Simon Rowland, Partner and Head of Construction and Engineering and Michelle Essen, Managing Associate, at law firm Womble Bond Dickinson, take a look at the events of 2021 and the potential challenges and opportunities that the sector could be presented with in 2022. There is no doubt that 2021 has
This article is for guiding people who encounter a plumbing emergency in the middle of the night. If you are reading this, then you have probably had a plumbing issue that has cropped up at an inconvenient time. Maybe it’s 3 am and your toilet is overflowing, or maybe your
Construction might be the only sector of the economy that is growing, but its recovery is far from over. These are the words of Lesley McLeod, Chief Executive of Association for Project Safety (APS) who says members of the association are concerned about the impact of Brexit. Recent data published
Now we are in post-Brexit Britain, what is the current situation with the plastic pipes and fittings industry in the UK, a significant industry supplying the utilities, construction, housing and plumbing sectors? Caroline Ayres of the BPF Pipes Group confirmed: “Our industry is continuing to supply its markets without any
THE end of the Brexit transition period has passed, and with it many rules and regulations are changing across the board for many industries – including construction. Jonathan Oram, national framework manager at Pagabo, discusses the changes expected in public sector procurement following the UK’s departure from the EU. What
The urgent need to build more homes for everyone should be a key priority for all the political parties during the General Election campaign, says the Federation of Master Builders (FMB). The FMB is calling on all the political parties to make house building a national infrastructure priority, along with
The content of the Chancellor’s Spring Statement washed over many in the property profession as the Brexit storm continued. But the decision by Philip Hammond to allow upwards extensions through Permitted Development (PD) Rights is significant news. The announcement, which forms part of a package of initiatives to breathe life
Following the news that Dawnus Group, a major construction firm based in Swansea with 6 regional offices and 44 construction sites is under administration, resulting in 700 people losing their jobs, ex-employees may now be asking themselves what’s next when it comes to either finding a new job or career
Bidwells’ latest analysis indicates Cambridgeshire remains a magnet for science and technology companies that are looking beyond the current Brexit uncertainty. Their analysis of the Cambridge office and laboratory market finds that 0.6 million sq ft of new space will be complete during the first half of 2019. This is the
A slowdown in property transactions, with home buyers and sellers taking more caution amidst economic uncertainty, has been registered. This is due to the housing market being left in a state of lull because of diminishing demand among foreign buyers and pending Brexit negotiations. Compared to a year ago, homeowners
Simon Rowland, Partner and Head of Construction and Engineering and Michelle Essen, Managing Associate, at law firm Womble Bond Dickinson, take a look at the events of 2021 and the potential challenges and opportunities that the sector could be presented with in 2022. There is no doubt that 2021 has been a tough year for the construction industry. Global disruption from the pandemic, Brexit and environmental disasters have left their mark on the sector. In the latest ONS figures, construction outputs fell for the third month in a row. Figures for July and August slumped back to their lowest point since February, hitting 58.7 on the UK index – a sharp reduction from the 24 years high of 66.3 in June. With the sector at an apparent impasse and sustainability increasingly high on the global agenda, Modern Methods of Construction (MMC) look more and more likely to be a key part in addressing the struggles faced by the construction industry. In the face of such a dramatic drop in productivity, industry heavyweights are putting their stakes on MMC. For example, volume housebuilder Barratt has reported that 25 per cent of the 12,243 homes built by the end of its most recent financial year used MMC. As 2021 draws to a close, it’s time to consider new construction solutions for a new world. Brexit and supply chain issues In January 2020, we saw the UK finally leave the European Union almost four years after the Brexit referendum. While the UK-EU Trade and Co-operation Agreement has protected trades from any further tariffs, additional red tape and border checks have inevitably slowed down the movement of construction supplies. Given that 80 per cent of timber used in the UK is imported, wildfires and insect damage in supplier countries such as Canada and Sweden have also had a detrimental impact on stock. The shortage of materials has resulted in a price hike that cannot be underestimated. The Timber Price Index hit 92.13 in May 21 Trade Federation (TTF) reported that timber prices surged by 50 per cent between January and May 2021. Add to that, the October 2021 data from the Department for Business, Energy & Industrial Strategy (BEIS) showed that structural steel costs were 72.6 per cent higher than the year previous, and in November we saw steel prices increase for the seventh time in 2021. With these and other shortages across the board, it’s a perfect storm for disruption in an industry built on tight margins. While MMC is not the silver bullet to addressing the materials crisis and certainly not a short-term solution for everyone, MMC’s added benefits of less waste and less weather damage could clearly help the industry. Housing crisis The UK housing crisis is reaching fever pitch, with house prices rising faster than every other economic metric. The government itself has said that “a significant proportion of homes must be built using modern methods of construction (MMC) if we are to meet the target to deliver 300,000 homes annually”. Areas such as the South East of England in particular are in desperate need of housing, but lack the local skilled workforces required to carry out onsite construction. MMC presents an opportunity to tackle the housing crisis in key areas of the country, while at the same time supporting local communities in different areas of the country through investment in MMC manufacturing sites, thus aiding the “levelling up” agenda. Skills shortage In June 2021, the ONS reported that the number of EU workers seeking jobs in the UK has dropped by 17 per cent. But unlike the supply issues, the UK’s skills shortage began long before the UK’s departure from the EU. In 2018, the ONS reported that construction had fallen out of the list of top 10 jobs for people aged 22-29. MMC has the potential to create tens of thousands of jobs for UK workers – it is estimated that if 75,000 modular homes are constructed per year it could create 50,000 new jobs. The challenge, however, lies in attracting new talent to the industry and keeping workers engaged. The solution to this may be to appeal to a younger, increasingly environmentally conscious workforce, who wants to make a positive contribution to society in a sustainable industry. MMC offers a route to greener buildings, and this could make the sector more attractive to younger workers. Move to sustainability 2021 has been the year of sustainability. As we strive for a green recovery, electric vehicles, plant-based industries, renewable energy technologies and more have been at the forefront of both government and industry objectives for the future. Momentum has grown throughout the year, gathering pace in the lead up to COP26. This represents a major global shift towards reducing CO2 emissions to protect the planet. As we embark on a decade of climate action, MMC has an opportunity to fill a gap in the housing market for homes that contribute to Net Zero targets. MMC enables geographical fluidity which then contributes to a reduction of on-site pollution levels and material waste. It bolsters the argument for focusing on a method of building with a lower environmental impact. Looking ahead to 2022 Michelle Essen, Managing Associate, PDL, Construction and Engineering, Womble Bond Dickinson What can we expect for the construction industry in 2022? 2022 for the construction industry is likely to bring the continued development of many of the themes mentioned above. MMC will remain high on the agenda, with continued investment and learnings by the industry. There will be further discussions around how to incentivise increased use of MMC, part of which will be driven also by the need to standardise MMC so it is more easily and more widely adoptable. Materials and labour and skills shortages are here to stay for the immediate future. It will take time for the dust to settle on materials shortages, for the industry to work out how to increase efficiencies and reduce waste, and to find new or alternative supply chains
This article is for guiding people who encounter a plumbing emergency in the middle of the night. If you are reading this, then you have probably had a plumbing issue that has cropped up at an inconvenient time. Maybe it’s 3 am and your toilet is overflowing, or maybe your pipes are clogged with tree roots. Either way, the first thing to ask yourself is: Should I call a plumber at midnight for my house in Perth? The answer may surprise you! There are some considerations before calling out for help if it’s late at night. Many people are concerned about the cost of calling a plumber at midnight or even worse, waiting until morning to solve your plumbing issue. Here are some tips on what you should do if this happens to you. How to Know if You Should Call a Plumber at Midnight For some plumbing issues, you can fix them yourself. But for other plumbing problems, you should rely on a trusted team of plumbers in Perth. If you are unsure about when to call a plumber, keep reading! There are many reasons you may need to call a plumber at midnight for your home in Perth. Examples of these reasons include a burst pipe that is sending water everywhere, a clog in the toilet, or you have no hot water. Although these problems can’t wait until morning to be fixed, it’s important not to panic and waste money by calling someone who doesn’t offer 24-hour service. Look for one with an emergency hotline number on their website so you’ll know exactly where to go when you need help. A leaky faucet is something that many people can fix themselves. However, if the leak is coming from the supply lines or the main valve under the sink, it might be best to call in an expert. If your toilet or shower seems to be taking longer than usual to flush or fill up with water, this might also be something that requires professional attention. The most common reasons for calling in a professional are clogs and low water pressure. Clogs happen when there isn’t enough water flowing through your pipes and they need to be cleared out by hand or with chemicals like vinegar and baking soda. Low water pressure usually results from the buildup of calcium deposits in your pipes, which decreases the amount of water that can pass through at once. How to Choose a Reliable Plumbing Company That’s Open Late or Overnight Choosing a reliable plumbing company in Perth can be hard when there are so many to choose from. When you’re in the middle of the night and your pipes are clogged, you need someone to come right away. You need to find a company that is open 24 hours, 7 days a week. A company that specializes in pipe-related services like fixing leaks, installing new pipes, etc. Some other things you should keep in mind when choosing a plumbing company are: -Do they have a trusted team of plumbers? -Can they offer emergency repairs? -What type of service do they offer? -What type of equipment do they use? The Best Time to Call a Plumber for Your Emergency Situation When it comes to plumbing emergencies, the time of day is not as important as how soon you can get a plumber out to your home. The sooner you call, the better. Talking to a local plumber in your neighborhood is the best method to figure out what your emergency plumbing needs are. Keep his contact information on hand in case you find yourself in a similar position again. What Does It Cost to Call a Plumber at Midnight for Your Home in Perth? Plumbing emergencies are never convenient. Usually, they happen when you’re already tired and the idea of plumbing work is the last thing on your mind. However, plumbing problems cannot be solved with a simple phone call to the plumber. The best time to make that call is before midnight because it’s less likely that there will be a surge in prices for after-hour work. If you are worried about the hourly rate of your Perth plumber, here is an idea of what to expect. The average contract charge-out rate per hour in Perth is between $95-$100. Paying for emergency plumbing services is an expense that can be avoided if planned in advance. Researching how to prevent a plumbing problem from happening in the first place is likely to be cheaper than fixing it after, and there are many ways to do this. If you’re looking for ways to save money on plumbing services, you need not look any further than at your own home. Investing in routine maintenance may seem like an unnecessary expense, but it will save you money in the long run. Preventative measures like replacing old pipes with copper ones or installing anti-scald devices can save you money on high water bills and insurance premiums. The simplest way of preventing a plumbing issue is monitoring your water usage and making sure that leaks are fixed promptly when they occur. Leaving small leaks unfixed can eventually lead to a much bigger plumbing issue, and the bigger the problem, the more time it takes for plumbers to fix it, which means it costs you more money! Takeaway Before ending, here’s one final tip. Know when to stop trying. You might search YouTube for an emergency plumbing issue and try to fix your problem, but sometimes doing that can worsen the issue. If the problem seems too complex, call a plumber right away to come and fix whatever needs fixing so that everything is back in order again. While searching for plumbers, don’t underestimate the importance of using an experienced full-service company that offers 24 hr emergency services in Perth. Even if it’s just one phone call away, don’t risk it! It’s easy to ignore the specifics in times of an emergency, but at the end of the
Construction might be the only sector of the economy that is growing, but its recovery is far from over. These are the words of Lesley McLeod, Chief Executive of Association for Project Safety (APS) who says members of the association are concerned about the impact of Brexit. Recent data published by the Office of National Statistics shows that new work has increased by 1.7% in January. Private commercial and infrastructure lifted the sector which increased by 4.5% and 3.1% respectively. However, with shortages in building supplies continuing to cause disruption, it will be some time before the construction industry returns to pre-pandemic new work levels. “It’s been nearly three months since the end of the Brexit transition period, and construction professionals are still very concerned that recovery is far from over,” comments Lesley McLeod, Chief Executive of Association for Project Safety. “Our members are still reporting difficulties in sourcing specialist materials and supplies. This is a worry as it’s both holding up projects in Northern Ireland it’s delaying the importing of materials from EU. They’re just stuck at ports. “In addition, there is concern over the reciprocal recognition of qualifications. Professionals across the industry are worried they will no longer be able to accept work in EU countries or attract personnel for projects in the UK. As an association representing 3,900 members across the UK, we urge the government to ensure the construction industry – a major driver in the UK’s economic recovery after Covid-19 – to relax immigration rules. In doing so, projects will not be delayed due to lack of properly qualified and skilled professionals plus the industry will be able to re-establish with EU colleagues a mutual recognition of professional qualifications.” Founded in 1995, the Association for Project Safety is a professional body dedicated to eliminating deaths, reducing injury and tackling ill-health associated with construction. It helps individuals and businesses achieve the highest professional standards in design and construction health and safety risk management. Members are across the UK and include those working in architecture, engineering, architectural technology, project management and surveying. The Association for Project Safety recently formed a partnership with Cardo Crew, which offers wireless communication technology to the construction industry, as part of efforts to support the construction industry during uncertain times. Shachar Harari, Chief Business Officer & Head of Cardo Crew, says: “The construction industry has had a hard time. Not only have workers had to adapt to social distancing and new ways of working, they have also been faced with shortages in both materials and skills. It’s been relentless, which is why we have partnered with the Association for Project Safety. We want to help its members in any way we can to ensure the construction industry is back on the road to recovery as quickly as possible.”
Now we are in post-Brexit Britain, what is the current situation with the plastic pipes and fittings industry in the UK, a significant industry supplying the utilities, construction, housing and plumbing sectors? Caroline Ayres of the BPF Pipes Group confirmed: “Our industry is continuing to supply its markets without any interruptions, whilst our members continue to operate within Covid-19 guidelines to ensure safe and secure delivery of plastic pipes and fittings to customers.” With Britain leaving the EU, many aspects of the future relationship remain unclear, but BPF Pipes Group manufacturers remain committed to continuing to supply quality products to the same high standards. These incorporate third party approved products to British European Standards (BS ENs) where applicable, standards which users and specifiers are familiar with and which provide reassurance that the products are always fit for purpose. BPF Pipes Group members remain actively engaged in the processes of drafting new standards and for now nothing will change – manufacturers will continue to supply products that are third party approved to the existing BS ENs. Additionally, the BSI’s membership of CEN and CENELEC is continuing beyond the EU exit transition period. It will enable the UK’s continued influence over standards produced in both CEN and CENELEC, providing additional certainty and stability to stakeholders. Plastic pipe systems are successfully used in a huge range of sectors in the UK, from water, waste, gas and telecoms to general construction and plumbing, playing a major role in new installed pipe networks as well as in maintaining and improving existing networks. These types of pipes are also proving ideal for some of the emerging technologies around low-energy use, such as ground source heat pumps, district heating and underfloor heating. At the end of their service life plastic pipes can be recycled and turned into other useful products to aid the circular economy. More information about plastic pipes is available from www.bpfpipesgroup.com
THE end of the Brexit transition period has passed, and with it many rules and regulations are changing across the board for many industries – including construction. Jonathan Oram, national framework manager at Pagabo, discusses the changes expected in public sector procurement following the UK’s departure from the EU. What will change? Jonathan said: “From the beginning of 2021, we are no longer bound by the EU Procurement Regulations, but the public sector remains bound by the Public Contracts Regulations 2015 (PCR2015). Initially, the main impact of Brexit on the procurement process is that all future public sector opportunities will be advertised on Find a Tender, which replaces the Official Journal of the European Union (OJEU). “No longer bound by the EU’s regulations, the UK government has had the freedom to begin the process of reviewing the current suite of procurement regulations. The government’s ‘Transforming Public Procurement’ green paper – published last month – has some interesting thoughts around trying to bring public sector procurement into something that is more suitable for the sector as a whole, acknowledging that not one size fits all and that there are shortcomings in the current processes.” The proposals in the green paper are at initial exploratory stages, but procurement professionals will watch with interest to see how these will map into new policies in the future. Jonathan continued: “We are expecting to see amendments to PCR2015, most likely over the next 12 to 18 months – being re-released as PCR2022. There are already some additional requirements being implemented alongside the current PCR2015 requirements that tie into the government’s procurement strategies surrounding social value, carbon neutrality and SME engagements – with good examples of this being included in ‘The Construction Playbook’. “However, any future amendments would still have to be in line with the principles of the Government Procurement Agreement (GPA), which is an agreement for World Trade Organisation (WTO) members, including the UK. This would include embedding the principles of public procurement within the law and would expand on the three existing ‘EC Treaty’ principles of transparency, integrity, and fair treatment of suppliers to also include value for money, efficiency, and non-discrimination.” Increased flexibility will be key for the future of procurement Two areas that the green paper proposes are around updating and simplifying procurement procedures, as well as the types of resulting frameworks and dynamic purchasing systems, which will have the most impact. Jonathan said: “Within the procurement procedures, one of the more interesting proposals centres around what is being termed the Competitive Flexible Procedure. This would be similar to the existing Light Tough Regime, which is only applicable to procure specific social, health or other services. It would replace some of the existing procedures and give commercial teams the flexibility to design a compliant procurement process that meets both their needs and the needs of the market, which can only be seen as a good thing. “The green paper also talks about the possibility of open frameworks to introduce more flexibility. As it stands, frameworks are locked, meaning once suppliers are appointed there is currently no mechanism within the regulations to add on new suppliers during the term of the agreement. The proposed open type of framework would, at specified points, allow new organisations to bid, and for already appointed organisations to update their previously successful bid to reflect the prevailing market conditions. “The Dynamic Purchasing System (DPS) process is also set to be reviewed once more. The rules were made more user-friendly in PCR2015 when compared to PCR2006, but the expansion of the scope and flexibility of DPS could see it fit for wider purposes, with the creation of DPS+. Dynamic purchasing systems are starting to become more prevalent and are proving to be a very useful tool for public sector organisations in supporting local and social value agendas.” Centralised data to support SMEs and greater accountability Jonathan also predicts a tightening up around the past performance of suppliers and how that may influence a bid, saying: “As it stands, past performance can be considered when looking at a bidder’s application for tender, but it remains difficult to exclude them because of it. “At the moment we have the ‘prompt payments’ league table, which will see a company reviewed should they fall off it. What we may see introduced in the future is a reversed form of this, with the building of a supplier list whose performance can exclude them from procurement activity.” As well as increased flexibility, the government is working towards a centralised procurement database, on which company details will exist and link together with tender processes. Jonathan said: “In reality, this is something that has needed to happen for a number of years. Making this standard practice will really help to reduce costs, as well as remove barriers for SMEs, and help with government initiatives to engage with these companies more on procurement activity. “There is a proposed requirement to provide more information throughout the life of a contract. This could be via an opensource data standard such as Open Contracting Data Standard (OCDS), which is used by more than 30 governments around the world and would allow more transparency and quicker transfer of information. By having this openness, supply chains will be able to run more smoothly and ensure that the correct suppliers can be engaged at the appropriate points. “Overall, any changes that come in the next few years will be positive ones from which the public sector will greatly benefit from. The introduction of much more flexibility is the key and will allow procurement and built environment specialists to work together and ensure that the best results are delivered for clients on a truly case-by-case basis.” For more information, please visit https://www.pagabo.co.uk/
The urgent need to build more homes for everyone should be a key priority for all the political parties during the General Election campaign, says the Federation of Master Builders (FMB). The FMB is calling on all the political parties to make house building a national infrastructure priority, along with 11 other key policy areas in its ‘Programme for Government’ published today. The programme calls for the political parties to commit to the following: Housing • Make house building a national infrastructure priority and build 1.5 million new homes • Free up more public land for housing and break it up into small plots for small builders • Invest in local authority planning departments to speed up the planning process Skills • Promote vocational education and invest in Further Education • Reform the UK Apprenticeship Levy so it works better for small companies • Introduce a fair and balanced post-Brexit immigration system Quality • Licence all UK construction companies • Introduce mandatory warranties for building control-approved work • Create a new ‘General Builder’ qualification Net Zero Carbon • Create a National Retrofit Strategy • Invest in upskilling builders to build and upgrade homes fit for the future • Cut VAT on home improvement work to 5% Brian Berry, Chief Executive of the FMB said: “In this Brexit election the main political parties mustn’t lose sight of the big issues facing the UK such as the current housing crisis. We are still not building enough new homes, and this has led to an affordability crisis and over-crowding. This election is an opportunity for all parties to publish ambitious plans to turn this situation around. Small builders stand ready to help the new Government not only to build more new homes but also make our existing homes more energy efficient.” Brian Berry concluded: “Small building companies will also be instrumental in helping the future government tackle other major challenges facing the UK, from helping to tackle the climate crisis to helping to building the hospitals and schools of the future. Our Programme for Government gives 12 clear policies for each of the political parties to adopt to support SME builders. Politicians must not only give the country the gift of resolving Brexit this Christmas, but also a vision for the future of our built environment.” The Programme for Government is available here: https://www.fmb.org.uk/media/50547/fmb-programme-for-government-2019-2024.pdf.
The content of the Chancellor’s Spring Statement washed over many in the property profession as the Brexit storm continued. But the decision by Philip Hammond to allow upwards extensions through Permitted Development (PD) Rights is significant news. The announcement, which forms part of a package of initiatives to breathe life into the ailing high street, is set to go ahead via regulations due this autumn and followed an extremely contentious consultation earlier this year. In the absence of a planning process to scrutinise projects that will add to building heights, the issue of Rights of Light (ROL) becomes a very serious consideration, and one with significant consequences. ROL is a form of easement in Common Law which entitles property owners to benefit from a certain level of light, which can be measured (before and after construction) by technical ROL assessments. A ROL may be acquired by an aperture that has enjoyed a level of light uninterrupted for 20 years. There many other ways apertures can also enjoy this right. Because Daylight and Sunlight assessments are usually a component of a planning application, they are currently required at an early stage in the process. The planning system also necessitates that local residents are consulted on a planning application, allowing those with legitimate concerns to assert their point of view. With this step removed, developers could potentially proceed unaware of any objections – resulting in building works then being halted through an injunction either during the process or post-completion. So while developers might look set to gain from the opportunity to create additional storeys and in doing so, increase the net lettable areas of commercial properties, in reality the situation is precarious. Without the stringent procedures and ultimately the reassurance that the planning system offers, developers could potentially embark on building works and only on completion suffer significant consequences. This could be anything up to a year post development and in extreme cases up to 6 years. In fact, there is already precedent ordering new construction to be torn down in such circumstances. In 2010 the courts ordered the demolition of the top storeys of a building in the centre of Leeds because it obstructed a neighbour’s natural light. Needless to say, following this case there has been a significant increase in the public’s awareness of their rights. The likely result of this change in policy is that we will see an increase in the number of both investigations and claims. Although we anticipate that the permitted development rights will take into account issues including overlooking and overshadowing, it is unclear how this would be implemented. Strategically-minded developers may seek to prevent or extinguish Rights of Light from being acquired by issuing a Light Obstruction Notice (LON) for a period of 12 months prior to construction – after which, nullifies a claim for light if left unchallenged, thereby resetting the prescriptive 20 year clock. It is unsurprising that the number of professionals offering expertise in this area has grown considerably in the past years. Having worked for an ROL specialist for many years, I saw considerable benefit in joining Trident, which, as a multidisciplinary building consultancy, has the ability to advise both (would-be) developers and neighbours in the context of the bigger picture. As land values increase and buildings grow taller, ROL has become increasingly important. Combining PropTech, extensive theoretical and practical knowledge, and the support of its national network, Trident’s growing ROL team has the capacity and resources to meet the demands of all project sizes, in all locations. While permitted development rights offer some freedom, too much freedom can be dangerous: pushing risk further down the line only increases risk. So developers are advised to seek professional advice at an early stage to avoid the significant expense of having to pull down an extension and begin again. www.tridentbc.com
Following the news that Dawnus Group, a major construction firm based in Swansea with 6 regional offices and 44 construction sites is under administration, resulting in 700 people losing their jobs, ex-employees may now be asking themselves what’s next when it comes to either finding a new job or career path. One potential new route could be to go self-employed. With a range of skilled tradespeople on construction sites such as electricians, plumbers, and carpenters, these trade professionals could potentially be raking it in if post-Brexit reports are to be believed that skilled labour will be in short supply if Britain leaves the EU. “This is a very difficult time for all employees of the Dawnus Group. If there is a positive to be taken out of this it is probably that these highly-skilled tradespeople now have the opportunity to become self-employed and further increase their earnings. “Recent reports state that post-Brexit Britain could see a slumber in the skilled labour force – highly-skilled tradespeople such as Dawnus Group employees now have the potential to fill that gap,” said Lyndon Wood, CEO, Moorhouse Group Ltd. According to the Office of National Statistics, the average annual salary of an electrician in the UK is £30,765 per year, a plumber earns £29,136, and a carpenter earns around £25,729. Go self-employed and experienced electricians can earn up to £35,000, with highly-experienced individuals having earning potential up to £42,000. Plumbers earn the most. They can charge up to £90 an hour by going self-employed, and so could potentially rake in £1,000 each week. Experienced electricians can earn up to £35,000, and highly experienced individuals up to £42,000. With the low costs of starting a business from home, these highly-skilled Welsh workers may, in the long-term at least, benefit from this unforeseeable opportunity to take their careers to the next, more profitable, level.
Bidwells’ latest analysis indicates Cambridgeshire remains a magnet for science and technology companies that are looking beyond the current Brexit uncertainty. Their analysis of the Cambridge office and laboratory market finds that 0.6 million sq ft of new space will be complete during the first half of 2019. This is the highest level of new supply in over a decade. This perhaps sounds alarm bells given the apparent slowdown in demand for labs and offices combined to 1.154 million sq ft at the end of 2018. However, despite Brexit fears, the UK’s BioTech sector continues to thrive and Cambridge has been at the centre of growth in the UK’s BioTech sector over the past five years. Investment in the city continued to flood into industry, with £1.6bn raised in the first eight months of 2018, already 33% ahead of the figure raised over the whole of 2017. University of Cambridge tops the list of capital raised by spin out companies as research undertaken by Global University Venturing has revealed that the University of Cambridge has raised the greatest capital investment from its spinout companies amongst the world’s universities. Between 2013-17, spinouts from the University of Cambridge raised £1.75bn, 20% more than the second place Stanford University £1.43bn. University of Cambridge Enterprise reported a further £300m investment to 16 spinouts in 2018, although the final year figure is expected to be in excess of this figure. New Digital Strategy for Cambridge funded by CPCA Cambridge & Peterborough Combined Authority has provided initial funding to Cambridge Wireless and Anglia Ruskin University to develop an integrated and impartial digital strategy, helping to promote the region’s strong technology sector. Cambridge already has a significant representation in the growing Artificial Intelligence sector, with Apple, Microsoft, Amazon, ARM and Samsung all having AI research teams based in the city. According to Bidwells’ data, 85% of space is pre-let or already under offer. This, in theory, leaves a total of 91,000 sq ft available during 2019 with an expectation of more than 50% of space to be let shortly after practical completion. This pre-letting activity, combined with a slight increase in take-up in 2018 compared with 2017, underpinned a further increase in rents. During the second half of 2018 the prime office rent rose to £41.50 psf, with increases also seen for all grades of second hand space. The prime rent for laboratory space also rose in 2018 to £34.50 psf. These latest lettings figures are consistent with the findings of research undertaken by Bidwells on the location and property requirements of major R&D companies. The research, undertaken by YouGov on their behalf, underlines the importance of location. The ability to recruit highly skilled staff, combined with the requirement to be near the centre of research ideas and innovation are the determinants of location for such businesses. With a global outlook these companies will consider location from an international perspective and therefore are compelled to be exacting in their requirements.
A slowdown in property transactions, with home buyers and sellers taking more caution amidst economic uncertainty, has been registered. This is due to the housing market being left in a state of lull because of diminishing demand among foreign buyers and pending Brexit negotiations. Compared to a year ago, homeowners wanting to sell their property are finding themselves having to wait a lot longer and buyers are taking more time to make decisions. At the beginning of 2016 the average buyer took 53 minutes during the viewing process to make a decision on whether or not to buy a property. However, buyers this year took an average of 65 minutes to finalise their decision, with an average of 2.4 viewings. While in 2017 it took 96 days for the ‘sold’ sign to go up, it now takes 102 days. The buying process is also taking 23% longer than it did in January 2016, with 27% of buyers now asking to view a property three times before submitting an offer. Even when homeowners have found a potential buyer, more than a third of deals have fallen through. This is perhaps down to the lack of buyer confidence in the run up to Brexit negotiations. These failed deals have cost consumers an estimated £270 million a year. Slower property transactions have also affected buyers. News of falling house prices has been met with concern from those wanting to sell their property. A cautious approach by sellers hoping to make a profit has meant that buyers are finding their bids undermined through a practice called gazumping. Gazumping is where a seller retracts an offer after receiving a higher bid from someone else. This is especially becoming an issue in Sheffield, where more than a third of buyers have reported being victims of gazumping. The south east has been most affected by this housing market lull, with house prices in London falling by 0.8% over the course of last year. The UK’s capital now has the second-slowest property market, after Blackpool. The average property in the capital now takes 126 days to finalise a deal, 15 days longer than in 2017. Further still, houses in London worth more than £1m are taking a whopping 171 days to sell. The forecast for 2019 much depends on the outcome of Brexit. The sales market, especially within the south of England, is likely to remain as it is until a deal has been confirmed.
