It has been announced that Savills will be expanding its Central London investment team in a move whereby it will acquire the City Investment team of Deloitte Real Estate. The team, which includes members: David McArthur, Jamie Binstock, Thomas Reeves, and Jamie Oley, presently provides advisory services for investment within
It has been highlighted by CBRE that the demand for London-based office space has continued strongly throughout the first quarter of 2016, despite both fears that organisations may err on side of caution from the possibility of Brexit, as well as the traditionally quiet nature of the start of the
Savills – Prime Estates: Expanding Property Management (The Following is a Promoted Article) Long established and highly regarded as an international real estate services leader, Savills has, for an eighth consecutive year, been recognised as the top real estate Superbrand by the Centre for Brand Analysis, whose assessment takes into account
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
Concerns have been raised by Alan Whitehead, Shadow Energy Minister, that the provisions made to replace the Energy Company Obligation and Green Deal won’t be enough, and perhaps does not serve anywhere near a considerable purpose as Energy Company Obligation. Of course, Alan Whitehead did not to the positive nature
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,
It has been announced that Savills will be expanding its Central London investment team in a move whereby it will acquire the City Investment team of Deloitte Real Estate. The team, which includes members: David McArthur, Jamie Binstock, Thomas Reeves, and Jamie Oley, presently provides advisory services for investment within the City of London itself; looking forward, their involvement will now be seen in Savills’ far broader Central London operations, headed up by Stephen Down. The Deloitte team is cited to be of great experience, with the present head of the team, Jamie Olley, having greater than eighteen years’ worth of experience in investment into real estate. The team has, to date, already worked alongside Savills before (back in 2014) when the Gherkin was sold to Safra at a price greater than £700m. Additionally, the team has also seen involvement in a number of other high-profile acquisitions, including that of Becket House (£112m), acquired by Guy’s & St Thomas’ Charity, and also the sale of the 1st Martins Le Grand (£171m) for Noumra. The experience across these deals, as well as with a number of industry-leading organisations, seemingly positions them in a very strong stance for a future with Savills. The move serves as a means through which Savills can expand its team further, then bringing the company closer to its ambition of being the number one investment consultancy for Central London. As highlighted by Stephen Down, it is expected that the team will make a fine addition to Savills and be a great help in achieving the company’s aforementioned ambitions. Jamie Olley provided his thoughts, sayings: “We look forward to joining the London Investment team at Savills which we consider to be the ‘premier’ investment agency in Central London given the success they have had across London and on some very significant high profile transactions over the last few years.”
It has been highlighted by CBRE that the demand for London-based office space has continued strongly throughout the first quarter of 2016, despite both fears that organisations may err on side of caution from the possibility of Brexit, as well as the traditionally quiet nature of the start of the year. As a whole, it has been reported that some 3.1m square feet of office space in London was acquired throughout the period and, while the figure does sit marginally below the ten year average volume of 3.2m square feet, it does come at a time whereby a much more substantial drop was to be expected. Additionally, the volume of space presently under offer also remains the same from the final quarter of 2015, with 3m square feet still maintained (a value which is instead marginally above the ten year average of 2.8m square feet). As previously highlighted, the supply for such space may not be able to keep up with the demand for it however. Supply did indeed increase by 2% throughout the quarter, bringing the quantity up to 12.2m square feet, yet this still falls circa 17% short of the 10-year average. Of course, with this also being regarded as one of the quieter quarters of the year, how demand and supply will compare in the coming quarter is unknown. Emma Crawford, CBRE’s Head of Central London Leasing highlighted how the “weak” prospective for global economic growth, as well as the potential for Brexit has thrown a degree of uncertainty into the laps of businesses, yet the level of demand has still yet been maintained. She explained: “That demand for office space has remained so resilient speaks volumes for London’s ongoing attractiveness as a global hub for those companies hoping to lay down roots or expand their footprint in the capital.”
Savills – Prime Estates: Expanding Property Management (The Following is a Promoted Article) Long established and highly regarded as an international real estate services leader, Savills has, for an eighth consecutive year, been recognised as the top real estate Superbrand by the Centre for Brand Analysis, whose assessment takes into account the company’s depth of expertise, reliability of professional advice, management and transactional services, and overall competitive performance. A delighted Mark Ridley, CEO of Savills UK and Europe commented, “That Savills has once again been ranked as the top UK real estate Superbrand is testament to the consistent world class service we offer and that the values voters look for – quality, reliability and distinction – are second nature throughout our business. As a company expands it can be all too easy to lose sight of the values that have made you a success, but the fact that both our clients and peers continue to recognise Savills as the best of the best is proof we have successfully embedded these qualities at the core of everything we do.” Established in 1855, listed on the London Stock Exchange, with representation in a network of 700 international locations, Savills provides one of the strongest real estate offerings in the world. Property management The largest single division at Savills, Property Management, provides services for all sectors including offices, shopping centres, rural estates, as well as volume high-end private rented sector (PRS) management, build-to-rent and traditional block management. The Prime Estates department within the division specialises in the provision of assured shorthold tenancy management for a broad range of clients including financial institutions, charities, property developers and investors, and London’s famous landed estates. Over the last few years Savills’ increasing development of full and attentive block management has earned it an enhanced reputation. Head of residential block management and director at Savills, Jonathan Channing, explained, “Prime Estates is a unique team of residential property and asset managers serving every conceivable client type. There is a shared passion for the maintenance and value enhancement of residential buildings of heritage and, at the opposite end of the property spectrum, there is a growing appetite for the management of large-scale mixed-use developments.” “Institutional investment into the build-to-rent sector is pouring in – billions of pounds being invested by the likes of M&G Real Estate, LaSalle Investment Management and Legal & General,” Jonathan commented. “These landlords have realised that owning entire blocks of flats, or huge apartment complexes, can provide year-on-year profits and sustainable long-term returns. While the UK is decades behind the USA’s so-called multi-family housing sector, it is determined to catch up and the likes of Savills’ Prime Estates were ready to provide them with a comprehensive, bespoke service.” Encouraging innovation Despite its sheer reach, existing capability and expertise, Savills has built its reputation on adapting to the ever changing needs of the market by encouraging and supporting innovation among key members of its team and this had provided the opportunity to build a truly market-leading block management service. For a company of its size, Savills is surprisingly flexible and entrepreneurial. “If there are better ways of doing things, and you put forward a strong case,” said Jonathan, ”the chances are that Savills will back you”. Savills’ success has much to do with hiring the right entrepreneurial people and then giving them the support to build their departments. These approaches have led to a notably low staff turnover, many senior members giving exceptional years of service, with some 40% members of the board having joined the company through Savills’ own graduate scheme. Unsurprisingly, Savills also has its own training division, ‘Savills Pathways’, to provide training and personal development, offering courses from customer service to health and safety, and keeping property professionals up to date with the demands of the sector. Client relationships In both block management and build-to-rent management, there is a great deal one can learn from the other. In common with both is the drive to provide first class customer service to its customers. As Savills’ personnel are promoted, the company ensures that they maintain and continue to foster their relationships with their existing clients as the key point of contact. Glowing testimonials, which we have seen, are evidence of how much Savills values client rapport. Savills also has a dedicated in-house research division, satisfying both internal and external requests and also undertaking market research for industry and governmental bodies. Taking advantage of this facility, the Prime Estates department has initiated joint research to gain a better understanding of leaseholders’ needs – how they feel about communal living, how they want their buildings to be run, and what they expect from their managing agent. Savills is anticipating producing a really meaningful piece of work later this year. Project integration Savills’ approach to working with and benefiting leaseholders is to integrate itself into the client’s project as far as can be achieved at the earliest stage of development. From a management perspective the agent should become involved at the level of anticipating finances and even how the building is going to be designed so that it can be maintained in a cost-effective scheme. It’s also a case of scrutinising the leases and ensuring that they give the landlord and managing agent the flexibility to manage the property effectively. Already a proven market leader, Savills believes that this positive approach to its relationships with both clients and customers will continue to help it achieve commensurate rewards.
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.
Concerns have been raised by Alan Whitehead, Shadow Energy Minister, that the provisions made to replace the Energy Company Obligation and Green Deal won’t be enough, and perhaps does not serve anywhere near a considerable purpose as Energy Company Obligation. Of course, Alan Whitehead did not to the positive nature of their being, at the very least, something to replace Energy Company Obligation with, as there had previously been doubts as to its replacement with anything at all. Yet, he then went on to highlight that, from the early signs shown in the Autumn statement, all we presently have is a plan for £640m each year and an overarching target of some 200,000 homes each year between 2017 and 2021 – an approximate 40% drop in the previous expenditure figures and an even more considerable drop in the number of homes. Whilst the news that the scheme will be replaced is received on more of a positive than negative note, with some support being notably better than none, there are serious concerns as to just how the new provision will make any meaningful difference when considering the lack of success seen in the original Green Deal, which was a greater dedication to investment. Alan Whithead commented: “As it stands at the moment it seems like a pretty ineffective replacement for schemes that themselves were going down below levels that had previously been seen for energy efficiency…when we need those energy efficiency measures like never before.” Of course, given the severe shortcomings and lack of interest in the Green Deal, it was originally hoped that any deal to follow would try to provide a more substantial offering so as best to incentivise green energy initiatives. These signs are, of course, only early days, yet thus far the concerns are that the new deal will simply see the mopping up of homes which are deemed easy to treat, with those perhaps in most need, taking a back seat.
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.
