Harry Dhaliwal, of Property Provider, Belvoir, Gives His Thoughts on what the Brexit Means for UK property. In preparation for the poll on Britain’s EU membership status scheduled for June 23rd this year, the property industry is suggesting that withdrawal could have a devastating effect on the UK market. The
Amongst all the differing property arenas, and even through the recessionary periods, student property has proven to be a key area of success for investors, with high yields reported on average. This is unlikely to change any time soon, with the UK presently being positioned at the second most popular
As has been previously highlighted, concerns are abound as to the affordability of property in the London areas, and most specifically for those looking to break into the property market. Highlighting this concern yet further, it has been shown in a recent research report by My Home Move that the
Awarded by the UK Ministry of Defence’s Defence DIO, Interserve has recently been awarded the contract for a five year project which will see it serving the U.S Air Force with facilities services for across its UK estates. Set to begin in November this year, the prime contract serves as
It has recently been announced the first ever OFTEC-approved training centre for Northern Ireland to provide OFTEC Solid Fuel Installation training and assessment services. This brings the total number of training establishments offering fuel training services to a grand total of two across Ireland. Certification for Servicing and Commissioning is
Despite woes in the education sector due to tuition fees and the unaffordable nature of certain forms of education, we are at a point in time whereby education sits at a considerable high. With a great deal of the population following both traditional and emerging means of training and qualification,
North Midland Group: A Greener Way Of Doing Things (The Following is a Promoted Article) For more than a decade, North Midland Group has developed leading practices in sustainability and environmental efficiency. Across its various divisions – which include construction, civil engineering, highways and utilities, and mechanical and electrical –
Most recently, BIFM has announced the realise of its annual sustainability survey, servings as a means to observe the ways in which FM professionals and organisations are working, most specifically looking at their engagement with the agenda for sustainability. Created in conjunction with BIFM’s sustainability special interest group, the survey
With momentum building over the first quarter of 2016, it is expected that Ireland’s market for residential property will see a resurgence this year, as reported in a recent market survey by MyHome.ie. Yet, according to the study, while this does paint a positive picture for Ireland as a whole,
As has been previously reported, the take-up of warehousing space around the UK is shooting up at a notably high pace. As recently noted by Savills, the actual take-up of such space has risen above that of 6.99m square feet for the first quarter of this year, signifying a 16%
Harry Dhaliwal, of Property Provider, Belvoir, Gives His Thoughts on what the Brexit Means for UK property. In preparation for the poll on Britain’s EU membership status scheduled for June 23rd this year, the property industry is suggesting that withdrawal could have a devastating effect on the UK market. The predicted level of this risk varies from region to region and from company to company, yet most are agreed that there will be some negative impact on the UK property market should Britain vote ‘yes’ to Brexit. At present there is no definitive study of the economic impact of Britain’s current membership of the EU or of the benefits and costs of withdrawal. Property experts, however, remain mostly convinced that, certainly in London and perhaps in other areas of the UK, the domestic and commercial property markets need to prepare to take a big hit should Britain leave the EU. A Vote for Uncertainty At the recent Movers & Shakers property breakfast in London, three of the largest property companies in the UK each warned of risks to the economy of the UK should Britain decide to leave the EU. Chief Executive of Land Securities, Rob Noel stated that the forthcoming referendum would at the very least create nervousness and uncertainty within the commercial markets and that a vote to withdraw was a vote for an uncertain future. Currently two-thirds of all UK property professionals want Britain to retain its place in the EU. Both Chris Grigg of British Land Chief and Peter Vernon of Grosvenor were in strong agreement with Noel. Grigg pointed out that businesses like certainty more than anything and a vote to leave would upset any certainty, while Vernon pointed out that with the information currently available, those voting ‘out’ do not yet really know what they are voting for. This uncertainty is likely to have an impact on many UK industries with the property market likely to see at least temporary upset in terms of sales due to a lack of clarity in the build-up to the referendum. The Domestic Property North / South Divide There are huge differences to the potential impact of withdrawal from the EU in terms of property sales in the UK. In areas such as Manchester or Leeds, where the property market is driven mainly by domestic owner-occupiers, the risks are minimal. It seems clear that while the effect can only really be measured once Brexit becomes a reality, the North is well positioned to avoid bearing the brunt of any economic repercussions. Stronger cities and larger conurbations should be more resilient; Manchester, for example, has many other drivers such as the universities, Northern Powerhouse proposal and other initiatives which are contributing to its growth as the fastest growing city in the United Kingdom. The London residential property market has long been seen as a safe haven for overseas investors and therefore an ‘out’ vote could have a massive impact. Currently at the top end of the London property market almost half (49%) of investors are from overseas and 15% of prime central London property is owned by Europeans. As the value of the sterling continues to drop in light of the uncertain future, these once ‘safe’ investments will be seen as increasingly risky. Yet while Northern cities are becoming more reliant on foreign investment – from individual investors, to institutional and sovereignty wealth investors – these investments are typically non-European. London has saturated the market from £1m- £3m individual investors in the Chinese and Middle Eastern basin specific markets and so Northern markets have seen an impressive upswing. The institutional sovereignty wealth investors are getting nearly double the yields they can get in London, and not the reverse in capital values that has happened in some areas of London where over investment has happened. Warnings from the International Monetary Fund The International Monetary Fund (IMF) has warned that the twin prongs of the upcoming referendum and soaring house prices are threatening the ability of Britain to complete a successful economic recovery. Managing Director of the IMF Christine Lagarde commented that a vote for Britain to leave the EU would leave “no winners” and that the negative effects of the impending vote were already being felt. In many areas of the UK growth in house prices is already fast outpacing growth in wages, leaving many families with no choice but to shoulder more debt. These high levels of homeowner debt and rapid growth in house prices combine with weak productivity and the uncertainty caused by the looming referendum as the top three biggest risks to the UK economy at present. Freedom from Regulation? Many of those campaigning for Brexit are doing so under the impression that leaving the EU will result in more freedom from regulation. What should be considered is that ironically, in terms of the housing market, Brexit could actually result in increasingly heavy-handed regulation as is the case with Hungary’s Land Act. Should Westminster attempt to restrict the rights of EU nationals in terms of investing in or purchasing UK property, they would likely meet a wall of resistance. George Osborne has changed stamp duty to favour owner-occupiers already, but Brexit could well put pressure on to introduce laws that place limits on foreign investors in property in London. The fact remains that any departure that may happen from the EU will not happen overnight even in the case of a strong ‘out’ vote. There are a variety of possible outcomes and models throughout Europe and it remains uncertain which path Britain will take. There will be a negotiation period of at least two years, during which time the current levels of uncertainty within the property market are unlikely to be resolved. Whether the UK’s ‘safe haven’ status will be impacted remains to be seen.
Amongst all the differing property arenas, and even through the recessionary periods, student property has proven to be a key area of success for investors, with high yields reported on average. This is unlikely to change any time soon, with the UK presently being positioned at the second most popular location for international students, coming in only after the U.S. Perhaps due to the reputation of British universities, and also the opportunities presently available here, the number of international students reported to be in attendance at British universities has seen a somewhat drastic increase over the course of the last ten years, which has reportedly also been a driving factor in the surging of overarching student numbers at universities across the country. Most specifically, it has been reported that the number of international students at “elite” universities across the country has increased almost twofold, with the predicted figures for international student mobility expected to total in at a value of 8m per year by the year 2025. Whilst this does indeed paint a very competitive picture for other students, and an issue of capacity for some universities, the surge in interest at British universities, especially from international students, does indeed paint a very bright picture for the continued success of the student property arena; effectively, a combination of highly profitable returns and surging demand offer a very inviting position for potential investors. Of course, as to how and where in the UK we will see the most potential for growth in the market, logic dictates that those universities reporting the greatest improvements, highest standards of education and the best worldwide renown for their courses, will also be those to enjoy the most prosperous localised student property markets, with international (and UK-based) students naturally feeling the allure to come study. As such, for those property investors looking into where they may wish to invest geographically, it is to various university ranking tables which may prove to be the best source of insider information.
As has been previously highlighted, concerns are abound as to the affordability of property in the London areas, and most specifically for those looking to break into the property market. Highlighting this concern yet further, it has been shown in a recent research report by My Home Move that the average deposit for a property in Greater London is presently at a value almost three times that perceived around the rest of the UK. Totalling in at a staggering £127,000, the average deposit for a property in the area has been reported to have increased by almost a third over the course of the past three years, with an increase of £30,000 reported. Yet, the average deposit as a proportion of price has actually fallen by 1.8% since 2013. Effectively, the evolution of the marketplace means that buyers are still able to get the same level of optimism when purchasing a property in Greater London, if not one marginally higher due to the reduced proportion of property price required for a deposit. Yet, on the other hand, the stark increase in the actual value of a deposit required does indeed paint a worrying picture as to just how many “average” people will be able to stretch to this new “average” deposit for the area. Regarding the situation as becoming somewhat “extreme”, My Home Move’s Chief Executive, Doug Crawford nodded towards the typically price-demanding nature of the London property market, yet inspired a sense of urgency as to just how far this seems to be progressing. “This situation is unsustainable and has been driven by rising house prices. For some, their deposit will come from the equity in the property they are selling,” he commented. “However, for many, they will still need to save tens of thousands of pounds to make the move onto and up the property ladder.”
Awarded by the UK Ministry of Defence’s Defence DIO, Interserve has recently been awarded the contract for a five year project which will see it serving the U.S Air Force with facilities services for across its UK estates. Set to begin in November this year, the prime contract serves as the culmination of four facilities support contracts, effectively covering the main bases of the U.S Air Force across the UK as well as the relative satellite sites. As part of this, Interserve will provide a mixture of services, including TFM, engineering and maintenance services for three of the operational wings of the United States Forces Prime. Although this is not the first time that the contract for support services has been outsourced to an organisation like Interserve, this year serves as a first in the United States Forces Prime estate being taken care of by a singular contractor, with the consolidation of originally separate contracts aiming to reduce costings and improve overall efficiencies. As Adrian Ringrose, Chief Executive of Interserve explained: “We have a long-standing and highly successful relationship with the Ministry of Defence and the armed forces.” And of course, this contract will see Interserve tested in its capacity to up the scale of its involvement in military estates and prove its capacity to deliver – something which, thus far, Adrian Ringrose attests that Interserve has: “Proven our ability to deliver integrated support services efficiently and cost-effectively across a diverse military estate.” Of course, the contract will build upon Interserve’s already-established expertise in the sector, with the company already offering FM services for a variety of UK military estates, including Royal Naval bases, Ministry of Defence locations, joint operating bases and the Defence Sixth Form College. Although the new contract is perceived as a considerable undertaking, evidence does point to the fact that Interserve will have the capacity to deliver on the estates.
It has recently been announced the first ever OFTEC-approved training centre for Northern Ireland to provide OFTEC Solid Fuel Installation training and assessment services. This brings the total number of training establishments offering fuel training services to a grand total of two across Ireland. Certification for Servicing and Commissioning is now available at Micon Distribution, one of the UK and Ireland’s leading stove and fireplace distributors. The course itself exists to offer a great deal of support to industry installers and retailers through the training provided to technicians. In effect, the technically specialist course has the aim of offering individuals the skills and knowledge they require to fulfil building regulation and standards for the installation of dry stoves. This, whilst firstly benefiting the individual themselves, then leads on to supporting the industry with a great deal more available assurances of competencies. Of course, setting the foundations for establishing a solid foundation of support for installers and retailers, Michael Farnan, Managing Director of Micon Distribution highlights that this serves as the next step for the company, and will enable it to provide widely-recognised assessment and training of installers. The courses themselves are available to technicians with a desire to highlight competencies whilst simultaneously offering a recognisable registration and qualification process with a trade association which possesses a spotless working record. As David Bleyings, OFTEC Ireland Manager expressed his delight in bringing Micon on board as an approved centre for Northern Ireland, he also went on to highlight how this very same offering will be able to complement those already being run locally, as well as filling a gap in the market for the provision of such training services. He then went on to add: “For too long there has been a limited offering of solid fuel training in Ireland and we are delighted to be associated with proactive providers like Micon and METAC.”
Despite woes in the education sector due to tuition fees and the unaffordable nature of certain forms of education, we are at a point in time whereby education sits at a considerable high. With a great deal of the population following both traditional and emerging means of training and qualification, the sheer quantity of skills within the country is undeniable. Yet, where do these skills lie? Despite increasing levels of skills in one form or another, those skills pertaining to most areas of the construction industry (as well as many other “hard” trade industries, such as manufacturing, engineering and transportation) are considered to be at something of a low. Now, the availability of such training has in no way diminished over time, and so when looking at how we can attribute this fact, the most prominent reasoning resonates with notions of a worrying lack of interest in such industries. When we say “lack of interest”, we don’t simply mean that individuals (specifically youths) have no interest in the areas of work, but perhaps moreso that many trade professions are no longer considered to be enviable career paths, or career paths that can see considerable personal and professional success. This, despite popular belief, is far from the case, with industry wages being in no way uninviting (especially in areas of engineering). With a considerable offering on the pay-scale, and the success of the wider construction industry, the question begs as to why there are such low levels of interest in construction careers, and even more importantly, how organisations can overcome the challenges faced by this. One could perhaps argue that, historically, “intellectual” professions have traditionally been considered to revolve around desk jobs, and construction-related careers, instead primarily involving great degrees of physical labour instead. Yet, this is truly no longer the case, with the construction industry (as well as other trade industries). This begs the question as to whether there re direct issues within the construction industry which are limiting the potential for recruitment, or whether it is merely a case of improving relations and the image of the industry to better display those opportunities available within the construction industry itself.
North Midland Group: A Greener Way Of Doing Things (The Following is a Promoted Article) For more than a decade, North Midland Group has developed leading practices in sustainability and environmental efficiency. Across its various divisions – which include construction, civil engineering, highways and utilities, and mechanical and electrical – NM Group has worked closely with partners, its supply chain and clients to fulfil its ambitious green agenda. This has seen it develop an enviable reputation, solidify long-term relationships and win a number of accolades for environmental best practice. Originally known as North Midland Construction, the company was formed in 1946 by William Morris and Major Terence Moyle to provide duct laying to the Post Office before moving onto other areas such as road maintenance and civil engineering. Today, the Group, which remains headquartered in Nottinghamshire, turns over approximately £200m a year having acquired many blue chip clients and a presence on longstanding frameworks. A multiple Green Apple award winner over the last ten years, NM Group continues to develop new ways to reduce carbon emissions while increasing awareness towards sustainable working practices across its workforce and supply chain. This year NMC Nomenca celebrated a gold Green Apple Award and was also bestowed the Champion of Champions accolade. NMC Nomenca, a division established in 2009 dedicated towards the Group’s AMP5/6 infrastructure and non-infrastructure frameworks with Severn Trent Water for both Civil and MEICA projects, successfully cut costs and improved efficiencies at Nottingham’s Stoke Bardolph wastewater treatment works. The project was underpinned by NM Group’s commitment to sustainability, encompassing a number of measures to successfully complete the contract in the greenest possible away. For instance, the ground around the site is made up of sandy gravels so a recycling programme was formed to re-use available material. A total of 85,000m3 of sieved material was removed, equivalent to 187,000 tonnes, which created 50,000 tonnes of sand and 40,000 tonnes of 20mm gravel used to lay ducting and landscaping, and 70,000 tonnes of 10mm gravel for pipe bedding. In addition, 17,000 tonnes was used as both back fill and to provide a wildlife bund giving permanent noise and visual screening for the local residents. This resulted in a product saving of £1.2m, with no waste sent to landfill. This achievement was similarly recognised for a scheme at Leamington Spa for which NMC Nomenca was bestowed the Green World Ambassador Award for the reuse of spoil materials. Integrated Management System Manager Bill Ball, who has worked extensively to develop the company’s environmental credentials, proudly reveals that over the last five years, it has been Severn Trent Water’s best performing “green” contractor based on the client’s strict critical success factors regarding recycling rates and reuse of spoil. The Group’s attention to detail extends to the way in which it has faced the challenges of environmental responsibility and how, working collaboratively with its supply chain, it can make tangible additional gains. Recently this was exampled by its BS 11000 certification. The accreditation examples best practice in the way the company has innovatively developed business partnerships, incentivising ways in which it can work alongside its supply chain to operate in a more sustainable fashion. Matthew Barney, NM Group’s Supply Chain Manager, said, “In essence BS 11000 is not a new way of thinking or working for us and our supply chain. It is business as usual.” He added that the accreditation has helped the Group formalised process and framework for the work it does and the practices of how it engages, communicates and collaborates with its supply chain. “It enabled us to understand the best practices from different work streams and create a strategy to bring these all together in one place and from this create a measurable long term vision to support the operational teams.” It also enhances the company’s reputation as one which works with the supply chain on a mutual platform. “We look to create value rather than cutting costs. We look to collaborate to illicit innovation at the very earliest stages of a project, and through long-term relationships – where you have built a knowledge of the team around you and incentivised appropriately – you generate innovation much earlier and much more openly.” Its endeavours to reduce waste and its overall carbon footprint are further highlighted by the Group’s certification to ISO 14001, where it has formally targeted key areas where gains can be made. This has resulted in a confident approach to reduce waste and resource use, while sourcing responsibly. It has also looked to proactively measure its environmental impact and improve operational behaviours. This has seen NM Group set itself challenging targets but ones it is already managing to meet. For example, in 2014 it reduced its waste to landfill by 15% with its Stoke Bardolph project achieving “zero waste to landfill”. Its carbon footprint has similarly been cut, with a 10% reduction compared to 2013 levels. These achievements have been enhanced by increased usage of recycled aggregate. Multiple environmental awards were achieved last year including three Green Apple accolades and two Green World Ambassador awards, while more than 150 members of staff have now enjoyed environmental training. The Group is also CEMARS (Certified Emissions Measurement And Reduction Scheme) accredited. This year, the business has pressed forward with further initiatives such as utilising hybrid power sources for its site cabins so they are not reliant on generators which can be switched off for a period of time potentially reducing costs by up to 50%. It is also working closely with its partners to improve resource use. For example, it wants to enhance its utilisation of backloads to deliver more segregated waste to licensed recycling plants to be processed and sold. Incentives encourage the supply chain to bring their own ideas to the table and this has led to some of the Group’s recent achievements. Significantly, it has made major carbon reduction gains through its sizeable fleet of more than 400 vehicles. Vehicle tracking has been fitted to monitor driver behaviour
Most recently, BIFM has announced the realise of its annual sustainability survey, servings as a means to observe the ways in which FM professionals and organisations are working, most specifically looking at their engagement with the agenda for sustainability. Created in conjunction with BIFM’s sustainability special interest group, the survey effectively analyses the meaning of sustainability as interpreted and regarded by other businesses. Additionally, the survey also looks at which groups take the lead, the very nature of the role assumed by FM and how sustainability initiatives are both reported on and measured as a whole. This will signify the 10th year of the survey thus far, and this year will also see a comparison drawn between the statistics of today and those of over the last decade; effectively, not solely providing static data, but highlighting trends, changes and the evolution of how sustainability is handled over the last decade. Key areas being monitored include collaborative cross-functional working, innovation levels, the usage of both process and system, and the challenges being faced by the industry in developing the application of sustainability policy yet further. Of course, members of the FM community, including both individuals and businesses, are encouraged to participate in the survey so as best to gleam some valuable resource in the results. As highlighted by Peter Brogan, BIFM’s Research and Information Manager, it is those FM professionals themselves who are in a position whereby they can set the standard for models of sustainable practice as well as influence other businesses to also consider the sustainability agenda. Of course, highlighting the changing trends relative to sustainability may be the core goal of the survey, but it is also expected to paint something of a picture for the future of the FM sector and how the evolution of the sustainability agenda may change this.
With momentum building over the first quarter of 2016, it is expected that Ireland’s market for residential property will see a resurgence this year, as reported in a recent market survey by MyHome.ie. Yet, according to the study, while this does paint a positive picture for Ireland as a whole, with prices growing as hoped, it is expected that Dublin will fall behind somewhat. Despite having seen declines towards the back-end of last year, it has been seen in the survey that asking prices for the sale of newly-listed residential properties saw a notable rise of some 2.1% across Ireland for 2016’s first quarter, with a 0.9% increase reported in Dublin. Yet, despite the rise in Dublin not being anything to shout home about based on value alone, the news is received well as a stark contrast to the declines seen over the previous two quarters. As part of those predictions made, it has been highlighted that price inflation for Irish housing is hoped to generate an increase of some 5% for 2016, with much of the increase seen outside of the walls of Dublin – this, primarily being due to constraints on affordability perceived in Dublin itself. One of the driving factors to which we can attribute some of the growth is expected to be the change in lending rules for the Central Bank. Expected to make it far easier for individuals to purchase properties, the change is expected to see buyer interest combined with positive levels of supply due to property sellers having predicted the falls in pricing for Dublin properties and therefore bringing properties to the market over the course of 2015. Providing food for thought on the recent developments, Conall MacCoille, Chief Economist for Davy, and also the report’s author, commented: “Overall, home building levels look set to remain depressed for some time and while this will support Irish house prices, it will hurt activity levels.”
As has been previously reported, the take-up of warehousing space around the UK is shooting up at a notably high pace. As recently noted by Savills, the actual take-up of such space has risen above that of 6.99m square feet for the first quarter of this year, signifying a 16% rise from the 6m square feet reported in the previous quarter, as well as serving up a value 24% higher than the long-term average of 5.6m square feet. Looking at how and where the take-up has seen the most growth, much of this can be attributed to mega-shed deals, including that of the 1m square foot Midlands-based distribution fulfilment centre of Amazon. In fact, Savills reported that there were a total of four major deals which totalled at over 500,000 square feet each for the quarter alone – to provide information for comparison, a mere eight of such deals were recorded for the entirety of last year. Within the results, the South West of England enjoyed its best ever quarter, with 2.15m square feet transacted over the period – a value sitting equal to that of the entirety of both 2015 and 2014 combined. For the region, one of those largest deals reported was The Range, taking up some 1.158m square feet of space at a Bristol-based facility. Highlighting the wonderful kick-off to the year, Richard Sullivan, Savills’ National Head of Industrial and Logistics explained how the sheer amount of take-up exceeded expectations set for the UK. Of course, online retailers still maintain a level of dominance in both the distribution and industrial sectors, he highlights, yet also nodding to a notable level of demand from other occupier archetypes. Looking forward, he added: “There continues to be a number of unfulfilled requirements in the market and for this reason, we anticipate that take-up will remain strong as 2016 continues.”