2016 / 2017 PROPERTY

A YEAR IN PERSPECTIVE

FOREWORDS Th e Rt Hon Th eresa May MP Th e Rt Hon Philip Hammond MP Melanie Leech

GENERAL REPRESENTATIVES IDM Properties Properties of the World Th e Collection Harriss Properties Groveworld Mayfair Group Investment Styles&Wood Zestan X1 Developments AES Sustainability Consultants Nabarro Mcallister Optimis Consulting Edward Cooper Young

FEATURES Review of the Year Review of Parliament

©2017 WESTMINSTER PUBLICATIONS www.theparliamentaryreview.co.uk

Foreword

Th e Rt Hon Th eresa May MP Prime Minister

This year’s Parliamentary review follows a significant deliver the next phase of high-speed rail, improve our year in British politics. It was a year in which our energy infrastructure and support the development of economy continued to grow, as the Government automated vehicles and satellite technology, building followed its balanced plan to keep the public finances a modern economy which creates the high-skill jobs of under control while investing to build a stronger the future. economy. It was a year in which we began to deliver At the same time, work needs to be done to build a on the result of the eU referendum by triggering Article fairer society – where people can go as far as their 50 and publishing the repeal Bill, which will allow for a talents will take them and no one is held back because smooth and orderly transition as the UK leaves the eU, of their background. So we will continue to work to maximising certainty for individuals and businesses. ensure every child has the opportunity to attend a good And, of course, it was a year in which the General school. We will continue to invest in the NHS and reform election showed that parts of our country remain mental health legislation, making this a priority. And divided and laid a fresh challenge to all of us involved we will work to address the challenges of social care for in politics to resolve our differences, deal with injustices our ageing population, bringing forward proposals for and take, not shirk, the big decisions. consultation to build widespread support.

That is why our programme for government for the So this is a Government determined to deliver the best coming year is about recognising and grasping the Brexit deal, intent on building a stronger economy opportunities that lie ahead for the United Kingdom and a fairer society, committed to keeping our country as we leave the eU. The referendum vote last year was safe, enhancing our standing in the wider world, and not just a vote to leave the eU – it was a profound bringing our United Kingdom closer together. We will and justified expression that our country often does continue to put ourselves at the service of millions of not work the way it should for millions of ordinary ordinary working people for whom we will work every working families. So we need to deliver a Brexit deal day in the national interest. that works for all parts of the UK, while continuing to build a stronger, fairer country by strengthening our economy, tackling injustice and promoting opportunity “ and aspiration. This year’s Parliamentary In the year ahead we will continue to bring down the deficit so that young people do not spend most of their review follows a significant working lives paying for our failure to live within our “year in British politics means. We will take action to build a stronger economy so that we can improve people’s living standards and fund the public services on which we all depend. We will continue with our modern Industrial Strategy,

FOREWORD | 1 Foreword Foreword

Th e Rt Hon Melanie Leech Chief Executive of the Philip Hammond MP British Property Federation Chancellor of the Exchequer

It’s been a long road back for the British economy. It is only by making sustained increases to our real estate underpins every part of our lives. We live, With 28% of invested real estate in the UK owned by In 2009 our deficit was at a post-war high, our economy productivity that we can deliver the higher wages that work, and relax in buildings. overseas investors, our sector is an enormous draw shrank by 4.3% and millions feared for their jobs. will increase living standards and fund the improvement for global capital. It has been hugely positive for our The UK commercial real estate industry provides the Thanks to the hard work of the British people since of our public services. That is why I announced the industry that government understands the need to infrastructure for every type of business activity – from then, we have reduced the deficit by three-quarters, £23 billion of additional investment in infrastructure communicate to our global partners that the UK remains the offices where entrepreneurial businesses grow and we have been the second fastest growing G7 economy and innovation at the Autumn Statement last year, and open for business. The BPF was pleased to partner with collaborate, to the warehouses and logistical infrastructure for the past two years, 2.9 million net new jobs have why I launched an overhaul of our technical education the Department for International Trade this year at one been created and our employment rate is the highest system at the Spring Budget. that are the backbone of the digital retailing revolution. of real estate’s biggest international trade events, MIPIM ever recorded. Cannes, to showcase our sector to the world. It is a good start, but there is more to do if we are It provides the schools and colleges in which the current By controlling our public spending, backing business and to close the productivity gap with our competitors, and next generations will learn a new set of skills and ensuring that the positive impact of this investment is creating the environment for enterprise and investment and build a strong economy to provide opportunity, homes tailored to the changing needs of people in every spread across the UK is a central goal – and the election to thrive, we have got the UK economy back on track. prosperity and the funding for public services that this stage of life – whether it’s student accommodation of the first six ‘metro mayors’ in May marks a further country needs. I am determined to get on with the job. or retirement communities. It provides the modern, step forward in the devolution agenda the Government But now we face new challenges. The deficit is down specially-designed GP surgeries in which integrated has presented. Delivering the vision set out in the but debt is still too high. Unemployment is at a 40-year This is how we can unlock the full potential of healthcare will be delivered to a population living longer Industrial Strategy, by enabling local leaders to create low, but real pay growth is stagnating. And I understand our economy and create an economy that works than ever before. And real estate gives us the shops, a clear vision for a region’s future and giving them the that people are weary of the hard slog of repairing the for everyone. cinemas, gyms, bowling alleys, pubs, and restaurants in powers to take decisions to deliver it, will be critical. And damage caused by Labour’s great recession. which we spend our hard-earned leisure time. they will find a real estate sector ready to play its part in delivering regeneration and renewal in towns and cities

All our progress could be put at risk if we listen to As the representative body for UK commercial real estate, across the country. those who say we should abandon the economic plan the British Property Federation (BPF) works in partnership

that has brought us so far, just as we are coming to with national and local government to ensure that real We live in a world which is changing fast, presenting the final furlong. And it is up to all of us, in business estate can reach its full potential to deliver economic both challenges and opportunities. Sitting at the We have“ been the second and in Government, across every sector covered by growth, essential infrastructure and great places. heart of all economic activity, and delivering the social The Parliamentary review, to make the case, all over fastest growing G7 infrastructure to support our local communities, the real again, for a market economy, sound money and a The past year has, of course, been an eventful one. estate industry is uniquely placed to respond and help

system that incentivises enterprise and innovation. “economy for the past two The Brexit vote was unexpected for many and hit some our country build a bright future.

years of the listed property companies and funds hard in So I will stick to the plan to bring the public finances the immediate aftermath. The situation has largely back to balance, at a pace that supports the economy in stabilised, but for long-term real estate investors, who the face of short-term challenges, and to make longer- The UK commercial real“ need as much certainty as possible when planning term changes. I will pursue a Brexit outcome that puts regeneration schemes that are delivered on a timeline estate industry provides the jobs and prosperity first. And I will continue with my measured in decades, uncertainty continues to be priority to build a productive and dynamic economy. “infrastructure for every type a challenge – recent indications that there will be a transition period at the end of the two-year Brexit of business activity process being a step in the right direction.

2 | FOREWORD FOREWORD | 3 Foreword

Melanie Leech Chief Executive of the British Property Federation

real estate underpins every part of our lives. We live, With 28% of invested real estate in the UK owned by work, and relax in buildings. overseas investors, our sector is an enormous draw for global capital. It has been hugely positive for our The UK commercial real estate industry provides the industry that government understands the need to infrastructure for every type of business activity – from communicate to our global partners that the UK remains the offices where entrepreneurial businesses grow and open for business. The BPF was pleased to partner with collaborate, to the warehouses and logistical infrastructure the Department for International Trade this year at one that are the backbone of the digital retailing revolution. of real estate’s biggest international trade events, MIPIM Cannes, to showcase our sector to the world. It provides the schools and colleges in which the current and next generations will learn a new set of skills and ensuring that the positive impact of this investment is homes tailored to the changing needs of people in every spread across the UK is a central goal – and the election stage of life – whether it’s student accommodation of the first six ‘metro mayors’ in May marks a further or retirement communities. It provides the modern, step forward in the devolution agenda the Government specially-designed GP surgeries in which integrated has presented. Delivering the vision set out in the healthcare will be delivered to a population living longer Industrial Strategy, by enabling local leaders to create than ever before. And real estate gives us the shops, a clear vision for a region’s future and giving them the cinemas, gyms, bowling alleys, pubs, and restaurants in powers to take decisions to deliver it, will be critical. And which we spend our hard-earned leisure time. they will find a real estate sector ready to play its part in delivering regeneration and renewal in towns and cities As the representative body for UK commercial real estate, across the country. the British Property Federation (BPF) works in partnership with national and local government to ensure that real We live in a world which is changing fast, presenting estate can reach its full potential to deliver economic both challenges and opportunities. Sitting at the growth, essential infrastructure and great places. heart of all economic activity, and delivering the social infrastructure to support our local communities, the real The past year has, of course, been an eventful one. estate industry is uniquely placed to respond and help

The Brexit vote was unexpected for many and hit some our country build a bright future. of the listed property companies and funds hard in the immediate aftermath. The situation has largely stabilised, but for long-term real estate investors, who The UK commercial real“ need as much certainty as possible when planning regeneration schemes that are delivered on a timeline estate industry provides the measured in decades, uncertainty continues to be “infrastructure for every type a challenge – recent indications that there will be a transition period at the end of the two-year Brexit of business activity process being a step in the right direction.

FOREWORD | 3 Andrew Neil review of the Year

return of the Two Party System Councils turn investors

The BBC’s Andrew Neil gives his take Nationalist party and a resurgent The referendum, however, reversed on investments are significantly higher on the state of Parliament following Tory party representing the Union. the decline. The Brexit vote ended the than the interest rates they have to pay the June 2017 general election. Two-party politics was back north schism on the eurosceptic right as to finance them. Buying commercial of the border. UKIP voters returned to the Tory fold; property has therefore enabled councils It was a year in which politicians and those on the Left of the Greens to plug gaps in their funding. learned not only of the power of So we should have been prepared and the Lib Dems flocked to Jeremy a referendum to overrule the will for something similar when Britain Corbyn’s more ‘red Flag’ Labour Spelthorne Council was open about the voted 52% to 48% to leave the of Parliament – but of its power offering. So, as in Scotland previously, financial reasons for its purchase of BP’s european Union in the June 2016 to change the party system in two-party politics was back with a Sunbury-on-Thames campus. Councillor referendum. At the time, we which they operate. Nobody saw vengeance in england too. Ian Harvey, Leader of Spelthorne this coming. But, in retrospect, remarked on the power of referenda Borough Council, said ‘Securing the perhaps we should have, since we to overrule both the Commons But without one crucial element. Our Council’s financial stability is our highest had the fallout from the Scottish (where MPs were 65% pro-eU) historic two-party system regularly priority and after exploring several produced one-party government referendum to guide us. and the Lords (probably 80% options and taking advice from a number for the life of a Parliament. But our pro-eU). What we did not see was of independent experts, we are confident In the autumn of 2014 the Scots new two-party system has produced how the Brexit referendum would that this forward-thinking agreement voted 55%-45% to remain part of the a hung Parliament with no party reconfigure english politics just represents a very sound investment for United Kingdom. That was supposed as the Scottish referendum had having an overall majority. This Spelthorne. It will be key in helping us to settle the matter of Scottish redrawn Scottish politics. knife-edge parliamentary arithmetic Woking Borough to close the budget gap and protect the independence for a generation, until means the smaller parties may be Council purchased the vital services which our residents and some Scottish Nationalists began So we were taken by surprise for a down – but they are not out. Wolsey Place shopping In September last year, Spelthorne businesses need and deserve.’ regarding a generation as no more second time. In this year’s general centre in 2010 using the Borough Council, a small local authority election – perhaps the single biggest The Conservatives need an alliance Public Works Loan than a couple of years. But in post- in Surrey, spent £360 million buying an Many councils have bought close act of self-harm a sitting government with one small party (Ulster’s DUP) referendum elections to Holyrood office campus let to the oil company to home and have justified their has ever inflicted on itself – almost to be sure of a majority. even then, and Westminster, it also recast the BP. The deal was unusual in that it acquisitions in terms of the wider 85% in england voted either with the Tories and Labour divided Scottish party system. was exceptionally large – in fact, it was benefits to the area. Woking Borough Conservative or Labour. The english over Brexit, no majority on any issue the largest ever commercial property Council, which has a longer track record Remember, Scotland had been one had not voted in such numbers for will be certain and on many votes transaction done by a local council. of the first parts of the UK to throw both major parties since 1970, when the smaller parties will be pivotal in of investing in commercial property than However, it was also symptomatic of off the British two-party system the post-war two-party system began determining many outcomes. many other councils, bought the Wolsey and replace it with a multi-party a growing trend. Last year, councils Place shopping centre in Woking from to wane – and declined in subsequent So politicians return from choice of SNP, Labour, Tory, Green, began investing in commercial property F&C reIT for £68 million in 2010. ray elections to a point where barely their summer recess to a great in a big way. Collectively, they spent Morgan, Chief executive of Woking Lib Dem and even UKIP. But as the 65% voted Tory or Labour, parliamentary paradox: the two-party £1.2 billion buying up shops, offices Borough Council, explained to Property constitutional issue took centre- encouraging some commentators to system has resurrected itself but rather and industrial units, accounting for Week ‘We had gone through three stage – and remained there even think the decline terminal. than bringing with it the stability and 2.76% of all commercial property deals changes of ownership of Wolsey Place, after the referendum – Scottish certainty of the two-party politics of in the UK, according to Savills. and they were just not investing in it voters coalesced round a binary old, almost every major vote in the for the long term. When the recession choice: for or against independence. months ahead will be uncertain and Councils have funded their investments hit, we had the conversation that if we Thus was a new two-party system unpredictable – and politics will be through debt raised from a Treasury didn’t step in no one else was going to born of a centre-left Nationalist peculiarly unstable. Power will rest in agency called the Public Works Loan really take it forward.’ party (the SNP) and a centre-right Parliament. Government will be able Board, which gives them access to Unionist party (the Scottish Tories). to take nothing for granted. No vote loans on generous terms unavailable However, the motivations for some will be in the bag until all the votes The other parties have not been to private sector investors. The agency investments is more clearly just financial. are counted. Westminster will have completely obliterated, especially reportedly offers 50-year loans at a Some councils, particularly those with a new lease of life – perhaps even in Holyrood with its peculiar voting fixed interest rate of about 2.5%, fewer buying opportunities in their a spring in its step. Our democracy system. But by the general election which make commercial property area, have bought properties across the might be all the better for it. of 2017 Scotland had become investments hugely attractive because UK. For example, Fareham Council has a battle between a dominant the rental yields councils can achieve acquired shops in London, Weymouth Neil believes two referendums have redrawn the map of British politics. 4 | ANDREW NEIL Andrew Neil review of the YearPROPERTY return of the Two Party System Councils turn investors

The BBC’s Andrew Neil gives his take Nationalist party and a resurgent The referendum, however, reversed on investments are significantly higher on the state of Parliament following Tory party representing the Union. the decline. The Brexit vote ended the than the interest rates they have to pay the June 2017 general election. Two-party politics was back north schism on the eurosceptic right as to finance them. Buying commercial of the border. UKIP voters returned to the Tory fold; property has therefore enabled councils It was a year in which politicians and those on the Left of the Greens to plug gaps in their funding. learned not only of the power of So we should have been prepared and the Lib Dems flocked to Jeremy a referendum to overrule the will for something similar when Britain Corbyn’s more ‘red Flag’ Labour Spelthorne Council was open about the voted 52% to 48% to leave the of Parliament – but of its power offering. So, as in Scotland previously, financial reasons for its purchase of BP’s european Union in the June 2016 to change the party system in two-party politics was back with a Sunbury-on-Thames campus. Councillor referendum. At the time, we which they operate. Nobody saw vengeance in england too. Ian Harvey, Leader of Spelthorne this coming. But, in retrospect, remarked on the power of referenda Borough Council, said ‘Securing the perhaps we should have, since we to overrule both the Commons But without one crucial element. Our Council’s financial stability is our highest had the fallout from the Scottish (where MPs were 65% pro-eU) historic two-party system regularly priority and after exploring several produced one-party government referendum to guide us. and the Lords (probably 80% options and taking advice from a number for the life of a Parliament. But our pro-eU). What we did not see was of independent experts, we are confident In the autumn of 2014 the Scots new two-party system has produced how the Brexit referendum would that this forward-thinking agreement voted 55%-45% to remain part of the a hung Parliament with no party reconfigure english politics just represents a very sound investment for United Kingdom. That was supposed as the Scottish referendum had having an overall majority. This Spelthorne. It will be key in helping us to settle the matter of Scottish redrawn Scottish politics. knife-edge parliamentary arithmetic Woking Borough to close the budget gap and protect the independence for a generation, until means the smaller parties may be Council purchased the vital services which our residents and some Scottish Nationalists began So we were taken by surprise for a down – but they are not out. Wolsey Place shopping In September last year, Spelthorne businesses need and deserve.’ regarding a generation as no more second time. In this year’s general centre in 2010 using the Borough Council, a small local authority election – perhaps the single biggest The Conservatives need an alliance Public Works Loan than a couple of years. But in post- in Surrey, spent £360 million buying an Many councils have bought close act of self-harm a sitting government with one small party (Ulster’s DUP) referendum elections to Holyrood office campus let to the oil company to home and have justified their has ever inflicted on itself – almost to be sure of a majority. even then, and Westminster, it also recast the BP. The deal was unusual in that it acquisitions in terms of the wider 85% in england voted either with the Tories and Labour divided Scottish party system. was exceptionally large – in fact, it was benefits to the area. Woking Borough Conservative or Labour. The english over Brexit, no majority on any issue the largest ever commercial property Council, which has a longer track record Remember, Scotland had been one had not voted in such numbers for will be certain and on many votes transaction done by a local council. of the first parts of the UK to throw both major parties since 1970, when the smaller parties will be pivotal in of investing in commercial property than However, it was also symptomatic of off the British two-party system the post-war two-party system began determining many outcomes. many other councils, bought the Wolsey and replace it with a multi-party a growing trend. Last year, councils Place shopping centre in Woking from to wane – and declined in subsequent So politicians return from choice of SNP, Labour, Tory, Green, began investing in commercial property F&C reIT for £68 million in 2010. ray elections to a point where barely their summer recess to a great in a big way. Collectively, they spent Morgan, Chief executive of Woking Lib Dem and even UKIP. But as the 65% voted Tory or Labour, parliamentary paradox: the two-party £1.2 billion buying up shops, offices Borough Council, explained to Property constitutional issue took centre- encouraging some commentators to system has resurrected itself but rather and industrial units, accounting for Week ‘We had gone through three stage – and remained there even think the decline terminal. than bringing with it the stability and 2.76% of all commercial property deals changes of ownership of Wolsey Place, after the referendum – Scottish certainty of the two-party politics of in the UK, according to Savills. and they were just not investing in it voters coalesced round a binary old, almost every major vote in the for the long term. When the recession choice: for or against independence. months ahead will be uncertain and Councils have funded their investments hit, we had the conversation that if we Thus was a new two-party system unpredictable – and politics will be through debt raised from a Treasury didn’t step in no one else was going to born of a centre-left Nationalist peculiarly unstable. Power will rest in agency called the Public Works Loan really take it forward.’ party (the SNP) and a centre-right Parliament. Government will be able Board, which gives them access to Unionist party (the Scottish Tories). to take nothing for granted. No vote loans on generous terms unavailable However, the motivations for some will be in the bag until all the votes The other parties have not been to private sector investors. The agency investments is more clearly just financial. are counted. Westminster will have completely obliterated, especially reportedly offers 50-year loans at a Some councils, particularly those with a new lease of life – perhaps even in Holyrood with its peculiar voting fixed interest rate of about 2.5%, fewer buying opportunities in their a spring in its step. Our democracy system. But by the general election which make commercial property area, have bought properties across the might be all the better for it. of 2017 Scotland had become investments hugely attractive because UK. For example, Fareham Council has a battle between a dominant the rental yields councils can achieve acquired shops in London, Weymouth Neil believes two referendums have redrawn the map of British politics. 4 | ANDREW NEIL REVIEW OF THE YEAR | 5 THE PARLIAMENTARY REVIEW Review of the Year

and eastbourne as well as a Nursery is unable to find new ones, they will a year on from the eU referendum, He added that the group had built a in Oxford. Councillor Seán Woodward have no income with which to service investor appetite for the biggest and war chest for investment in ‘major cities said ‘It was important that we sought their multi-million pound loans. highest quality London office buildings globally’ after taking the decision two new and innovative ways of sustaining remained strong despite the threat years ago to sell almost all its property William Hill, a Director at real estate our income streams to protect public Brexit poses to the UK economy and the holdings in Western China because of fund manager Mayfair Capital, wrote services from cuts. By being creative, financial services sector in particular. the weakening domestic economy and we have been able to achieve this.’ in Property Week that they were ‘uncertainty and risks in the property CC Land and LKK are typical of the In November last year, the Council behaving like hedge funds. ‘Why is the market of second tier cities in China’. new wave of Far eastern investors that revealed its £26.5 million commercial Government borrowing money to lend have flooded into the London market For Hong Kong-based investors, rental property portfolio was yielding almost to local authorities to buy real estate on since the Brexit vote. The bidders yields on London offices, although low 7% – well above financing costs. terms that make bank lending to the property sector before the financial crisis are attracted by the weakness of the by historical standards, look attractive However, concerns have been raised look positively conservative?’ he said. pound, which has made UK real estate compared with their domestic about the council buying spree. Vince Cable MP has Low rental yields significantly cheaper, and what they market. A report by Savills and Deakin Last November, the Public Accounts Councils have tended to mitigate the cautioned against in Hong Kong has see as the comparatively good long- University in Australia last year found meant that Far Committee warned that council risks involved by buying properties councils financing term prospects for the UK capital. Hong Kong’s office yields were the investments through eastern investors personnel lacked the necessary with long leases, but some industry continue to look lowest of 54 major global markets. debt Cheung Chung Kiu, Chairman and commercial skills and that excessive risks insiders question the quality of many toward the UK majority owner of CC Land – which The upshot of all the strong investor were being taken with taxpayers’ money. of the properties bought by councils had already made a dramatic entrance interest from the Far east is that prices Liberal Democrat MP, Vince Cable, has and fear that they may be left with into the UK market only a matter of for top quality London offices have also said that, while some councils may empty buildings when leases come to weeks before the Cheesegrater deal barely moved since the eU referendum. succeed, ‘there is a very high risk of an end. If that happens, what Vince with its purchase of One Kingdom Indeed, if anything, pricing has bankrupting their local authorities’. The Cable called local authorities’ ‘long Street for £292 million – told investors become keener for the best buildings. investments have tended to be financed and inglorious history of gambling in in the company’s latest annual report CBre estimated in April that prime wholly through debt, which means that financial and property markets’ could that its two London acquisitions would City yields had reverted to their pre- if tenants decide to leave and the council well end up repeating itself. form ‘a firm base for the group’s referendum level of 4% having moved investment in the UK’. out by 25bps to 4.25% last year. Asian capital The recent sales of the Cheesegrater up for sale but, at the time, its joint Building homes to rent and Walkie-Talkie skyscrapers in the venture partner Canada-based Oxford City of London are remarkable for Properties had no intention of selling. In his first major speech as Housing clear that our ambitions will never be several reasons. The most obvious is the It was only the strength of the bidding Minister at the reSI conference last achieved without a significant boost in size of the deals. The £1.28 billion sale and the fact that that the ultimate autumn, Gavin Barwell, now Theresa institutional investment to ensure more of the Walkie-Talkie, known officially as buyer, CC Land, wanted 100% May’s chief of staff, signalled a major choice and quality for people living in 20 Fenchurch Street, is the biggest ever ownership that persuaded Oxford shift in Government policy. Whereas rented accommodation.’ deal for a single office building in the Properties to relinquish its stake as well. previously the Government had Unlike many other counties, such as UK and the £1.135 billion sale of the Similarly, in the case of the Walkie- been focused on encouraging home The purchase of the the US, where build-to-rent makes up Cheesegrater isn’t too far behind. Aside Talkie, Canary Wharf Group put its Leadenhall Building ownership, Barwell said that in order to a large share of the housing market, from the Walkie-Talkie, the only deal to syndicated 50% stake in the building by Asian investors build the homes the country needed, in the UK the sector is in its infancy. trump it in size is the £1.18 billion sale on sale in the Spring and LKK Health was the second largest purchase of it would have to support a broader Over here, the market for rented of HSBC tower in Canary Wharf, which Products Group proactively opened its kind in the UK range of tenures. In particular, he properties has been dominated by was bought by the Qatar Investment talks with Landsec, the owner of the signalled the Government’s support small buy-to-let landlords and only Authority in 2014. other 50% stake in the tower, in order for the nascent, but fast-growing in recent years have large investors to buy the whole property. Deals for the whole buildings were build-to-rent sector. This involves large started to look seriously at the UK also not meant to be on the cards. At The prices paid by the buyers, both institutional investors, often major market. Attracted by growing demand the end of last year, it emerged that Hong Kong-based investors, reflected insurance companies and pension for rented homes in the UK’s major UK-listed developer, British Land, had yields around the 3.4% mark, which funds, financing the creation of new cities and the prospects for secure put its 50% stake in the Cheesegrater, spoke volumes for the state of the homes specifically designed for the income streams, they have made officially called the Leadenhall Building, market. It demonstrated that almost rental market. Barwell said ‘I’m very significant commitments.

6 | REVIEW OF THE YEAR PROPERTY

a year on from the eU referendum, He added that the group had built a investor appetite for the biggest and war chest for investment in ‘major cities highest quality London office buildings globally’ after taking the decision two remained strong despite the threat years ago to sell almost all its property Brexit poses to the UK economy and the holdings in Western China because of financial services sector in particular. the weakening domestic economy and ‘uncertainty and risks in the property CC Land and LKK are typical of the market of second tier cities in China’. new wave of Far eastern investors that have flooded into the London market For Hong Kong-based investors, rental since the Brexit vote. The bidders yields on London offices, although low are attracted by the weakness of the by historical standards, look attractive pound, which has made UK real estate compared with their domestic Low rental yields significantly cheaper, and what they market. A report by Savills and Deakin in Hong Kong has see as the comparatively good long- University in Australia last year found meant that Far term prospects for the UK capital. Hong Kong’s office yields were the eastern investors continue to look lowest of 54 major global markets. Cheung Chung Kiu, Chairman and toward the UK majority owner of CC Land – which The upshot of all the strong investor had already made a dramatic entrance interest from the Far east is that prices into the UK market only a matter of for top quality London offices have weeks before the Cheesegrater deal barely moved since the eU referendum. with its purchase of One Kingdom Indeed, if anything, pricing has Street for £292 million – told investors become keener for the best buildings. in the company’s latest annual report CBre estimated in April that prime that its two London acquisitions would City yields had reverted to their pre- form ‘a firm base for the group’s referendum level of 4% having moved investment in the UK’. out by 25bps to 4.25% last year.

Building homes to rent

In his first major speech as Housing clear that our ambitions will never be Minister at the reSI conference last achieved without a significant boost in autumn, Gavin Barwell, now Theresa institutional investment to ensure more May’s chief of staff, signalled a major choice and quality for people living in shift in Government policy. Whereas rented accommodation.’ previously the Government had Unlike many other counties, such as been focused on encouraging home the US, where build-to-rent makes up ownership, Barwell said that in order to a large share of the housing market, build the homes the country needed, in the UK the sector is in its infancy. it would have to support a broader Over here, the market for rented range of tenures. In particular, he properties has been dominated by signalled the Government’s support small buy-to-let landlords and only for the nascent, but fast-growing in recent years have large investors build-to-rent sector. This involves large started to look seriously at the UK institutional investors, often major market. Attracted by growing demand insurance companies and pension for rented homes in the UK’s major funds, financing the creation of new cities and the prospects for secure homes specifically designed for the income streams, they have made rental market. Barwell said ‘I’m very significant commitments.

REVIEW OF THE YEAR | 7 THE PARLIAMENTARY REVIEW Review of the Year

Over the past five years, UK investors 2030, which Ian Fletcher, Director of serviced office providers like regus. Large landlords are now looking to take such as L&G and Hermes, as well as real estate Policy at the British Property The overall market has simply advantage. This summer, a number many big names from overseas, including Federation, argues would represent a expanded thanks to increased demand of big owners have either bought or Invesco and APG, have collectively meaningful contribution to tackling the for flexible office space. research from launched their own flexible workspace pledged to invest billions of pounds. housing crisis. ‘We estimate build-to- Knight Frank shows that the number of brands. US private equity giant, During the past year, yet more leading rent could help the new Government to flexible office centres in London grew Blackstone, which has over $100 billion investment groups and developers have meet a quarter of its housing shortfall,’ by 16% last year and other global in real estate assets under management announced plans to enter the market. he claimed. cities have also witnessed similar levels globally, has acquired a controlling Canada-based Oxford Properties of growth. As well as the startups stake in The Office Group in a deal that As well as helping boost overall revealed in March that it would look and SMes that have traditionally used valued the company at around £500 housing numbers, the completion of Former Housing Miguel McKelvey to invest more than £1 billion. CBre serviced offices, demand has also million. Meanwhile, fellow private equity the first build-to-rent homes represents Minister Gavin is co-founder of estimates that there is currently Barwell has overseen WeWork – the come from freelancers, who may have firm The Carlyle Group has launched £27.7 billion targeting the UK build-to- a timely addition to the rental the government’s company has seen otherwise worked from cafes or their its own brand, called Uncommon, in rent sector over the next five years. market in light of the Government build-to-rent plans exceptional growth own homes, and now chose to use London and listed developer British Land in London, and crackdown on the buy-to-let market. the co-working space that the likes has also entered the fray with Storey However, it will take time for these is expanding its An additional 3% rate of Stamp Duty operations to other of WeWork offer alongside private which it plans to launch on a number of commitments to translate into new was introduced last year for buy-to-let areas in the UK office space. its office campuses in the capital. each homes. Years after the sector’s and second home purchases, and this has its niche. For example, British Land pioneers started looking at the sector, year tax relief on mortgage interest Larger corporates are also getting in is targeting large corporates – its first only now are the first wave of build- payments for buy-to-let landlords was on the act, as demonstrated earlier deal is with DIY retail giant, Kingfisher to-rent schemes coming out of the cut. In the wake of the two policy this year by IBM’s decision to lease all – as well as SMes that have outgrown ground. According to data from Savills changes, estate agents report reduced the desks at WeWork’s 88 University co-working space and employ between and the British Property Federation demand for properties from buy-to-let Place office in New York. Flexible 20 and 70 people. But what they have (BPF) published in June, just 15,925 landlords and some owners with large workspace can allow big businesses to in common is a desire to tap a growing homes have been built to date. mortgages may be forced to sell homes reduce their office footprint and better part of the market. Landlords are also manage fluctuating staff numbers. As there are more than 20,000 homes as the cut relief changes are phased in. keen to establish links with the big It can also help them establish links under construction and a further If the number of buy-to-let properties occupiers of tomorrow, provide their with the young and growing businesses 20,000 with detailed planning consent, does fall, it would put significant existing tenants with more options that brands like WeWork attract and that number is likely to increase rapidly. upward pressure on rents without the and fill space in their own schemes give staff that are frequently out of the Savills and the BPF forecast that contribution of large numbers of build- at rental levels that are typically office at meetings the chance to work 240,000 new homes will be built by to-rent homes onto the market. higher than would be achievable with from multiple locations. traditional leases.

WeWork revolution Funds crisis Walk into a WeWork office and one trade services. These have proven On 4 July 2016 – less than two weeks The funds had closed because their of the first things you’ll notice is the particularly attractive to the growing after the eU referendum – news broke investors had rushed to take their bar offering free beer on tap. It is one band of tech entrepreneurs and small that Standard Life Investments had money out in the wake of the vote. of the many features that sets the US and medium-sized enterprises (SMes) been forced to suspend trading in its Fund managers had little choice but company out from the crowd. As well that are drawn to the WeWork brand. £2.9 billion UK property fund. Soon to close to give themselves time to sell as the usual things you’d expect in The company’s growth since arriving in after, it emerged that Aviva Investors and properties, meet the redemptions and a serviced office, such as high-speed London in 2014 has been phenomenal. M&G had also been forced to suspend rebuild their cash reserves. It appeared internet, a concierge and meeting Over the past year alone, WeWork trading in their equivalent funds and to show that investors were panicking rooms, WeWork offers ultra-cool, has accounted for more than 7% of before too long, seven funds were shut about the referendum result. Some laidback surroundings replete with all Central London leasing activity, for business. The fund suspensions were commentators expressed fear that funky breakout areas where workers and in June it agreed a deal to open among the first tangible signs, not just the UK commercial property market can relax on a sofa and enjoy a free its first UK office outside the capital, in property but also in the wider world could be in for a re-run of the financial upmarket coffee or beer. Other more at Allied London’s No.1 Spinningfields practical benefits include regular on-site of business and finance, of the UK’s crisis when liquidity dried up and in Manchester. professional social events and access decision to leave the eU having a direct values plummeted. However, such to the WeWork app, which allows The company’s growth hasn’t impact. They therefore became a major fears proved to be unfounded. Helped members to connect with others and been all bad news for established national news story. by an influx of foreign money taking

8 | REVIEW OF THE YEAR PROPERTY

serviced office providers like regus. Large landlords are now looking to take The overall market has simply advantage. This summer, a number expanded thanks to increased demand of big owners have either bought or for flexible office space. research from launched their own flexible workspace Knight Frank shows that the number of brands. US private equity giant, flexible office centres in London grew Blackstone, which has over $100 billion by 16% last year and other global in real estate assets under management cities have also witnessed similar levels globally, has acquired a controlling of growth. As well as the startups stake in The Office Group in a deal that and SMes that have traditionally used valued the company at around £500 Miguel McKelvey serviced offices, demand has also million. Meanwhile, fellow private equity is co-founder of WeWork – the come from freelancers, who may have firm The Carlyle Group has launched company has seen otherwise worked from cafes or their its own brand, called Uncommon, in exceptional growth own homes, and now chose to use London and listed developer British Land in London, and has also entered the fray with Storey is expanding its the co-working space that the likes operations to other of WeWork offer alongside private which it plans to launch on a number of areas in the UK office space. its office campuses in the capital. each has its niche. For example, British Land Larger corporates are also getting in is targeting large corporates – its first on the act, as demonstrated earlier deal is with DIY retail giant, Kingfisher this year by IBM’s decision to lease all – as well as SMes that have outgrown the desks at WeWork’s 88 University co-working space and employ between Place office in New York. Flexible 20 and 70 people. But what they have workspace can allow big businesses to in common is a desire to tap a growing reduce their office footprint and better part of the market. Landlords are also manage fluctuating staff numbers. keen to establish links with the big It can also help them establish links occupiers of tomorrow, provide their with the young and growing businesses existing tenants with more options that brands like WeWork attract and and fill space in their own schemes give staff that are frequently out of the at rental levels that are typically office at meetings the chance to work higher than would be achievable with from multiple locations. traditional leases.

Funds crisis

On 4 July 2016 – less than two weeks The funds had closed because their after the eU referendum – news broke investors had rushed to take their that Standard Life Investments had money out in the wake of the vote. been forced to suspend trading in its Fund managers had little choice but £2.9 billion UK property fund. Soon to close to give themselves time to sell after, it emerged that Aviva Investors and properties, meet the redemptions and M&G had also been forced to suspend rebuild their cash reserves. It appeared trading in their equivalent funds and to show that investors were panicking before too long, seven funds were shut about the referendum result. Some for business. The fund suspensions were commentators expressed fear that among the first tangible signs, not just the UK commercial property market in property but also in the wider world could be in for a re-run of the financial of business and finance, of the UK’s crisis when liquidity dried up and decision to leave the eU having a direct values plummeted. However, such impact. They therefore became a major fears proved to be unfounded. Helped national news story. by an influx of foreign money taking

REVIEW OF THE YEAR | 9 THE PARLIAMENTARY REVIEW Review of the Year

advantage of the weak pound, values problems of daily trading in open- and demonstrates how the UK is at told Property Week last autumn that the fell less sharply than many predicted. ended funds, where the underlying the forefront of the next steps in the company may develop more office space asset takes months to sell.’ tech revolution.’ at the residential-led scheme on the The crisis-hit UK property funds also back of the Apple deal, which he said recovered quickly and by the end of None of the equivalent open-ended Little more than a month after Apple’s ‘completely underpins the destination’. 2016, all the funds that had closed funds or institutional funds suffered the announcement, Google also made were back up and running again. same mass redemptions as their retail a major commitment to London by Growing demand from tech companies Attention then turned to establishing fund counterparts, which is partly down confirming plans for a mammoth has been a key driver of London’s exactly why the funds had proved so to their structure. Institutional funds £1 billion development at Kings Cross, office market in recent years, helping vulnerable and what could be done only allow investors to take money allaying fears it had been spooked by to offset weaker demand from tenants to prevent the same thing happening out on a quarterly basis and the price the eU referendum result. A 10-storey in the financial services sector. Much of again. All the funds that were forced to they exit at is based on the value of the 650,000 sq ft complex for 3,000 the demand is for small offices suitable close were aimed at retailer investors – portfolio at the time of exit, not when employees will now be built alongside for startups, but many of these have although it was the redemption orders the redemption notice was served. Google’s existing offices on Pancras grown and become large occupiers. of a small number of financial advisors However, adopting this approach for Multinational Google CeO Sundar Square. Announcing the move, Google’s For example, online restaurant delivery property investors Pichai gave investor and wealth managers managing their retail funds may not be feasible. As an Standard Life confidence in the UK Chief executive, Sundar Pichai, was full company, Deliveroo, agreed to take money rather than the decisions of independent report produced earlier suspended its UK a boost, when it was of praise for the UK. ‘Here in the UK, it’s 51,500 sq ft at Cannon Bridge House larger numbers of individuals that this year for the Association of real trading after investors confirmed that the clear to me that computer science has a last autumn – only two-and-a-half caused the funds’ liquidity problems. estate Funds pointed out, the regulatory panicked in the wake tech giant would be great future with the talent, educational years after the business was run from a of the Brexit decision developing a new £1 The funds were also all daily-traded framework and operational limitations billion office in London institutions, and passion for innovation 1,400 sq ft unit. funds, which meant investors could take may make it difficult to move away we see all around us.’ Tech companies have also helped to their money out whenever they liked. from the daily-traded model. The office moves from Apple and establish new office locations, most Many in the property industry believe This year, the Financial Conduct Google are likely to prove a major boost notably the so-called ‘tech belt’ along this model is flawed because property Authority (FCA) has also published a for their local markets. Kings Cross has the northern and eastern fringes of is not a liquid asset class – it can take discussion paper on the issues raised only taken off as a top office location The City, where rents can now equal, months to sell a building – so allowing in the wake of last summer’s funds in recent years, and in Battersea, Apple or even top, those found in the square investors to withdraw money whenever crisis, which was widely praised in is breaking new ground move by mile. In the run-up to Brexit, which is they like is asking for trouble, especially the industry for ruling out an outright locating its UK Headquarters there. Both likely to dampen demand from financial as they can sell out at a price that is ban on open-ended property funds companies are likely to attract others services occupiers, the continued success based on a valuation that is potentially and putting forward a wide range who want to be located nearby. rob of London’s tech economy is expected out of date. For example, richard Tice, of options for reform. The regulator Tincknell, Chief executive of Battersea to be more critical than ever for the Chief executive of Quidnet Capital and is currently reviewing comments on Power Station Development Company, health of the City’s office market. co-founder of the pro-Brexit campaign the paper. All eyes now turn to its group Leave.eU, wrote in Property response, which is expected later this Week ‘Investors and IFAs had no real year and could involve proposals for understanding of the true liquidity new or amended rules governing funds. Business rates outcry The business rates revaluation that 2008 rental values since April 2010, came into force this April was met with so in areas where rents had increased a barrage of negative press coverage significantly since the financial crisis, Big Apple letting and front page stories about small rates went up sharply as well. The businesses being pushed to the brink worst affected areas were in London On 26 September, Apple announced due to take place in 2021 – one of the by massive tax hikes. In some parts and the South east. In many other parts that it would be moving its UK largest ever in London’s West end and of the country, the increases were of the country, business rates fell and Headquarters to Battersea Power surrounding area. Furthermore, rumours truly eye watering. In one of the most often by a significant margin. However, Station. The news was unquestionably a had been circulating for the best part of extreme examples, shops on parts of the Government’s new method for boon for the Malaysian-backed Battersea a year of Apple’s interest in moving to Bond Street and Marylebone High transitional relief meant there were few Power Station Development Company, the Battersea scheme, so the fact that Street faced 250% increases in their real winners. which had been feeling the effects the US tech giant decided to sign three business rates bill. of a slowdown in the luxury housing months after the Brexit vote was viewed The maximum increase for large market. However, its significance went as important. Philip Hammond was quick The reason why the changes were so properties in 2017/18 was set at 45%, far wider than that. Apple agreed to to describe it as ‘a vote of confidence dramatic was that the Government rather than the previous 12.5% cap, lease 500,000 sq ft across six floors of in the UK economy’ before adding that had left the revaluation for seven and properties deserving big falls in their the power station’s central boiler house. the move ‘further strengthens London’s years rather than the normal five. This liabilities as a result of the revaluation That makes the office move – which is position as a global technology hub meant that rates had been based on would see their decreases limited to just

10 | REVIEW OF THE YEAR PROPERTY

and demonstrates how the UK is at told Property Week last autumn that the the forefront of the next steps in the company may develop more office space tech revolution.’ at the residential-led scheme on the back of the Apple deal, which he said Little more than a month after Apple’s ‘completely underpins the destination’. announcement, Google also made a major commitment to London by Growing demand from tech companies confirming plans for a mammoth has been a key driver of London’s £1 billion development at Kings Cross, office market in recent years, helping allaying fears it had been spooked by to offset weaker demand from tenants the eU referendum result. A 10-storey in the financial services sector. Much of 650,000 sq ft complex for 3,000 the demand is for small offices suitable employees will now be built alongside for startups, but many of these have Google’s existing offices on Pancras grown and become large occupiers. Google CeO Sundar Square. Announcing the move, Google’s For example, online restaurant delivery Pichai gave investor confidence in the UK Chief executive, Sundar Pichai, was full company, Deliveroo, agreed to take a boost, when it was of praise for the UK. ‘Here in the UK, it’s 51,500 sq ft at Cannon Bridge House confirmed that the clear to me that computer science has a last autumn – only two-and-a-half tech giant would be great future with the talent, educational years after the business was run from a developing a new £1 billion office in London institutions, and passion for innovation 1,400 sq ft unit. we see all around us.’ Tech companies have also helped to The office moves from Apple and establish new office locations, most Google are likely to prove a major boost notably the so-called ‘tech belt’ along for their local markets. Kings Cross has the northern and eastern fringes of only taken off as a top office location The City, where rents can now equal, in recent years, and in Battersea, Apple or even top, those found in the square is breaking new ground move by mile. In the run-up to Brexit, which is locating its UK Headquarters there. Both likely to dampen demand from financial companies are likely to attract others services occupiers, the continued success who want to be located nearby. rob of London’s tech economy is expected Tincknell, Chief executive of Battersea to be more critical than ever for the Power Station Development Company, health of the City’s office market.

Business rates outcry

The business rates revaluation that 2008 rental values since April 2010, came into force this April was met with so in areas where rents had increased a barrage of negative press coverage significantly since the financial crisis, and front page stories about small rates went up sharply as well. The businesses being pushed to the brink worst affected areas were in London by massive tax hikes. In some parts and the South east. In many other parts of the country, the increases were of the country, business rates fell and truly eye watering. In one of the most often by a significant margin. However, extreme examples, shops on parts of the Government’s new method for Bond Street and Marylebone High transitional relief meant there were few Street faced 250% increases in their real winners. business rates bill. The maximum increase for large The reason why the changes were so properties in 2017/18 was set at 45%, dramatic was that the Government rather than the previous 12.5% cap, had left the revaluation for seven and properties deserving big falls in their years rather than the normal five. This liabilities as a result of the revaluation meant that rates had been based on would see their decreases limited to just

REVIEW OF THE YEAR | 11 THE PARLIAMENTARY REVIEW Review of the Year

Business rates for some businesses on Bond 4.1% in the first year – meaning they ‘reasonable valuation’ – if a valuation is Street were more than would see little immediate benefit. The determined to be reasonable an appeal doubled, leading to considerable rancour new method was widely condemned would be refused. Some welcomed across the property industry and the the change, but others said the new business community. ‘How businesses wording was ‘muddled’. can accommodate year-on-year rises In the Spring Budget, the Chancellor, of 45% with only six months’ notice Philip Hammond, also agreed to put is beyond me, but even worse is together a £300 million fund for local the severely restricted falls for those authorities to help small businesses properties that should have been in line in areas hardest hit by business rate for greatly reduced business rates bills,’ increases. Furthermore, he said the said Jerry Schurder, Head of Business Government would publish a discussion rates at Gerald eve. paper on increasing the frequency of Government proposals to dismiss revaluations. However, business rates appeals against incorrect valuations professionals are not holding their that were deemed to be within the breath. Consultations and promises bounds of ‘reasonable professional of reform have come and gone in the judgement’ only exacerbated matters. past with little or no concrete changes The Government’s aim was to cut to the system. Most recently, a set of the large volume of appeals, which much-anticipated reforms, including it claimed were often encouraged by plans to allow local authorities to retain agencies offering to challenge decisions business rates revenue, look to have on a no-win, no-fees basis. A wide been kicked into the long grass after range of trade bodies including the the Queen’s Speech in June made Confederation of British Industry (CBI), no mention of the Local Government The British retail Consortium and the Finance Bill. Business rates reform looks Federation of Small Businesses (FSB) set to remain a political hot potato for lobbied hard for the new policy to be some time. Successive governments dropped arguing that it was unfair and accept the need for change – but given potentially unlawful. The Government that the tax brings in £25 billion to backed down this spring by agreeing the Treasury coffers and the collection to scrap the ‘reasonable professional rate stands above 98%, there is little judgement’ proposal. Instead, it said incentive for Government to make the Valuation Tribunal would be left to radical changes, especially when public determine whether a valuation was a finances are under acute pressure.

12 | REVIEW OF THE YEAR PROPERTY

IDM Properties

IDM’s St Georges Church development of 20 luxury apartments within this former church

Jonathon Curtis, Partner, IDM Properties llp DM Properties is an established name in the London property market where it has operated for more than 35 years. Having Igrown rapidly in the past few years, the developer has adapted to become a multi-functioning business catering for many requirements. FACTS ABOUT IDM Properties As a family business ran by the Curtis and the Meehan families, IDM Properties has »»London-based property forged a reputation in its industry for an expansive portfolio spanning investment, services company, spanning development, management, finance and construction. Shying away from high- investment, development, end boutique developments, IDM Properties instead focuses on what company management, finance and partner, Jonathon Curtis, describes as ‘everyday’ properties courted by the everyday construction Londoner. ‘The housing shortfall lies in properties for people with normal jobs »»Founded as IDM by the Curtis rather than the luxury property market,’ he says. and Meehan families before IDM Properties has operated in the UK capital throughout its 35-year history, with rebranding as IDM Properties Shoreditch in the east of the city its current home. In recent years, the company has in 2007 expanded its reach by venturing out towards the suburban commuter areas on the »»Recorded a turnover of more edges of London. than £100 million in 2016

Curtis, son of co-founder Andrew Curtis, says this is due to the surge in property »»Employs 60 staff prices making London living less affordable for would-be home owners. ‘We are looking at properties in the Underground zones 3–6, areas which give great commuter access Central London and now further out into the Home counties,’ he says, adding that due to sheer demand, the sale process has become quicker than ever before.

IDM PROPERTIES | 13 THE PARLIAMENTARY REVIEW Highlighting best practice

Raw stock a challenge The impact of Help to Buy

One challenge, however, lies in the A more positive development of buying of the so-called raw stock, the recent times was the introduction site on which to develop the property. of the Government-led Help to Buy This is because landowner expectations scheme in former Chancellor George have become unrealistic, Curtis Osborne’s 2013 Budget. ‘Help to Buy believes. ‘There’s a lot of money out brought about huge benefits for IDM There’s a lot there from people trying to invest and Properties in the past 18 months and this has led to people overpaying for now accounts for around 80% of our of money out raw stock,’ he says. overall sales,’ Curtis says. “there from The drawn out planning process The decision to work on Help to Buy

times also continue to be problematic schemes was demand driven, with people trying for the industry, especially for IDM many customers inquiring strictly

to invest and which does nearly 90% of its projects for properties associated with the as committed developments, Curtis programme. In a policy change from this has led to“ adds. However, the introduction its predecessor, the Government of people of the permitted development Theresa May announced the end of rights converting office buildings to Help to Buy, although some schemes overpaying for residential apartments has greatly have been extended to 2020. ‘The increased production our of units and Help to Buy model will be a constantly raw stock allows for a faster deal cycle. evolving one,’ Curtis says. ‘A few A prominent recent example of an IDM years from now it may have totally Properties-led permitted development changed and resemble something project was at Channelsea House in altogether different.’ Stratford for 72 apartments. This saw IDM Properties buy the building, carry A changing industry out the work and sell the properties For the wider industry, Curtis notes the within an 18 month period. Once stark changes from when he joined sold, it typically retains an interest the industry in 2003; at this time the Gainsborough Studios, in the development by managing one of IDM’s flagship market was booming, which benefited the freehold. development in both buyers and sellers financially. Shoreditch which was completed in 2003 ‘Since the market crash, the fourth in the history of IDM Properties, things have changed and the overpaying for raw stock is one of the most noticeable effects,’ he says.

Following the last market crash around the time of the recession, IDM Properties chose to downsize the scale of its operation in order to negate its impact but, unlike some competitors, it had the benefit of a healthy balance sheet and access to lines of funding from banks. Curtis also concedes the false economy of the London property market in comparison to the rest of the country, a market he says ‘typically slows down for period but rarely drops.’

14 | IDM PROPERTIES PROPERTY

IDM’s Hoover Building developed into 66 apartments A multi-functioning company management in-house, something larger developers have done for a To keep up with a changing industry, number of years. IDM Properties has looked to enhance its available services over the years Future demand will grow to become a one-stop shop. Aside from developing and management, Demand is anticipated to continue on other services include estate agency a large scale. A project to develop the selling IDM and third-party stock and Hoover Building in Perivale into 66 a mortgage broker service to assist apartments by March 2018 has already would-be buyers. Most recently in generated in excess of 2,000 inquiries. 2016, this led to the formation of a ‘The Hoover project is an exciting new construction division following one and won’t just be great for our The Hoover three key contractors going bust. brand but also for London in general,’ ‘Medium-sized contractors have a Curtis says. project is an tendency to take on more work than Projects like these will contribute to “exciting one they can afford and this leads to them

growth. IDM Properties currently running out of the cash flow needed and won’t just produces around 300 to 400 units per to service the jobs they are doing,’ year and Curtis says a long-term target be great for Curtis explains. is 600 to 700 properties annually. He our brand but“ The formation of the construction predicts London major infrastructure management business also gives the developments, such as Crossrail which is also for firm greater control over its operation. projected for 2019, will also generate ‘We have senior site teams running more property opportunities in areas London in the jobs and putting packages out to made more attractive by having a quicker general subcontractors. That allows us to build, route around London. ‘The foundations more efficiently and with a greater are very much in place and it’s down to level of control.’ Curtis says this also us to use our good judgement by picking reflects a wider industry trend of more developments in the right locations that developers, mostly medium sized ones, people will go for,’ he says. bringing functions like construction

IDM PROPERTIES | 15 THE PARLIAMENTARY REVIEW Highlighting best practice

The Collection

The Collection is a full spectrum property advisory business

Caroline Takla, Managing Partner

ince its establishment in 2009, The Collection has built a

FACTS ABOUT reputation as one of London’s premier property acquisition The Collection Sagencies primarily catering for international buyers. »»Head office in Mayfair, London »»Founded in 2009 by managing Caroline Takla, managing partner who founded the company, says Brexit has partner Caroline Takla provided huge challenges but also created opportunity for inward investment into »»Services include acquisitions, London; however, responding and adapting to the market are key to staying ahead. property development and In the past eight years, The Collection has successfully completed nearly managed sales £750 million of property deals on behalf of UHNW and HNW clients from »»Has completed nearly 41 countries, including royalty, Forbes-listed billionaires, actors, global investors, £750 million of property deals business executives and seasoned property developers. The business sits on the »»On the panel of a number panel of a number of Private Banks and Trust companies, offering services to their of Private Banks and Trust clients. This has occurred during a period of great change – with some premier companies properties in London selling at record values and others being snapped up at »»Rated among Top 25 bargain levels, amidst a backdrop of significant national events. residential property buyers Some changes have been positive: overseas interest in London high-end properties by industry media outlet remains robust with the weak pound providing a relief against ‘Brexit Blues’. Eprivateclient (2013-2017) However, some have been negative, especially in areas such as taxation which has »»Spear’s Top Recommended seen the introduction of some ill-advised and draconian rulings going against the and included in the spirit of promoting London as a centre of inward investment. Spear’s 500 »»Sister Property Development Setting up during the recession Company launched this year, I founded the company right in the middle of the global financial crisis, a time that One Point Six (London) Ltd. proved highly challenging for the property market with credit less readily available. Current development projects However, going against the grain somewhat, I identified this period as the best time since launch £23,000,000 to establish the business. The U.S. Dollar was (as it is now) strong against the British

16 | THE COLLECTION PROPERTY

Pound and many of our early clients Clients can benefit from our expertise in resided in countries with currencies sourcing opportunities and delivering a pegged to the Dollar. This presented product that the market actually wants. symbiosis for us and our clients. The minimum investment is £500,000. Overseas There was also a gap in the market for Brexit: A double-edged sword? a specialist agency like The Collection clients are working on behalf of international The UK’s decision to leave the buyers looking to invest in London that European Union in June 2016 has “leaning on us truly understood their needs. Around presented perhaps the single biggest for the full 10 years ago, most buying agents were challenge to the market that we have focused on high net worth individuals experienced in recent history. More so spectrum of based in the UK who were typically than the credit crunch in 2009. looking to buy a separate residence property There is a gulf between buyer and either in London or another part of seller expectation. There are some services and the country. Today, not only does segments of the market that are The Collection cater for investors and saturated with stock whilst other can benefit developers as well as owner occupiers, segments are arid with some sellers from our it is the only UK property company that opting to ‘wait it out’ meaning has a dedicated Vastu Shastra service, good quality sale stock is, ironically, expertise in specifically catered for Indian clients depleted. We are having to work extra sourcing who will simply not buy a property if it hard to both sift through and hunt out is not Vastu compliant. the best properties for our clients. opportunities Increasingly overseas clients are leaning The rental market has seen a seismic and delivering “ on us for the full spectrum of property migration from would-be forced sellers services. Property is of course a home, and those who refuse to sell for less a product that but it’s also an investment and our role than what they perceive their property the market is to source opportunities, negotiate to be worth. favourably and importantly manage actually wants the complete process right down to Yet, often out of uncertainty, comes changing the locks at the end. opportunity. Much like with the global financial crisis of 2009, Brexit has Adapting is the key to created some opportunities for the UK property sector. With the weakened longevity pound negating the impact of stamp Master bedrom in one In response to overwhelming demand, duty charges and an air of general of our acquisitions we set up a development service and developments in whereby we source opportunities Knightsbridge for clients, provide development consultancy, oversee the design and build process and deliver an exit for them.

Such has been the success of this service that in partnership with clients, I launched a property development company affiliated with The Collection. One Point Six London is our sister company launched earlier this year and we are currently developing a portfolio of properties with a total GDV of £23 million.

THE COLLECTION | 17 THE PARLIAMENTARY REVIEW Highlighting best practice

At present, any prospective agent could simply advise and make recommendations to clients on multi- million pound transactions. Given the size of these financial outlays, it seems inconceivable that there is no stronger regulation. At the very least there is a strong argument for a form of exam to enter into the profession, equivalent to that issued by the FCA to would-be investors or even the formation of an advisory board.

Whether or not this regulation becomes a reality in the near future is hard to determine. Governments have tended to focus on other A smart controlled housing policies deemed, perhaps ethanol fireplace in rightly so, as more urgent. Yet, as our Knightsbridge negative sentiment, we have been able development the buying agency market continues to negotiate attractive deals for clients to grow with a greater number of with substantial savings. companies in the sector than before, Another outcome stemming from it’s not an issue that can be ignored Brexit is that from an industry long-term and action will be required perspective, in that it separates the sooner rather than later before wheat from the chaff in terms of problems arise. some of our direct competitors. We have been able to so far meet the London’s future status The capital’s market challenges presented by Brexit The circumstances of 2017 are very and have prospered regardless of the status as the different to those we experienced

economic climate and general market when establishing ourselves nearly sentiment. Whilst it remains a delicate “leading global eight years ago. Short-term, the

balance, we remain optimistic about pound is likely to remain weak which financial meeting the challenges that lie ahead. for our clients is an advantage. centre needs“ Long-term, the capital’s status as More knowledge-driven the leading global financial centre to be regulation required needs to be considered carefully. It considered One area that could be addressed would be naïve to suggest there will more directly is in regulation. I’ve been be no ramifications on postcodes carefully an advocate for greater guidelines in London that are attractive to specific to the buying agent market European buyers or those with strong – something still remarkably non- ties to the financial services sector. existent. Today, there are general However, our experience with our regulations property have to adhere clients, who are predominantly from to such as anti-money laundering laws the Middle East, Asia and Africa, is set out by HMRC and guidelines from that London has a great deal more to The Property Ombudsman. These are offer and whilst its appeal short-term important but our industry needs more may be slightly diminished it has by knowledge-based regulation to create no means been eradicated and it still a stronger framework around the lack offers a very solid and attractive long- of barriers to becoming a property term investment. buying agent.

18 | THE COLLECTION PROPERTY

Groveworld

Crystal Wharf: The original scheme that heralded the City Road Basin Regeneration or London property developer Groveworld, no two property propositions are the same. Overseeing many high-end Fbespoke developments in its 26-year history, the company has a track-record of unlocking the potential of derelict and underutilised sites by turning them into high-end properties.

Spearheaded by a team of experienced Directors and Senior Management possessing between 20 to 30 years’ experience each, London developer FACTS ABOUT Groveworld has established a reputation as a specialist in smaller scale, high-end Groveworld boutique property developments created on derelict and under-utilised sites. »»Property developer specialising Refraining from the all too common industry preference for volume and unit numbers, in turning derelict and Groveworld has consistently maintained a penchant for quality over quantity in its under-utilised sites into high- creation of mixed-use developments. Where larger firms will look for developments of quality residential mixed-use at least 300 apartments, Groveworld operates in a more niche bracket of circa 100-200 developments units and under. Aimed at unlocking the full potential of an area’s development, »»Headquartered in London Groveworld will oversee its architectural, design and project management stages. »»Founded in 1991 A Greater London focus »»Employs 12 people

In all of its residential and commercial ventures, London has very much been Groveworld’s stomping ground since its inception. In the past decade alone, the surge in London property prices has seen highly lucrative sales, with Groveworld being the first to reach the £1 million mark for a luxury Penthouse apartment in 2000 in Islington. The firm typically sees most of its work emanate from residential projects, but a healthy percentage is also carried out on commercial developments in the capital – typically in the form of ground floor retail, restaurants or offices.

GROVEWORLD | 19 THE PARLIAMENTARY REVIEW Highlighting best practice

With a high number of properties ‘Where Groveworld bought derelict around the boroughs of Hackney, sites for hundreds of thousands Islington and Camden, Groveworld’s 10 years ago will now have a going furthest reach out of London is in rate in the millions.’ Rainham, where it acquired and intends to build houses in the Rainham and Partnerships We are Beam Park Housing Zone with a joint

Underpinning many of Groveworld’s venture partner. ‘The Rainham project committed to achievements are its array of goes against the grain somewhat as it

partnerships encompassing architects, “selling to targets 300 plus units in the lower to public sector organisations, landowners middle end of the market as opposed “ and investment funders. Sometimes domestic to our more regular work in high- these affiliations are enhanced in the end developments’, says Nick Morris, buyers as well form of 50/50 joint ventures, allowing Commercial Manager at Groveworld. a partner to work more closely with as to those ‘The firm’s operations remain within Groveworld on the development and the Greater London boundaries due to abroad delivery of a project. Morris believes a richness of sites with regeneration such partnerships represent a smarter potential – there’s simply a lot of way of operating in the market. opportunities in just one city.’ ‘We need to be a little bit different, The firm will continue to review and hopefully better placed to catch potential sites on the edges of Greater people’s interest and make us stand London. ‘The cost of land in London out from our competitors,’ he says. has shot up in the past decade The landowner connection is important meaning there is a shortage of land Angel Waterside: in the purchasing phase, which at a vaguely sensible price,’ he says. Another critical step in Groveworld acquires at a very early delivering the City Road stage either through an outright sale Basin Masterplan or working with the landowner in a joint venture. During this phase, the developer typically looks at sites considered undesirable, with Morris citing a low-use industrial unit as one recent example. Buyers attracted to these developments approach Groveworld from within the UK and Europe, but in a trend of recent years, a growing number are doing so from the Far East. ‘We are committed to selling to domestic buyers as well as to those abroad,’ Morris says.

A more efficient property sector Morris, at Groveworld since 2005, cites the rise in stamp duty implemented in early 2016 affecting properties with a value of more than £2 million as putting an anchor on the prime market in recent times. Brexit, very much a global issue, actually was a boon for Groveworld through a sale of a £3.5 million property from a Madrid-based buyer attracted by the favourable pound to euro rate.

20 | GROVEWORLD PROPERTY

Canaletto Tower: The pre-eminent Chenies Street: A successful building in the City Road Basin joint venture with RADA masterplan

Above all else, he says, technology office, retail, leisure and affordable continues to have the biggest impact workspace. Groveworld still maintain on Groveworld and the industry it an interest in the Hackney Wick area serves. ‘The internet age of computers, with a scheme they are looking to bring WiFi and smart phones has speeded forward in the not too distant future. things up and made the industry more Looking towards this year and beyond, efficient as a whole,’ Morris explains. Morris says there are no grand plans as ‘People are easier to get hold of and such to drive a rapid expansion of the this helps when making important business. ‘Groveworld has operated The familiarity decisions around buying and selling with the same core team of people for of the team while aiding both the construction and many years and that’s the way we like development processes.’ it,’ he says. ‘The familiarity of the team “allows us to allows us to adapt to market changes A new look for a new era at our choosing with a set level of adapt to

revenue and productivity.’ 2016 was the company’s market

25th anniversary and, to mark the But above all else, stability is the key changes at our quarter century milestone, Groveworld for Groveworld which sits comfortably undertook a rebrand of its logo and from a niche position in the London choosing, with “ website marking a new chapter in its property market. Doing what is does a set level of history. Following the transformation, well demonstrates the success of what more landmark projects were it sees as a proven strategy. ‘The past revenue and delivered. In June 2017, the company few years have seen us thrive in the successfully sold Stone Studios to London market and we’d simply like to productivity Telford Homes in a project aimed at continue producing good quality homes redeveloping Hackney Wick. The site for buyers,’ Morris says. ‘Ultimately, was sold with planning permission for this is Groveworld’s strength.’ 120 apartments and 55,000 sq ft of

GROVEWORLD | 21 THE PARLIAMENTARY REVIEW Highlighting best practice

Styles&Wood

Working together to make a difference Tony Lenehan, Chief Executive Officer tyles&Wood provides specialist support services to the built environment including: Programme Management S& Implementation; Project Development & Delivery and Strategic Asset Management. Our expert capabilities enable us to refresh, fit-out and refurbish buildings to improve their FACTS ABOUT performance for occupiers. Our core customers typically include Styles&Wood blue chip major corporates, banks and national retailers. »»2016 Business Result: £104.7 million revenue and £4.1 million underlying profit before tax. Purpose Sustainable »»2017 market forecast: We exist to enhance the Innovation/ Talent Customer/ £138.9 million revenue and Financial Attraction/ core business activities of Stakeholder Performance Retention £6.5 million underlying profit our customers through Relationships before tax. optimisation of the built »»Listed business on the environment. Profit is driven by leveraging the benefits realised through provision alternative investment market of our services and the development of mutually-beneficial business relationships. of the London Stock Exchange: By focusing on ideas, innovation and talent management we have created great Support Services Sector. customer relationships. In 2016 over 75% of our sales were through repeat business. »»UK-wide coverage with operational centres in Vision, values and responsibility Manchester, Nottingham, Styles&Wood is committed to working collaboratively with our customers. We London and the Home make a difference by positively enhancing both their core business interests and the Counties communities in which we jointly operate. This year the business has worked with Trafford General Hospital to support the funding and realisation of a new coffee lounge and restaurant. Styles&Wood is an active participant in Business in the Community, the Prince of Wales’ responsible business network.

22 | STYLES&WOOD PROPERTY

What we do We provide a range of specialist services which support the full property life cycle. Our expertise in building intelligence and big data analytics, provides strategic insight for the management of real estate portfolios. For example, we provide Nationwide with a suite of software applications and systems to enable the efficient running of their estate which comprises hundreds of buildings. We have additionally jointly developed a formal model for Governance, Risk and Compliance which supports their core business.

Our integrated service model allows us to connect and adapt to the evolving needs of our customers. The business holds core competencies in outsourced delivery which ensures that we are always able to provide solutions which reflect the best available in the market. How we do it A selective Selectivity, diversification and resilience: Operational delivery is effected The core skills and expertise of the through specialised business units approach to new business have been applied to a which are customer-centric or focused“ opportunities, number of specific sectors where on sector specifics. The service these capabilities are both relevant line range provides an end-to-end and planned and value adding. A proven ability capability for the full property life to work with minimum disruption cycle and is strengthened by in-house diversification, to occupiers whilst transforming the design and niche specialisms. Most has seen business“ built environment is important in recently we have acquired businesses our chosen markets. During 2016 in the critical facilities and mechanical performance we remodelled the entrances of and electrical services areas. We improve over 340 stores for one of the UK’s now have consultants working in leading grocery retailers without any Singapore and Scandinavia advising on progressively disruption to trading. operational efficiencies.

Operational platform

Professional Services Programme Management & Implementation Project Development & Delivery Facilities Services

Design and Technical Services Technological change lies at the heart of Niche Specialities many of our customer relationships

STYLES&WOOD | 23 THE PARLIAMENTARY REVIEW Highlighting best practice

for operational efficiency by property owners and end-user occupiers continues to drive requirements for office refurbishment and fit-out. This is further positively compounded by changes in working practices and Styles&Wood understands increasing levels of investment in the importance of people new office buildings. People: People are our main asset »»Retail: The UK’s major grocery retailers and the company adopts a flexible are all committed to investing in approach to help our staff feel good their existing estates to improve about themselves and about work. We format. A parallel emerging focus have 440 full time staff. It’s a company on convenience, on-line and multi- Our strategic who employ people across the 16 channel operations is also increasing to 65 plus age range and has every demand for the refreshing, refitting focus on intention of promoting this multi- and refurbishment of premises. generational approach. We additionally “technologies- »»Public and community: Sustainable have targeted recruitment programmes investment plans have been created for ex-services staff. led real estate to support capital investment in solutions »»Our gender balance compares the Higher Education estate and extremely well within our peer to redress an under provision of creates a clear group. More than a quarter of our school places. The associated five point of staff are female. year capital programmes create real opportunity to secure new »»Investment in training and sustainable business interest. difference. This development encompasses Healthcare is also undergoing apprenticeships, management and skills approach significant change where technology development and graduate schemes. influences and the development of provides »»The company is committed to having outsourced service requirements are more than 10% of the workforce in genuine driving property asset upgrade. training at any one time, including innovation in a working towards masters’ degrees »»Banking and finance: The major and vocational development. banking institutions are making marketplace big changes to refocus on retail Why we do it and commercial banking with, in now faced some cases, a dramatically reduced with efficiency Markets: Styles&Wood has maintained interest in investment banking and a clear focus on four specific sectors international operations. This is challenges and together with associated subsets. The characterised in real estate terms by

a necessity to continued realisation of cash generating an increasing workload promoting profits, together with a positive outlook, brand and new technology, estate

adapt to a provides confidence for the future. rationalisation and new retail property models. fundamental“ Growth in the UK interior refurbishment and fit-out market1 is forecast to Outlook and growth opportunity: change in increase 4–5% annually over the next Styles&Wood has successfully working four years. implemented a business improvement programme over the last three to four »»Commercial: A high concentration practices years. The business has diversified and of lease events and increasing drive now has established business interest in resilient sectors and subsets. 1 Note: *AMA Research: Interior Refurbishment and Fit-Out Market report: UK 2016–2020.

24 | STYLES&WOOD PROPERTY

X1 Developments

X1 Manchester Team who work closely with landlords, tenants and investors across the globe

X1 Liverpool One, luxury graduate-tailored accommodation in the heart of the city 1 is an award-winning developer with a reputation for overseeing the creation of high-end buy-to-let X residential and student properties. Focussing on city centre developments in the Northern Powerhouse cities of Liverpool, Manchester and Leeds, X1’s core value is to become a sustainable developer, by remaining involved in the long-term management of the properties on behalf of the investors.

FACTS ABOUT Founded in 2012, X1 quickly made its name as one of the North West’s pre-eminent X1 Developments property developers. Operating initially from a head office in Liverpool, the company »»Develops high-end residential has grown rapidly with regional offices in Manchester (2014) and Leeds (2017). The and student properties strategic focus is on inner-city residential projects, which has resulted in a phenomenal five year growth and a current portfolio of 30 completed/under development »»Head office in Liverpool projects. The market value of the projects is now approaching £750 million. »»Founded in 2012 »»Has more than £732 million More than just a developer worth of construction projects underway or completed Melissa Green, X1’s regional operations director who has worked in the property sector for 15 years and has overseen X1 from the beginning describes the business »»Recorded turnover of as ‘a one-stop shop’, covering everything from site acquisitions, construction, sales, £73 million for 2016/2017 tenant marketing and rental management. financial year »»Winner of multiple industry ‘Covering all of these processes and remaining with the projects long term makes awards for an attractive proposition for would-be investors. Many developers build and then exit the build process as early as possible, normally handing management of the site over to an independent company. X1 passionately believes that legacy is an important and vital aspect of a sustainable development,’ says Green.

X1 DEVELOPMENTS | 25 THE PARLIAMENTARY REVIEW Highlighting best practice

Green continues ‘We consider ‘There’s a feeling that buying in the ourselves to have a duty of care to UK today gives a certain degree of both investors and the community safety towards an investment,’ Green in which our properties are being explains. ‘Interest rates are very low constructed. Bringing value to the area which does not incentivise savers to is vitally important to X1, so no stone place money on interest deposits in a is left unturned to ensure our buildings bank.’ Another factor is the ‘generation sympathetically reflect and enhance rent’ status of many young professionals the surrounding area.’ in the UK, which has served only to heighten demand for high-quality rental UK investment has surged properties. From a business perspective, since 2016 Green considers that X1 has built a trusted investor brand reputation with X1 are a credible, For the first three years of its existence, domestic buyers. ‘We’re a credible, X1 quickly capitalised on investment globally-recognised brand with the track

globally- interest from beyond the UK market, record of delivery to prove it,’ she says. with a growing number of foreign

“recognised nationals looking to buy into the UK Working with other partners property sector attracted by attractive brand with“ the returns on investments. ‘There was Having built a number of affordable track record of a heavy level of interest from foreign properties for investment, typically buyers and at the time, this looked set starting at around £85,000, Green says delivery to to be an ongoing trend,’ Green says. the majority of X1 developments are sold to cash buyers due to mortgages prove it However, Green says that the overseas being hard to obtain for off-plan and / or investment pattern has dropped off student accommodation apartments. In somewhat in the past 12 months. She order to maximise business opportunities estimates that prior to the summer of like these, X1 has shown an openness 2016, foreign investment accounted towards working with other parties. for around 85% of all X1 sales. This This is demonstrated by an entirely year, that figure has reduced and self-funded joint venture X1 runs stands closer to 60%, with a marked with an overseas pension fund. This increase of interest from domestic partnership, which has worked on buyers. Green says that the surge in multi-million pound developments at UK investment is a result of multiple X1 The Exchange, located locations including the award winning on the Quay front with factors. X1 Media City development in Salford apartments enjoying beautiful waterfront views Quays and on ‘state of the art’ student accommodation in Liverpool, has helped give X1 a competitive edge over its rivals. ‘The JV helps us to decide to proceed quickly when attractive sites are for sale, whilst also lowering the cost of capital and funding delays common to many of our competitors’, Green states.

The potential of the North West

The majority of X1’s projects have been carried out in Manchester, regularly ranked as the UK’s fastest growing city economically – with rent increases of 8.8% last year heightening potential

26 | X1 DEVELOPMENTS PROPERTY

X1 The Terrace is phase 4 of the award-winning X1 The Quarter investor returns along with a rise in second scheduled to be added in the the average of property prices. Further first quarter of 2019. It will also look geographical expansion is happening to build on the strong rental market in 2018, with a planned development of Leeds – another of the UK’s fastest in Chatham, Kent, marking X1’s growing cities where X1 opened its first project in the South of England. first site in May 2017. However, there are currently no plans to try and penetrate the London property Sticking with a proven bubble. Instead, Green believes X1 business model should remain focused on the Northern Going forward, Green forecasts a

Powerhouse, with a number of long- X1’s year-on- similar approach employed by the term investment initiatives, which

company as it looks to channel growth. will underpin the region’s economy. year turnover ‘Our business model targets are ‘In terms of growth, the current “has grown “ based on increasing turnover via an Manchester property market is stronger expanding property portfolio and to than that of London,’ she says. ‘With the from date, this approach has worked for X1,’ influx of multiple technology and service she says. Recent year-on-year turnover £51 million to businesses setting up in the city in recent growth from £51 million to £73 years and more people attracted to live £73 million million coupled with a profit increase in Manchester, the economy is in place of 34.7% is a good indicator of both to sustain a thriving property market.’ demand and where X1 is headed. Green says the ‘strong market’ of ‘Our plan is to continue selling 1,000 Liverpool will also factor significantly units per year and we will do this by into X1’s future plans, with the city strategically looking at where the best home to seven of its student sites opportunities lie,’ Green concludes. and one residential property, with a

X1 DEVELOPMENTS | 27 THE PARLIAMENTARY REVIEW Highlighting best practice AES Sustainability Consultants

AES support housebuilders to deliver energy efficient new homes cost effectively. Jon Bodington, Managing Director n acceleration in housebuilding to deliver much needed new homes risks a race to the bottom on housing Aquality, with implications for UK PLC, housebuilders, homeowners and the environment.

FACTS ABOUT AES SUSTAINABILITY In the UK, the need to build hundreds of thousands more homes to keep up with CONSULTANTS a growing population and the changing shape of society has been an ongoing – »»Managing Director: and unrealised – imperative throughout the past decade. The 2008 recession, high Jon Bodington land purchase costs, and a planning system decried as not fit-for-purpose in various »»Main UK office: Tiverton, ways account for the inability to meet demand. Devon In the 2017 General Election, the main parties manifestos again contained »»Number of staff: 28 commitments to increase housing delivery, with statements including an implicit »»Years in operation: 11 acceptance that ‘any old home’ is not an option; »»Turnover: £2.5 million »»Conservative Party: ‘more homes will not mean poor quality homes’

»»Labour Party: ‘we will build better’ ‘new, modern standards for building zero carbon homes’

»»Liberal Democrats: ‘high quality, zero carbon homes’

AES Sustainability Consultants is a leading independent energy and sustainability consultancy, focused on adding value to the construction industry and supporting construction quality. We operate nationally and our clients include

28 | AES SUSTAINABILITY CONSULTANTS PROPERTY top 10 housebuilders and contractors. »HOW ARE ENERGY ASSESSMENTS CARRIED OUT? We provide high-quality advice and technical support throughout the Energy assessments for new build dwellings are carried out using the construction process, from land Standard Assessment Procedure (SAP). Theoretical energy performance purchase and planning to post- is calculated based on a steady-state model, with Building Regulations compliance based on total CO emissions as well as a maximum level construction testing and certification. 2 of energy demand for heating and cooling. The calculation takes into Quality and sustainability – account a variety of parameters, including the insulative properties of the fabric and efficiency of heating and ventilation services. The limitations of the performance gap this approach mean that assessments are entirely desk-based and can be Quality and sustainability should be carried out on little more than the assurance of the client, with no quality considered a pre-requisite for what is checks or on-site verification needing to be undertaken by the assessor. likely to be the most expensive purchase that people make in their lives. It is increasingly clear that environmental standards based on Quality and The All Party Parliamentary Group for theoretical, idealised conditions and in Excellence in the Built Environment some cases with the ability to ‘game sustainability published a report in 2016 on the the system’ are no longer acceptable. quality of new housing in England “should be at which concluded that the push for A potential issue can therefore be the forefront new homes should not come at the seen with energy assessments for the housebuilding industry, which follow expense of quality. It highlighted a of the UK’s “ potential performance gap as a key a similar pattern of idealised energy consideration which may not yet calculations in steady-state software, push to deliver be noticed by consumers, but will with the accredited assessor then not much-needed increase in importance as we continue being required to inspect the dwelling to build in unnecessary energy to confirm that the final building new homes demand to our housing stock. delivers what the regulations demand.

The government-sponsored Zero Carbon Hub had previously carried 2014 2015 2016 2017 2018 2019 2020 out a wide-ranging study of precisely this issue – design intent compared Develop as-built energy Launch industry Government requires As-built energy Energy performance course ‘energy certified’ ‘energy certified’ performance knowledge with as-built performance – following Literacy content for new and professionals & professionals & and skills embedded existing workforce operatives scheme operatives on public within everyday research indicating that this suspected land developments activities for professions and operatives performance gap does exist and is in some cases substantial. A series Launch industry Housebuilders and wider supply chain increasingly Improving owned and understand as-built performance; they innovate and of recommendations were made Quality Output managed demand more of their products and systems Construction and it is time to follow up on these Details Scheme to avoid storing up problems in our housing stock. Industry R&D to develop Industry agreed Launch government ‘demonstrating performance’ Demonstrating in-situ fabric and ‘demonstrating approvals process Performance services systems tests, performance’ Consumers are becoming increasingly in use monitoring, protocols whole house analysis frustrated with products which they and process controls are assured will be highly efficient Part L 2016 consultation Part L 2019 consultation and environmentally responsible, but National includes changes to SAP, includes refinements to Compliance fabric / services conventions and procedures don’t deliver. This has recently been calculations, qualified based on industry R&D activity Method & person schemes and seen in the automotive industry, with Regime verification procedures consumers rightly expecting certain levels of quality and standards to be Government and Co-ordinated strategic research activities including roll out of Zero Carbon Continued European sourced Hub ‘Housebuilding Process Review’ and creation of online Knowledge Hub robustly enforced, with significant Evidence funding support for Gathering & industry R&D consequences being felt by industry as Dissemination a whole where they have been found Roadmap to closing the to fall short. performance gap (Zero Carbon Hub)

AES SUSTAINABILITY CONSULTANTS | 29 THE PARLIAMENTARY REVIEW Highlighting best practice

Action is therefore needed now to AS-BUILT PERFORMANCE - PRIORITY FOR ACTION ensure that accurate assessments are CONCEPT carried out and standards robustly DESIGN & P2 PLANNING enforced, to deliver the high-quality, low- Limited understanding of energy housing required for the future. impact of early design decisions on energy performance Looking to the future DETAILED DESIGN D1 D2 EM8 EM7 The UK had been gearing up for Inadequate Lack of Issues around use Concern over the zero carbon standard to be understanding and integrated of U-value and competency of knowledge within design between thermal bridging SAP assessors detailed design fabric, services & calculation introduced in 2016. However this renewables procedures team was dropped, with the reason given

PROCUREMENT that ‘existing measures to increase PR2 energy efficiency of new buildings Inadequate consideration of skills should be allowed time to become and competency at labour procurement established’. This was met with dismay by many within the industry, CONSTRUCTION & as it disincentivised those seeking to COMMISSIONING C5 C15 C9 C13 C6 drive forward higher standards, along Product substitution Poor Poor Lack of site Lack of on site without installation installation or team energy adequate energy consideration of of fabric commissioning performance performance with the supply chain which had been energy of services knowledge & related QA performance skills on site gearing up through research and product development to be ready to VERIFICATION & TESTING T3 EM4 V2 V5 meet the challenge. Concern over As-Built SAP not Lack of robust energy Lack of clarity over consistency of some reflective of performance related documentary test methodologies & actual build verification, reliance on evidence for Part L & Current energy standards are very interpretation of data third party information Part F compliance achievable through good design, robust and knowledgeable energy consultancy and quality construction CROSS-CUTTING THEMES The most significant potential right now – at minimal extra cost. KNOWLEDGE & SKILLS consequences of poor quality We consider that increased energy assessments, a lack of on-site RESPONSIBILITY standards should not be feared as an enforcement and poor build quality are: unbearable burden on a sector under COMMUNICATION »»Assessments not reflective of design/as- immense pressure, but embraced as built specifications, potentially leading an opportunity to push for higher Priorities for action – to homes being constructed which do quality homes. closing the gap (Zero Carbon Hub) not meet regulatory requirements AES’ approach »»Unnecessary extra costs to developers, leading to opposition AES has been closely involved with to increased regulatory energy industry groups to push forward standards due to perception of very quality and reduce the gap between high cost of compliance. theory and reality, and to examine increasingly important issues such as overheating and indoor air quality. We

We consider that increased energy work with clients and design teams to provide input into the design and

standards should not be feared as an specification of homes, ensuring a value-engineered approach to reducing “unbearable burden“ on a sector under remaining energy demand means immense pressure, but embraced as that constructed dwellings have the best chance of delivering the assessed an opportunity to push for higher energy performance, bringing benefit quality homes to clients and households alike.

30 | AES SUSTAINABILITY CONSULTANTS PROPERTY Edward Cooper Young Chartered Surveyors

Grand Opening Day at Rose Lodge Care Home, Lincolnshire

Ashley E Cooper BSc (Hons) FRICS FFB MCIArb, Senior Partner, Edward Cooper Young dward Cooper Young Chartered Surveyors is a leading Chartered Surveyors independent firm of construction and property consultants, regulated by the Royal Institution of Chartered Surveyors (RICS), E FACTS ABOUT EDWARD COOPER practicing throughout the United Kingdom and able to provide a YOUNG CHARTERED SURVEYORS multi-professional consultancy service within the built environment. »»A key goal is for all technical team members to achieve professional chartership status Since being founded by Senior Partner, Ashley Cooper, 10 years ago, we have with the RICS via our own provided core development monitoring and employers agent services to funders, in-house structured training developers/operators on over 500 projects, managing, reporting and certifying over scheme. £2 billion of the development expenditure, including £1.36 billion of construction »»We provide apprenticeships costs. We have become highly specialised in the primary care, residential and to embed people early into student accommodation sectors, together with associated retail and commercial our company values and elements. The business is built on a set of core values which permeate every aspect operations of our internal and external operations: people, relationships, solutions. »»We will be expanding our range of in-house construction core People services in the next 12 months to cater for client demand Many of our current team of 25 people have been ‘home grown’, enabling them to both earn and learn through dedicated courses and degrees and via internal knowledge »»2018 will see us reach our gained by operating in the business. Our philosophy is not to offer people a job, but a 10 year anniversary which we long-term career. Everyone has a blank canvas and platform to design a career which will be celebrating with clients, colleagues and other key suits them and we affectionately refer to this as the Willy Wonka Golden Ticket. This collaborative partners has resulted in significant investment in training and development, in technical, business growth and marketing skills, with the objective of creating the next generation of »»The firm has maintained leaders and technical experts within the business. Creating a family feel in a company a continued 95% repeat and making people part of the bigger picture is not always easy, but we have achieved business standing over the last three years this by nurturing and developing local people who want to forge a successful career.

EDWARD COOPER YOUNG CHARTERED SURVEYORS | 31 THE PARLIAMENTARY REVIEW Highlighting best practice

Relationships

Advances in technology are pivotal to supporting and improving the way we do business, but we strongly believe that this should not be at the expense of human relationships, which are the heartbeat of our company. Our staff are encouraged to maximise face time with clients, meeting them regularly to understand their needs more fully and to maintain and build relationships. We make great use of the telephone too. For example in our role as Development Monitor for funders, At ECYCS it’s the little we visit the site each month to review things that make the progress and ensure that fund draw difference and the The recent opening of a London biggest difference we down is in line with expected activity office and a further office planned can make is with our against programme. Following the site people for Sheffield run by people who are visit we telephone the bank/funder to already in the business, is testimony to let them know what the situation is how we empower people. Whilst we before sending them a written report. have experienced significant levels of We don’t just tick boxes; we probe,

growth in the last three years, we have investigate and provide professional retained flat reporting structures where commentary, going the extra mile.

A consistent, the newest apprentice still has access to a senior manager or associate. We We listen very carefully to our practical and“ believe that this is very important for clients and get on the front foot “pragmatic the development of our staff to prevent to provide them with new and key them from becoming isolated from the services to help them grow their approach to ‘direction of travel’ of the business. Our businesses; a recent example being the reporting three year business plan is a working introduction of land finding, through document and our senior team members the employment of a full time Land M Chandler are constantly engaged in refreshing it Manager. By understanding what to reflect the resources, processes and our client’s requirements are, we can procedures we need to cater for a more source suitable sites and self create sophisticated market place. project opportunities for the business.

Strong focus is placed Luxury state-of-the-art Care on fine dining at Rose Home at Kiwi house, Derby Lodge Care Home

32 | EDWARD COOPER YOUNG CHARTERED SURVEYORS PROPERTY

Together with our own services and skills, we have developed a truly collaborative network of partners from across the industry. For example, in the care sector where we get involved in many care home projects, either as development monitor for the funders or employer’s agent for the developer/ operator, our network of contacts and organisations in the construction cycle is wide and varied, including: »»Architects

»»Civil and Structural Engineers Private luxury in »»Mechanical and Electrical Engineers Melton Mowbray. The Amwell Care Home is whilst creating funds for investment »»Lawyers surrounded by beautiful »»Accountants in future schemes and providing new mature gardens and a employment for local people. On a care woodland backdrop »»Planning consultants home scheme we completed recently »»Commercial agents in the East Midlands, we managed to »»Specialist surveyors and others save the developer £1 million on the construction cost. We were able to do This strongly supports the delivery this by re-engineering the approach to of our services and generates a the project using collaborative knowledge community who help each other to and skills in design, construction methods find opportunities for mutual benefit. and product selection, but without sacrificing the quality of the finished Solutions building. We view solutions as a way of We spend a lot of time understanding joining the dots together throughout how competitors do things and the whole construction process. Well, I have yet analysing where projects go wrong. One of the key things we have discovered The future to fail to be is that unless projects are set up We spend an increasing amount of “impressed with correctly at the outset, clients encounter time undertaking strategic research to expensive problems and frustrations envisage what the built environment will the professional further along the construction cycle. need to look like in future years. In the Our business model has been designed yet thoughtful care sector for example, it is predicted to provide clients with a framework to that by 2039 one in 12 people will be put all necessary things in place prior to and sympathetic aged over 80 and the number of people project commencement, including: aged 75 and over is projected to rise to approach taken »»Correct appointment documents 9.9 million. This helps us to understand when “ »»Warranties future demand for the number and »»Adequate professional indemnity type of care facilities. Evolving design undertaking a cover standards, advances in technology and smart products are all factors in Bank Monitor »»Construction contracts improving the future welfare of elderly »»Surveys and other requirements. role people who will occupy such facilities We offer clients a free health check and our role is to help our clients adapt J Saltinstall comprising a series of questions before to changes in legislation, technical they get too far down the line with a standards or funding requirements. project. Our hallmark has become the We are ready and equipped for the de-risking of projects, enabling clients challenges that lie ahead. to deliver successful profitable projects,

EDWARD COOPER YOUNG CHARTERED SURVEYORS | 33 THE PARLIAMENTARY REVIEW Highlighting best practice

Properties of the World

A superb waterside development in Manchester – available via Properties of the World Jean Liggett, Managing Director, Properties of the World roperties of the World is a growing property startup operating across the residential and commercial sectors. PThe firm’s Managing Director, Jean Liggett, says an adherence to ethics and quality customer service have been integral to its success as it looks to grow in a post- Brexit Britain.

FACTS ABOUT Properties of the World Small businesses have been described as the key engine of the UK economy. As a thriving startup, Properties of the World like to think that they make their »»Property agency selling UK own effective contribution to the UK. Combining more than 80 years’ worth of residential properties, including buy-to-let and commercial experience at top level companies spanning the property, media, recruitment, properties such as hotels, banking, asset management and insurance industries, to name but a few, the student accommodation and company uses this expertise to guide potential buyers of new developments in care homes a collaborative and professional manner. Properties of the World is also a very »»Founded by Jean Liggett in open company, with around 25% of its sales emanating from overseas buyers. 2011 »»Based in London An ethical approach »»Employs ten staff and hopes Properties of the World is driven by an ethical approach to conducting business to take on two more in 2017 and not a desire to make quick financial gains. As a result, they are highly selective »»Member of both the AIPP and about the firms with which they work. When selecting a property developer to The Property Ombudsman work with, a great deal of scrutiny is put towards their track record in terms of scheme what has been delivered to date and whether or not they’ve shown innovation towards project execution. Another consideration is the experience of that developer’s team. Obtaining the necessary information through the industry grapevine is usually the most effective way of achieving this.

34 | PROPERTIES OF THE WORLD PROPERTY

Sustainability for the customer the other way, they plan to press on with their growth plans. When advising on a new development, ensuring sustainability for the customer In the current post-Brexit climate, is another important factor. Properties some companies, particularly It’s turnover of the World ensures that when a smaller businesses, are not looking almost property is built, it works for the buyer, at recruiting new staff. Properties encompassing not just the right price of the World are of the belief that “doubled in the but ensuring it also delivers the right whether part of the EU or not, small latest financial return for them. Taking a project’s companies will continue to be the location into consideration is also part drivers of the UK economy. At the year. In their of their selective approach. centre of this growth strategy is growing their staff and continuing most recent The company is committed to the to provide skilled employment to regeneration of UK cities and is set of results, the British economy. They currently involved in numerous projects from employ ten people at present, but turnover rose London to Liverpool. Despite their plan to add two more staff members locations, every project location by 88% by the end of 2017. is selected with great diligence, considering everything from building despite the Launch of apprentice design to the quality of fixtures noticeable and fittings. This approach is programme reflected in not just their residential An important development of impact of the developments, but also their their employment strategy was EU “ commercial property offering, in the introduction of an apprentice that each investment type has its programme in May 2016. Taking referendum own community benefit – take for on one member of staff at the time, vote in example a care home investment who was then developed through which will benefit those seeking a the scheme over the course of one June 2016 comfortable, sympathetic place of year, has been a genuine benefit to residence that caters to their health them. At times, it can be difficult to requirements, or perhaps a hotel attract someone genuinely interested room which helps accommodate in a career in the property sector. The growing tourism numbers. Adopting programme has allowed Properties an ethical approach also benefits of the World to alter what is possible them in the long run; customers often 18th century Country remark how they feel no pressures Spa Hotel – available via during the buying process, a fact that Properties of the World enhances their trust and helps build an enduring relationship.

A job creator in a post-Brexit economy

By a year-on-year basis, Properties of the World saw its turnover almost double in the latest financial year. In their most recent set of results, turnover rose by 88% despite the noticeable impact of the EU referendum vote in June 2016. Their company stance was very much pro- Remain, yet despite the result going

PROPERTIES OF THE WORLD | 35 THE PARLIAMENTARY REVIEW Highlighting best practice

The Properties of the World team

for that individual’s life and future by year of operating but, nearly six years providing them with opportunities and later, Properties of the World is thriving a focused career path. in its industry. They are becoming better known with each passing year, In the coming Good opportunities for young people a fact that sees an increased number are not always readily available and years, they of respected companies requesting by doing their bit, Properties of to work with them. Ultimately, this the World has gone some way to “would like to is interest is driving their growth and positively influence a young person’s has led to their decision to expand continue life. This year, they will continue the team. growing as an with the programme by taking on another young person to nurture and With exciting new projects also on the advocate for develop in the property industry. In horizon, there is a genuine confidence

taking on the coming years, they would like that the company will continue on its to continue growing as an advocate growth trajectory. In terms of how

apprentices by for taking on apprentices by further they approach business, the projects engaging with other businesses to which they align themselves and the further “ regardless of the sector in which ethical approach they adopt towards engaging with they operate. customers, Properties of the World has so far prided itself on being an industry other Six years strong exception and very much plans to businesses Many companies with similar ambitions continue so doing. fall by the wayside within their first

36 | PROPERTIES OF THE WORLD PROPERTY

Harriss Property

The Bread Factory, Ramsgate, Kent

John and Richard Harriss arriss Property are the design-led developers at the forefront of one of Britain’s most successful regeneration Hschemes. Our ambitious residential projects have been central to the remarkable revival of Margate, Ramsgate and the surrounding Kent coastline.

Harriss create contemporary, quality homes for first time buyers, local purchasers

and London commuters. Our aim is to foster sustainable growth by celebrating local assets, and building a strong sense of community within each project. Our aim is to

foster Reviving resorts Formed in 2011, Harriss are a family business made up of a close-knit team of 32 “sustainable “ employees. Over the past six years, we’ve gained a deep understanding of Kent’s growth by property market collaborating with celebrated local talent such as Guy Hollaway; Royal Institute of British Architects (RIBA) award-winning architect and a figurehead celebrating for regeneration in the South East. local assets We have compiled a diverse portfolio of quality homes aimed at local purchasers and Londoners looking to get a foot on the property ladder without compromising on lifestyle. We are the only private developer in the area implementing the ‘help to buy’ scheme and cover the cost of stamp duty for first time buyers. We specialise in the regeneration of derelict local landmarks and Listed Buildings. The story of our success begins with the elegant architecture and rich cultural heritage of one of Britain’s most iconic seaside towns.

HARRISS PROPERTY | 37 THE PARLIAMENTARY REVIEW Highlighting best practice

Margate seaside towns in the shade. Over the next few decades, a lack of As one of England’s earliest and most tourists and investment painted an prominent coastal resorts, Margate increasingly bleak picture of deserted could be considered the birthplace of high streets, high unemployment and the British seaside. Its popularity soared dilapidated buildings. in the early 18th century when the restorative powers of sea bathing drew By the early noughties, Margate had The Beach Houses, large numbers of visitors, especially become a byword for rundown seaside Margate, Kent from nearby London. resorts. But under the surface, green shoots of recovery were evident. We have Margate’s golden age endured for Conservation areas were being extended, almost 250 years, decorating the derelict buildings became listed and

reinvigorated town with a rich tapestry of Georgian, Margate began to attract investment

Edwardian and Victorian architecture. from the Heritage Lottery Fund. “the local Grand theatres, ballrooms and amusement parks were added to the With over 25 years’ experience in community “ classical squares and terraces built to property development, John and and set record house the early visitors. Richard Harriss saw the vast potential for regeneration on the Kent coast property prices Margate’s decline began in the and, buoyed by the embryonic signs of for the area sixties when cheap foreign flights change, they moved to Margate and and guaranteed sunshine put British set up Harriss Property. »NATURAL-BORN PROPERTY DEVELOPERS – A LONG LEGACY OF INNOVATION Regeneration

1930s Within months of Harriss’ formation, John and Richard Harriss’ great-grandfather, Albert Pickett, builds the the £20 million Turner Contemporary first council houses in Lincolnshire. Art Gallery opened on the seafront. Named after JMW Turner, Margate’s 1940s most famous resident, and located After the war, Albert resumes and grows his business, providing on the site of the boarding house employment for ex-soldiers and prisoners of war. where the painter stayed, the David 1950s–1960s Chipperfield-designed gallery would Albert’s son-in-law, Basil Harriss, joins him and the family business act as a cultural catalyst for the town – embark on a number of innovative projects, including Lincolnshire’s showcasing the work of Leonardo da first purpose-built apartment blocks and early housing estates. Vinci, David Hockney, Tracey Emin, who 1970s is from Margate, and Turner himself. Taking over from his father-in-law, Basil expands operations to incorporate timber importing and land reclamation. Harriss’ vision was equally ambitious. We made the early decision to bring 1980s–1990s all build and project management in The company returns to its roots, building a reputation as leading house. With total control over each developers of starter homes in Lincolnshire. project, we could deliver the high- 2011 risk, complex developments that have Basil’s grandsons, John and Richard Harriss, form Harriss Property in become the cornerstone of our success. Margate with an ambitious plan to regenerate the iconic seaside town by harnessing its rich cultural heritage and architectural grandeur. Our regeneration of historic local landmarks, including the former Royal 2017 Sea Bathing Hospital in Margate and Harriss Property are an award-winning family business leading to the Bread Factory in Ramsgate, have the resurgence of Margate and the surrounding area – transforming reinvigorated the local community, derelict local landmarks and listed buildings into quality, design-led attracted new residents and set record contemporary homes. property prices for the area.

38 | HARRISS PROPERTY PROPERTY

Royal Sea Bathing Hospital Grade II listed former flour mill into 89 modern apartments and Built in 1791, the Royal Sea Bathing townhouses, with communal gardens Hospital is one of Margate’s most iconic interwoven throughout. The new build buildings. A sprawling convalescent elements are sensitively designed to hospital just 50 yards from the beach, accommodate modern open-plan living when it opened it was the first hospital while complementing the existing The Bread Factory, of its kind in the world. architecture. Renowned Victorian Ramsgate, Kent gothic architect, EW Pugin, designed When Harriss acquired the derelict site the long-abandoned landmark in 1865. in 2011, it had become an emblem of modern-day Margate’s decline. The redevelopment is spread over A disastrous attempt at development four phases – the first of which was had left it half-built with contentious completed in December 2015. Located ownership and funding issues. at Ramsgate’s highest point, the Bread Factory overlooks the Royal Harbour Today, the Grade II Listed Building Harriss have Marina just minutes away from a variety offers a unique range of 164 seafront of independent shops, bars, restaurants demonstrated apartments, home to a vibrant

and Margate central station. community of long-term locals and “how property recent arrivals. Set within a private

Legacy gated community and featuring development landscaped courtyards and open In just six years, our projects have can lead the“ vistas overlooking Westbrook Bay, the brought us local and national former Royal Sea Bathing Hospital is a recognition – as winners of the Civic way forward stunning contemporary celebration of Society Award, finalists for the Kent Georgian architecture. Design and Development Awards and by repurposing runners up for best development at the the past The Beach Houses prestigious WhatHouse? Awards. Located within the grounds of the But we feel our legacy is better former Royal Sea Bathing Hospital, the measured as key contributors to Beach House development was designed Margate’s extraordinary renaissance. by RIBA award-winning architect, Today, Margate’s unique architectural Guy Hollaway, and was inspired by grandeur and growing cultural presence traditional seaside beach huts. has established it as a genuine 21st Completed in May 2016, the 11 unique century destination. The promenade beachfront homes offer unobstructed and old town are alive with world-class views of Margate’s beautiful coastline art, independent cafes, restaurants, and launched to market for £495,000 shops and studios. House prices have – which remains a record price per sq ft risen 12.5% in the past year, more than for residential property in Margate. any other seaside town in the country.

The Beach Houses generated extensive Dreamland, Britain’s oldest amusement coverage throughout the national park, has reopened after a £10 million press and widespread acclaim across renovation project, while Turner respected industry publications – Contemporary was recently announced including The Guardian, The Times, as the host of the 2019 Turner Prize. Dezeen and Wallpaper. The Bread Factory, By investing heavily in Margate’s Ramsgate, Kent heritage, Harriss have demonstrated The Bread Factory how property development can lead The Bread Factory is our most the way forward by repurposing complex development to date. It’s an the past. £18 million conversion of Ramsgate’s

HARRISS PROPERTY | 39 THE PARLIAMENTARY REVIEW Highlighting best practice Mayfair Group Investment

St Martins House Medical Centre currently on site Rohin Dhand, Chief Executive of Mayfair Group Investment he primary health care landscape is undergoing unprecedented change. Providers must now deliver Ta far broader range of community-based services that are intended to generate significant savings for the NHS. However, it cannot happen effectively without improved primary care estate. There are circa 8,000 GP surgeries in England, and in a survey of practices by the FACTS ABOUT BMA, 40% of these were deemed as inadequate to deliver Mayfair Group Investment extended services. »»MGI is an innovative investor in, and developer of, commercial, residential and This is not surprising when we consider that less than half of GP buildings in healthcare property England have been purpose built. It is notable, however, that of the 20% of GP »»Aiming to rapidly expand premises that are developer owned, nearly all have been independently assessed into further medical centre as being of good quality. It is shocking though that such a large proportion of development projects publicly-owned GP facilities are under developed and do not provide an appropriate environment for safe clinical care. »»Privately owned, self-funded company Mayfair Group Investment (MGI) is an innovative investor in, and developer of, »»Head office in Leeds commercial, residential and healthcare properties. As a relatively new entrant to »»www.m-gi.co.uk the world of primary care our objective is to improve the way in which the dismally slow process of project development currently takes place. The Government announced a £1 billion investment fund for primary care in 2015 through the Estates and Technology Transformation Fund (ETTF) programme. This, sadly, has been stuck in a bureaucratic quagmire with negligible sums released so far for new projects.

40 | MAYFAIR GROUP INVESTMENT PROPERTY

Development options have only looked to this programme »MGI SERVICE to support their premises requirements SNAP SHOT 90% of GPs are independent when there is a perfectly good »»3PD Premises contractors, running their practices arrangement already in place for GPs Development with other partners and salaried to link up with private providers using GPs. As with all independent NHS existing procurement routes under the »»Sale and leaseback contractors, GPs with support from Premises Directions which form part of (with or without Clinical Commissioning Groups the national GP Contract. contract) (CCGs) are responsible for providing »»Estates strategies and adequate premises. There are two Understanding a challenging utilisation main options open for practices that sector »»Strategic Estates want to build new premises: do it Partnerships (SEPs) yourself or engage with private sector At MGI we are determined to get to partners. There are big changes in know our GP clients, the problems »»Area needs assessments the GP landscape. The number of they face and their future aspirations. for new housing new doctors looking for jobs as GPs We have several experienced GPs and developments is falling. On top of this, the GP health care planners as part of our »»Facilities management workforce is ageing and more are team to provide up-to-date advice on retiring early. There is a requirement primary care developments, and help for larger and better facilities, but practices effectively plan their services at the same time young doctors are in new premises. We can, for example, facing financial restrictions when prepare a business case for practices We are “ trying to invest in either existing so they can gain approval for the doctors, stock or new facilities. The only funding of new premises. realistic option is to partner with the The key challenges to primary care “not property private sector. As one GP remarked have remained unchanged for some to us recently ‘we are doctors, not developers time. These include lack of funding property developers.’ due to the political clout of hospitals, Centrally the NHS has tried to who always get first call on any new introduce several schemes, such funding; poor premises; problems as the Local Investment Finance Primary Care estate age Trust (LIFT) programme, to provide better premises. LIFT is a joint venture between the private and public sector with each owning an element of the shares in the LIFT company. However, only 7.5% of practices have had access to LIFT and it is geographically specific. The Government shares are now held by Community Health Partnerships (CHP) and because of their involvement in these schemes CHP are regarded as the fount of knowledge in the market. However, their premises expertise is questionable and their involvement in the newer ETTF programme has hindered its success. The Public Accounts Committee looked at LIFT and reported that it failed to achieve its aims and was not value for money. It is a shame, therefore, that CCGs

MAYFAIR GROUP INVESTMENT | 41 THE PARLIAMENTARY REVIEW Highlighting best practice

what would be a smart, calculated risk investing in the primary care estate and planning these services with GPs.

Primary care at scale

A more recent challenge is to deliver primary care at scale. At grass roots level GPs have started collaborating to deliver more care in the community through federations and other such models. This allows them to achieve economies of scale and tackle the workload and recruitment issues. From a building perspective this should mean the development of hubs which can house several practices and provide suitable premises for former in-hospital activities such as Ear, Nose and Throat Primary Care estate (ENT), ophthalmology and geriatric ownership with recruitment and retention; medicine. This is popular with and increasing patient demand. patients as care is closer to home Linked in with this is the need to and it produces a far more integrated MGI has the move secondary care services into service with GPs and specialists primary care. We have witnessed this working alongside one another.

funding, challenge first hand with one of our Estates strategies and CCG guidance clients. Hospitals will often try and can become extremely valuable at this

“enthusiasm prevent care being moved from their stage in helping to consider future facilities. They do this by securing and expertise “ options for local practices. block contracts which force CCGs to help resolve to find transitional funds for services The way forward they would like to see moved closer to these patients’ homes. Primary care premises will always be challenges a mixed economy of GP, government There are a vast number of activities and private sector-owned estate. that can be delivered in primary care However, our findings illustrate that at significant savings on tariff prices there is a complete lack of urgency but rarely do CCGs want to take in getting projects off the ground. »BENEFITS OF 3PD Without better primary care estate the speed of exit of GPs from the system »»Removes development burden from GPs but the practice still will quicken and vast savings from retains input into all aspects secondary care cannot be realised. »»Risk carried by the developer Consequently patients will suffer »»Removes concerns about encouraging new GPs to join the practice as they will be forced to travel to as no mortgage will be necessary hospitals for care which can be more quickly and effectively delivered at »»Removes long-term risk from the NHS who can simply not renew a their local GP surgery. MGI has the lease in an ageing premises funding, enthusiasm and expertise to »»Financial exposure to the practice is limited by linking the lease rent help resolve these challenges. payable to the level of rental reimbursement by the NHS

42 | MAYFAIR GROUP INVESTMENT PROPERTY

Zestan

The Zestan project management team

Andries Stricker, founder and Chief Executive Officer estan is becoming a growing influence in property development and management, as well as in the Zcontruction industry. Our experts have extensive experience and knowledge both in the UK and abroad. Our motto has always been to ‘build dreams’ and we are of the firm belief that anything is possible: no project is too big or too small!

At Zestan we constantly strive to incorporate the newest and most innovative of ideas. These ideas are applied to big residential property developments, small FACTS ABOUT Zestan construction on commercial properties, or the refurbishment of apartments. Our goal is to construct the impossible and create dreams. »»50 new homes per annum »»Unique developments It all began when we decided to focus on property development. We looked at the »»Intensive staff training niche area around us in Epsom and although it is a reasonably affluent area, there are programme two different markets; high end and low end. We decided our responsibility would »»Leadership development be to try and influence both. We wanted to develop something special, something unique and by doing that we are also providing the affordable component. »»Fast growing company

What we wanted to do was combine a conventional, Art Deco design with all the modern electronics that are available, such as electronic access control, to create something unique.

We employ a very small group of people, only ten that are permanently employed by the company. In addition to this we have a database of over 50 dedicated subcontractors that work with us. For our projects, we collaborate with a dedicated architect’s firm, a planning consultant firm, as well as a structural engineering firm. That leaves us as the construction and project management company.

ZESTAN | 43 THE PARLIAMENTARY REVIEW Highlighting best practice

The process is that we identify land, Constructing the impossible then we go through the planning and creating dreams process. By that time, we will then identify one of our key people to be One of the things that really concerns the site manager and then co-ordinate me about our business is that we all the trades. are in is that we have got a dream to build something special, but to We are a proud member of the make that dream implementable and Federation of Master Builders (FMB). achievable within the limitations and the

FMB ensures all standards and strict restrictions of the bureaucracy is very criteria are met to assure homeowners difficult. When I say that, I say it even

One of the of a better result, thus ensuring you though we work very closely with our are working with the best builders. local council, but legislation is far too things we are “ All FMB members have passed an restrictive in relation to planning. To give “very proud of independent inspection before joining you an indication, one of our projects and are inspected every three years, was delayed for 12 months because of is our training carried out by an inspector from the a bat survey that could only be carried British Board of Agrément (BBA). out between May and August. We programme just missed the cut off date in August One of the things of which we are very so the project got delayed because of proud is our training programme. the bat survey. It is not as if bats were When we started Zestan only two a protected species in this country; it years ago, it was only myself and my is European legislation. The frustration son-in-law who were involved. But about building a dream and achieving as time goes on we are employing what you want to achieve within the more and more people, training more restrictions of the planning legislation is and more people, especially when it the one thing that really worries me. comes to project management. They are the key people in our organisation – We are all aware that in this country we project managers. are suffering from a shortage of housing.

Courtlodge development

44 | ZESTAN PROPERTY

The only way to address that is to build more houses, but the restrictions are mind blowing. The cost to overcome certain hurdles gets added onto the construction costs. This makes the development costs so much higher and then the housing becomes more expensive and less affordable. It is defeating the object.

We want to provide housing on the affordable side, but because of the inability of the planning legislation to fast track projects and to stimulate the building process this causes a cost Directors Richard Dunstan overrun that we must recover from and Andries Stricker the sales. apartments of one, two and three bedrooms, with the second phase of Everybody is concerned about having 13 apartments due to be completed housing affordable and getting young in the summer of 2018. We are also people onto the property ladder, but I contemplating further similar phases think the whole system is not conducive soon, also with a modern Art Deco now. That is my major concern. But if style to match the architecture of the you ask me to build dreams, build the first two phases. impossible, yes, we firmly believe that The core of if you can dream it, you can do it. Future concerns our business is The core of our business is building The Government’s housing White sustainable housing, but also to address “building Paper promised to help property small our social responsibility. To focus on

and medium-sized enterprises (SMEs) creating something that is different, sustainable grow again, but this will require them extraordinary, out of the ordinary. And housing, but we think the motto of the company is to to go further than planning reform and shifting the onus onto local authorities build dreams; to create something that a also to “ lot of people will think is impossible. to free up land, as announced in the Paper. It will also mean taking bolder address our In action action than funnelling money to the Homes and Communities Agency social Court Lodge near the centre of Epsom (soon to become Homes England). is our flagship development in 2017. It responsibility is located adjacent to a recreational area The number of small housebuilders with an open aspect across parkland is in continued decline, leaving the towards the town centre. It provides sector’s output to a small number quick access to the town’s facilities of larger companies. Where small and transport links, whilst benefitting housebuilders were responsible for from being in a quiet, residential three in eight of the UK’s new homes neighbourhood. The development is before 1990, they now only deliver one unique and a first for Epsom. With in eight today. Equally as concerning a very modern design and very high is the lack of growth in the number of specifications, this development is in medium-sized housebuilders. There are touch with all lifestyle aspects needed five times fewer SMEs now than there for the 21st century. were in the 1980s, demonstrating a The first phase which is due to be concentration of growth only at the completed by the end of 2017 is large end of the market. comprised of ten luxury, high tech

ZESTAN | 45 THE PARLIAMENTARY REVIEW Highlighting best practice

Nabarro Mcallister

Nabarro McAllister Office Simon Nabarro, founder and Director, Nabarro Mcallister & Co mall is beautiful. A combination of honesty, professional expertise and a desire to maximise client care is the Sbackbone of maintaining a successful chartered surveying practice through the volatility of the UK property market. I qualified as a Chartered Surveyor in 1984 and set up as a sole practitioner in Leeds. Ten years on, I was joined by my trainer and mentor, Douglas McAllister, and, in 1994, we founded Nabarro McAllister Chartered Surveyors.

FACTS ABOUT Nabarro Mcallister Tragically, in 1999, Douglas was killed in a car accident and I was left to continue »»Chartered Surveyors initially on my own using the knowledge and experience I had gleaned from my »»Founded 1984 mentor and my first 15 years in business. »»General Practice Firm The firm was incorporated in February 2003 and now employs three fee earners, »»Wide variety of surveying three secretarial staff and one trainee surveyor. It operates from an office building disciplines in Leeds, undertaking a wide variety of work associated with a general practice »»Seven members of staff surveying business.

Disciplines include valuation, building surveying, landlord and tenant work, business rate appeals, commercial agency, boundary and neighbour disputes, together with acting as an expert witness in relation to any of these.

Volatility of the UK property market

In 1984 the British property market was challenging and it wasn’t the ideal time to start in business. Since then I have experienced the boom of the late 1980s and the property crash in the early 1990s.

46 | NABARRO MCALLISTER PROPERTY

This was followed by a steep rise in prices from the mid 1990s culminating Real House Prices £240,000 Sources: Nationwide Building Society in the 2005–2008 boom and the £220,000 Base 2016 Q2 dramatic crash in 2008/9 which £200,000 Trend from 1975 Q1 to present Trend = c2.9% per annum followed soon after, with a slow crawl £180,000 back to more promising activity in the £160,000 market more recently. £140,000 £120,000 Current concerns £100,000 £80,000 While the banking sector is still £60,000 reluctant to lend money for property development finance, the availability of 1975 1980 1985 1990 1995 2000 2005 2010 2015 2016 funds has in fact increased for buying, House price index and investing in property. 1975–2016 During the 2005–2008 period, I saw How can this be achieved? irresponsible lending and serious I believe that what is needed is a work over-valuation of property, based on a ethic to be demonstrated by all the mistaken expectation that the market players in the property marketplace, a would never experience a correction work ethic that demonstrates honesty, regardless of recent history. integrity and an ability to stand one’s ground, confident in one’s own The buying frenzy in the residential experience and beliefs. owner occupied and residential investment markets that we As a small business, it would have During the experienced then, shows worrying signs been easy for Nabarro McAllister to of returning, with unsustainable price be pushed into following the market, 2005–2008 increases in some sectors of the market but an ability to stand firm and “period, I saw in our own area of West Yorkshire. demonstrate strong beliefs has created

an environment for the business irresponsible This has come about due to the lack of that has allowed it to come through new house building and the inevitable lending and“ the difficult times of bust following excess of demand over supply, but boom. This has paid dividends in the market cannot race ahead in this serious over- maintaining and growing a client base way if lenders and valuers, really, who appreciate and respect honesty valuation of act responsibly. and integrity – qualities which become property Increased controls have been harder to find in the competitive world introduced on lending and valuation in which we live. practices. This includes lower loan We have continued to assess the to value ratios adopted by lenders property marketplace on a regular and stricter lending criteria imposed basis and to react responsibly to on borrowers. So far as valuers changing circumstances: I believe are concerned, they have stricter our example needs to be followed procedures to follow with some of throughout the industry. the science and skill of valuing being taken away from them. It is important Regulation that both lenders and valuers keep their feet on the ground so that there Regulators, lenders, panel managers may be some hope of a lengthy and (companies who manage the supply of healthy, steady growth and a move valuation services for lenders) and our away from the boom and bust housing governing body the Royal Institution cycle of the past. of Chartered Surveyors (RICS), have

NABARRO MCALLISTER | 47 THE PARLIAMENTARY REVIEW Highlighting best practice

and less-qualified people to carry out valuations following the loss of many members from this part of the profession after the 2008 banking and economic crash.

Everyone needs to start somewhere and I look back now and consider myself very fortunate to have been trained well enough through my early years of practice, without having to endure a string of professional indemnity claims. I also look back to Typical student house my guide and mentor, who instilled in overvalued in Leeds me very high standards of integrity and attempted to put procedures in place to ensure surveyors have good professionalism. comparable evidence on their files More education is required in these when they are undertaking valuations areas to ensure such high standards for secured lending on property. Great efforts are maintained and to enable valuers In a complex property market, this to develop the confidence and the need to be is sometimes simplistic and on other ability to offer good and robust “made by occasions it’s very difficult. advice in circumstances when the job is difficult and clear evidence is For example, in a large conurbation significantly lacking. government and in a busy property market with to drive out of multiple transactions taking place, finding good and relevant comparable What can be done? the evidence is easier than ever before with The marketplace needs those in control marketplace the arrival of computer technology and of regulation and education to improve the instant availability of information. the standards and technical knowledge It is however critical for valuers to use unscrupulous of new and young entrants to the relevant comparable evidence and not industry. Opportunities should exist property just select comparisons which, whilst for practical and meaningful courses in supporting their valuation, are not in dealers and Continuing Professional Development fact truly comparable. funding (CPD), preferably being field-based

But what happens when there is a with real and practical examples rather arrangers of slow market and limited evidence for than conference or classroom based.

the type that a unique property? Nowadays the experience of the valuer is no longer Great efforts need to be made by were “ permitted to win the day. The blind government to drive out of the requirement to provide ‘comparable’ marketplace unscrupulous property widespread in evidence, however irrelevant, seems dealers and funding arrangers of the 2005– to be crucial. So long as the valuer has the type that were widespread in ticked the boxes and complied with the 2005–2008 boom. We need to 2008 boom his or her instructions, it seems not to return to those qualities of honesty matter, whether, or not, he or she has and integrity which were far more reached the right answer! prevalent when I qualified more than Very worryingly our governing body 30 years ago. the RICS have allowed less-experienced

48 | NABARRO MCALLISTER PROPERTY

Optimis Consulting

‘The secret of change is to focus all of your energy, not on fighting the old, but on building n adversity, the strong will survive but innovators will thrive. the new.’ – Socrates It is ten years since the start of the last recession, purported Ito be one of the worst in British history. The nation survived, has achieved a more stable economy and, through innovation, sacrifice and by making tough decisions, Britain can be great once again.

FACTS ABOUT There is no doubt that the recession that began in 2007 had consequences for OPTIMIS CONSULTING all industry sectors, but the housing and construction sector was hit badly due »»Began as a sole trader from to extreme adverse economic conditions. It was not just the housebuilders and Bedford in 2009 lending institutions that suffered but those businesses that provide planning and »»Justin Wickersham won Royal development consultancy advice to help developers obtain planning permission to Town Planning Institute (RTPI) build homes and supply land for development. UK Planner of the Year 2012 The recession seemed an inevitability to those in the housing and construction »»Federation of Small Businesses sector. It may be argued that complacency and an inflexible approach to business (FSB) Best New Business contributed to poor decision making that led to the first signs of the crash in Award for East Anglia 2013 August 2007. House building firms were too highly geared, the investments in land »»RTPI Small Planning often unsustainable and sometimes extreme unrelenting pressure was placed on Consultancy of the Year staff to deliver development in unreasonable timescales. Award 2017 »»Team of nine including Change was needed and it took a deep recession to shake the foundations of our four chartered town planners sector to bring opportunity for a more sustainable future. »»New London office opened in For Optimis the recession was a catalyst to establish and then grow. At Optimis, August 2017 we provide town planning expertise and development advice to the house building industry, and I consider that our approach to business and the service that we

OPTIMIS CONSULTING | 49 THE PARLIAMENTARY REVIEW Highlighting best practice

offer to our clients is unique. Our As a planning and development To create a approach has gained respect from consultancy in the house building company that our peers and we have been able to sector our role is to guide the celebrate our success as a team of strategies for the delivery of homes “is financially dedicated professionals. We have in the most efficient and effective successful, broken the mould set by the older manner. Set up in the aftermath of established businesses in our sector the global financial crisis, we have professionally and our success is achieved through developed an approach which has an entrepreneurial approach that enabled us to thrive in the post- and socially epitomises the British spirit. recession era. As a service to house builders there is a need for better respected, is Now we are thriving in a sector that expertise in three key areas. A planning welcomes our honest, diverse and able to grow consultant should: commercially sound advice because we and adapt so deliver a service that meets the needs 1. Be influential in moulding of local and national house builders; development by being more that everyone who are our main clients. Through our respectful of the impacts of who works innovation and entrepreneurial spirit, residential development on we provide a service that influences communities; be experts at working for, or the delivery of homes in a manner that in partnership with communities to interacts with, benefits all stakeholders. deliver the facilities that they need,

Our approach is to provide the best whilst also providing a streamlined the company service to our clients, which is to process for developers to achieve

is proud of formulate credible, innovative and their housing delivery. viable strategies to plan, develop 2. Have the credibility and passion to their “ and deliver residential development challenge the planning process on association to contribute towards the nation’s a policy level or to actively deliver housing demand. The innovation in land for development through our business approach provides best and they are their own business investment. practice in how to achieve success A consultant that actually takes within a highly-competitive sector. inspired by it risk and invests in the planning and (Our Business Vision) Our Business Vision defines us. Since development strategies that they we set up in 2009 our vision remains advise their clients to undertake true today. is very powerful. We set our Encouraging staff own example. development 3. Have knowledge and greater regard for the financial needs of a developer, in terms of risk, reward and cash flow; be experts in preparing viability assessments and challenge any unjustified requests made by local planning authorities for planning obligations. The outcome of this approach ensures that development is viable and deliverable; not stalled by overzealous Councils making unsubstantiated requests for financial contributions or affordable housing. Planning consents must be viable and implementable.

50 | OPTIMIS CONSULTING PROPERTY

‘The team at Optimis are dynamic and Such knowledge, power and influence award, also from our professional body; highly professional, and offers a strong are only possible if the consultant The Royal Town Planning Institute. service to clients.’ – team that act for the client has the Although we have won other awards Nick Raynsford, former appropriate skill set, charisma and in business, these two awards are most Planning and Housing Minister and Chair of cherished because they represent our dedication to deliver. In my view, the Judging Panel for modern business practises need to profession and are representative of the 2017 RTPI Awards be more people focused than ever our professional approach. before, especially in light of the power I believe that business should be of social media. Successful businesses encouraged to invest back into their employ people not staff. Those older community, through fundraising, consultancy practices that rely on sponsorship or educational humans as a resource, as a commodity, programmes. Consultants taking their find success more challenging than skills back to school and investing in those businesses that empower their young people creates credibility and team to succeed. respect. Schools welcome experts Recruiting people with the right to educate their students at all ages passion, personality and desire to because it provides relevance to their celebrate success not only guarantees subject matter but also opens up the best service to the client but it career opportunities. builds a camaraderie and loyalty to This is the blue print from which Attention to a business that allows it to thrive. Optimis has been successful. Starting

Working practices that are flexible, detail, high- from the lowest point in the recession, promote training and professional

we did not just survive, we used “quality business development and allow individuals to our entrepreneurial business spirit, celebrate as a team are very powerful innovated and proudly we have submissions and “ and rewarding. succeeded. We will always invest in our an emphasis on people, our community and be proud Advancing professional to be based in Bedford. Our business outcomes that development brings credibility model has worked and we welcome benefit all sides In 2012 we won the UK Planning other entrepreneurs to break the Consultant of the year award and in mould and drive Britain forward in a Judging Panel for the 2017, we were awarded the UK Small time of opportunity. 2012 RTPI Awards Planning Consultancy of the year

OPTIMIS CONSULTING | 51 review of The two leaders traded more to our plan for a stronger Britain and accusations with Theresa May warning take the right long-term decisions for a Parliament that ordinary working people would more secure future for this country.’ face higher taxes and lost jobs under Labour while Mr Corbyn claimed The SNP’s Westminster Leader, Angus the Prime Minister’s priority was ‘tax robertson, raised the headline in the A snap election giveaways to the richest corporations Daily Mail which called on the Prime while our children’s schools are starved Minister to ‘Crush the saboteurs’ On the 19th April 2017, having of the resources they need to educate working against her plans for Brexit. repeatedly insisted that she had no our children for the future’. He said that struck a dangerous tone in intention of calling a snap election, a democratic state: ‘so does the Prime Brexit emerged as one of the Prime Prime Minister, Theresa May, sprung a Minister agree that political opponents Minister’s main campaign themes: ‘every complete surprise when she summoned are not “saboteurs”?’ vote for the Conservatives will make me the press to Downing Street to announce stronger when I negotiate for Britain with Later that afternoon, the Commons she would seek a Commons vote to go the european Union. And every vote for voted to call an early election, by 522 to the country on June 8th 2017. the Conservatives will mean we can stick votes to 13. It was all the more dramatic because the first inkling came only when it was announced that the Prime Minister would make an important statement The Queen’s Speech outside Downing Street. for the state opening of Parliament on The announcement, made as Prime Minister Theresa June 21st, they were chastened and Parliament returned from its easter May sought to strengthen uncertain, while euphoria gripped the break, had the force of a thunderclap in the leadership that is needed at her position before occupants of the Labour benches. Westminster. Quite unexpectedly, MPs this time?’ negotiations with the eU began and parties were plunged into election When they came to speak in the The Prime Minister did not miss a beat: mode – with no-one in any doubt that traditional debate on an address ‘There are three things that a country the two thirds Commons majority, thanking Her Majesty for the Queen’s needs: a strong economy, strong required to trigger a dissolution, under Speech – the new Government’s the Fixed Term Parliaments Act, would defence and strong, stable leadership. legislative programme – the dynamic be reached. That is what our plans for Brexit and our plans for a stronger Britain will between the two main figures had The immediate effect was to turn deliver... The right Hon. Member for changed completely. Mr Corbyn what were now the two remaining Islington North (The Labour Leader, seemed a far more confident, assertive Prime Minister’s Question Times of Jeremy Corbyn) would bankrupt our parliamentary performer, relishing the the Parliament into de facto leader’s economy and weaken our defences opportunity to throw back the taunts debates – especially since it was made and is simply not fit to lead.’ that had been hurled at him during the clear that Theresa May would not take campaign. part in the kind of televised debates To Conservative jeers, Mr Corbyn counter-attacked: ‘She says that it is A Government which had warned that held in the 2010 and 2015 elections. The Queen’s Speech about leadership, yet she refuses to announced the he could only gain power in a ‘coalition On this occasion, her first questioner defend her record in television debates. government’s legislative What a difference. Theresa May and of chaos’ with the SNP and the Lib plan for the coming was the Conservative backbencher, It is not hard to see why. The Prime Jeremy Corbyn’s final Commons Dems had been forced to negotiate Parliament Alberto Costa, who zeroed in on Minister says that we have a stronger confrontation before the election for the support of the Northern Ireland his Party’s campaign theme: ‘Strong economy, yet she cannot explain why had seen the Conservatives limbering Democratic Unionists ... and as the first countries need strong economies. people’s wages are lower today than up for a triumphal campaign which debate of this new Parliament began, Strong countries need strong defences. they were 10 years ago or why more would culminate in the inevitable that support had not been secured. Strong countries need strong leaders. households are in debt. Six million smashing of their Labour opponents. Mr Corbyn could not resist the open As the nation prepares to go to the people are earning less than the When the diminished, battered band goal. To triumphant Labour laughter polls, who else in this House, apart living wage, child poverty is up, and of Conservative MPs reassembled, he noted that ‘the latest coalition may from my right Hon. Friend, can provide pensioner poverty is up.’ minus their parliamentary majority, already be in some chaos’.

52 | REVIEW OF PARLIAMENT review of PROPERTY The two leaders traded more to our plan for a stronger Britain and accusations with Theresa May warning take the right long-term decisions for a Parliament that ordinary working people would more secure future for this country.’ face higher taxes and lost jobs under Labour while Mr Corbyn claimed The SNP’s Westminster Leader, Angus the Prime Minister’s priority was ‘tax robertson, raised the headline in the A snap election giveaways to the richest corporations Daily Mail which called on the Prime while our children’s schools are starved Minister to ‘Crush the saboteurs’ On the 19th April 2017, having of the resources they need to educate working against her plans for Brexit. repeatedly insisted that she had no our children for the future’. He said that struck a dangerous tone in intention of calling a snap election, a democratic state: ‘so does the Prime Brexit emerged as one of the Prime Prime Minister, Theresa May, sprung a Minister agree that political opponents Minister’s main campaign themes: ‘every complete surprise when she summoned are not “saboteurs”?’ vote for the Conservatives will make me the press to Downing Street to announce stronger when I negotiate for Britain with Later that afternoon, the Commons she would seek a Commons vote to go the european Union. And every vote for voted to call an early election, by 522 to the country on June 8th 2017. the Conservatives will mean we can stick votes to 13. It was all the more dramatic because the first inkling came only when it was announced that the Prime Minister would make an important statement The Queen’s Speech outside Downing Street. for the state opening of Parliament on The announcement, made as Prime Minister Theresa June 21st, they were chastened and Parliament returned from its easter May sought to strengthen uncertain, while euphoria gripped the break, had the force of a thunderclap in the leadership that is needed at her position before occupants of the Labour benches. Westminster. Quite unexpectedly, MPs this time?’ negotiations with the eU began and parties were plunged into election When they came to speak in the The Prime Minister did not miss a beat: mode – with no-one in any doubt that traditional debate on an address ‘There are three things that a country the two thirds Commons majority, thanking Her Majesty for the Queen’s needs: a strong economy, strong required to trigger a dissolution, under Speech – the new Government’s the Fixed Term Parliaments Act, would defence and strong, stable leadership. legislative programme – the dynamic be reached. That is what our plans for Brexit and our plans for a stronger Britain will between the two main figures had The immediate effect was to turn deliver... The right Hon. Member for changed completely. Mr Corbyn what were now the two remaining Islington North (The Labour Leader, seemed a far more confident, assertive Prime Minister’s Question Times of Jeremy Corbyn) would bankrupt our parliamentary performer, relishing the the Parliament into de facto leader’s economy and weaken our defences opportunity to throw back the taunts debates – especially since it was made and is simply not fit to lead.’ that had been hurled at him during the clear that Theresa May would not take campaign. part in the kind of televised debates To Conservative jeers, Mr Corbyn counter-attacked: ‘She says that it is A Government which had warned that held in the 2010 and 2015 elections. The Queen’s Speech about leadership, yet she refuses to announced the he could only gain power in a ‘coalition On this occasion, her first questioner defend her record in television debates. government’s legislative What a difference. Theresa May and of chaos’ with the SNP and the Lib plan for the coming was the Conservative backbencher, It is not hard to see why. The Prime Jeremy Corbyn’s final Commons Dems had been forced to negotiate Parliament Alberto Costa, who zeroed in on Minister says that we have a stronger confrontation before the election for the support of the Northern Ireland his Party’s campaign theme: ‘Strong economy, yet she cannot explain why had seen the Conservatives limbering Democratic Unionists ... and as the first countries need strong economies. people’s wages are lower today than up for a triumphal campaign which debate of this new Parliament began, Strong countries need strong defences. they were 10 years ago or why more would culminate in the inevitable that support had not been secured. Strong countries need strong leaders. households are in debt. Six million smashing of their Labour opponents. Mr Corbyn could not resist the open As the nation prepares to go to the people are earning less than the When the diminished, battered band goal. To triumphant Labour laughter polls, who else in this House, apart living wage, child poverty is up, and of Conservative MPs reassembled, he noted that ‘the latest coalition may from my right Hon. Friend, can provide pensioner poverty is up.’ minus their parliamentary majority, already be in some chaos’.

REVIEW OF PARLIAMENT | 53 THE PARLIAMENTARY REVIEW Review of Parliament

‘Nothing could emphasise that chaos more than the Queen’s Speech we have just heard: a threadbare legislative Grenfell Tower programme from a Government who have lost their majority and apparently So it was that the Communities run out of ideas altogether. This would Secretary, Sajid Javid, came to the be a thin legislative programme even if Commons on July 3rd to announce it was for one year, but for two years – £2.5 million had been distributed two years? There is not enough in it to from the special £5 million fund set fill up one year.’ up to help the residents. Mr Javid said That was a reference to the the public inquiry and the criminal Government’s decision to declare a investigation had to be allowed the two-year Parliamentary Session – a space to follow the evidence wherever procedural move intended to ensure it took them, and everyone should be ministers could push through vital Brexit careful not to prejudice their work. legislation in time for the exit date in responding to the Labour MP, David March 2019. Mr Corbyn mocked the Lammy, who had lost a family friend in Prime Minister for dropping a series of the fire, he added that although it was Jeremy Corbyn received for the judge to determine the scope election promises that had not found a boost in support favour with the voters. the Prime Minister that Labour were following the election of the inquiry, he expected it to be ‘as now ‘not merely an Opposition; we broad and wide-ranging as possible’. ‘It is therefore appropriate to start by are a Government in waiting, with a Mr Javid also dealt with the key issue of welcoming what is not in the speech. policy programme that enthused and First, there is no mention of scrapping the authorities’ inability to say exactly engaged millions of people in this the winter fuel allowance for millions how many people had died: ‘There election, many for the first time in their Tributes for the Grenfell of pensioners through means testing. has been much speculation about who political lives. We are ready to offer victims came from Can the Prime Minister assure us that across the country The fire that destroyed Grenfell Tower, was in Grenfell Tower on the night of real strong and stable leadership in the that Conservative plan has now been a social housing block in the London the fire, and it is vital that we find out. interests of the many, not the few.’ withdrawn? Mercifully, neither is there Borough of Kensington and Chelsea, The Director of Public Prosecutions any mention of ditching the triple The Prime Minister attempted to seemed to some to crystallise the has made it clear that there will be no lock. Pensioners across Britain will be puncture Labour’s mood with a barbed issues that had driven the ‘Corbyn prosecution of tenants ... who may grateful to know whether the Tory welcome for Mr Corbyn’s return to Surge’ in the General election just have been illegally sub-letting their election commitment on that has also the Opposition benches – and she days earlier. property, ... There may have been been binned.’ reminded him that the Conservatives people living in flats that were illegally still had 56 more Commons seats than Accusations about the neglect of sub-let who had no idea about the Also absent from this slimmed down Labour. She said her policies were social housing tenants, chronic under- true status of their tenancy. Their legislative programme were the aimed at ‘grasping the opportunities investment and official incompetence families want to know if they perished Government’s controversial policy on for every community in our country were flying, even while the pall of in the fire. These are their sons, their social care (dubbed the ‘dementia tax’ to benefit as we leave the european smoke still hovered over the capital and daughters, their brothers and their by Labour), plans to cut free school Union; it is about delivering the will the horrific images of the blaze were sisters. They need closure, and that is meals, and the promised expansion of of the British people with a Brexit deal replayed on TV. the least that they deserve.’ grammar schools. that works for all parts of our United So potent was the symbolism that it The Government was also taking On Brexit, Mr Corbyn stuck to Labour’s Kingdom.’ She said the referendum became intertwined in the debates urgent action to avoid another tragedy careful positioning in favour of a deal vote to leave the european Union was on the post-election Queen’s Speech in buildings with architectural cladding with the eU ‘that puts jobs and the ‘a profound and justified expression - but the Government also committed similar to that which appeared to economy first’. He called for full access that our country often does not to keep MPs informed about the have been a factor in the Grenfell fire. to the single market and a customs work the way it should for millions of aftermath, the efforts to identify Mr Javid said the early findings were arrangement that provided Britain ordinary families. This Queen’s Speech casualties in the wreckage of the disturbing: ‘So far, all the samples with the ‘exact same benefits’ as now. begins to change that, by putting tower, to re-house and assist those of cladding tested have failed – that And in his final flourish he warned fairness at the heart of our agenda.’ who had lost their homes, and to set is 181 out of 181. ... the priority up a public inquiry. now is to make those buildings safe.

54 | REVIEW OF PARLIAMENT PROPERTY

‘Nothing could emphasise that chaos more than the Queen’s Speech we have just heard: a threadbare legislative Grenfell Tower programme from a Government who have lost their majority and apparently So it was that the Communities run out of ideas altogether. This would Secretary, Sajid Javid, came to the be a thin legislative programme even if Commons on July 3rd to announce it was for one year, but for two years – £2.5 million had been distributed two years? There is not enough in it to from the special £5 million fund set fill up one year.’ up to help the residents. Mr Javid said That was a reference to the the public inquiry and the criminal Government’s decision to declare a investigation had to be allowed the two-year Parliamentary Session – a space to follow the evidence wherever procedural move intended to ensure it took them, and everyone should be ministers could push through vital Brexit careful not to prejudice their work. legislation in time for the exit date in responding to the Labour MP, David March 2019. Mr Corbyn mocked the Lammy, who had lost a family friend in Prime Minister for dropping a series of the fire, he added that although it was Jeremy Corbyn received for the judge to determine the scope election promises that had not found a boost in support favour with the voters. the Prime Minister that Labour were following the election of the inquiry, he expected it to be ‘as now ‘not merely an Opposition; we broad and wide-ranging as possible’. ‘It is therefore appropriate to start by are a Government in waiting, with a Mr Javid also dealt with the key issue of welcoming what is not in the speech. policy programme that enthused and First, there is no mention of scrapping the authorities’ inability to say exactly engaged millions of people in this the winter fuel allowance for millions how many people had died: ‘There election, many for the first time in their Tributes for the Grenfell of pensioners through means testing. has been much speculation about who political lives. We are ready to offer victims came from Can the Prime Minister assure us that across the country The fire that destroyed Grenfell Tower, was in Grenfell Tower on the night of real strong and stable leadership in the that Conservative plan has now been a social housing block in the London the fire, and it is vital that we find out. interests of the many, not the few.’ withdrawn? Mercifully, neither is there Borough of Kensington and Chelsea, The Director of Public Prosecutions any mention of ditching the triple The Prime Minister attempted to seemed to some to crystallise the has made it clear that there will be no lock. Pensioners across Britain will be puncture Labour’s mood with a barbed issues that had driven the ‘Corbyn prosecution of tenants ... who may grateful to know whether the Tory welcome for Mr Corbyn’s return to Surge’ in the General election just have been illegally sub-letting their election commitment on that has also the Opposition benches – and she days earlier. property, ... There may have been been binned.’ reminded him that the Conservatives people living in flats that were illegally still had 56 more Commons seats than Accusations about the neglect of sub-let who had no idea about the Also absent from this slimmed down Labour. She said her policies were social housing tenants, chronic under- true status of their tenancy. Their legislative programme were the aimed at ‘grasping the opportunities investment and official incompetence families want to know if they perished Government’s controversial policy on for every community in our country were flying, even while the pall of in the fire. These are their sons, their social care (dubbed the ‘dementia tax’ to benefit as we leave the european smoke still hovered over the capital and daughters, their brothers and their by Labour), plans to cut free school Union; it is about delivering the will the horrific images of the blaze were sisters. They need closure, and that is meals, and the promised expansion of of the British people with a Brexit deal replayed on TV. the least that they deserve.’ grammar schools. that works for all parts of our United So potent was the symbolism that it The Government was also taking On Brexit, Mr Corbyn stuck to Labour’s Kingdom.’ She said the referendum became intertwined in the debates urgent action to avoid another tragedy careful positioning in favour of a deal vote to leave the european Union was on the post-election Queen’s Speech in buildings with architectural cladding with the eU ‘that puts jobs and the ‘a profound and justified expression - but the Government also committed similar to that which appeared to economy first’. He called for full access that our country often does not to keep MPs informed about the have been a factor in the Grenfell fire. to the single market and a customs work the way it should for millions of aftermath, the efforts to identify Mr Javid said the early findings were arrangement that provided Britain ordinary families. This Queen’s Speech casualties in the wreckage of the disturbing: ‘So far, all the samples with the ‘exact same benefits’ as now. begins to change that, by putting tower, to re-house and assist those of cladding tested have failed – that And in his final flourish he warned fairness at the heart of our agenda.’ who had lost their homes, and to set is 181 out of 181. ... the priority up a public inquiry. now is to make those buildings safe.

REVIEW OF PARLIAMENT | 55 THE PARLIAMENTARY REVIEW Review of Parliament

Where appropriate mitigating The Communities Secretary clashed he was challenged by the senior Labour measures cannot be implemented with the Labour MP, Andy Slaughter, backbencher, Frank Field, who warned: quickly, landlords must provide who attacked the management record ‘if we pass this amendment and give alternative accommodation while the of the local council: ‘It is an open secret those rights to european citizens here, remedial work is carried out.’ in West London that the administration there will be no incentive whatsoever in Kensington and Chelsea could not for other european countries to concede The Lib Dem, Jo Swinson, raised run a bath. That is why the residents of those rights to our citizens.’ suggestions that the fire had been North Ken have had such a raw deal for Sir Kier retorted that the wording asked caused by a faulty fridge: ‘so will the so long. So when will the Secretary of Ministers to bring forward proposals Government revisit the decision of State put country before Party and send within three months, and so did not tie March last year to dismiss or delay in the commissioners?’ many of the recommendations of the anybody’s hands. Lynn Faulds Wood review into product Mr Javid retorted that Slaughter Another Labour ex-Minister, Pat recall, which I commissioned [as a was a local London MP: ‘he has an McFadden, suggested that, in the Coalition minister] and in particular opportunity now to put party politics event of no deal being agreed, the look at enforcing the regulations.’ aside and just do the right thing for Government was seeking the authority Sajid Javid said the issue was his constituents. His constituents are to default to a trading relationship being addressed. watching him.’ with the eU, based on the World Trade Organization rules – without a Commons vote. Keir Starmer warned that would be the worst possible Last rites on the Brexit Bill outcome, quoting the Confederation of British Industry’s view that ‘the cost Back in March, when an election rights of eU citizens living in the UK, of change is simply too high to even seemed a distant prospect, parliament’s and the second promised Parliament consider it’. main focus was on the european Union a ‘meaningful vote’ on the final (Notification of Withdrawal) Bill. This Brexit deal. That meant the Bill had The leading Labour leave campaigner, Bill, which would give Theresa May to return to the Commons because Gisela Stuart, said the Government should Parliament, and the make the status of eU citizens in the UK the authority to begin the UK’s divorce both Houses of Parliament must agree general public, remain a priority, but she opposed including the from the european Union, was forced on the final wording of legislation. divided regarding the had already promised a vote. And he issue in the Bill: ‘I shall vote against all the on the Government after a Supreme This is the arcane process known as relationship that the UK was wary of a hidden agenda behind should have with eU amendments on the simple basis that this Court ruling that Parliamentary ‘Parliamentary Ping Pong’, with each the push for a ‘meaningful vote’, Bill has one purpose and one purpose approval was required to begin house voting on whether to accept or warning: ‘what we cannot have ... is only: to give legal effect to the decision the process. reject changes made by the other. any suggestion that the votes in either of the people on 23 June ... However, I David Davis, Secretary House will overturn the result of the Despite fears that the Bill could be When the changes were put to MPs, look to the Secretary of State to give firm of State for exiting referendum. That is the key point.’ watered down or even reshaped the Brexit Secretary, David Davis, said the european Union assurances that his top and first priority to reverse the referendum verdict, they should not be accepted. On the since July 2016 Mr Davis warned that the amendment will be the rights of eU citizens.’ it passed through the Commons issue of eU citizens, he agreed that they ‘effectively, seeks to prohibit the Prime One of the Conservatives’ leading unscathed. All attempts to amend, Minister from walking away from made a vital contribution to the UK. backbench Brexiteers, John Baron, said or add, to its 136 words were voted But the issue was that the european negotiations, even if she thinks the the Commons, in approving the eU down. Predictions of a major rebellion Union would not begin talks until the european Union is offering her a bad or referendum in the first place, had made of up to 50 Conservative remainers UK had begun the formal process of very bad deal ... The Government will ‘a contract with the British people ... proved unfounded, and only a handful leaving, so their status could not be be undertaking these negotiations and if there is a good deal, we will take it, (notably the arch-europhile former confirmed. Securing their status, and must have the freedom to walk away and if there is not, the Prime Minister Chancellor, Ken Clark) defied the that of UK citizens living in the eU, was from a deal that sets out to punish the has made it very clear that we will not party whip. an early priority for the forthcoming UK for a decision to leave the eU, as accept a bad deal, so we move on, and negotiations, he said. some in europe have suggested.’ we move out of the eU.’ But when it moved on to the House of Lords, where there is no Government He also rejected the second For Labour, the Shadow Brexit Secretary, The Conservative, Anna Soubry, a strong majority and a large concentration of amendment – giving Parliament a Sir Keir Starmer, backed both Lords’ remain campaigner, said her Party pro-eU peers, the Bill was amended vote on the final Brexit deal – as amendments. He said protecting eU wanted to honour the vote to Leave: twice. One change guaranteed the unnecessary, because the Government citizens was a matter of principle – but ‘now, however, we are talking about the

56 | REVIEW OF PARLIAMENT PROPERTY

Where appropriate mitigating The Communities Secretary clashed he was challenged by the senior Labour measures cannot be implemented with the Labour MP, Andy Slaughter, backbencher, Frank Field, who warned: quickly, landlords must provide who attacked the management record ‘if we pass this amendment and give alternative accommodation while the of the local council: ‘It is an open secret those rights to european citizens here, remedial work is carried out.’ in West London that the administration there will be no incentive whatsoever in Kensington and Chelsea could not for other european countries to concede The Lib Dem, Jo Swinson, raised run a bath. That is why the residents of those rights to our citizens.’ suggestions that the fire had been North Ken have had such a raw deal for Sir Kier retorted that the wording asked caused by a faulty fridge: ‘so will the so long. So when will the Secretary of Ministers to bring forward proposals Government revisit the decision of State put country before Party and send within three months, and so did not tie March last year to dismiss or delay in the commissioners?’ many of the recommendations of the anybody’s hands. Lynn Faulds Wood review into product Mr Javid retorted that Slaughter Another Labour ex-Minister, Pat recall, which I commissioned [as a was a local London MP: ‘he has an McFadden, suggested that, in the Coalition minister] and in particular opportunity now to put party politics event of no deal being agreed, the look at enforcing the regulations.’ aside and just do the right thing for Government was seeking the authority Sajid Javid said the issue was his constituents. His constituents are to default to a trading relationship being addressed. watching him.’ with the eU, based on the World Trade Organization rules – without a Commons vote. Keir Starmer warned that would be the worst possible Last rites on the Brexit Bill outcome, quoting the Confederation of British Industry’s view that ‘the cost Back in March, when an election rights of eU citizens living in the UK, of change is simply too high to even seemed a distant prospect, parliament’s and the second promised Parliament consider it’. main focus was on the european Union a ‘meaningful vote’ on the final (Notification of Withdrawal) Bill. This Brexit deal. That meant the Bill had The leading Labour leave campaigner, Bill, which would give Theresa May to return to the Commons because Gisela Stuart, said the Government should Parliament, and the make the status of eU citizens in the UK the authority to begin the UK’s divorce both Houses of Parliament must agree general public, remain a priority, but she opposed including the from the european Union, was forced on the final wording of legislation. divided regarding the had already promised a vote. And he issue in the Bill: ‘I shall vote against all the on the Government after a Supreme This is the arcane process known as relationship that the UK was wary of a hidden agenda behind should have with eU amendments on the simple basis that this Court ruling that Parliamentary ‘Parliamentary Ping Pong’, with each the push for a ‘meaningful vote’, Bill has one purpose and one purpose approval was required to begin house voting on whether to accept or warning: ‘what we cannot have ... is only: to give legal effect to the decision the process. reject changes made by the other. any suggestion that the votes in either of the people on 23 June ... However, I David Davis, Secretary House will overturn the result of the Despite fears that the Bill could be When the changes were put to MPs, look to the Secretary of State to give firm of State for exiting referendum. That is the key point.’ watered down or even reshaped the Brexit Secretary, David Davis, said the european Union assurances that his top and first priority to reverse the referendum verdict, they should not be accepted. On the since July 2016 Mr Davis warned that the amendment will be the rights of eU citizens.’ it passed through the Commons issue of eU citizens, he agreed that they ‘effectively, seeks to prohibit the Prime One of the Conservatives’ leading unscathed. All attempts to amend, Minister from walking away from made a vital contribution to the UK. backbench Brexiteers, John Baron, said or add, to its 136 words were voted But the issue was that the european negotiations, even if she thinks the the Commons, in approving the eU down. Predictions of a major rebellion Union would not begin talks until the european Union is offering her a bad or referendum in the first place, had made of up to 50 Conservative remainers UK had begun the formal process of very bad deal ... The Government will ‘a contract with the British people ... proved unfounded, and only a handful leaving, so their status could not be be undertaking these negotiations and if there is a good deal, we will take it, (notably the arch-europhile former confirmed. Securing their status, and must have the freedom to walk away and if there is not, the Prime Minister Chancellor, Ken Clark) defied the that of UK citizens living in the eU, was from a deal that sets out to punish the has made it very clear that we will not party whip. an early priority for the forthcoming UK for a decision to leave the eU, as accept a bad deal, so we move on, and negotiations, he said. some in europe have suggested.’ we move out of the eU.’ But when it moved on to the House of Lords, where there is no Government He also rejected the second For Labour, the Shadow Brexit Secretary, The Conservative, Anna Soubry, a strong majority and a large concentration of amendment – giving Parliament a Sir Keir Starmer, backed both Lords’ remain campaigner, said her Party pro-eU peers, the Bill was amended vote on the final Brexit deal – as amendments. He said protecting eU wanted to honour the vote to Leave: twice. One change guaranteed the unnecessary, because the Government citizens was a matter of principle – but ‘now, however, we are talking about the

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sovereignty of this Parliament and about eU Single Market. And he added: He said the debate had now moved what would happen in the event that ‘there might not be a meaningful vote on to what a post-Brexit Britain would our Prime Minister does not strike a good in this Chamber, but there shall be be like: ‘There are Conservatives who deal. I trust our Prime Minister ... but let a meaningful vote in Scotland about want to use Brexit to turn this country us be under no illusion that if she does protecting our millennium-long history into a low-wage tax haven. Labour is not do so, there will be no alternative but as a european nation.’ determined to invest in a high-skill, WTO tariffs, regulations and rules, and high-tech, high-wage future ... Labour When MPs rejected both Lords’ the people in my constituency certainly will not give this Government a free did not vote for that.’ amendments, the Bill was sent back for immediate consideration in the House hand to use Brexit to attack rights and The debate was held within hours of Lords, where David Davis came to protections and to cut services, or to of the announcement by Scotland’s watch his Junior Minister, Lord Bridges, create a tax dodger’s paradise.’ First Minister, Nicola Sturgeon, that call on Peers to drop their opposition. The SNP’s then Westminster Leader, she would hold a second referendum And while the Liberal Democrat, Lord Angus robertson, accused the Prime on Scottish independence. In the Oates, did urge Peers to continue Minister of breaking her promise that Commons, the former First Minister, defying the Government, support for Alex Salmond, complained that the the amendment melted away, and the Article 50 would not be triggered Government had broken its promise not attempt to throw it back to MPs was without the agreement of the devolved to trigger the formal process for leaving once more rejected, as was the attempt Negotiations on leaving administrations. He noted that Scotland the eU until there was an agreed ‘UK to keep the ‘meaningful vote’. The the eU are expected to had voted to remain in the eU: ‘On this take several years to and in a spirit of sincere co-operation, approach’ backed by Scotland, and had final form of the Bill was settled – and issue, it is not a United Kingdom, and complete for it is in the interests of both the ignored the SNP compromise proposal it was sent off for the royal Assent, the Prime Minster needs to respect – United Kingdom and the european to allow Scotland to stay inside the un-amended. respect – the differences across the Union that we should use this process nations of the United Kingdom. If she to deliver our objectives in a fair and does not – if she remains intransigent orderly manner. ... We will continue to and if she denies Scotland a choice Article 50 is triggered be reliable partners, willing allies and on our future – she will make Scottish close friends. We want to continue independence inevitable.’ to buy goods and services from the The passage of the european Union eU, and sell it ours ... Indeed, in an The then Lib Dem Leader, Tim Farron, (Notification of Withdrawal) Act cleared increasingly unstable world, we must called for a second referendum on the way for the Prime Minister to act continue to forge the closest possible the terms of the final deal: ‘Today the on the referendum verdict and formally security co-operation to keep our Prime Minister is not enacting the will trigger Britain’s departure talks with people safe. We face the same global of the people; she is at best interpreting the eU. threats from terrorism and extremism.’ that will, and choosing a hard Brexit outside the single market that was She was greeted by cheering Jeremy Corbyn warned against leaving never on the ballot paper. This day of Conservative MPs when she announced, without a trade agreement: ‘the Prime all days, the Liberal Democrats will not on the 29th March, that the process had Minister says that no deal is better than roll over, as the official Opposition have begun: ‘A few minutes ago, in Brussels, a bad deal, but the reality is that no done ... I am determined to be able to the United Kingdom’s permanent deal is a bad deal. Less than a year ago, look my children in the eye and say that representative to the eU handed a the Treasury estimated that leaving I did everything to prevent this calamity letter to the President of the european the european Union on World Trade that the Prime Minister has today Council on my behalf confirming the Organization terms would lead to a chosen ... Surely the Prime Minister will Theresa May meets Government’s decision to invoke Article 7.5% fall in our GDP and a £45 billion with european Council agree with me that the people should 50 of the treaty on european Union. the rules that affect the european President Donald Tusk in loss in tax receipts ... It would be a have the final say.’ Downing Street national failure of historic proportions The Article 50 process is now under way economy. We know that UK companies if the Prime Minister came back from The Westminster Leader of the and, in accordance with the wishes of that trade with the eU will have to align the British people, the United Kingdom Brussels without having secured Northern Ireland DUP, Nigel Dodds, with rules agreed by institutions of is leaving the european Union.’ protection for jobs and living standards, congratulated Theresa May on which we are no longer a part, just as so we will use every parliamentary delivering on the will of the people: She added that she wanted to build we do in other overseas markets – we opportunity to ensure the Government ‘Is not the fundamental point that this a close partnership with the eU: ‘We accept that. However, we approach are held to account at every stage of United Kingdom – this Union – is far know that we will lose influence over these talks constructively, respectfully the negotiations.’ more important for the political and

58 | REVIEW OF PARLIAMENT PROPERTY sovereignty of this Parliament and about eU Single Market. And he added: He said the debate had now moved what would happen in the event that ‘there might not be a meaningful vote on to what a post-Brexit Britain would our Prime Minister does not strike a good in this Chamber, but there shall be be like: ‘There are Conservatives who deal. I trust our Prime Minister ... but let a meaningful vote in Scotland about want to use Brexit to turn this country us be under no illusion that if she does protecting our millennium-long history into a low-wage tax haven. Labour is not do so, there will be no alternative but as a european nation.’ determined to invest in a high-skill, WTO tariffs, regulations and rules, and high-tech, high-wage future ... Labour When MPs rejected both Lords’ the people in my constituency certainly will not give this Government a free did not vote for that.’ amendments, the Bill was sent back for immediate consideration in the House hand to use Brexit to attack rights and The debate was held within hours of Lords, where David Davis came to protections and to cut services, or to of the announcement by Scotland’s watch his Junior Minister, Lord Bridges, create a tax dodger’s paradise.’ First Minister, Nicola Sturgeon, that call on Peers to drop their opposition. The SNP’s then Westminster Leader, she would hold a second referendum And while the Liberal Democrat, Lord Angus robertson, accused the Prime on Scottish independence. In the Oates, did urge Peers to continue Minister of breaking her promise that Commons, the former First Minister, defying the Government, support for Alex Salmond, complained that the the amendment melted away, and the Article 50 would not be triggered Government had broken its promise not attempt to throw it back to MPs was without the agreement of the devolved to trigger the formal process for leaving once more rejected, as was the attempt Negotiations on leaving administrations. He noted that Scotland the eU until there was an agreed ‘UK to keep the ‘meaningful vote’. The the eU are expected to had voted to remain in the eU: ‘On this take several years to and in a spirit of sincere co-operation, approach’ backed by Scotland, and had final form of the Bill was settled – and issue, it is not a United Kingdom, and complete for it is in the interests of both the ignored the SNP compromise proposal it was sent off for the royal Assent, the Prime Minster needs to respect – United Kingdom and the european to allow Scotland to stay inside the un-amended. respect – the differences across the Union that we should use this process nations of the United Kingdom. If she to deliver our objectives in a fair and does not – if she remains intransigent orderly manner. ... We will continue to and if she denies Scotland a choice Article 50 is triggered be reliable partners, willing allies and on our future – she will make Scottish close friends. We want to continue independence inevitable.’ to buy goods and services from the The passage of the european Union eU, and sell it ours ... Indeed, in an The then Lib Dem Leader, Tim Farron, (Notification of Withdrawal) Act cleared increasingly unstable world, we must called for a second referendum on the way for the Prime Minister to act continue to forge the closest possible the terms of the final deal: ‘Today the on the referendum verdict and formally security co-operation to keep our Prime Minister is not enacting the will trigger Britain’s departure talks with people safe. We face the same global of the people; she is at best interpreting the eU. threats from terrorism and extremism.’ that will, and choosing a hard Brexit outside the single market that was She was greeted by cheering Jeremy Corbyn warned against leaving never on the ballot paper. This day of Conservative MPs when she announced, without a trade agreement: ‘the Prime all days, the Liberal Democrats will not on the 29th March, that the process had Minister says that no deal is better than roll over, as the official Opposition have begun: ‘A few minutes ago, in Brussels, a bad deal, but the reality is that no done ... I am determined to be able to the United Kingdom’s permanent deal is a bad deal. Less than a year ago, look my children in the eye and say that representative to the eU handed a the Treasury estimated that leaving I did everything to prevent this calamity letter to the President of the european the european Union on World Trade that the Prime Minister has today Council on my behalf confirming the Organization terms would lead to a chosen ... Surely the Prime Minister will Theresa May meets Government’s decision to invoke Article 7.5% fall in our GDP and a £45 billion with european Council agree with me that the people should 50 of the treaty on european Union. the rules that affect the european President Donald Tusk in loss in tax receipts ... It would be a have the final say.’ Downing Street national failure of historic proportions The Article 50 process is now under way economy. We know that UK companies if the Prime Minister came back from The Westminster Leader of the and, in accordance with the wishes of that trade with the eU will have to align the British people, the United Kingdom Brussels without having secured Northern Ireland DUP, Nigel Dodds, with rules agreed by institutions of is leaving the european Union.’ protection for jobs and living standards, congratulated Theresa May on which we are no longer a part, just as so we will use every parliamentary delivering on the will of the people: She added that she wanted to build we do in other overseas markets – we opportunity to ensure the Government ‘Is not the fundamental point that this a close partnership with the eU: ‘We accept that. However, we approach are held to account at every stage of United Kingdom – this Union – is far know that we will lose influence over these talks constructively, respectfully the negotiations.’ more important for the political and

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economic prosperity of all our people negotiations until she comes to true Gates, attacking that officer with a than the european Union?’ glory and is welcomed back to this large knife, before he was shot dead House as a 21st century Gloriana.’ by an armed police officer. Tragically, The veteran Conservative eurosceptic, as the House will know, 48-year-old PC Sir Bill Cash, hailed what he called an The former Labour Minister, Pat Keith Palmer was killed.’ historic day: ‘At the very heart of this McFadden, was less optimistic: ‘There letter lies the democratic decision of are two kinds of future stemming from She ended by declaring that the best the referendum of UK voters given to the process triggered today. The first response to terrorism was to act them by a sovereign Act of Parliament is that we spend two years desperately normally: ‘As I speak, millions will by six to one in this House, enabling the trying to secure the exact same benefits be boarding trains and aeroplanes to travel to London and to see for British people to regain their birthright as we have, while gaining control of themselves the greatest city on earth. to govern themselves for which people immigration, which, as Ministers have It is in these actions – millions of acts fought and died over generations? ... suggested, may make little difference Trade and co-operation, yes; european of normality – that we find the best to the numbers. In which case, people government, no.’ response to terrorism: a response that will ask, “What is the point?” Or there denies our enemies their victory, that is another future where we crash Another Conservative, Jacob rees- refuses to let them win, that shows we without an agreement, defaulting to Mogg, quoted the elizabethan hero will never give in; a response driven by Sir Francis Drake: ‘’There must be a WTO rules with all that would mean that same spirit that drove a husband begynnyng of any great matter, but the for industry, agriculture and services. In PC Keith Palmer, who and father to put himself between which case, people will ask, “What is died trying to stop the contenewing unto the end untyll it be attacker, was given a full before us and as future generations us and our attacker, and to pay the the price?” So which future does she thoroughly ffynyshed yeldes the trew police service funeral, will continue to do, to deliver a simple ultimate price; a response that says to glory’ ... I wish my right Hon. Friend think is the more likely: “what is the and praised for his the men and women who propagate heroism message: we are not afraid, and our good luck and good fortune in her point” or “what is the price”?’ resolve will never waver in the face of this hate and evil, ‘You will not defeat terrorism. We meet here, in the oldest us.’ Mr Speaker, let this be the message of all Parliaments, because we know from this House and this nation today: A terrorist attack on Parliament that democracy, and the values that it our values will prevail.’ entails, will always prevail.’ The Labour Leader, Jeremy Corbyn, On the afternoon of March 22nd, as She gave an account of the previous said people should not allow the voices MPs were engaged in a routine vote day’s events. ‘A single attacker drove of hatred to divide or cower them of the Pensions Bill, a man drove his his vehicle at speed into innocent – adding that PC Keith Palmer had car into pedestrians just outside, killing pedestrians who were crossing given his life defending the public and two people and injuring dozens more, Westminster Bridge, killing two democracy. before stabbing to death a police people and injuring around 40 more. officer who was guarding the gates to Watching impassively in the crowd of In addition to 12 Britons admitted to the Houses of Parliament, and he was MPs standing at the Bar of the House, hospital, we know that the victims then shot dead himself. in the area across the Chamber facing include three French children, two the Speaker’s Chair, was the Foreign The sitting of the Commons was romanians, four South Koreans, one Office Minister, Tobias ellwood. He had suspended and MPs were held in German, one Pole, one Irish, one tried to save PC Palmer’s life by giving their Chamber for several hours, Chinese, one Italian, one American him mouth-to-mouth resuscitation. before being escorted away. and two Greeks, and we are in close Many MPs took a moment to exchange When they returned the next contact with the Governments of the a word with him as they passed or pat day, they began with a minute of countries of all those affected. The him on the arm. And many of those silence. Then the Speaker opened injured also included three police who spoke over the next hour praised proceedings by expressing ‘our The attack on officers who were returning from his actions. heartfelt condolences to the families Westminster was one of an event to recognise their bravery; and friends of the victims of this The Prime Minister was heard in silence several terrorist attacks two of those three remain in a Tributes and thanks came from all the outrage. A police officer, PC Keith as she updated MPs: ‘Yesterday, an in the UK during the Party Leaders – the SNP’s Westminster year serious condition. Palmer, was killed defending us, act of terrorism tried to silence our Leader, Angus robertson, the Liberal defending Parliament and defending democracy, but today we meet as The attacker then left the vehicle and Democrats, Tim Farron, and the DUP’s, parliamentary democracy.’ normal, as generations have done approached a police officer at Carriage Nigel Dodds.

60 | REVIEW OF PARLIAMENT PROPERTY economic prosperity of all our people negotiations until she comes to true Gates, attacking that officer with a than the european Union?’ glory and is welcomed back to this large knife, before he was shot dead House as a 21st century Gloriana.’ by an armed police officer. Tragically, The veteran Conservative eurosceptic, as the House will know, 48-year-old PC Sir Bill Cash, hailed what he called an The former Labour Minister, Pat Keith Palmer was killed.’ historic day: ‘At the very heart of this McFadden, was less optimistic: ‘There letter lies the democratic decision of are two kinds of future stemming from She ended by declaring that the best the referendum of UK voters given to the process triggered today. The first response to terrorism was to act them by a sovereign Act of Parliament is that we spend two years desperately normally: ‘As I speak, millions will by six to one in this House, enabling the trying to secure the exact same benefits be boarding trains and aeroplanes to travel to London and to see for British people to regain their birthright as we have, while gaining control of themselves the greatest city on earth. to govern themselves for which people immigration, which, as Ministers have It is in these actions – millions of acts fought and died over generations? ... suggested, may make little difference Trade and co-operation, yes; european of normality – that we find the best to the numbers. In which case, people government, no.’ response to terrorism: a response that will ask, “What is the point?” Or there denies our enemies their victory, that is another future where we crash Another Conservative, Jacob rees- refuses to let them win, that shows we without an agreement, defaulting to Mogg, quoted the elizabethan hero will never give in; a response driven by Sir Francis Drake: ‘’There must be a WTO rules with all that would mean that same spirit that drove a husband begynnyng of any great matter, but the for industry, agriculture and services. In PC Keith Palmer, who and father to put himself between which case, people will ask, “What is died trying to stop the contenewing unto the end untyll it be attacker, was given a full before us and as future generations us and our attacker, and to pay the the price?” So which future does she thoroughly ffynyshed yeldes the trew police service funeral, will continue to do, to deliver a simple ultimate price; a response that says to glory’ ... I wish my right Hon. Friend think is the more likely: “what is the and praised for his the men and women who propagate heroism message: we are not afraid, and our good luck and good fortune in her point” or “what is the price”?’ resolve will never waver in the face of this hate and evil, ‘You will not defeat terrorism. We meet here, in the oldest us.’ Mr Speaker, let this be the message of all Parliaments, because we know from this House and this nation today: A terrorist attack on Parliament that democracy, and the values that it our values will prevail.’ entails, will always prevail.’ The Labour Leader, Jeremy Corbyn, On the afternoon of March 22nd, as She gave an account of the previous said people should not allow the voices MPs were engaged in a routine vote day’s events. ‘A single attacker drove of hatred to divide or cower them of the Pensions Bill, a man drove his his vehicle at speed into innocent – adding that PC Keith Palmer had car into pedestrians just outside, killing pedestrians who were crossing given his life defending the public and two people and injuring dozens more, Westminster Bridge, killing two democracy. before stabbing to death a police people and injuring around 40 more. officer who was guarding the gates to Watching impassively in the crowd of In addition to 12 Britons admitted to the Houses of Parliament, and he was MPs standing at the Bar of the House, hospital, we know that the victims then shot dead himself. in the area across the Chamber facing include three French children, two the Speaker’s Chair, was the Foreign The sitting of the Commons was romanians, four South Koreans, one Office Minister, Tobias ellwood. He had suspended and MPs were held in German, one Pole, one Irish, one tried to save PC Palmer’s life by giving their Chamber for several hours, Chinese, one Italian, one American him mouth-to-mouth resuscitation. before being escorted away. and two Greeks, and we are in close Many MPs took a moment to exchange When they returned the next contact with the Governments of the a word with him as they passed or pat day, they began with a minute of countries of all those affected. The him on the arm. And many of those silence. Then the Speaker opened injured also included three police who spoke over the next hour praised proceedings by expressing ‘our The attack on officers who were returning from his actions. heartfelt condolences to the families Westminster was one of an event to recognise their bravery; and friends of the victims of this The Prime Minister was heard in silence several terrorist attacks two of those three remain in a Tributes and thanks came from all the outrage. A police officer, PC Keith as she updated MPs: ‘Yesterday, an in the UK during the Party Leaders – the SNP’s Westminster year serious condition. Palmer, was killed defending us, act of terrorism tried to silence our Leader, Angus robertson, the Liberal defending Parliament and defending democracy, but today we meet as The attacker then left the vehicle and Democrats, Tim Farron, and the DUP’s, parliamentary democracy.’ normal, as generations have done approached a police officer at Carriage Nigel Dodds.

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The Conservative MP, James Cleverly, servant, and it was a delight to meet oldest and closest ally, and some will had served with PC Palmer in the him here again only a few months say that this is not a matter for us as army. His voice cracked as he spoke: after being elected. In recognition long as our citizens are protected. I ‘I would like, with your indulgence, of the work that he did, and that profoundly disagree ... Allowing the Mr Speaker, to turn for just a moment the other police officers and public measure to stand and shrugging our to PC Keith Palmer, whom I first servants in the House do, would the shoulders will amount to complicity met 25 years ago, when he was Prime Minister consider posthumously with President Trump ... President Gunner Keith Palmer at Headquarters recognising his gallantry and sacrifice Trump is a bully, and the only course Battery, 100 regiment royal Artillery. formally?’ Theresa May promised that of action open to us in relation He was a strong, professional public she would. to his bullying is to stand up and be counted.’

Donald Trump’s mother was born in President Trump the constituency of the SNP MP, Angus MacNeil, who said that as a Hebridean President Trump meets he felt ‘utter shame’ at the ban. ‘It is This year more than most, US with Theresa May politics had a bearing on our own. in Washington D.C. denied to me. I learned that this great absolutely disgraceful and shameful. Not only were many MPs looking following his surprise nation had put in place measures that I hope he rescinds and changes the electoral victory across the Atlantic for a trade deal would prevent my family and me from measure – not recasts, but rescinds it.’ and an enhancement of the ‘special travelling, studying and feeling welcome Labour’s Yvette Cooper, who chairs the relationship’, following the decision there. I was concerned about the next Home Affairs Select Committee, was to leave the eU. But the American time I would see my boys ... my wife ‘deeply worried’ that the Government people themselves had managed to and I despaired at the thought that, had had already invited the new President outdo the British electorate when it one of our sons again been taken as to make a state visit to Britain: ‘it came to delivering the most surprising seriously ill as he was last year while at democratic decision of 2016. will be not a normal visit by a Head university, we would not be able to go of Government, but a ceremonial As recently as January 2016, a small to him when he needed us most.’ state visit involving our royal family number of MPs had gathered in The US Government has since clarified ... instead of it being a celebration of Westminster Hall to debate whether or friendship and shared values and a sign that people with British passports not Donald Trump should be banned Nadhim Zahawi MP of increased co-operation ... It will look strongly criticised the will not be affected by the ban, from entering the UK altogether. His like an endorsement of a ban that is so Mr Zahawi, born in Iraq to Kurdish Trump administration’s whatever the country of their birth, comments about Muslims, among travel ban on certain morally wrong and that we should be parents, arrived in the UK as a nine- but Mr Zahawi still thought the ban others, had led to an online petition for Muslim countries standing against.’ year-old refugee from Saddam was ‘wholly counterproductive’. He him to be considered a ‘hate preacher’ Hussein’s regime. He is now a British described how it was already being and therefore banned from British soil. The Conservative, Sir Simon Burns, citizen, but because he was born in used by pro-Islamic State social media even those who supported the motion disagreed: ‘I think it is absolutely right Iraq, he believed he came under the accounts as ‘clear evidence that the knew there was little chance of such a that the British Government continue Trump ban. ban being implemented. But few would USA is seeking to destroy Islam. They the work of the Prime Minister to build have even called it the “blessed ban”’. bridges with President Trump so that have suspected that, just 13 months He told MPs his place of birth already later, Parliament would be discussing we can, through engagement, seek to meant he had been required to ed Miliband said the debate gave the the appropriateness of a state visit from persuade him and to minimise or reduce go through an interview at the US Commons a chance to send President President Donald Trump. the danger of his more outrageous embassy, to secure the right to travel Trump a clear and united view: ‘One policies ... I believe that very little would to America, under rules imposed of the most chilling things ... was that One of the first acts of the new US be achieved by cancelling a state visit to by President Obama. But the new the accounts of what happened to President was to order a blanket ban which the invitation has already been restrictions were much tougher: individuals over the weekend sounded on people from a list of Middle eastern extended and accepted.’ countries travelling to the US. In the ‘I learned that ability to travel to the like the results of the actions of a tin- Commons, the former Labour Leader, United States – a country that I revere pot dictatorship. They did not sound The emergency debate was on a formal ed Miliband, and the Conservative, so much for its values, for which I have like what we would expect, or hope motion that MPs had ‘considered’ Nadhim Zahawi, joined forces to ask such great affinity, affection and for, from the United States ... the Donald Trump’s travel ban, so no call the Speaker for an emergency debate – admiration, and to which I have sent United States has always been our for a policy change was voted on. and it was held that day. both my sons to university – was to be

62 | REVIEW OF PARLIAMENT PROPERTY

The Conservative MP, James Cleverly, servant, and it was a delight to meet oldest and closest ally, and some will had served with PC Palmer in the him here again only a few months say that this is not a matter for us as army. His voice cracked as he spoke: after being elected. In recognition long as our citizens are protected. I ‘I would like, with your indulgence, of the work that he did, and that profoundly disagree ... Allowing the Mr Speaker, to turn for just a moment the other police officers and public measure to stand and shrugging our to PC Keith Palmer, whom I first servants in the House do, would the shoulders will amount to complicity met 25 years ago, when he was Prime Minister consider posthumously with President Trump ... President Gunner Keith Palmer at Headquarters recognising his gallantry and sacrifice Trump is a bully, and the only course Battery, 100 regiment royal Artillery. formally?’ Theresa May promised that of action open to us in relation He was a strong, professional public she would. to his bullying is to stand up and be counted.’

Donald Trump’s mother was born in President Trump the constituency of the SNP MP, Angus MacNeil, who said that as a Hebridean President Trump meets he felt ‘utter shame’ at the ban. ‘It is This year more than most, US with Theresa May politics had a bearing on our own. in Washington D.C. denied to me. I learned that this great absolutely disgraceful and shameful. Not only were many MPs looking following his surprise nation had put in place measures that I hope he rescinds and changes the electoral victory across the Atlantic for a trade deal would prevent my family and me from measure – not recasts, but rescinds it.’ and an enhancement of the ‘special travelling, studying and feeling welcome Labour’s Yvette Cooper, who chairs the relationship’, following the decision there. I was concerned about the next Home Affairs Select Committee, was to leave the eU. But the American time I would see my boys ... my wife ‘deeply worried’ that the Government people themselves had managed to and I despaired at the thought that, had had already invited the new President outdo the British electorate when it one of our sons again been taken as to make a state visit to Britain: ‘it came to delivering the most surprising seriously ill as he was last year while at democratic decision of 2016. will be not a normal visit by a Head university, we would not be able to go of Government, but a ceremonial As recently as January 2016, a small to him when he needed us most.’ state visit involving our royal family number of MPs had gathered in The US Government has since clarified ... instead of it being a celebration of Westminster Hall to debate whether or friendship and shared values and a sign that people with British passports not Donald Trump should be banned Nadhim Zahawi MP of increased co-operation ... It will look strongly criticised the will not be affected by the ban, from entering the UK altogether. His like an endorsement of a ban that is so Mr Zahawi, born in Iraq to Kurdish Trump administration’s whatever the country of their birth, comments about Muslims, among travel ban on certain morally wrong and that we should be parents, arrived in the UK as a nine- but Mr Zahawi still thought the ban others, had led to an online petition for Muslim countries standing against.’ year-old refugee from Saddam was ‘wholly counterproductive’. He him to be considered a ‘hate preacher’ Hussein’s regime. He is now a British described how it was already being and therefore banned from British soil. The Conservative, Sir Simon Burns, citizen, but because he was born in used by pro-Islamic State social media even those who supported the motion disagreed: ‘I think it is absolutely right Iraq, he believed he came under the accounts as ‘clear evidence that the knew there was little chance of such a that the British Government continue Trump ban. ban being implemented. But few would USA is seeking to destroy Islam. They the work of the Prime Minister to build have even called it the “blessed ban”’. bridges with President Trump so that have suspected that, just 13 months He told MPs his place of birth already later, Parliament would be discussing we can, through engagement, seek to meant he had been required to ed Miliband said the debate gave the the appropriateness of a state visit from persuade him and to minimise or reduce go through an interview at the US Commons a chance to send President President Donald Trump. the danger of his more outrageous embassy, to secure the right to travel Trump a clear and united view: ‘One policies ... I believe that very little would to America, under rules imposed of the most chilling things ... was that One of the first acts of the new US be achieved by cancelling a state visit to by President Obama. But the new the accounts of what happened to President was to order a blanket ban which the invitation has already been restrictions were much tougher: individuals over the weekend sounded on people from a list of Middle eastern extended and accepted.’ countries travelling to the US. In the ‘I learned that ability to travel to the like the results of the actions of a tin- Commons, the former Labour Leader, United States – a country that I revere pot dictatorship. They did not sound The emergency debate was on a formal ed Miliband, and the Conservative, so much for its values, for which I have like what we would expect, or hope motion that MPs had ‘considered’ Nadhim Zahawi, joined forces to ask such great affinity, affection and for, from the United States ... the Donald Trump’s travel ban, so no call the Speaker for an emergency debate – admiration, and to which I have sent United States has always been our for a policy change was voted on. and it was held that day. both my sons to university – was to be

REVIEW OF PARLIAMENT | 63 Acknowledgements Images in this publication have been reproduced courtesy of the following individuals/organisations: Wolsey Place | Flickr | Ashokamithran Chandrasekar Vince Cable | Flickr | Liberal Democrats Leadenhall Building | Flickr | Laurie Nevay Hong Kong | Flickr | Tony Gavin Barwell | Flickr | Department for Communities and Local Government Apartments | Flickr | ^bkc Miguel McKelvey | Flickr | CollisionConf Office | Flickr | Matteo Doni Standard Life | Flickr | Visit Mississippi FCA | Tony Harrington Battersea Power Station | Flickr | Martin Pettitt Sundar Pichai | Flickr | Nguyen Hung Vu Zoopla | Flickr | My Online Estate Agent House | Flickr | Timo Newton-Syms Logistics Centre | Flickr | Álvaro Ibáñez Singapore | Flickr | David Russo Prefabricated housing | Flickr | seier+seier Housebuilding | Flickr | Brett and Sue Coulstock Bond Street | Flickr | Gary Knight Philip Hammond | Flickr | Foreign and Commonwealth Office

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