release of pent-up demand, says the report from international real estate firm Knight Frank. The figures show that the number of new prospective super prime buyers registering in the first three months of 2018 was 7% higher than last year. And, although the number of transactions in the year to March was 9% lower than over the previous 12 months, this is an improvement compared to annual falls of more than 20% registered throughout 2016 and the first half of 2017. The steepest price decline since the peak of the market in prime central London in August 2015 has been in Chelsea where a 15.5% fall took place between then and March 2018. However, buyers have responded to the decline and the value of super prime sales has risen as a result while the effects of a weaker pound also continue to drive sales, alongside the continued appeal of London. The report points out that US dollar denominated buyers would have benefitted from an effective 11% discount at the end of March compared to the period before the European Union referendum ‘Though London has had a tough time recently, it is seeing renewed vigour. The effective discount provided by a weaker pound has certainly helped some buyers seeking value. There is a continued focus on safe haven investments for the long term with increasing focus on income generation and longer-term returns,’ said Paddy Dring, head of global prime sales at Knight Frank. ‘Although political risk remains with us, economic fundamentals underpinning the market remain strong, with interest rates at an all-time low and global economic growth improving,’ he added. Family houses in the Kensington and Chelsea are in relatively strong demand at the start of 2018 among needs driven buyers, according to Thomas van Straubenzee, head of Knight Frank’s private office . ‘While international investors are proceeding with more caution, British families committed to London are more comfortable buying given that pricing has largely adjusted for stamp duty. It means areas like Notting Hill have done very well at the start of 2018,’ he pointed out. But some buyers remain hesitant. ‘There has been a definite uptick in enquiries from prospective buyers, which is feeding through into sales. However, those buyers making commitments have either been in the market for a while or have a pressing social or personal need to move,’ said Daniel Daggers, a prime central London partner with Knight Frank. ‘So there is a ticking clock for many of them which, together with the price declines and favourable currency movement, means they are now deciding to act. Buyers are less location specific and new focal points include Fitzrovia and W2,’ he added.
Prime minister May’s announcement last month to spend £400m on the repair & refurbishment of 158 high rise buildings identified within England’s social housing estate has been widely welcomed by the construction industry and housing chiefs alike. However, the considerable war chest earmarked by government to bring these dwellings up to standard should also be used to create a new culture in UK housing, which treats residents in the private and public sector with equal respect. That is the view of James Butler, commercial director of PURA Facades, part of Vivalda Group, the UK’s largest independent distributor and fabricator of high performance cladding systems. ‘Based on the average cladding area of 3,000 sq.m for a high rise, this budget suggests a figure of over £2.5m per tower, which on the face of it appears generous,” he said. “Our calculations indicate that it’s more than enough to dismantle the existing cladding and replace this with quality, market-leading incombustible facades. And this includes all the elements of a through-wall rainscreen cladding system comprising fireproof linings and fire breaks, insulation, weatherproof sheathing boards and all the necessary associated fixing systems.” “There should also be enough within this budget to install the necessary fire protection measures as long as each tower’s needs are carefully assessed on a case by case basis,” said Butler. “While ensuring all of these homes benefit from the very best safety precautions the industry can offer, it’s also an opportunity for councils and social housing organisations to send a strong message to both residents and the construction sector in general; that there should be no gap in the quality of products being used on public or private housing. The Grenfell enquiry, led by Sir Martin Moore-Bick, has shown that there is a definite class theme running through this sorry chapter – and this funding provides us with the opportunity to change that divisive culture.” James Butler highlighted the fact that Pura had significant experience supplying high performance products to the private sector, and that there was no reason why this ‘quality first’ approach should not replace the recently discredited ‘value engineering’ process, which was widely used in the public sector as a cost cutting tool. He said: “While the image of cladding may have been tarnished by association with the Grenfell tragedy, the fact remains that there are many excellent, fireproof products out there that would be ideal for the 158 high rise residences awaiting refurbishment. We have the budget now, all we need is the will power and imagination from local council leaders and their appointed architects to change the culture of cladding within social housing.” Pura has now begun working in the social housing market, demonstrating how products and methodologies used in the private sector can be adopted by public sector developments. Butler said: “While we have already worked on a couple of social housing projects that have used non-flammable natural cladding including terracotta or glass reinforced concrete (GRC) cladding from manufacturers such as Rieder of Austria, we’re also excited to see a new generation of aluminium cladding now coming onto the market.” “Valcan is a well-established, respected manufacturer of aluminium panels that has developed Vitracore G2, which comprises exclusively layers of aluminium which form an internal, non-flammable honeycombed centre. This type of innovation shows that the market is responding positively to Grenfell and this should enable architects to consider this new generation of cladding for the social housing sector.”
Investec, the asset management group, has announced it will offer a £43 million loan to the Labtech Group, a real estate development and investment business, to fund the development of a major 140,000 square foot (sq ft) mixed-use scheme in King’s Cross. Owned by Israeli billionaire Teddy Sagi, the business has also arranged a £29 million loan with Bank HaPoalim, Israel’s largest bank. “We’ve been working hard to build strategic partnerships with like-minded lenders so that we can support our clients beyond the scope of our own balance sheet,” said Simon Brooks, co-head of origination at Investec. “We are glad that with the relationships we have built with other lenders such as Bank HaPoalim and Harel, we have been able to build on our capability and support our clients,” he continued. The development project is located on Camley Street, next to King’s Cross station, where Labtech is planning to develop 121 one, two and three bedroom luxury apartments and 29,000 sq ft of co-working space. The apartment will be let and operated by Sagi’s private rented sector (PRS) and co-working platforms. “This is a very exciting project for The LabTech Group, creating another valuable ecosystem for co-working, living and events,” said Chen Moravsky, president and CEO of The LabTech Group. “We are delighted to be working with Investec on this project and look forward to a long and beneficial relationship.” Work has already started on the scheme and it is expected to approach completion in 2020. Investec raised last month £195 million for the Cain International-led consortium the Stage Shoreditch to fund the development of a 550,000 sq ft mixed use scheme in Shoreditch.
The Property Redress Scheme (PRS) has today announced it is working with The National Approved Letting Scheme (NALS), to offer discounted membership to NALS firms. After Ombudsman Services: Property announced its decision to pull out of providing redress to the property industry, the PRS stepped in to help NALS firms continue to meet their legal requirements by belonging to a government-approved consumer redress scheme. Effective from today, NALS agents will be able to take advantage of the simplicity offered by the Property Redress Scheme, giving both tenants and landlords the right to impartial, independent redress in a straightforward way. Isobel Thomson, Chief Executive of NALS stated, “PRS offers NALS firms a way to comply with their legal requirement of being a member of consumer redress scheme, and to continue to provide the high standard of customer service we expect. We were particularly pleased that the PRS are able to offer two membership models which gives our agents choice in how they join.” Sean Hooker, Head of Redress at the PRS also stated, “NALS are an organisation that takes great pride in the quality of service its members’ offer and we at the PRS look forward to working closely with NALS to continue improving standards in the industry.” The main purpose of the PRS is to settle or resolve complaints made by consumers where the Members’ internal complaints procedure has been exhausted – and with change aplenty in the industry, the PRS offers the stability desired by many within the sector. It also offers an easy-to-use, easy-to-access online Members’ area to help agents manage complaints, as the Scheme prides itself on being there for consumer and complainants as we seek to continue to raise professionalism and standards within the industry. The PRS offers two membership options – an Enhanced Model which includes complaints and an Entry Model where the agent pays to deal with complaints. NALS agents can benefit from a discounted membership on either model and can join the PRS online, here. Members can benefit from the PRS’ enhanced membership for £120, and the entry option for £60. To receive the discount, NALS members simply have to contact the PRS and confirm their NALS membership.
The latest ONS statistics on UK productivity show construction is yet to turn around productivity levels in line with other sectors. Last week, the Office of National Statistics (ONS) released the latest statistics on productivity. Across the economy as a whole output per hour increased by 0.8%, however the construction industry is yet to take advantage of improving technology and techniques to increase productivity alongside the rest of the economy. (See below Figure 2). “There are many simple ways for construction to catch up with the other sectors, and the sooner the industry acts, the better. New technology offers a proven, cost effective way to create efficiencies. myConsole is specifically designed to improve in work winning – creating both time and cost savings across the entire process,” says Phillip Collard, CEO myConsole. Pressure has been mounting on the sector over the last few years to increase productivity. Analysis and reports, including the Farmer’s Review (October 2016), have led the government, through the Construction Leadership Council, to recently announce a deal in November aimed at transforming productivity. “Time is running out, construction and pre-construction businesses need to step up and innovate. We estimate myConsole will increase efficiency and reduce workloads by 20%. Early feedback from our clients confirms that using myConsole will save them a day a week per person in the work winning process compared to their old methods.” Says Philip Collard, CEO myConsole. Contact myConsole to find out how to use the power of digital to streamline the procurement process and win more bids.
Equistone Partners Europe Limited is known for being one of Europe’s leading mid-market private equity investors. The company has announced that they have invested in BFT Mast Climbing, which is a leading UK independent specialist for the specification, rental and installation of Mast Climbing Work Platforms, BFT Mastclimbing. Equistone has announced that their now have a majority stake in the company and have invested in the Mast Climbing company alongside the current CEO and founder of the business Robin Head. The financial terms of this acquisition are undisclosed. BFT Mast climbing was first founded in Leighton Buzzard in 1997 and today has expanded to have a fleet of more than 650 motorised Mast Climbing Work Platforms. The business offers these platforms in order to deliver a cheaper, safer and more flexible alternative to the traditional scaffolding used on construction renovation and maintenance projects located around the UK. The company operate out of their central spot in Bedfordshire, while their experienced team carries out the specification, delivery and installation of MCWPs. The platforms can be used for light, medium and heavy duty requirements as well as the necessary training for users. Equistone Partners Europe has said that BFT Mastclimbing is an impressive family business which is run by an entrepreneurial management team that also operated in an unpenetrated market that has the potential for significant and rapid growth. The investment that has been made by Equistone will provide the further funding that BFT needs in order to increase their capacity and then expand their national coverage. The investment and expansion predicted by the company could help to convert more UK contractors to using the mast climbing technology on offer. This will allow the company to continue to offer a lower cost, safer and more flexible alternative to traditional scaffolding while looking to expand in the future.
Saint-Gobain UK & Ireland has announced that they have completed the acquisition of Scotframe Limited. This latest acquisition will increase the company’s involvement in the off-site manufacturing and closed panel construction market. Scotframe Limited is a respected and established business that works to manufacture and supply of full timber frame housing kits for small/medium builders, developers and self-builders in the UK. The company operates from two manufacturing sites and four sales and showroom locations in Scotland, Scotframe is also known for being a market leader in closed panel systems that are used widely in the construction of new build homes across Scotland and in England. Scotframe is a great fit for Saint-Gobain and will be a valuable addition to the group. Scotframe has over 160 employees who have expert knowledge in the manufacturing process of high quality timber housing kits and wall, floor and roof panels to be used in the UK market. The business is strongly aligned to the strategy of Saint-Gobain in order to create great living spaces and improve daily life with the creation of new homes. This latest acquisition will help Saint-Gobain to speed up their growth further and increase their expertise in offsite manufacturing for the construction markets. Scotframe and Saint-Gobain shares the same core focus for safety, and working to understand and support customers throughout the house building and designing processes. Both of these companies also champion the role that building performance has when creating healthy and comfortable living spaces. Scotframe will continue their business as usual, with nothing in the company changing and Scotframe continuing to manufacture and deliver high quality products. The timber frame manufacturer will start a new chapter as a part of the Saint-Gobain group and the range of opportunities on offer as a part of the global group with 18,000 colleagues in the UK alone and a business culture that looks to promote personal development and growth among their employees.
There has been £5.8 billion of bad debt write-off from all of UK SMEs have been reported in the last financial year. This figure has inspired Nimbla into action. The innovative new insurtech start-up company has been looking into the different ways that they could rethink how smaller companies manage their credit. The extensive platform that has been created by Nimbla will offer SMEs access to intelligent credit control as well as on-demand single invoice insurance through their cloud accounting. The platform will also offer smaller companies underwriting rules that are agreed upon by Munich Re’s business unit Digital Partners. Nimbla has been named as one of the 24 successful firms to be accepted into the FCA regulatory sandbox. Nimbla has also been announced as the latest insurtech startup to partner with Munich Re’s Digital Partners. Munich Re is known for being the A.M. Best A+ rated insurance company. The company focuses on delivering exceptional solution-based expert solutions for their clients. The company also delivers consistent risk management, financial stability and client proximity services. Munich Re has a strong track record of being able to identify the most innovative insurtech brands and works to offer a powerful market presence as Nimbla prepares to launch. Nimbla make the most of cloud accounting software in order to offer complete credit management for SMEs. This platform offers single invoice insurance which is underwritten by Great Lakes Insurance SE, Nimbla is also working to offer a more sustainable business model for SMEs. The company has found that Munich Re Digital Partners are progressive and have a great deal of experience that they can benefit from. The changes taking place in the landscape for commercial lines are changing, in particular for SMEs, both companies understanding this could lead to significant benefits being created for SMEs going forward.
Offsite Solutions, the leading UK bathroom pod manufacturer announced that they have secured £30 million of orders over the course of the past six months. This figure is not only excellent news for the company, it is also a record breaking order intake for the history of Offsite Solutions. The bathroom pod manufacturer has experienced a previously unseen performance of a 50% increase during the same period of last year. The business has managed to secure a range of projects for the business that will stretch from this year until 2019.There has been an increased demand for pods, a reflection of the demand for the pods. The product that are provided by Offsite Solutions help to improve the speed and efficiency of bathroom construction. Offsite Solutions has seen a significant increase in the orders and enquiries for their products to be used on residential schemes and mixed use developments in the build-to-rent sector. This area of construction has been performing strongly recently in throughout the UK. Offsite Solutions has also seen an increase in the amount of interest shown for factory-built bathrooms to be used in the care homes sector and an increase in the size of these projects. This increase in projects have income from larger care home providers. As well as this, University students have been demanding a higher specification of accommodation and living facilities, and with the competition for places it is vital that the accommodation available meets these high standards. Because of this, a range of steel-framed bathroom pods with more traditional tiled finishes are being specified during the construction of high-end student residences. It is great news that Offsite Solutions has experienced a record performance and demonstrates the hard work, skills and commitment that has been put into creating these high quality products. The demand is a seal of approval by the construction industry for the bathroom pods. Offsite Solutions have committed to investing in product design, unrivalled quality control and the manufacturing capacity of the company in order to make sure that they continue to meet the requirements of their expansive client base.
The Government must agree on a Brexit deal by the end of March for the automotive industry to stay competitive, says the Society of Motor Manufacturers and Traders (SMMT). Mike Hawes, the Chief Executive of SMMT, urges the politicians to give more information to the industry about the deal so that the car market can maintain its position. In 2017 it was down by 5.6% and unless a decision is made the members will keep struggling investing if they don’t know what is ahead. He says that if no clarification will be brought by the end of the first quarter of the year, then the “industry will have to start taking contingency measures, such as stockpiling parts and vehicles, which costs money and makes them less competitive.” The Brexit situation impacted on vehicle sales and people opted to hold on to their existing cars or buy used ones rather than choosing new. The new car registration estimates have been in decline and the current figures are lower than expected. Even though Hawkes thinks that the Brexit did not result in anyone losing their job, it did cost potential new jobs “production and sales are down, which isn’t good for the industry.” However, an incident in October resulted in a 400 jobs cut when Vauxhall announced that it would move its workers from Ellesmere Factory in Cheshire to a single shift through a ‘voluntary separation programme’. The carmaker commented that the move was not made because of the Brexit, but because they needed to bring costs down in line with its benchmark factories in France. Hawkes tried to point out the opportunities that could be made available after Brexit: “there could be advantages to having a factory that uses sterling and is outside the EU in close proximity to Europe.”
