One In Eight British Homeowners Are Planning To Buy A Second Property In The Next 10 Years

A new study has revealed that whilst 12% of homeowners polled in a new study are saving to invest in a second property within the next decade, the majority of these individuals admit they’ve not fully researched the costs associated with doing so, such as stamp duty surcharges and periods of unoccupancy.

Whilst undertaking new research into the future investment plans of homeowners, a UK insurance agency has uncovered that as many as two thirds of Britons want to add value to their homes through extensions, conversions or conservatories, whilst almost one in three plan to make overpayments on their mortgage product in order to pay off their loan before their agreed term length ends.

As part of the study, the team at www.coverbuilder.co.uk polled 2,784 UK adults aged 25 and over, who’d all purchased a property within the last 10 years, in order to understand Britons financial plans for the future with regards to homeownership. All those taking part were from an even split of each of the UK regions.

When respondents were initially asked to state roughly how much longer they had left on their mortgage terms, the average length of time emerged as 14 years.

All homeowners were then given a list of potential options relating to their property and asked to reveal which, if any, they’d considered doing themselves during the next 10 years. The results emerged as follows:

1. I plan to add extra rooms to my property (e.g. extensions/loft conversions/conservatories etc…) – 59%
2. I plan to remodel rooms in my house – 47%
3. I plan to take in lodgers/tenants to rent out spare rooms in my property  – 32%
4. I plan to make overpayments on my mortgage in order to pay off my loan before the agreed term length ends – 28%
5. I plan to save up and purchase a second ‘buy-to-let’ property – 13%

Next, those that stated that they were planning on owning a second property within the next decade were asked if they’d begun to fully research the costs associated with doing so, such as the stamp duty surcharge and the issues surrounding periods of unoccupancy. The majority of these individuals (71%) confessed to researchers that they’d not yet begun to look into the implications and potential drawbacks of owning a second property, but that they planned on doing so within the next year.

In order to uncover the areas of the UK with homeowners most likely to want to invest in a second property within the next 10 years, researchers analysed answers to reveal the geographical breakdown of participants, with the number of those looking to purchase another home as follows:

• South East – 16% (of those looking to purchase a second property lived here)
• South West  – 15%
• Scotland – 12%
• North East – 10%
• London – 9%
• West Midlands – 8%
• East of England -6%
• East Midlands – 6%
• North West – 5%
• Northern Ireland – 4%
• Wales – 4%
• Yorkshire and Humberside – 3%

Finally, the 87% of homeowners not planning to purchase a buy-to-let property in the future were asked if it was something they’d previously considered, with more than one fifth (21%) admitting they’d “considered it in the past but decided it was no longer something I wanted to pursue.” When asked to reveal why they’d come to this conclusion, “increasingly strict regulations and legal requirements for buy-to-let owners” (64%), “the hassle of on-going maintenance work on the property” (27%) and “the financial risks of not finding suitable tenants” (12%) emerged as the most common reasons Britons had been put off.

Rob Rushton, Head of coverbuilder.co.uk says:

“To purchase a buy-to-let or not to purchase a buy-to-let, that is the question. In theory there are many benefits to owning a second property, but unless you are fully prepared for the reality of the additional financial costs, legal requirements and have a sufficient amount of funds to fall back on, then it might not be the best financial investment for you.

“In 2015, there were an estimated 700,000 empty properties in the UK, so there is also the potential risk of purchasing a home that ultimately won’t have an immediate tenant. This, combined with increasing regulations and rules surrounding a second property will have Britons questioning whether they are truly prepared for both the financial and administrative commitment.”

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/30/one-in-eight-british-homeowners-are-planning-to-buy-a-second-property-in-the-next-10-years/

DESIGN AND IN-USE: CLOSING THE PERFORMANCE GAP

As we drive the performance of our building stock, it is becoming clear that one of the key challenges we must address is narrowing the gap between design and actual performance. The industry needs support to ensure we use more accurate modelling and data in order to understand how the building will perform in operation. If we don’t, the gap in performance can be as big as 200-450% greater than predicted.

With project costs squeezed and ‘value engineered’, all too often performance suffers. By allowing design teams more time to spend on modelling and considering how the building will be used by its occupants, rather than being forced into ‘default values’ and specification, we will go some of the way to eliminating this performance gap.

 

Understanding the gap

The performance gap has two components: the compliance gap and the actual performance gap. The modellers estimate 50-70% is the compliance gap and can be solved by more realistic modelling mirroring the conditions more closely. The reasons for the second and larger actual performance gap are generally unknown. There’s speculation about this and assumptions, but little in the way of hard evidence.

When a building is managed effectively, property value is maximised. A high performing building will ultimately generate maximum profit via high and continuous rental income, low operating and maintenance costs and low depreciation.

Modelling tools are used for compliance, which means they use standard default values for the building design. All the operational plant which controls the building is then set at these ‘standardised driving’ conditions and the occupancy density (i.e people versus square metres) is based on industry averages.

As a result these standard default values underestimate the usage by up to 100%. Software is used to meet building regulations and energy performance certificates, as well as being used for ranking rather than the operation of the building. When you pass the design stage, it’s essential that real numbers are inputted and this can be done via modelling techniques such as the Green Deal software developed by BRE. This allows users to tailor the usage of the building to match real operating conditions in. It allows you to work out what it should and shouldn’t be.

But from that point onwards much depends on how well the building is commissioned; what maintenance strategies and schedules are put into place; and how the building is managed. If this doesn’t happen you begin to see divergence. Buildings need to be commissioned properly with particular attention made to control systems and the needs of the occupants.

 

The power of management

Building management systems (BMSs) and building energy management systems (BEMSs) are powerful tools in ensuring that buildings are run efficiently and provide the desired environment for the occupants. As technology becomes cheaper and advances more rapidly, control systems need to be flexible, upgradable and have the facility to easily communicate and integrate with other systems.

However, care needs to be taken in their operation, and staff using these systems need to be fully trained. Ongoing commissioning and preventative maintenance needs to be carried out to ensure the potentially large energy savings are realised, operational costs are controlled and expensive failures do not occur. End-user needs should be taken into account, while staff training and awareness-raising should be carried out to get the building’s occupants involved.

Ongoing commissioning is essentially a higher form of maintenance. Maintenance simply deals with faults. It’s also important to consider management issues. Is the right environment being provided? Is it being provided in the proper place? Is the building being turned off at the right times?

If it is not managed properly, the performance gap will only get worse. Modelling doesn’t help with the building in-use but baselines the building predicted performance. It starts by putting decent controls in so things are turned off when they are not occupied. Once you have control of the building, you can put the management systems in place so that building is optimised for energy usage.

 

Focus on people

One of the most important things to remember is that a building is built for the occupant. In terms of costs, staffing is around 95% and workplaces are key to productivity. Any reduction in productivity has a large effect on a business’s bottom line; after all 95% of operational costs are the staff. Buildings therefore need to be efficient, responsive and innovative, which is why it is so important to optimise the environment in first place.

It’s imperative that the industry treats the underlying causes not the symptoms. It’s like the heart problem analogy. A surgeon might repair a damaged heart with a stem cell but not treat the inherent diet and lifestyle issues.

One of the main problems is that architects are not bringing the design teams early enough in the design process. The later you do this, the more expensive it gets and reduces the benefits in the long term. By engaging with the performance gap, it’s possible to deliver the triple bottom line of people, planet and profit.

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/26/design-and-in-use-closing-the-performance-gap/

UK Construction Week 2017 provides a vital boost of optimism and record attendance

UK Construction Week closed its doors last week on its most successful outing in its three year history, with a record 33,697 construction professionals attending over three packed days of business, networking, discussion and celebration. The increased attendance represents an 11% increase year on year, proving that a large scale construction event for the whole sector is needed for this vital part of the UK economy.

UK Construction Week 2017 provided an opportunity for construction firms of all sizes to gain competitive advantage, as well as learn how to deal with BREXIT, seize the advantages offered by modern methods of construction and how we all tackle the skills shortage. These debates were held in front of the nation’s media including BBC Breakfast, ITN, Sky News and regional news outlets, bringing construction front and centre of national debate.

Nathan Garnett, Event Director for UK Construction week commented “This was a big year for UK Construction Week. It was only our third year, but to get an 11% uplift in attendees is a real stamp of approval that we are delivering the kind of innovative, forward thinking, national event that brings the whole sector together. It has proven itself as the place to meet and do business, and look at how we tackle the enormous challenges to come in the years ahead. It is also a massive celebration, with thousands of professionals attending a variety of awards over the three days.”

Mark Farmer, author of the landmark Modernise or Die report spoke at the event and said “UK Construction Week brings together a massive cross section of the construction industry so not to be here would be a lost opportunity”.

Visitor feedback has been phenomenally positive, with innovation and solutions provided by over 650 exhibitors: “Regulations are changing all the time, and a lot of the guys here have solutions we need to know about so, this is a one stop opportunity to meet all of those people” Russell Shellard, Managing Director of Bramdean Construction.

Key industry brands have commented on the events success, and a large number of them have already confirmed their return for 2018.

James Fairclough, Head of Marketing for CEMEX said “We have had another great year at UKCW talking to many new and existing customers. We felt it was a perfect event to launch our new ‘neogem’ aggregates range which received a massive amount of interest. We have already booked for 2018 and are looking forward to yet another successful event next year!”

“UK Construction Week is more than a trade show; it’s where you do business. First time exhibitor but what a successful week we had!” Katrina Gates, Client Engagement Director, TLC.eu

Companies who have already made their commitment to UK Construction Week 2018 and the 9 dedicated events within it include Rockwool, CAT, Velux, G2 Energy, Steico, Fundermax, and Lumineux. The number of companies stating their commitment to UKCW in the week after has quadrupled year on year

The amount of press surrounding this year’s event also meant the visitors were coming from further afield, shining a spotlight on UK companies. “The show brought a high quality, broad spectrum of customers from all areas including London, home counties, North East, Midlands, Ireland, Middle East and even the Seychelles.” commented Surfaces & Materials exhibitor, John Barham from Barham & Sons.

The plethora of partners to UK Construction Week gives it the ability to bring everyone together. Lead partner for Timber Expo, TRADA comments: “The Media 10 team are very passionate about Timber Expo, as they are for UK Construction Week and all their other shows. It was great to see plenty of engaging stands and features this year.  I encourage every company selling wood-based solutions and products to pull together, get involved and help make the ‘timber pie’ bigger.” Rupert Scott, Membership and Marketing Manager, TRADA.

Plans are already well underway for the 2018 event with a large amount of space already committed to by exhibitors and a number of new innovative features and events planned, next year promises to be even bigger and better for UK Construction Week.

UK Construction Week 2018 is set to take place from 9 – 11 October, please visit www.ukconstructionweek.com   for more information.

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/25/uk-construction-week-2017-provides-a-vital-boost-of-optimism-and-record-attendance/

OVERCOMING SITE DELIVERY CHALLENGES

It was recently announced that the Mayor of London, Sadiq Khan, is introducing a new Ultra Low Emission Zone in Central London from Monday 8^th April 2019. Whilst this is a clear step towards reducing pollution within the City, the restrictions are the latest addition to a long list of challenges facing construction companies and suppliers that work and deliver in London. Carl Ghinn, Managing Director at Fixmart, discusses how suppliers like Fixmart, can help customers overcome these challenges by providing flexible delivery solutions.

In order to provide an effective solution that helps our customers, I believe it is important to understand the challenges they face. When we visit our clients on site, they frequently discuss the challenges of strict delivery timeslots. Failure to meet these can result in large penalties for the contractor, and to a company that is working to tight margins, this can result in a loss for the project. A good way of combating this is by finding a supplier that offers timed delivery slots and communicating with the site before the delivery is due. It enables workers to prepare for the delivery and be advised of any potential delays.

Health and safety is also a key consideration. There are specific rules that delivery companies must comply with before they are allowed on site, especially in London. Many require vehicles to be FORS accredited, which is a voluntary scheme that promotes best practice in terms of safety, efficiency and environmental protection. I have also known delivery drivers to be turned away if they are wearing shorts rather than trousers due to health & safety regulations. Similarly, if a product isn’t packaged properly it can become a safety risk and the site manager won’t accept the delivery. By being aware of the restrictions, and ensuring drivers and vehicles comply with regulations, you can help avoid a failed delivery.

Another key issue facing contractors is the lack of available space on site. With a variety of different trades operating within the same space, storage is at a premium, and as a result, many need products that cannot be delivered too far in advance. Whilst this may be a simple requirement, it poses a great challenge as workers need to trust that their supplier will have the right products in stock at short notice. On the other hand, this needs to be balanced with the introduction of the Ultra Low Emission Zone which has resulted in many developers pushing for fewer deliveries. Consequently, workers are looking for increasingly flexible delivery options to support this. At Fixmart, we offer an order cut-off time for next day delivery of 5pm, as well as the option for customers to cancel an order up to 2 hours before the delivery is due, free of charge. This enables workers to react to changes on site without incurring extra costs.

In conclusion, as restrictions continue to tighten, it has never been more important for suppliers to fully understand the complexities of delivering in London and provide a flexible solution that helps customers to overcome these challenges.

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/24/overcoming-site-delivery-challenges/

APE Mobile sets sights on U.S. expansion

APE Mobile is expanding its global reach and setting up in the U.S following last quarter growth of 55%. The company, which already boasts a growing portfolio of U.S. customers, is announcing a series of initiatives in order to capitalize on sales within in its fastest growing market.

 

APE Mobile is a paperless site app that enables building and civil construction companies to replace their traditional paperwork with a single, low-cost, cloud-connected app.

 

Preparations to open a North American office are underway which will support sales and customer success teams. By establishing U.S operations, APE Mobile will be able to serve its existing customers better and work more closely with its key partners in the region.

 

APE Mobile is positioning itself as the best-of-breed paperless site app that sits within the cloud connected software ecosystem. Matt Edwards, CEO of APE Mobile, explains that, “We’ve integrated to the top three Construction ERP platforms in the U.S and connected to over 800 cloud solutions because we believe successful construction companies of the future will have to be data driven to win. Companies can use the best tool for their site paperwork as an extension of their existing project management and ERP systems.”

 

In an industry that has traditionally been very adverse to change, APE Mobile has taken a deep dive into site paperwork to solve the shortcomings that have seen previous mobility projects fail. Edwards says “The solution put in place had to be better than paper for the person in the field, with low risk to the business and high user acceptance. Instead of building a platform that imposes a certain way of doing things, we built a system that adapts to the processes of each customer.”

 

The app has had success in achieving an ROI for companies from day one. In a recent time and motion study from one of Australia’s largest construction and mining contractors, they found an ROI of 1500% in using the app solely on safety forms. The use in that company has now expanded to all other paperwork to double down on the benefits.

 

About APE Mobile

APE Mobile is a venture capital funded app that replaces paperwork on work sites enabling building & civil construction contractors, specialist subcontractors and mining companies to easily go paperless using their existing ISO accredited templates. APE Mobile supports all site paperwork, is quick to implement and practical onsite. As well as capturing data on site, you can also access and mark up all your site plans and documents to keep the team on the same page. APE Mobile integrates with over 800 cloud solutions including Spectrum by Dexter + Chaney, Vista by Viewpoint and Sage 300 CRE, extending the capabilities of Enterprise Resource Planning (ERP) software.

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/23/ape-mobile-sets-sights-on-u-s-expansion/

BREXIT WILL BE A BIG BOOST FOR BRITISH BUILDERS: New survey shows uplifts in skills, techniques and manufacturing levels

UK Construction Week opens on Tuesday, and will bring together a wide spectrum of the construction trade together over three days at the NEC Birmingham (10-12 October). Ahead of the event, UK Construction Week conducted a Brexit survey from over 2,500 industry leaders. The survey canvassed architects, contractors, SME builders, surveyors, engineers, local authorities and many more.

The survey clearly shows that the UK Construction industry wants to discuss the positive impacts of BREXIT, with the majority of respondents believing it will force us to solve the skills shortage once and for all by investing in younger generations and encouraging them into the sector. This places extra emphasis on making sure the CITB is fit for purpose, and also supports the Farmer Report, Modernise or Die. Mark Farmer will present his view on what needs to be done following on from the report at UK Construction Week on Wednesday 11th October.

 

It also points to resurgence in British building materials, as contractors and house builders protect themselves from any tariffs in future, but also to taking advantage of a blossoming UK manufacturing base. This week’s UK Construction Week is a perfect demonstration of this with major British firms taking centre stage, such as Easy-Trim (Roofing and sealants), Forterra (Bricks and Building Materials), Tufeco (Modular Housing), Potterton (Heating), Portakabin (Modular Buildings) and HG Matthews (Bricks).

 

Offsite and Modular construction are also cited as a solution to build quicker in post BREXIT Britain.  Event Director, Nathan Garnett said “Offsite and Modular Construction is a major theme of UK Construction week in 2017 with over 100 manufacturers and suppliers in the sector exhibiting, an increase of 65% on last year. This is a reflection of how Offsite construction has now become accepted as a mainstream method of construction, increasing speed and productivity in the sector.”

 

The best possible example of home grown manufacturing and skills can be exemplified by the stunning world premiere of a two-story modular house at the show. Jon Gunn, CEO of Tufeco and a partner at ATELIO, said: “We see tremendous opportunity in the next few years for us as British manufacturers of world class modular buildings. We have worked in collaboration with Grimshaw, so our project is a real testament to UK skills and knowledge, and are confident our product can be a real advantage in the challenge to build the homes we need in the next decade.”

 

One of UK Construction Week and Timber Expo’s partners, Dougal Driver, CEO of Grown in Britain, said:”It is great to hear the UK Construction Week survey indicates support for British made materials. British-grown timber returns social and economic value back to communities here in the UK, supporting rural jobs and local economies.”

 

Key survey findings:

• 64% believe BREXIT will force us to solve the skills crisis and invest in younger generations
• Over 50% said it will make us buy British Building Materials
• 43% believe building material costs will stabilise and 10% think materials prices may actually go down
• 53% said we will embrace offsite manufacturing as a solution to the challenges ahead

 

Whilst leaving the EU poses challenges, the construction industry is already looking ahead to the positives outcomes BREXIT could bring. The UKCW survey however has laid down a very clear mandate for the UK Government to invest more in apprenticeships and support British manufacturing.

 

All of these topics will be discussed at UK Construction Week in the Development and Regeneration Hub and the UKCW stage, from 10-12 October at the NEC Birmingham.

 

For more information and free registration visit www.ukconstructionweek.com.

from The UK Construction Blog http://ukconstructionblog.co.uk/2017/10/20/brexit-will-be-a-big-boost-for-british-builders-new-survey-shows-uplifts-in-skills-techniques-and-manufacturing-levels/

Chancellor unveils extra £400m for transport in North