Irwin Mitchell

UK Vote to Leave the EU – What Will This Mean For Real Estate

Comment from Rob Thompson, Head of Real Estate London at Irwin Mitchell Britain’s decision to leave the EU is monumental.  However, property law is not heavily influenced by EU legislation and, therefore, Brexit will be a market issue, rather than a strictly legal one.  In recent months, the press has

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Issue 325 : Feb 2025

Irwin Mitchell

IRWIN MITCHELL ADVISES PROPERTY DEVELOPER JAYNIC ON LAND PROMOTION DEAL ON 279-ACRE SITE AT BARTON MILLS, SUFFOLK

The property division of national law firm Irwin Mitchell has advised land promoter and developer Jaynic on its a land promotion agreement on 279-acres adjacent to the A11 at Barton Mills, Suffolk, with the land offering significant potential for future commercial development. Located on the ‘Cambridge-Norwich A11 Tech Corridor’, this significant employment opportunity would provide a safe new entrance to Barton Mills via a new roundabout on the A11, and the opportunity to close the staggered A11-Newmarket Road crossroads at Herringswell Road and the A11 access from Newmarket Road at Tuddenham Road, both of which have poor highway safety records. Pedestrian/cycleway connectivity would be improved, and sustainable links created via new and existing routes. Andrew Anderson, Director at Jaynic responsible for the proposal, said: “We hope to achieve a local plan allocation in due course for a significant new business park along this strategic corridor, together with key highway safety improvements, both of which will provide local and district-wide benefits. “The site has not been allocated in the draft local plan but was identified in a recent evidence-based document as a potential opportunity to grow the district’s existing commercial sites,” added Anderson. Jaynic said it looks forward to working with all stakeholders including West Suffolk Council, the local community and businesses to promote the very real economic development and highway benefits that would come from such a development. The scheme would also deliver improvements to the ecological constraint zones within the site, meeting Biological Net Gain requirements and providing wider ecological benefits, with potential to help bring forward other developments in the area with significant ecological constraints. The Irwin Mitchell team was led by property partner Martyn Holland, assisted by senior associate Sarah Swann. Martyn Holland said, “This is a great development opportunity for our client for whom we have been advising for many years on numerous development and promotion deals. We believe this new project will provide significant economic benefits to the local area as well as improved traffic safety and we are excited to have been involved.” Jaynic is an established property company focusing on land promotion and business space development in the south and east of England. At Suffolk Park, Bury St Edmunds, it has developed 1.3m sq ft of warehouse and business space to date and has another 283,000 sq ft under construction. Jaynic is also appointed by Mid-Suffolk Council on its Gateway 14 site at Stowmarket to manage the development of up to 2.36m sq ft of business, logistics and innovation development. The company has a strong track record in the promotion of land through the planning process and, thereafter, the delivery of high quality, sustainable and efficient development.

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Government To Make Developers Pay For Costs Of Cladding Crisis In New Measures Announced

Experts Say Announcement Could Mean More False Hope For Leaseholders Developers have been given an early March deadline to create a fully funded plan of action to help the cladding crisis, with further measures to be put in place by the Government. The announcement from Michael Gove MP at the House of Commons on the afternoon of Monday 10th of January said he is giving developers the chance to ‘do the right thing’ or he would ‘impose in law’ ways to make them pay for the cladding crisis. So far residents in blocks 11-18m high haven’t been eligible for government support to remove unsafe cladding, instead being offered loans to shoulder the often eye-watering cost – but this scheme is now scrapped, along with further measures to ease the standstill for leaseholders affected by surveys, insurers and market uncertainty as a result of the crisis. Residential property experts at Irwin Mitchell say the announcement shows the Government has shut the door on providing its own funding to help leaseholders, instead relying on developers to pay for the cladding crisis. Jeremy Raj, national head of Residential Property at Irwin Mitchell said: “The sentiments and ambition of Mr Gove’s statement today were praiseworthy and long overdue. The realities of his proposals are, however, as yet of questionable efficacy and breadth. “The truth is that the fifth anniversary of Building Safety reaching its current level of crisis for leaseholders in taller blocks of flats in particular is fast approaching. The acknowledgement today that reaction to date has been slow and ineffective will be cold comfort, particularly in relation to those with non-cladding issues. Government must indeed accept when its own performance has not been acceptable and ensure a rapid improvement. “The cladding on Grenfell had nothing to do with current or historic developers of new build homes, having been retro-fitted many years after the original build, using materials that were clearly dangerous that seem to have been ignored or waved through by the regulatory authorities. “The idea that responsibility for resolving the cladding scandal – which has now widened to become a general building safety scandal – should be laid solely at the doors of developers asked to voluntarily cough up more cash, is likely to lead only to further delay and heartbreak for leaseholders caught in dangerous or un-sellable properties. “Many developers will be puzzled as to how and to what extent they can justify such expenditure on a ‘voluntary’ basis in the context of their obligations to shareholders, and a lack of direct responsibility, particularly given clear evidence of contributory negligence by others. “As Irwin Mitchell have been saying from the outset, fixing dangerous buildings (of whatever height) should be dealt with as a priority using up-front Government money, with clawback provisions activated as soon as the extent and identity of all liable parties has been established under due legal process.” Large housebuilding developers are already facing the Residential Property Developer Tax, which targets companies with annual profits of over £25m with a 4% tax to go towards cladding. Legal experts point out that laying the blame at one person’s door doesn’t help the situation for affected leaseholders – or help with the long-term housing crisis the UK is currently facing. Jeremy continued: “In the context of an acute national shortage of safe, suitable and environmentally sound housing stock, it will not help to demonise and threaten all developers if they can clearly see that the manufacturers and suppliers of those dangerous materials, the poorly resourced regulators and the industry as a whole, seem to be being let off the hook. “It now seems clear that the Treasury has firmly shut the door to further funds being made available and that, along with Planning reform, a full upgrade and proper funding of Building Control remains a distant hope for the future. “Nobody wants the leaseholders caught up in the post-Grenfell nightmare to continue to suffer, and it is right that they should be absolved of financial responsibility for making their buildings safe. “However, significant issues relating to building safety remain in addition to the cladding problems and many of our clients do not appear to be helped by today’s announcement in resolving the problems with the homes they bought in good faith, expecting them to be safe to live in and easy to sell on.”

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Irwin Mitchell Appoints New Head of Planning and Environment as it combines the two Departments

National law firm Irwin Mitchell has appointed planning and environmental partner, Claire Petricca-Riding to take over as National Head of a newly combined Planning & Environment department. Claire joined Irwin Mitchell last October to spearhead development of the firm’s environmental practice, joining from Brabners, where she was a Partner, and Head of Planning & Environment.  She is based in Irwin Mitchell’s Manchester office but has a national remit. Carl Dyer, previously head of Irwin Mitchell’s Planning department and who recruited Claire, remains a partner in the new practice. Irwin Mitchell’s Planning & Environment team now consists of nine professional staff, of whom four are partners, based across the UK.  The department plans to expand further and is currently recruiting in Manchester and Birmingham. Planning & Environment sits within Irwin Mitchell’s National Real Estate Practice headed by Adrian Barlow, which now consists of 26 partners in a team of 82 lawyers in seven offices across the UK. IM’s total property team (including residential) numbers 166 lawyers and 31 partners. Adrian Barlow, National Head of Real Estate at Irwin Mitchell said, “Environmental issues are increasingly coming to the fore as property investors, lenders, developers and occupiers are putting sustainability higher up the agenda and as environmental regulation increases. Environmental issues are now intrinsically bound up in planning – so it makes sense to combine these two areas of expertise into one department. Claire has an amazing track record in both disciplines and is expanding our skills set, enabling us to cater for our clients’ needs in today’s changing market place.” Carl Dyer added, “I was delighted when Claire agreed to join us last year. Her environmental law expertise has filled a key gap in what was our Planning Team’s armoury. She is the perfect partner to lead our newly renamed and growing Planning & Environment Team. I am looking forward to working with her in what promises to be a very exciting 2020, now that the election uncertainties are behind us all.”

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Irwin Mitchell Property Experts React to Government’s Leasehold Consultation Announcement

Residential Property Experts Say Consultation ‘A Welcome Move’ But the Devil Will be in the Detail   Leading national law firm Irwin Mitchell’s property experts are calling the Ministry of Housing’s latest consultation on implementing leasehold reforms a welcome move overall, but retain some caution over implementation.   The consultation, announced this week follows the recommendations made by the Law Commission’s earlier call for evidence to address a number of significant issues that buyers and sellers face in the housing market. In particular it focuses on: the use of leasehold houses in new developments, the impact of high ground rents and the fees linked with getting information when properties are sold.   The consultation proposes that future ground rents are capped at a nominal £10 per annum. On one hand this will ease the buying and selling process and remove the current problems facing lenders where Assured Shorthold Tenancies have been unwittingly created by exceeding the rent limits. However, as Brian Dowling, Senior Associate at Irwin Mitchell pointed out, “A properly administered ground rent can often incentivise effective management of leasehold property. There is an attraction to having a stable, indexed long-term income from an asset and it is arguably more transparent to describe this as a rent than try and recover a profit element from providing services under a service charge”.   “It does not seem that a compelling argument has yet been made to justify ground rents or argue that the rate of increase should be capped. This consultation seems like the last chance for developers and investors to do that.”   A second aspect of the consultation indicates that the sale of leasehold houses will not be banned altogether as there are some justifiable circumstances where the use of the leasehold system will be necessary to ensure management of common facilities on a new development. Shared ownership properties, community-led housing and certain sites on Crown and National Trust land will be exempt from any ban on new-build leasehold houses. This may also be extended to retirement housing and sites with complex infrastructure.   Brian Dowling commented, “If the democratic decision is made that ground rents should no longer be chargeable on long residential leases then the only reason for having long leasehold houses is when it is essential to ensure that a shared structure or infrastructure is effectively maintained, or to secure the long-term use of a house in accordance with charitable purposes. This view seems to have registered, which is encouraging. In particular, retirement living developers, community land trusts, and co-housing groups will be encouraged, as they all have their own reasons for wanting to sell leasehold houses.”    “The devil is in the detail though and it is important that developers and investors make the case for using leasehold when the structure of a development scheme demands it. Examples including having duplex homes above shops or commercial space, or having houses above shared underground car parks.   One further element of the Government proposals which will be welcomed by house owners, is the proposal for equivalent rights to be given to freeholders to challenge reasonableness of freehold service charges or estate rent charges for maintenance of common areas which are currently only available to leaseholders.   Dowling commented, “It is not clear though that freehold house owners on new or recently built estates face the same problems with escalating or opaque charges that a number of leaseholders have faced. In particular, the service charges are typically low because few services need to be provided- often just minor roads and planted areas. It is also common practice for the house owners to eventually control the management company following the sale of the last house on the estate.   “If these rights were introduced, they may impact more on groups of neighbouring owners who need to keep their estates looking smart and have to negotiate amongst themselves, rather than on consumers dealing with management companies, as at present.”   The consultation further seeks to ensure that information packs required for the transfer of ownership of leasehold properties is provided in a timely manner by managing agents and freeholders. This is move welcomed by Irwin Mitchell. Marcelle Turner, Associate and specialist residential leasehold lawyer in Irwin Mitchell’s Leasehold Enfranchisement Team said, “Investing in leasehold property can be risky for those who are not properly informed.  Many buyers are unaware and often confused as to their rights and the correct legislation which applies to their property.  The consultation seeks to align some of the procedures which will benefit both freehold and leasehold owners although current owners will not see any change to their existing leases.”   The consultation will run for six weeks and closes on the 26th November; Irwin Mitchell will be submitting a response.

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Irwin Mitchell Announced That Adrian Barlow Is the New National Head of Real Estate

Irwin Mitchell has announced that they have appointed Adrian Barlow for the position of National Head of Real Estate. The Pinsent Masons’ partner has been appointed to this role within the Law firm where it is planned that he will lead his own team of more than 30 commercial real estate partners. The Irwin Mitchell role will be based in London where Adrian Barlow will be responsible for his team or more than 30 commercial real estate partners and more than 40 other commercial real estate lawyers. Although Adrian’s role is based in London, these team members will be spread across eight different offices in the UK. Adrian has a good deal of experience in the real estate industry as he managed to successfully lead Pinsent Masons’ Property Group between 2004 and 2016. Adrian’s experience has a client focus as he has worked advising both public and private sector organisations with things such as project strategy and real estate portfolio. Adrian has also given advice to companies about business change management from a legal perspective. As part of his work, Adrian Barlow has offered advice regarding real estate to a number of different household names including businesses that are in the FTSE 100 and foreign companies. Adrian is said to be an excellent leader, and hopefully should flourish in his new role at Irwin Mitchell. His career at Pinsent Masons included being a senior sponsor for the Diversity & Inclusion agenda. Adrian Barlow is also a trustee of the Ouseley Trust where he sits on the main board and finance committee. Adrian’s appointment reflects the company’s ambition to increase their Business Legal Services division. Irwin Mitchell intend to carry out their growth plans through appointing people like Adrian who have good experience and track record in this sector in order to make sure that they can continue to offer a high standard of customer service.

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Irwin Mitchell Announced That they Have Appointed a New Partner to Their Team

The National Law Firm Irwin Mitchell has announced that they have appointed a new partner to their National Real Estate team. It was announced that Robert Stangroom will be joining Irwin Mitchell at their Southampton office from the 8th May. In his new role Robert will be required to assist the Partner David Fanchi and work with the other nine members of the Southampton-based real estate team. The role will involve concentrating on the more general commercial real estate aspects of the work involved. Irwin Mitchell is a company that is more than 100 years old and is classed as one of the largest law firms in the UK. The firm offers both Personal and Business Legal Services to their clients. In 2015 Irwin Mitchell merged with Thomas Eggar LL, which meant that the company expanded its presence in London and in the South Est of the UK. The Law firm has also acquired MPH Solicitors which was a specialised Personal Injury specialist, and the private wealth firm Berkeley Law over the course of the past few years. Robert Stangroom is joining Irwin Mitchell from Wannops LLP. In his previous role, Robert was a partner and before this position he worked at Shoosmiths. In the Past Robert Stangroom has worked with David Fanchi at Thomas Eggar. Hopefully their previous working relationship will lead to a successful transition and flourishing relationship going forward. The Irwin Mitchell real estate practice now has more than 40 partners spread across the UK and 81 other real estate lawyers. These figure are continuing to expand as the Law firm does. There are a number of real estate teams and they are located at Irwin Mitchell’s 9 BLS offices. It is hoped that Robert will be a useful new addition as Real Estate Partner in the Southampton based office and will boost the Southampton office and their coverage across the Southern markets.

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UK Vote to Leave the EU – What Will This Mean For Real Estate

Comment from Rob Thompson, Head of Real Estate London at Irwin Mitchell Britain’s decision to leave the EU is monumental.  However, property law is not heavily influenced by EU legislation and, therefore, Brexit will be a market issue, rather than a strictly legal one.  In recent months, the press has been awash with competing predictions about the impact of Brexit but the almost universal consensus of economists and property professionals is that leaving Europe will have an effect on transactional activity levels in the UK property market, at least in the short term. We are now entering an extended period of uncertainty whilst the government spends time negotiating its exit from Europe.  The hope is that the UK can somehow negotiate the continued benefit of free trade whilst reducing its EU budgetary commitment and avoiding EU regulation and the requirements of the free movement of people.  In short, the UK will be seeking a better deal than either the European Economic Area (as per Norway) or the European Free Trade Association (as per Switzerland) can offer. Sectors such as manufacturing, logistics and construction will also be concerned about the non-availability of foreign labour, on which they rely heavily. We have already seen a period of outflow from commercial property funds (February reportedly saw the largest monthly sell-off since 2008) and European banks, which hold a large volume of securitised debt, may start to divest themselves of some of this debt in response to Brexit. Overseas investor and developer confidence in the residential sector will also be affected and Brexit is likely to slow, if not stall, investment in new housing development and will probably disrupt the inflow of labour and materials to the UK.  There are also broader economic questions around the effect of Brexit on currency markets and interest rates. These, too, will impact on the property market as much as any other. Many though  are more optimistic and predict that, after a short term dip, the UK property market will thrive as trade is boosted due to the removal of import tariffs and the dumping of regulations.  Opportunistic investors will no doubt look to take advantage of uncertain market conditions to extract greater value on acquisitions. On top of this, we should not lose sight of the fact that the  UK is an incredibly resilient and adaptable economy and it is difficult to see how the City of London will not continue to remain as one of the leading financial centres of the world.  The UK is also a major focal point for the technology industry and companies exposed to this sector are much less likely to be affected by the implications of Brexit. So all is not doom and gloom – the English legal system and the transparency of the UK property market will continue to be the envy of the world and it is difficult to see why international capital will not continue to find its way into the UK property market after an initial period of reflection and evaluation.

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