ACES Terrier The Association of Chief Estates Surveyors & Property Managers in the Public Sector Volume 25 Issue 3 Autumn 2020

ACES ON-LINE CONFERENCE 2020 PUBLIC PROPERTY IN RECOVERY, 3-11 November 2020

SINCE 1908 MAACESNAGING PUBLIC PROPERTY FOR THE PUBLIC GOOD NPS Group - delivering total estates and asset management

Surveys and Strategic advice Strategic facilities surveying (including health checks) management

Integrated workplace management

Valuation

Business rating services

Estates Energy Rural estates management management management

For more information, contact: Melvyn Stone Estates Manager [email protected]

nps.co.uk

Terrier advert June 2020.indd 1 24/06/2020 15:49:17 NPS Group - delivering total VOLUME 25 - ISSUE 3 - Autumn 2020 estates and asset management ACES Terrier Surveys and Strategic advice Strategic facilities surveying (including health checks) management The Journal of ACES - The Association of Chief Estates Surveyors & Property Managers in the Public Sector

CONTENTS

ACES National Council Meeting - Trevor Bishop...... 04 Integrated workplace EDITORIAL Membership news - Trevor Bishop...... 06 management Betty Albon Professional Health and safety - Mark Stewart...... 08 Welcome to the Summer Terrier. C-19 Property Intelligence Portal - Ian McGuinness...... 12 Asset valuations - Donna Best...... 15 As to be expected, this issue includes a raft of useful articles covering elements of how to deal with current and post C-19 The Towns Fund - Chris Plumley...... 18 property and service matters, and the big issue of how to help our Helping town centres - Brian Thompson...... 20 ailing town centres. Cost containment - Guy Brett...... 23 There are also some articles ranging across aspects of housing, Sustainable property services - Danny Marsden...... 26 sustainability in urban and rural settings, and professional valuation. Strategic C-19 issues - Tony Bamford...... 28 Valuation Hopefully something for all members and your work colleagues. It Asset management plans - Chris Brain...... 31 can be downloaded from the new ACES’ website Strategies long term - Brian Thompson...... 32 www.aces.org.uk/library NHS ‘Open Space’...... 35 Business While you’re on the ACES’ website, don’t forget to download the Scottish private rented sector - John Blackwood...... 36 most up to date information about ACES’ On-line Conference 2020, Strategic regeneration partnership - Alan Richards...... 38 rating 3-11 November – ‘Public property in recovery’ www.aces.org.uk/ Self build housing - Bryony Harrington...... 41 conference-2020 .And please set aside time on Friday 13 November services New settlements - Janice Morphet...... 45 for our AGM and installation of the new President for 2020/21, Simon Hughes of Norfolk County Council. Woodland update - John Lockhart...... 48 While every reasonable effort has been made to ensure the County farms - Graeme Willis...... 52 accuracy of the information and content provided in this document Sustainable development - Kevin Joyce...... 55 at the date of publication, no representation is made as to its Electric vehicles - Clare Davey...... 59 correctness or completeness and no responsibility or liability is Caselaw - 1 Blackfriars - Tony Mulhall...... 62 assumed for errors or omissions. Rating and valuation - Roger Messenger...... 64 The views expressed by the authors are not necessarily those of Model Estate performance - Heena Gadhavi...... 66 ACES. Neither the authors or ACES nor the publisher accept any Homelessness and squatting - David Asker...... 69 liability for any action arising from the use to which this publication ACES Heart of England prize - William Clarke...... 71 may be put. Branches news Published by Marcus Macaulay Design & Photography Estates Energy Rural estates London - Heather Hosking...... 73 (07572 757834) www.marcusmacaulay.com management management management Eastern - Sara Cameron...... 75 North west - Gill Boyle...... 75 Welsh - Gerry Divine...... 76

Other interest areas For more information, contact: Musings - Simon Eades...... 77 Melvyn Stone Herdwick tales - Dave Pogson...... 79 The Retired Rambler...... 81 Estates Manager Cover photo: Rochdale Town Hall. [email protected] Photograph courtesy of Rochdale Borough Council nps.co.uk THE TERRIER - AUTUMN 2020 3

Terrier advert June 2020.indd 1 24/06/2020 15:49:17 NATIONAL COUNCIL Notes of ACES Council Meeting on 10 July 2020 Trevor Bishop, ACES Secretary [email protected]

As a result of the continuing restrictions, Malcolm Williams and others with the information of members. Several branch ACES Council was again conducted by Diploma Course in Public Sector Asset representatives were able to join the remote video and voice conferencing. Management and organising the second virtual meeting and their contributions Simon Hughes, Senior Vice President, virtual ACES Council meeting. were appreciated. kindly hosted the meeting through the MS Teams platform and 27 members joined Financial matters Membership matters the meeting. Detailed reports on the majority of The Treasurer, Willie Martin, presented The secretary reported on the changes these headings are published on the a report on the financial position of the in ACES membership since the last ACES website. Association as of 30 June 2020, the end report. This included approval of 8 of the 2019/20 ACES financial year. While new applications, 3 transfers to past President’s report the budget for 2019/20 had forecasted a membership and 10 resignations. The total deficit, at the end of the year there was a membership at the end of June 2020 was The President, Peter Gregory, reported significant surplus. The Treasurer outlined 388, 3 down from the last report, but still a on his activities since the last meeting. the reasons for this. The consequence long term slight upward trend [Ed – see the While he had arranged a busy diary with of delay in some expenditure meant a latest membership position in this edition regard to branch visits and other meetings predicted deficit for 2020/21, but the of ACES’ Terrier]. and events, this continues to have been association’s finances continue to remain in seriously curtailed by the C-19 lockdown. good health and there was no anticipated ACES’ Terrier Nevertheless, the President joined the significant demand on the balances. On London Branch in May, the North East, this basis, the Treasurer recommended that The Editor, Betty Albon, reported on the South West and Eastern Branches in June, membership subscriptions for 2020/21 Summer edition of ACES’ Terrier, raised and the Welsh Branch in July. The President remain the same as existing and this was matters for consideration with regard to also joined the virtual RICS Liaison Meeting approved by Council. printing of the Terrier, and updated Council in June. He thanked all branches for their on branch submissions to the journal. meetings and had learnt something new ACES’ website The Editor set out in detail the issues from all, and was impressed with the range around printing the current and Spring of activity and innovation taking place. Paul Over presented his report on the Terrier, in the context of the continuing C-19 launch of the new ACES website which circumstances. The question of making the Secretary’s report had taken place on 1 July. The new site Summer Terrier immediately available on the presented a modern and clean look new website was raised. Branch submissions The Secretary, Trevor Bishop, reported on with new functionality for the benefit to the Terrier had increased, and comment matters arising during the period from of members, such as online payments. was made about the value of branch the last Council meeting, provided an Member feedback and use of the site meetings, even if continuing to be virtual. update on membership changes, and prompted a number of ideas for future It was agreed that as with Spring Terrier, progress with collection of membership developments and these will be addressed not to send Summer Terrier for printing subscriptions. The usual handful of late after a bedding-in period. at the present time. It was also agreed to payers persisted but this was being defer making a decision on future printing addressed. A considerable amount of Branches and to consult ACES’ members, with a view time had been spent working with Paul to long term decisions being made in 2021, Over on the new website to achieve the A number of Branch reports were and for a temporary period, continue to launch date of 1 July, supporting the Editor submitted for the meeting and these are make current ACES’ Terriers available to all on production of the Terrier, supporting published on the ACES website for the website visitors.

4 THE TERRIER - AUTUMN 2020 Business Plan firm consensus, albeit reluctantly, that the Future meetings The President advised that he had carried 2020 AGM should be planned as a virtual out a review of the Business Plan. This event with a modified and shortened Annual Conference was necessary to ensure continued agenda. Council requested the Secretary to 3-11 November relevance, focus on priorities, rationalise advise the host, Fieldfisher, of the decision, Webinar programme the Action Plan, and generally make it but continue to work with them in terms of Annual Meeting easier for progress to be reported and sponsorship and presentations. 13 November 2020 monitored. A revised Action Plan was Virtual meeting approved by Council and is available on ACES Award for Excellence the ACES website. Annual Conference The Business & Marketing Manager, Neil The Senior Vice President, Simon Hughes, September 2021 Webster, reported on activity that had reported that there had been no formal Peterborough taken place since the last meeting and nominations for the award so far. The Annual Meeting further actions proposed, in line with the deadline was the end of August and 12 November 2021 agreed key outcomes. branch representatives were requested Cardiff to encourage their members to make Recruitment nominations for the award. ACES Council focussed initiative The President confirmed that he is January 2021 TBC still considering the proposals for the The Business & Marketing Manager President’s Award and will report further. updated Council on proposals to address Other business recruitment problems faced by members. Asset management in the He had a firm workplan proposal to carry public sector diploma The secretary advised that ‘Consultations’ out specific research into the issues, Neil Webster reported on progress with should be re-instated as a specific item including a member survey, and report this initiative and confirmed that matters on the agenda. The Senior Vice President their findings back to Council. were progressing well. There had been a reported on the current Treasury good response from ACES members to consultation on using the PWLB for property Annual Conference 2020 assist with the course and all modules investment. Paul Brooks was thanked for were likely to be covered off by CIPFA and his attendance at the Public Accounts The President reported on the latest ACES personnel. Agreement had been Committee in difficult circumstances; it developments with regard to the timing reached with CIPFA on the detail of the was agreed that ACES needed to present a and format of the conference. While there course delivery, including timetable and considered response to the proposals and was a risk involved in presenting the concessions for ACES members. the potential adverse impact, with particular conference in an entirely new format, it regard to regeneration initiatives in local was important that we strive to deliver Co-ordinators and external authority areas. something for members. The September working groups event had been formally cancelled and the first 2 weeks in November (3-11 November) A number of Liaison Officer reports were were targeted for a series of themed received, and these have been published webinars. These would be of modest on the ACES website. Verbal reports were duration and spread over a number of also given by officers present at the virtual days to avoid webinar fatigue. The likely meeting. Once again, thanks go to the platform of delivery of the webinars would Liaison Officers for their efforts at this difficult be “GoTo” and the President was minded time, in producing detailed and topical to seek persons with appropriate technical reports which are appreciated by members. skills to facilitate and manage the delivery Notably, the 2 new liaison officers for of the programme [Ed – see flyer in this C-19 and Valuation talked through their edition of ACES’ Terrier]. reports. Tony Bamford had been keeping abreast of the pandemic on a global basis AGM venue 2020 and commented on the major impact on businesses, and that Covid-19 was going The Secretary raised the issue of the to be around for some considerable time format for the 2020 AGM, in the light {Ed – see Tony’s full report in this issue of of current thinking around C-19, travel ACES’ Terrier]. Chris Brain referred to the restrictions and social distancing. General market uncertainty around asset valuations discussion identified that authorities and and advised that he awaited, with interest, organisations were cancelling all live auditors’ reactions to valuers’ decisions on events for 2020 and that there was not an valuations [Ed – see CIPFA’s asset valuation appetite for many members to travel long report in this issue of ACES’ Terrier]. distances on public transport. There was a

THE TERRIER - AUTUMN 2020 5 ACES MEMBERSHIP Trevor Bishop MRICS, ACES Secretary [email protected] I list below the changes in membership between 1 July 2020 and 30 September 2020.

New members approved There were 7 new applications approved during the period:

First Name Surname Organisation Branch Ref Donna Best CIPFA SW Stephen Martens Liberata UK Ltd NW Steve Hicks Reading Borough Council SE James Leaver Real Estate Matters L Catrin Mathias South Oxfordshire District Council HoE Stephen Forsey Teignbridge District Council SW Steve Cooper Watford Council E

Members transferred First Name Surname Branch Ref during the period. Sharon Livesey NW One member transferred during the period.

Resignations The following 5 members resigned during the period:

First Name Surname Organisation Branch Ref Stuart Free East Renfrewshire Council S David Ball Portsmouth City Council SE Bruce Tindall Reading Borough Council SE Donna Best Teignbridge Borough Council SW Anne Collins Watford Council E

Membership Total Membership Summary of current Status Number membership Full 228 at 30 September 2020: Additional 61 Honorary 33 Associate 23 Retired 45 Total 390

6 THE TERRIER - AUTUMN 2020 Sponsored by:

ACES ONLINE CONFERENCE 2020 PUBLIC PROPERTY IN RECOVERY

A series of webinars for ACES members and others working for the public sector Date: 311 November 2020. FREE for ACES Members, public sector employees, sponsors and their staff

Covid-19 has exacerbated the public sector’s pre-existing challenges such as climate change and environmental emergency, housing provision and economic growth, and has crystallised concerns around local authority property investments and the fu- ture of our town centres. At the same time we now face sweeping and permanent changes to working practices and the tradition- al office base, combined with damaging economic prospects. The ACES Conference will explore the role of public sector asset managers not just as recovery agents but as innovators. As this unprecedented year draws to a close, we will consider how we can deal proactively with the challenges we face and the opportunities we are presented with. We will examine how we can secure the optimum performance from all our assets to help our organisations through the gathering economic, environmental, social and financial storms. Potential Programme:

Public Sector Property in a PostCovid World Considering the future for the public sector, our world, our economy and our resources. Dis- cussion of the role of the public sector asset manager as a recovery agent.

Recovery through Regeneration The challenges and opportunities of growth, the future of our town centres, “build, buld, build”, the role of the public sector acquisition and disposal of assets.

Decisive action in an Environmental Emergency A focus on the asset manager’s role in managing the environment, including a look at climate change and carbon neutrality, waste and contamination.

The Property Market A tool for Recovery Considering how the public sector can benefit from the property market to realise financial income, rationalise property holdings, manage development and facilitate economic intervention.

Professional Perspectives A selection of presentations of interest to practitioners.

Right people, right place, right time A look at the changing face of the public sector workforce and working practices and the challenges of recruitment and skills resourcing facing public sector property managers.

What Next? Public Sector Property Investments A look at public sector property investments, their role and performance, the impact of a changing regulatory regime and their risks in recessionary times.

ACES: A 2020 Look at Local Challenges An insight into ACES members’ experiences of facing up to the challenges of 2020 and beyond.

Providing homes for all A discussion on the housing shortage and the public sector’s rising to the challenge of meet- ing its responsibilities to house our population.

For more information, please visit www.aces.org.uk, or click HERE Professional

HEALTH AND SAFETY Managing commercial real estate assets during a pandemic Mark Stewart [email protected]

The teams at LSH have been providing fortnightly CPD presentations at ACES Eastern Branch’s virtual meetings, including one on health and safety issues. Mark highlights the main issues that senior estates surveyors and property managers need to be aware of when reactivating and operating public buildings, and provides some practical checklists on how to minimise the spread of C-19 in the workplace. Mark is the Head of Health and the level of cleanliness required, Safety within the Property and Asset In early September Boris Johnson Management Division of Lambert Smith how often cleaning should be announced that by the end of the month Hampton (LSH). He is a chartered member done, and when premises will be he wanted up to 80% of the estimated 5.4m of the Institution of Occupational Safety inspected, and ensure they are able people employed within the public sector and Health and has been involved in to demonstrate their compliance advising on all aspects of health and safety to attend their place of work at least once with industry best practice management throughout the LSH property a week. However, following a significant management portfolio. This portfolio increase in the number of positive • Personal hygiene - Provide adequate consists of over 700 commercial properties. coronavirus cases in recent weeks, the handwashing and sanitizing advice has now reverted back to its previous facilities and encourage people to As part of an ongoing process to maintain ‘work from home if you can’. cough/sneeze into an arm and avoid regulatory compliance, implement best But not everyone can work from home touching their faces practice, and proactively manage health effectively and civil servants providing and safety aspects, Mark regularly Processes and procedures - Robust essential services are very much in this • trains and advises property managers, protocols should be drawn up and category, so ensuring the premises that they facilities managers, centre managers, implemented to ensure compliance operational teams and contractors. More operate from are C-19-secure is even more with government guidance recently, Mark has played a key role in critical. This article considers some of the in relation to C-19, including: developing and implementing guidance issues and practical tips. and procedures to address C-19. These temperature screening; stipulating are used both internally and externally Prevention controls the direction of movement throughout the LSH managed portfolio. around reception and common areas including lift lobbies and Current evidence suggests that C-19 staircases; limiting the number of spreads predominantly through close passengers per lift at any one time; contact with infected people via mouth and use of disposable security passes nose secretions or through contact with instead of reusable where possible; contaminated surfaces. To minimise the risk remote temperature screening; and of transmission, it is important to ensure temporary closure of canteens robust prevention controls are put in place including, but not limited to: • Automation - Where possible, replace all manual applications • Cleaning – Increase the frequency with automatic or contactless of your cleaning regime and pay features in order to reduce contact particular attention to high contact and thereby minimise the risk of surfaces, such as lift buttons, transferring germs handrails, door handles, toilet handles, taps and soap dispensers. • Alterations to reception areas If possible, hire external cleaners to - In most instances a simple clean your premises after hours. If acrylic or Perspex screen in using a contractor, be clear about front of the reception desk

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HOKN full page.indd 1 01/10/2020 14:44:30 should be sufficient to comply • Emergency lighting – Inspect Ventilation with government guidelines. batteries, condition and perform a In addition, other alterations function test Ventilation is an important factor in should be considered, including preventing the spread of C-19 indoors. • Fire alarm system – Perform temporarily removing furniture to Measures should be put in place to ensure function test of entire system and reduce the number of high contact adequate ventilation, either through natural check remote monitoring/key points and disabling touch screen or mechanical means. We recommend: holding services registration applications • Switching ventilation on at nominal • Gas supply – Unlock supply, • Awareness - The use of digital or speed at least 2 hours before the reinstate to gas appliances and printed signage including posters building opening time and set it carry out soundness test on the gas and floor stickers is a relatively to lower speed 2 hours after the installation simple yet effective way of building usage time reinforcing the importance of strict • Heating system – Check cold water • Keeping ventilation systems personal hygiene and enforcing the supply to heating system is on, running at a lower speed at 2m social distancing rule in high reinstate supply (electric, oil, gas), evenings and weekends traffic areas such as receptions, lifts, check ventilation, ensure corrosion bathrooms, etc. inhibitor in place and carry out • Opening windows regularly (even in operational checks mechanically ventilated buildings) • Visitors - All visitors should be asked to inform the building manager • Lighting systems – Visually check • Keeping toilet ventilation in if they have recently arrived back condition and carry out function operation 24/7 from any countries exempt from the checks • Avoiding open windows in toilets UK’s quarantine list and contractors • Motors, generators and to maintain the right direction of should be asked to provide details of uninterrupted power supply ventilation their Coronavirus risk assessments. systems – Insulation resistance • Instructing building occupants to testing of relevant circuits, flush toilets with closed lid Recommissioning inspections and maintenance of of systems engines and operational checks • Switching air handling units with recirculation to 100% outdoor air If all or part of your building has been • Oil supply/tanks – Inspect tanks, vacant for any length of time, before re- pipework and open valves as • Inspecting heat recovery occupation can take place, you will need necessary equipment to be sure that leakages to recommission and test/reactivate all are under control Pipework – Inspection of condition relevant systems, in line with the standard • prior to and after reactivation • Adjusting fan coil settings maintenance specifications. Assets that to operate so that fans are should be considered as part of this • Refrigerant gases – Check and continuously on recommissioning include (but not limited turn on compressor heaters, open to) the following: relevant valves and carry out • Do not change heating, cooling and inspection possible humidification set points • Building fabric – Inspection of internal and external elements to ensure safe • Security systems - Ensure updates • Carrying out scheduled duct condition, and carry out necessary and functional test are completed cleaning as normal (additional maintenance of any vegetation cleaning is not required) • Ventilation plant – Clean and • Building management system – inspect air handling unit, • Replacing central outdoor air Ensure updates and functional tests install new filters and carry out and extract air filters as normal, are completed operational checks on equipment according to the maintenance and control panels schedule • Catering services – Inspection and cleaning of kitchen areas, • Water hygiene services – Inspect • Regularly carrying out filter equipment, ductwork and grease storage tanks, calorifiers/cylinders replacement and maintenance traps; and reactivate extract and and water heaters; flush/clean/ works with common protective supply fans chlorinate/disinfect as necessary, measures including respiratory energise water supplies and test protection • Chilled water systems – Check water. Carry out operational electricity and cold water supplies • Introducing an indoor air quality checks and review legionella/ are on, and ensure refilling and sensor network that allows water risk assessment operational tests are completed occupants and facility managers to Water services (fire protection) monitor that ventilation is operating • Direct expansion cooling plant • – Check/inspect mains water adequately. – Check electricity supply, supply, tanks and pipework. Ensure condensate drainage is free electric circuits are on and carry out flowing, moving parts operate operational checks (e.g. pumps). freely and leak test is conducted

10 THE TERRIER - AUTUMN 2020 Risk assessments • Inform the building landlord and all relevant property occupiers, display the official NHS QR code. At the time Carrying out a C-19 risk assessment is including visitors, site-based staff, of writing, the NHS QR code posters do not a legal requirement. This assessment and contractors, and maintain apply to Scotland and Northern Ireland as should consider the risk of C-19 for your regular communications to all they have other track and trace solutions in organisation, and inform the decisions relevant stakeholders until the place (including separate apps). and control measures you take to manage situation is resolved As we have seen over recent months, and mitigate these risks to the lowest there are continual changes in this area, reasonably practicable level by taking • Inform the relevant insurers which require extra vigilance in order to preventative measures, in order of priority. • Implement relevant Business keep compliant and take all necessary steps Continuity Plan as necessary to control the spread of C-19. This means: • Review and update relevant risk How can we help? • Identifying the activities or situations assessments that might cause transmission, There are many considerations to take into including those outside the • Once there are no other suspected account when reactivating the workplace. workplace, such as public transport or confirmed cases, the relevant remedial works should be Having planned the mobilisation of our • Thinking about who could be at implemented, including a thorough network of 40 offices and 1,700 employees, risk, paying particular attention to deep clean of relevant areas within as well as 5,700 buildings we manage on vulnerable workers the premises. If conducting anti- behalf of our clients, we are well versed on the main areas of priority. • Deciding the likelihood of bacterial fogging, the area should Our team of qualified property and asset someone’s exposure be clear of all individuals (apart from operative/s) for the time specified management surveyors can support you • Considering other forms of risk in by the substance manufacturer/in in reviewing your property portfolio, to addition to transmission i.e. the impact accordance with COSHH Assessment. ensure your assets comply with government on mental health and wellbeing guidelines and are appropriately • Acting to remove the activity or maintained, both now and in the future. situation or, where this isn’t possible, UK variations control the risk, including the use of Visit www.lsh.co.uk for more information. personal protective equipment. It is important to be aware of some differences of approach Ultimately you need to be able to in respect of C-19 demonstrate to your stakeholders that controls across the you are “C-19-Secure”. The results of your devolved regions within risk assessments should be shared with the UK. These can your workforce and on your website. include some variations, restrictions, timelines Incident management and lockdown measures. Property portfolio As more and more places of work begin to managers who operate open up the risk of transmission is likely to across various regions increase, particularly as we head into autumn should be conscious of and winter. Organisations need to establish a the differences and ensure robust protocol for registering and tracking guidance, procedures and the number and location of any confirmed information resources or suspected cases so that if a single case reflect and apply the or cluster is identified, it can be dealt with evolving regional controls. promptly, in order to minimise the risk of A recent example further transmission. Actions should include: is the NHS QR code posters (which apply • Advise the relevant person/persons to England and Wales). to stay at home if they have or live Designated businesses with someone who has coronavirus and organisations, symptoms, in line with health including hospitality, authority guidance close contact services and • Log the incident on an Incident leisure venues, are legally Management System and try find required to log details of out as much detail as possible about customers, visitors and the circumstances and movements staff for NHS Test and of relevant persons, and the action Trace. From 24 September taken thereafter they will be required to

THE TERRIER - AUTUMN 2020 11 C-19 PROPERTY INTELLIGENCE PORTAL Assisting the NHS in a time of crisis Ian McGuinness [email protected]

Ian is a Partner at Knight Frank and the Ian – who explained at ACES’ national conference in 2019 Knight Frank’s evolving mapping Head of the firm’s Geospatial Research technology - here illustrates how having the right data on land and buildings is critical to team, a capability which provides meeting the vast challenges faced by the NHS in the C-19 crisis. He encourages ACES’ members a clearer understanding of spatial, to use the portal. demographic and economic factors affecting the housing market. He has 13 The challenge These have been tasks that no one could years’ experience in spatial information have predicted, and for which there were management, data visualisation and The C-19 pandemic is one of the biggest no contingencies in place. They are also mapping technology. He is a chartered challenges that the NHS has faced in its ones in which having the right data and geographer, chartered land surveyor, 70-year history. In a matter of days, hospitals intelligence is critical. the winner of the British Property and their employees have had to change Federation’s 2018 Innovation Award, and entirely the way they operate, doubling Our approach of the Society of Property Researchers and even trebling the size of their intensive 2018 Annual Prize. care units, moving non-urgent care to other Through the use of mapping and analysis locations, and requisitioning unused or old techniques, Knight Frank’s Research team Ian previously worked in planning policy rooms to provide storage facilities. has been helping our experts and clients to at the London Borough of Newham, and Many hospitals have had to locate locate commercial opportunities, conduct for demographic data provider CACI. additional space off-site, in particular to market research and manage assets for accommodate their staff who need to many years. So when it became apparent live away from their families, as well as to that the public authorities were in urgent provide extra car parking facilities for those need of a comprehensive picture of available who wish to avoid public transport. They properties and sites across the country, they have also had to find large sites suitable for knew that they would be able to help. storing equipment and acting as temporary In just a few days the Geospatial team office space. developed and built the C-19 Property Image 1 Intelligence Portal. This interactive software, which draws from public records including the Land Registry and the Ordnance Survey, offers access to up-to-date mapped data of a wide variety of sites which can be used by NHS Trusts or local and central government bodies at very short notice. Crucially, it provides a comprehensive, fully joined-up overview of the land uses across the whole country, including the entire public sector and also a wide range of private asset classes. Users can filter the data in numerous ways depending on their criteria, and can search via property type including hotels, schools, offices, health facilities, car parks, and storage depots. By overlaying relevant categories, it is possible quickly to identify

12 THE TERRIER - AUTUMN 2020 The support you require

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CT2557_ACES_Advert_A4_V8.indd 1 29/03/2019 12:01 Image 2 The outcome It is not often that a commercial tool can be of such clear value to the community and the wider population, but that is most certainly the case with the C-19 Property Intelligence Portal. Of course, we hope that it only has a very short lifespan, but while it is of benefit to the NHS and public authorities, we would like it to be used and shared as widely as possible. We encourage every office and agency – and ACES’ members - to explore it and think about how you could use it any suitable locations in close vicinity, coordinate the national response to this to offer help in your own area. which can be quickly repurposed by the challenge, with the government and NHS. If you would like to know more, please public authorities (Image 1). When they After demonstrating to the MoD the value get in touch with the team on geospatial@ select a possible site, users are given all of of this tool, the data resources in this portal knightfrank.com the relevant information for the location, now form part of Operation RESCRIPT, including ownership, size and (where the UK’s military support to civilian How to access the portal available) capacity details, along with full agencies dealing with the current national contact details (Image 2). emergency. We are currently working ACES’ members are encouraged to use the The portal is of tremendous value to with the Royal Engineers to combine our portal. It is not a static resource and should public sector authorities and individuals commercial property records with their evolve with changing client requirements. who would otherwise not have access own military data, in order to provide them Follow up enquiries should be directed to this depth of intelligence. Its potential with a unified view of central and local to either [email protected] or has also been realised by the Ministry government property assets. [email protected] of Defence (MoD), which is helping to

‘Why not use the ACES website for free* advertising of your job vacancies? The ACES Jobs Page (open to all) on its website caters for member and non-member organisations advertising for public sector property posts. See https://aces.org.uk/job-vacancies/ The page gives a summary of the available post with the details of location, salary and deadline and provides a link to the organisation’s own website for further details and application form etc. For a limited period, the Jobs Page will now be available to ACES member organisations to advertise posts at no cost. You gain direct access to likely candidates already working in the public sector property arena with the expertise and experience that you are looking for. *The rate of £100.00 for non-members applies but for a maximum of 4 weeks’ exposure on the ACES website; this is still excellent value!! Contact the ACES Secretary, Trevor Bishop MRICS, at [email protected] for further information.

14 THE TERRIER - AUTUMN 2020 ASSET VALUATIONS Guiding public sector valuations through the C-19 pandemic Donna Best and Jeremy Pilgrim [email protected] [email protected]

Donna and Jeremy share the outcomes of the responses to polls run by CIPFA during 2 valuation discussions in July and August, attended virtually by many ACES’ members.

The context of uncertainty valuation circles, CIPFA facilitated 2 discussions enabling practitioners across We are living through unprecedented the country to get together and share their times, and in spite of relaxation of the initial experiences and practices. draconian lockdown, the recent increasing We thought it might be helpful to ACES’ rise of coronavirus cases is creating members to share the outcomes and this additional economic uncertainty. report provides a summary of the responses Consequently, in today’s unusual and to polls ran during the valuation discussions fast changing environment, valuation has on 29 July and 4 August 2020. The polls become extremely challenging. Local were based on question themes received in authorities have buildings that are no advance of the events. longer being used, if only temporarily; there In total, 287 people attended the events is a decline in transactions; rent and revenue and up to 215 attendees responded to polls, income losses; and auditors are unclear mainly local authority accountants and Donna is a Property advisor at CIPFA, about what they want: generally, a great valuers across the UK, but also delegates chartered surveyor and registered valuer. deal of uncertainty, all of which is creating a from other public sector bodies, including She has some 25 years’ experience in perfect storm in the world of valuation. local government departments. the property industry, including local government, where she headed property In a response to the uncertainty and teams and was responsible for overseeing confusion arising in public sector asset the preparation of annual capital accounting valuations. Donna is a member of the South-West Branch of ACES.

Jeremy is currently an Associate of CIPFA, advising on asset valuations and asset management. He is a chartered surveyor with over 35 years of professional property experience, formerly head of property at London Borough of Southwark. Jeremy is a past president of ACES and a member of ACES Council.

THE TERRIER - AUTUMN 2020 15 applying a valuation date of 1 April 2020, the message seems to be to get them prepared and then evaluate closer to the balance sheet date.

External audit

One of the more controversial questions asked was whether or not practitioners believed that their external auditors respected their professional valuation judgement. Sadly, only 24% of poll responders were able to respond with a confident ‘yes’. Anecdotally, a number of councils had been advised that auditors were referring valuations to their preferred valuation firms, often those not local to the area, and re-charging the not insignificant costs back to the authority. At the time of the discussions in mid- summer, less than half of the delegates had Material valuation Valuing in the had a response from their external auditors uncertainty current climate in respect to their 2019/20 asset valuation In March 2020, as most valuers will be reports. It will be interesting to see how aware, the RICS published a valuation A popular area of discussion was around things develop in the intervening months. practice alert reminding its members, as how to proceed with valuing property in However, it would appear that there may be set out in VPS 3 and VPGA 10 of the RICS the current market and how to go about some work to be done in forging improved Valuation Global Standards (Red Book), ensuring material correctness as at 31 relations between external auditors and that valuations could be reported with this March 2021. Concern was expressed with local authorities. The challenge is that qualifier. The first question we polled was regard to the question of whether there will auditors are required to comply with their whether or not fellow practitioners had be sufficient comparable evidence available own international standards, as adapted for qualified their valuations for 2019/20 with a for real estate valuations. Further concern the UK. Failure to comply can have serious declaration of ‘material valuation certainty’. was also expressed on whether continuing consequences for both the audit firm and 57% of 215 of respondees had declared to value those elements of the portfolio the careers of the individuals involved. material valuation uncertainty in their undertaken on a 5-year programme - a Auditors have to consider the risk of material summary valuation reports. particular concern to those authorities with misstatement when deciding upon the nature large housing estates - will be acceptable and scope of their audit. C-19 has created Market reviews to external auditors. For those authorities increased risk of material misstatement with the resources currently available and across numerous areas within the accounts, The use of the material valuation uncertainty qualifier had created concerns around the response from external auditors. One of the key ways that this was being responded to was with the procurement of market reviews. Traditionally being a once a year exercise, the consensus from participants was that these should be undertaken on a more frequent basis in the current circumstances. Some authorities had been requested by their auditors to apply an indices-based adjustment to their valuations, or at least that part of the portfolio not valued in the current year. This raised considerable concern and 55% of valuers felt that the use of broad-brush property indexation was unreliable, could lead to multiplying mistakes, and was not appropriate, save as a broad opinion of market trends.

16 THE TERRIER - AUTUMN 2020 What does the future hold? Concerns had been raised through CIPFA Property around the possibility that this year, there may be a requirement to re-value the whole portfolio and that this would impact on staff resource and/or external consultant budgets. Of the 101 responders to the poll that had already received instructions from their chief finance officers, 64% were required to undertake the valuation work based on their usual rolling programme (including any associated usual annual valuations). It remains to be seen as to whether or not this position will change.

Final word (for now!)

At the time of writing, the key messages to valuers from CIPFA would be:- • Stand fast in responses to external auditors. They will be asking awkward question because that including valuations. Clearly there is a need importance of asset challenge review needs is their job, but remember that for a consensus of how auditors’ requirements to be pushed up the ladder of important you’re the professionals and you can be satisfied and those annual valuations issues requiring senior management know your portfolio and local that are critical are reviewed to satisfaction. attention. Why is this not happening? market. Don’t leave room for Much of a council’s portfolio is held in As a valuer, inspections for valuation them to doubt your competence, perpetuity and unless such valuations show purposes also provide a potential capability and objectivity a marked difference to previous years, should opportunity to input into asset there be such concern? management activities. Could the • Don’t sign off any valuations opportunity be taken to: you don’t feel comfortable with, Can asset valuation work for including suggestions for broad • Check condition information on you in more than one way? brush indexation: easier said your assets? than, done but discussions with Although accepted that there is a statutory • Check tenant and landlord the finance director /team and/or requirement to produce asset valuations compliance with lease covenants? auditors at an early stage can reap to contribute to the preparation of an long-term benefits • Check statutory compliance of both organisation’s balance sheet, concerns tenanted and operational stock? were raised about the amount of time and officer resource required to meet this obligation, in addition to the audit scrutiny. This more so at a time when staff resource is under increasing pressure, with diminished property teams, skills shortages, and increased day to day property management demands. One of the principal reasons the discipline of capital accounting was introduced to the public sector was to encourage asset challenge review, and ensure understanding around the opportunity cost of holding property. CIPFA believed that an important question was whether or not the asset valuation work undertaken in authorities is being used to inform asset challenge reviews or strategic management decisions. Of the 180 responders, only 22% were utilising the valuation work beyond the production of the annual accounts. This clearly is a poor result and suggests that the

THE TERRIER - AUTUMN 2020 17 • Stay up to date with the latest regulations, standards and guidance CIPFA runs a range of capital valuation events including a 4-day Certificate in from CIPFA and the RICS Public sector asset valuations, and various one-day courses. All these courses can be found through the CIPFA website. Many courses are free or available to • Use the ACES’ Forum to stay in members and it is worth checking with your finance teams whether membership touch with fellow practitioners [Ed benefits property officers. – members only access https://aces. In association between CIPFA and ACES, a new Diploma in Asset Management org.uk/forum/ ] has currently commenced. Members of ACES can partake of individual modules at • Where possible, use site visits to this time. It is intended the course will be run twice-yearly and is beneficial to those cover off other important property surveyors at the beginning of their career, as well as experienced surveyors looking to management activities. revisit and update their knowledge [Ed – see article in 2020 Summer Terrier].

For more information, please contact [email protected] or visit our website at https://www.cipfa.org/services/property

THE TOWNS FUND Securing funding under the Towns Fund and the second phase of the application process Chris Plumley and James Menzies [email protected] [email protected]

Chris and James provide a clear summary of the processes necessary to obtain central government finances from the Towns Fund.

Context was hugely increased as in late 2019, the government further recognised the value of Local government has always played that kind of investment. a crucial part in shaping our built The Towns Fund pot amounts to £3.4bn. environment. How we feel about the places Funding of up to £25m for each town where we live and work plays a major role may be awarded. This sum will only be in the economic, social and political success exceeded in exceptional circumstances. of a location. Regeneration and the obvious One hundred towns were shortlisted as links to the prosperity of our towns and invited applicants for the Towns Fund, of cities is a long-established part of the public which 45 are located within the Northern sector’s contract with those they serve. Powerhouse and 30 in the Midlands. The In this article, we explore the remaining fund was always designed to promote process involved in accessing funding under growth and to address any constraints the Towns Fund. councils were encountering which were Let’s first remember the context in which impacting on their ability to achieve that. Chris is Real estate Partner at Trowers this fund is operating. Before the C-19 The fund is designed to promote urban & Hamlins and the Towns Fund lead. crisis, councils were already gearing up to regeneration through a number of matrices, He specialises in large-scale public promote and enable prosperity. Covid has including increased density of the town sector regeneration and mixed use added “recovery” to that mandate. The fund centres and strengthening local economic development projects. With over 20 was originally launched with a much smaller assets, including cultural assets. It can be years’ experience, he is particularly noted available figure for councils to use, but this used for site acquisition, preparation and

18 THE TERRIER - AUTUMN 2020 for unlocking stalled developments. He remediation, and development, etc. But • planning processes works alongside commercial, surveying, it’s not just about physical assets: the fund • community stakeholder financial and property teams to plan and can be used to create skill and enterprise engagement prepare the structures and governance infrastructure to help promote investment for large scale projects. in those areas. On top of that, there is • discussions with potential private also scope to develop local transport investors, funders, etc. Chris has many years of experience schemes and the delivery of improved working collaboratively with developers, • Public Sector Equalities Duties and digital connectivity. So it has really wide senior officers, in-house professional environmental impact assessments advisers within the public, private and application, with creative and well-advised • setting in place delivery emergency sectors. With many large councils primed to make excellent use of scale and politically sensitive projects the funds. arrangements to his name, Chris has established • developing monitoring and a national reputation within the Guidance evaluation frameworks; and regeneration market. He has helped clients on major property development In September 2019, the government • working up key performance projects, to devise commercial and published the prospectus for the Towns Fund indicators. risk mitigated structures and ongoing with some very clear targets. That started During this second phase, towns will be project management. a flurry of activity, with councils seeing this in close contact with their named Towns James is a Managing Associate at application process as a “must” win. Hub lead and with the external supplier Trowers & Hamlins. His expertise is The pandemic has, of course, massively appointed by MHCLG. wide-reaching. He currently handles a heightened the pressure for councils to be Each business case must be fully costed, range of commercial property matters, successful in their bids. It’s certainly true setting out the details of how each project including a mix of landlord and tenant that the worst impacted areas are likely to will be delivered. There are 2 routes for work and site acquisitions. be those facing the most acute deprivation. agreeing business cases: in most cases, the Additional Towns Fund Guidance was agreed Accountable Body’s green book- His work highlights in the last 2 published by the MHCLG on 15 June 2020. compliant assurance processes will be used. years include 2 forward-funded hotel developments and a large-scale This summarises the process for agreeing For novel and unusual projects, the MHCLG’s regeneration project. James has also dealt Town Deals and for implementation. financial processes may be used. with renewable energy developments. MHCLG has produced best practice His client base includes portfolio Phase 1 – Town Investment Plans guidance for the development and investors, facilities management and appraisal of business cases. HM Treasury construction companies, developers and There are 2 phases to be worked through guidance Green Book and associated local authorities. James’ background also in order to agree a Town Deal. Councils guidance may also be relevant. includes acting for Registered Providers in have been putting in place their Town Once detailed business cases have been relation to residential developments and Deal Boards and working up their Town developed for each project, towns must stock rationalisations. Investment Plans (TIPs) - the first phase submit a Town Deal Summary Document to of the process. Following review of the the Towns Hub. This should include: TIP, either proposed Heads of Terms will be issued or there will be one further • a list of agreed projects opportunity to re-submit the TIP. At the time of writing, it is anticipated that • details of business case assurance applicant councils will have been advised processes followed for each project on the outcome of their TIPs. We have • an update on actions taken in therefore set out below an outline of the relation to the Heads of Terms key next phase of the process. conditions and requirements

Phase 2 – Town Deal Summary Document • a Delivery Plan (including details of the team, working arrangements Once TIPs have been approved and the and agreements with stakeholders) Heads of Terms have been agreed, towns • a Monitoring and Evaluation Plan will have up to 12 months (maximum) to develop agreed projects in detail, complete • confirmation of funding comprehensive business cases, and submit a arrangements and financial profiles Town Deal Summary Document to MHCLG. for each project This should include details of the delivery • confirmation of approval of arrangements and could also include: planning applications; and • letters of approval from the Town • technical assessments Deal Board and Lead Council. • detailed design

THE TERRIER - AUTUMN 2020 19 Further guidance on producing a Delivery adjustments have been made, they will be the chief executive of the Lead Council and Plan and a Monitoring and Evaluation Plan reassessed using the project assessment MHCLG Ministers. is expected. The MHCLG will then carry out criteria applied at the TIPs stage of the After the first year of funding is released, a high-level assessment of the submitted process. each following year’s funding will be documents before releasing funding. Once the Town Deal is agreed, funding delivered based on progress. In those instances where towns wish to for the first financial year will be released to If you are heading into this second phase adjust plans subsequent to the agreement the Lead Council. The Heads of Terms and for your council and you would like us to of Heads of Terms, towns must notify any other conditions will be attached as highlight specific areas to help with your the Towns Hub of the details of these a Memorandum of Understanding - to be detailed proposals, then please get in touch. adjustments, and where substantive signed by the Chair of the Town Deal Board,

HELPING TOWN CENTRES #bettertowns – the roadmap Brian Thompson BSc (Hons), MBA, MRICS [email protected]

Brian outlines an exciting opportunity to work with other sectors for the benefit of our town centres and communities, where the involvement of councils is of fundamental importance. “The opportunity for councils, communities, and business to work closer with academia is huge.” Brian is a freelance advisor to the public While a Labour MP was recently taken to • Demand for living and working sector, having held senior positions within task for suggesting the party should not ‘let a in places of close proximity is local government, property consultancy good crisis go to waste’, this well-used phrase increasing practices and management consultants. dating back to Machiavelli was also used by Consumers are increasingly He is currently advising several councils • a certain Mr Churchill. Let’s face it, it is in the appreciating the added value of on transforming their headquarters blood of most politicians to be opportunistic. locally produced goods and services facilities, in line with new operating I can proudly state, however, that the models for public service delivery. He is a Quick win opportunities are already #bettertowns collective, comprising • member of the RICS Public Sector Group. being implemented such as open-air realestateworks, HLM Architects and He has also helped to prepare an update dining and pedestrianisation of streets Didobi, was brought together towards the to the RICS Public Sector Property Asset end of last year as the Future High Streets • Sustainable living can be supported by Management guidelines. Fund was the talk of the town. new homes in or close to town centres It has been apparent for some time that • More SMEs and micro businesses the economic landscape of town centres will spring up in the wake of has been shifting, and at an increasing corporate failures – and they need pace in recent years. The pandemic has collaborative space and other collapsed at least 10 years of further support inevitable change into a period of 10 months. Other sectors are experiencing • Towns could capitalise on the equally radical changes, at least in the decentralisation of economic short term. activity from nearby cities, as The masterplan and vision that may workers and employers see the have been drawn up at great expense as financial and health and wellbeing recently as last year is now redundant. benefits of a distributed network of Not only has the supply side changed out workplaces; and of all proportion, the demands from the • The Net Zero Carbon agenda is community, residents, workers and visitors going to more overtly shape the have all evolved. policies and practices of the public But this is not all bad news! There are and private sectors. some upsides such as:

20 THE TERRIER - AUTUMN 2020 THE TERRIER - AUTUMN 2020 21 The virtual library The first step is an acknowledgement and University College London. that the recipe for success today is We have pulled together a collection of The CDRC was established in 2014, to different. At the heart of the #bettertowns documents that can be downloaded freely lead academic engagement between philosophy is a roadmap that starts with an from our virtual library. And there is no industry and the social sciences, and use open and honest assessment of the town need to submit an email address, so you consumer data for academic research and the creation of a deliverable vision won’t be chased up! purposes. The form and function of towns – not something that appears to have We have assembled a unique collection and cities, and their communities, is at the worked elsewhere, but one that is entirely of authoritative publications on high core of the CDRC’s research. sensitised to the local circumstances. streets and the future of towns in general. We will work with CDRC to help create We have also created a free resource in It includes government papers, all official valuable research and insights into our the form of our virtual library, an online and unofficial high street reviews that towns and communities, and that means ‘audit’ tool, and a unique collaboration with have taken place, and academic research engaging with councils and others in the Consumer Data Research Centre (CDRC). papers. We don’t guarantee that it covers the process. More of that later, so what is the roadmap? absolutely all relevant documents, but it The opportunity for councils, provides an excellent foundation if you are communities, and business to work closer Roadmap rebuilding your town vision and strategy. with academia is huge. Increasingly We will continue to update the library and academic institutions are measured The #bettertowns roadmap represents an are happy to receive material from readers by their impact on society; towns and approach which champions process over of ACES’ Terrier, if you you wish to share a businesses are faced with a growing product and aims to unpack and guide the report or research with a wider audience. number of complex issues that require development and delivery of a coordinated time, data and ‘thought leadership’ town centre strategy. The #BigTownAudit to understand. This presents a happy It is a highly visual, data and evidence- marriage of convenience, but also a great led process that navigates 5 stages to The #BigTownAudit is a means of capturing opportunity for the more proactive towns arrive at short, medium- and long-term evidence on the principal opportunities to keep ahead of the game. strategies. We make no apology for and barriers faced by towns. Our links with academia don’t stop there. emphasising the criticality of evidence and The online data capture form was Through a Universities of London initiative data, both hard and soft, to support any developed in association with a wide to engage with the market, entitled course of action. group of practitioners and academics, to Accelerating Business Collaboration, we are Each town’s journey proceeds by ensure the data captured is meaningful, working on a prototype online dashboard successively creating a baseline, defining relevant and will act as a reference point and maps that will consolidate open data a mission or vision, identifying and that informs Junction 1 of the roadmap. on the performance of towns, with their appraising options, creating an action plan, Even if you are not adopting the roadmap socio-economic context. This will allow and delivering outcomes. approach, we thoroughly recommend councils to cut through the diversity of The town must not be analysed with taking stock via the online survey and systems and data sources ‘out there’ and blinkers on. Data must be captured to other mechanisms. make quick, informed decisions on their understand the ‘big picture’, covering Looking more broadly, the audit findings optimum roadmap. items such as the wider economic climate support the creation of a benchmark (at least at the sub-regional level), the against which progress at an individual wider socio-demographic trajectory, town, sub-region, and regional basis can the strengths and weaknesses of the be measured. What now? competition, the latest bundle of grants We are formally launching the and other support that might be available, #BigTownAudit in partnership with You can help contribute to the debate and and the plans and aspirations of local a number of key organisations and stock of knowledge on town centres by: landlords, developers, investors, and the government later this year, and survey data communities that work and reside there. will be analysed by CDRC, our academic • Completing the #BigTownAudit The emerging vision will act as a guide research partner. – and receiving a tailored and golden thread throughout the process At present, anyone can complete the commentary in return of navigating the roadmap. While the survey and will receive in return our component parts of the engine needed reflections on the findings so far as they • Downloading material from our to deliver the strategy may be replaced relate to your specific circumstances. library – and sharing material in and upgraded over time, the vision should return; and remain largely constant. Links with academia • Working with us to develop critical Your speed on the road, however, is research projects that will ultimately unlikely to be constant. It must reflect the We are very fortunate to have re-position your town or towns in what availability of funding, market dynamics, established a research partnership with will be a very competitive market. the achievement of quick wins, and of CDRC, an organisation supported by the course political priorities. Economic and Social Research Council. Why not be opportunistic and take It brings together the brainpower of the advance of the moment? Universities of Oxford, Liverpool, Leeds

22 THE TERRIER - AUTUMN 2020 COST CONTAINMENT Responding to the financial crisis – 10 ways estates teams can help councils manage operational costs in the current climate and beyond Guy Brett and Saurabh Das, [email protected] [email protected]

Guy and Saurabh in Avison Young’s Strategic Business Advisory team share insights into how councils can contain and reduce property-related operational costs. “..local government has demonstrated that it is more capable than most at responding to challenges in an innovative and effective manner.”

Guy leads Strategic Business Introduction Advisory services and worked at S151 Officers with an asset deal that PricewaterhouseCoopers (PwC) and The catastrophic impact on local plugs the budget deficit and solves the Ernst & Young for 20 years, focusing government finances brought on by C-19 is local employment and housing problems on real estate strategy. He has worked putting property and finance professionals too. Cutting property budgets and using extensively on complex public sector under unenviable pressure, with an property assets to improve cashflow are property transformation projects, increasing number of councils facing s114 some of the tools many finance directors including public-public partnerships, notices over coronavirus. It does not help will consider. However, many councils’ local authority trading companies, that additional funding from Whitehall is property portfolios have been already One Public Estate, cost reduction expected to be significantly less than is been plucked and pored over for the last and property portfolio and workplace required this year, as research from the strategies. He is currently advising Institute for Fiscal Studies suggests. Cabinet Office on its Well-Maintained The lost property income sources and Net Zero Carbon initiative. such as car parking, business rates and investments, compound the Saurabh is a chartered accountant with additional spend on PPE and over 20 years’ experience providing associated health and care strategic financial and commercial advice services. At the same time, on real estate, infrastructure procurement the health crisis is also and asset rationalisation to major public creating inflationary property sector organisations. He worked at PwC pressure, e.g. investment in the Local Government and Health required to meet workplace practice, and in the Department of Health social distancing measures, (Commercial Directorate), where he inefficiencies due to necessary oversaw NHS Professionals and NHS lower occupancy densities and Property Services. He has also been the higher standards of cleaning and interim finance director of the Government air filtration, to name a few. Property Agency. All eyes are on the property team to assist finance leaders and

THE TERRIER - AUTUMN 2020 23 Make smart working stick

Agile and flexible working was already a prominent theme in local government, and it has now been significantly accelerated by C-19. Smart working enables not just reduction of property-related costs, but more importantly, it can also deliver performance and productivity gains. People work at their best when they have the right environment, tools, connectivity, decade, in response to radical funding cuts Explore flex workspace collaboration, reward, recognition and and service reforms. Can you reduce costs by introducing management in place. The cost containment wheel highlights flexible workspace into your portfolio? In future, office-workers want to be able 10 areas that many commercial An increased number of staff working to work remotely at least part time and organisations are focusing on to contain, remotely emphasises the need carefully to if coming into the office, want to do the if not drive down, costs. Their applicability plan occupational strategies, to provide a things that they can’t do remotely, i.e. meet varies by organisation, but they provide flexible footprint which allows for a swift colleagues and clients, discuss ideas and at the very least a checklist for property response to both business and macro- resolve issues face-to-face. and finance directors in local authorities to socioeconomic factors. The sector extends The other side of the coin is that work through. way beyond ‘co-working’, as businesses productive environments that of all sizes draw upon their full real estate accommodate future working practices Strategic opportunities needs as a service they pay for from an require investment and an organisation’s operator, rather than traditional leasing culture, policies and management There are 5 strategic opportunities. mechanisms – this can be a few desks up practices will need to change to make the to corporate HQ. benefits of the ‘lockdown’ experience stick. Rightsize and relocate Navigating the flexible workspace arena The greatest cost reduction opportunities can be complicated and this approach is Sale and leaseback for occupational real estate costs are from not right for every council. In addition, reducing the footprint and moving non- some types of flexible workspace, such essential functions out of high cost sites, as traditional co-working spaces, may including into shared spaces. Review and currently be viewed with caution, as staff re-evaluate the purpose, size, space mix, may not be willing to share space with location and configuration of your portfolio others that they don’t know and cannot in light of the new business environment. easily track, although there are likely to What changes could you make? As be benefits from sharing and co-working customer access and workforce strategies with other public agencies. With over An optimised sale and leaseback strategy adapt to the changing economic and 6,000 active operators across the UK, it is has many benefits and provides an digital environment, property portfolios important to take advice about the type alternative to prudential borrowing. It should realign accordingly. As workplace of agreements entered into, and that can generate cash to assist with cashflow strategies and employee expectations for the agreement effectively aligns with all issues, release valuable capital to reinvest, remote working shift, office rightsizing and aspects of business planning, budget, and and reduce the overall cost of capital. To relocation opportunities will materialise. with a diverse spectrum of offers that the maximise value from your real estate as a operator profile effectively reflects the strategic asset, it is crucial to understand culture of the occupier. the portfolio and consider what is needed from it in the short, medium and long term. This will help identify assets that are core long-term hold and can be potentially sold and leased-back.

Explore lease opportunities

Targeting lease breaks and expiries could achieve material rental savings. Lease flexibility can on average cost an additional 5%-10% p.a. on the rent. Generally, 75% of lease breaks are not activated and only 15% of expiries are not renewed. Rent savings of 10-20% are possible on lease events.

24 THE TERRIER - AUTUMN 2020 for certain properties such as offices, ranging from 10% to up to 30%, depending on scope, while a structured review could achieve around 13% savings against payables. A starting point should be a forensic review of the annual budget, lease and current services. These can include marketing, utilities, staff costs, waste collection, window cleaning, consumables, flowers, landscaping and major works programmes. We often find that a review Cost containment of the lease highlights invoices for costs – quicker wins members a Net Zero Carbon pathway that are outside the agreement and there is modelling tool developed for the Office scope for cost recovery. Manage arrears and debt of Government Property, by Avison Young and Verco. It enables users to assess the Conclusion Subletting property can help to provide carbon and cost efficiency benefits of cashflow and offset liabilities, but it also different types of investment. Effective cost containment requires adds responsibilities as a landlord, which strengthening councils’ strategic property local authorities are generally experienced Align FM service delivery capability, because identifying real cash at managing. The surplus estate requires Every square metre of space saved offers benefits requires skill, resources and active asset management through rigorous significant opportunity for cost savings professional judgement. The truth is that credit control, optimising leases and across the key FM service lines e.g. releasing costs from the public sector proactively engaging with tenants. These maintenance, cleaning, security, etc. By occupied estate is no longer easy. can be key in mitigating costs. aligning FM services appropriately, longer Leveraging the strategic opportunities term cashable savings are often possible. requires property professionals to empathise Embrace energy efficiency However, they need to be sustainable with and work effectively alongside and avoid undermining other business service managers, business transformation Collectively, small adjustments can make priorities, such as employee well-being and colleagues, and regeneration teams, as well significant savings in energy consumption customer experience. as representatives from IT, finance and HR. and running costs, while keeping Technical and financial skills are also needed organisations on track to reduce carbon Review service charges to address areas such as service charges and emissions. Achieving net zero in existing tenant arrears. buildings is a significant challenge, but in It is not a straightforward task and a the long run it adds value to investment one size fits all approach will not work. portfolios, helps attract staff, and saves However, throughout the aftermath of the money from energy and carbon offsetting. financial crisis and subsequently a decade A phased approach aligned to your business of funding cuts, local government has strategy can save costs and focus resources demonstrated that it is more capable than on quick wins and high impact areas. Service charges as a proportion of the most at responding to challenges in an We recently demonstrated to ACES total occupancy costs can be significant innovative and effective manner.

THE TERRIER - AUTUMN 2020 25 SUSTAINABLE PROPERTY SERVICES Delivering a financially sustainable property service

Danny’s leads Peopletoo’s property and Danny Marsden [email protected] and Chris Brain facilities management programmes. He has worked with many councils to create Danny and Chris’ article complements Guy and Saurabh’s 10 areas to contain costs, effective asset management and corporate outlined in the previous report. landlord services. His strengths include cost modelling, demand analysis, and The current C-19 health crisis means that close to the numbers, to be able to see productivity reviews. increasingly local authorities are struggling where the leaks are. Or they know where Ed – see Chris’ other article for with their financial sustainability. This the leaks are, but the challenge of tackling author details. creates challenges to ensure the financial them just seems too big and they are sustainability of all council services, constrained by available resource. This is including property services. where we often find ourselves coming in as There are 2 key aspects to what property a critical friend, to sit alongside a client and services, and other services within the work through the problem. authority, need to consider at moving We know where the big financial forwards: one is the opportunity to save leakages are most likely to be, and to use money, the second is the opportunity to an increasingly familiar phrase, we use our make money. own ‘track and trace’ methodology to hunt these out, diagnose the issues and prioritise Saving money actions, strategies and programmes. Benchmarking can provide a useful Initially, it is important to identify areas indication of where these holes may be. where, in the delivery of property and FM However, benchmarking has its limitations services, a council may be leaking money, and will often only scratch the surface. before developing strategies to plug these From our experience it should be seen as a gaps. In theory that sounds very simple, guide of where to look, not as a means to but from our experience that is often not provide the final answer. For instance, if a the case. council is spending way below the £/sq. m. Saving money is all too often associated on building maintenance, is this because with service cuts. Historically, this has the service is extremely efficient and been the case, with local authorities salami buildings are in good condition, or that slicing services and gradually eroding budgets have been massively cut, a council property and FM budgets, as opposed to does not have the funds to spend, and the taking a longer term view to the delivery buildings are falling apart? Without this key of savings, while also future proofing contextual information overlaid against the service. Indeed, this is key to how we benchmarks it is quite possible to be led up would approach any change project - yes the wrong path, and to attempt to patch to identify savings, but also to prioritise the wrong leaks. those which will at the same time improve Likewise, while we will always identify a efficiency and enhance the service, not number of ‘quick wins’ when working on savings that takes something away. savings projects, increasingly the bigger In our experience, staff involved in the opportunities are contingent on longer delivery of these services can often be too term change programmes. In FM for

26 THE TERRIER - AUTUMN 2020 instance, this is an area which has taken management organisation, or similar, following the initial impact of C-19, many a pounding in recent years, with margins which is becoming increasingly common. councils are now starting to consider the slashed and several suppliers folding due But where to raise the capital required long-term composition of their commercial pressure from councils looking to save internally? Well as hinted above, asset portfolios. Indeed, some of the authorities money. From experience, we continue rationalisation, informed by a robust we are currently working with are actively to see opportunities in FM for savings strategic asset management plan, can changing some of their future development through more intelligent provision and generate significant capital receipts plans – shifting from a position of retaining taking a strategic view on FM delivery, which, while some can be cashed as several offices, to repurposing these as but the bigger opportunities to save savings, others can be used to fund residential developments. This is both as a money, are simply to reduce the number commercial programmes. This takes desire to diversify their portfolio to reduce of buildings retained by the local authority. time to perform successfully, however: risk, but also due to the anticipated reduced This travels across the aisle from FM to patience is key, and viewing any project as demand for physical office space and to the property services and requires joined up a long-term commitment. increased acceptance of home working. working, while also requiring councils to take a longer-term view to savings. Equally, Should we not be exploring Are there alternatives? it requires the foresight to not over commit these large commercial to savings, but to allocate some for re- opportunities? Well yes there are. The clear alternative is investment into the remaining buildings, not to focus on the big shiny commercial and also to support delivery. Well yes you should, but you need to do opportunities at all, but instead to develop so in a way that brings robust challenge a programme that develops gradually Making money and scrutiny and a true appraisal is a commercial mindset throughout the undertaken, so decisions are made organisation. Instead of limiting the When it comes to making money, many in full awareness of all the risks and responsibility of developing and delivering authorities have been developing uncertainties. It is remarkable how a the commercial strategy on a single commercial strategies, often appointing sector famed for its aversion to risk can commercial director, why don’t we make commercial directors to identify and reach decisions to take a large commercial it everyone’s responsibility to think and implement new commercial opportunities. risk, without a robust process of business behave commercially. As the old saying These strategies can often focus on large case evaluation in place. goes, look after the pennies and the sexy commercial projects or programmes Following the last financial crisis in pounds look after themselves. There are fuelled by the need to generate sources of 2008 and the period of austerity that opportunities to be more commercial and new income. And why stress over managing followed, there was a sustained drive from to generate fresh income across the whole multiple, smaller projects which take up central government for local authorities organisation. more project management time and are to become, or be close to, self-sustainable. Of course, this is not a binary choice. stretched over a longer period, when you Many forward-thinking councils identified Organisations can pursue bigger projects can deliver a single large scale project in this as an opportunity to expand their and smaller projects at the same time, but one go, which delivers the same income commercial asset portfolios, acquiring key is developing a balanced pipeline of and is covered by one project team? assets such as land for development, these opportunities, and diversifying risk But the bigger the opportunity, the industrial units, and office buildings. across a range of projects, some larger, bigger the risk and uncertainty. That is This came to serve a dual purpose, both some smaller. This also allows councils to all well and good, if the organisation is underpinning a redevelopment agenda be more balanced and targeted in what set up properly to identify and evaluate while also generating rental income they want to achieve in each project: one those risks and uncertainties; all too and capital receipts, and indeed, many may be to maximise revenue, another often the robustness of the business case councils have been hugely successful to prioritise the provision of spaces to development and challenge is not as it in this approach. However, as a result support the most disadvantaged groups should have been. Often business cases of C-19, these very councils which were within the authority and to generate are framed to justify proceeding with an championed for their sustainability, can social value, to promote wellbeing, and to opportunity against a decision that has find themselves in deep financial difficulty. achieve wider corporate objectives. already been made. There are numerous While it is considered best practice to examples of well-intentioned commercial profile the rental income streams over a 10- A people issue products falling flat and for this reason, year period to assess where, when and how organisational optimism bias is rife in much the risk is and what the mitigation Whatever savings or income opportunities local government. measures would be, this is not something you are looking to pursue, everything Clearly, before embarking on any which has been universally adopted by comes down to people. People can often regeneration project, there needs to many local authorities. Post C-19, this is a be the biggest barrier to any change be money to fund it. Some councils practice which will be critical as integral programme but, conversely, people can have taken the approach of procuring to introducing robust mechanisms to also be your biggest vehicle for success. a partner from the private-sector to manage the process of lease re-gears, and Fundamentally, people often don’t like partially fund the project, which is then implementing processes to identify if a change; we all have tendencies to stick overseen by an in-house regeneration tenant is looking likely to default. to what is familiar to us, even if it means team, or setting up an arm’s length Furthermore, as we move forward the gradual erosion of a successful and a

THE TERRIER - AUTUMN 2020 27 healthy property service. Being or acting collection of short workshops, without the as the vehicle for good, and a vehicle for commercially is not always hard-wired time required for reflection and growth. change. They start to see opportunities into local authorities - staff quite rightly However, it should be considered one of everywhere. And they each become part of see themselves as public servants and the key pillars of transformation, without something much, much bigger. if they wanted to work in a commercial which people can invariably revert back They start to see themselves as savers environment, they would have got a job in to their comfort blanket or old habits and of jobs, savers of their service, and the private sector, often for more money! processes. It takes time, and might be seen supporting other frontline staff, such as That was the vocational choice they made as a costly investment in the short term, adults and children’s services, to deliver and is embedded into the culture of local but in the longer term, the benefits are quality services to the people that need government, and it therefore takes effort huge and the change is sustained. them most. This feeds the ‘inner self’ that to mould that mindset and use it to your When people see the connection brought them into the public sector in advantage in bringing about change. between identifying commercial the first place. They begin to weld public Culture change is often seen as the opportunities and saving their own jobs service with commerciality. They become ‘nice to have’ of any project, the add on or those of their colleagues, they begin your ambassadors of commerciality. that comes at the end of any change to warm to the idea. When that button programme and facilitated through a is switched on, you begin to see people

STRATEGIC C-19 ISSUES Strategic and operational consequences arising from C-19

Tony is ACES’ Liaison Officer for C-19. He Anthony Bamford MBA MRICS MBIFM MCMI [email protected] has worked in senior management roles at a variety of local authorities across Tony gives us a salutary perspective on strategic implications of C-19, written before the England and Wales. His undergraduate tightening of restrictions implemented towards the end of September. dissertation was on property and assets as an investment class and his main distinction grade MBA dissertation was Introduction Most recently, evidence of transmission up on local authorities handling austerity. He This year has been climactic, with an to 8 metres or 25 feet has been established, has government, council and public sector apparently distant disease turning from according to research published in contacts across the globe. an epidemic into a pandemic and creating the British Medical Journal. Likewise, around 25 million cases worldwide. As a immediate and long-term effects on the coronavirus, this follows in the footsteps body continue to be investigated. of SARS and MERS which were much more deadly. However, both earlier Macro picture and coronaviruses made sufferers ill quickly, scenario planning thus enabling catching and cutting off the disease more quickly and sharply. I had the fortune to come across a Unfortunately, this time the human book called FutureVision 2040 while race has turned out to be in the ideal, undertaking the strategic management or goldilocks zone for this virus with and dissertation semesters of my MBA near perfect lengthy infection times, some years ago. In addition to outlying asymptomatic cases and a range of transfer scenarios, including the United States methods which are still being investigated. entering another civil war, the scenarios

28 THE TERRIER - AUTUMN 2020 included the United Kingdom leaving the Climate change Savings EU. However, the 2 biggest events in risk scenario planning were - and remain - a The melting of ice and development of Office accommodation is going to be pandemic and climate change. Both issues more powerful storms over extended seen for the overhead, redundant or dead are unavoidable. Naturally, our response seasons is already a clearly delineated money that it really is, far more sharply to a relatively foreseeable and predictable trend. In practice, this will have effect than before. In some areas, for every issue in this health pandemic does not in river and coastal flooding and other 100 staff, outgoings of £600-750,000 are encourage confidence in the human events, which will be far more numerous. not unusual. In the public sector there race’s confrontation with global warming Some years ago, I was given a 1 in 1,000- has been strong focus on this for some and climate change. Although we are year flood map for the Dee and Mersey time, with some authorities’ revenues undergoing profound change, it can be estuaries in the North Wales and Liverpool halving over a number of years. All argued that this is due to compression, areas: the areas which would be flooded organisations will now have to follow the and existing trends are greatly speeding were astonishing. The importance of same imperative and drastically cut costs. up. Operational and investment property this is that this descriptor is misleading. Bricks and mortar looks very exposed. issues will be looked at more closely after I Shrewsbury on the River Severn has had Several authorities are demolishing their set some background. 1 in 50-year floods annually for some 6-7 offices, or plan to across the country. Of years. In 10 or 20 years’ time, what will course, these changes will require effective Trends and human health coastal living be? strategic oversight, intelligent client work, Clearly there are major ramifications and operational execution. I looked at this During lockdown, the opportunity to for property and assets, especially if large in detail in Strategic Asset Management review several years’ worth of Harvard numbers of houses are to be built quickly [Ed – see 2017 Winter Terrier]. PWC has Business Reviews and Fortune Magazines and be safe and habitable over the course of recently published a report on the benefits along with ACES’ Terrier, Modus and time. The other issue for property and assets of unitary status, which will gather pace for FM World/Facilitate allowed a strategic is MEES and emissions, and their necessary the remaining 2-tier structure in England, and industrial view of the last few years drastic reduction. Assets in the UK account pushed by financial pressures in particular. to be clearly seen. Setting aside the for some 35% of CO2 emissions and a much suddenness of the C-19 occurrence, this stricter regime will be essential if a drastic Operational estate also allowed ongoing trends to be seen reduction is to be achieved by the sector. within the trajectory of business and The corporate landlord role will be even property. Governments, organisations and Organisation and more important going forward. While companies will continue to have to deal business issues there is a strategic urge to get pupils with a VUCA world (volatile, uncertain, back to school, head teachers are the complex, and ambiguous). This acronym Huge volumes have been written on responsible officers for their sites and this has been used by the military, in particular, the pros and cons of working from puts a considerable onus on them. For since the end of the cold war, to describe home. Much of this is not based in any risk and broader corporate landlord issues, concisely the environment for military commercial, managerial or property see my article in 2019 Winter Terrier. In intervention. Naturally it has passed into context and is therefore of little use. For England, the additional complication of the commercial world and is an important the last 30 years, the opportunities and academisation must be taken into account, consideration for organisation leaders and benefits of new ways of working have been working through the LEA as well as the those advising them. explored and developed. This has greatly landlord framework. One of the helpful early actions is to accelerated in the last 10-15 years and the As risk assessments are considered and understand where we stand. Globally UK government was at the forefront of the 4 UK administrations take different there are transferrable viruses of different this, with publications such as ‘Working approaches to varying degrees, it may types on all continents. Just how thin without walls’ and ‘Working outside walls’. be that some responsible officers decide this window is between us and them was In terms of some of the recent articles to take the most precautionary view. emphasised in a World Health Organisation on culture, camaraderie, water cooler Considering the increase in virus numbers webinar on ‘Neglected tropical diseases’. I inspiration and other matters, these can globally, across Europe and in the UK, this also attended a Harvard Business Review be easily overcome. Today’s public sector may be sensible in the medium and longer webinar with Doctor Anthony Fauci - along is focused on target operating models term, rather than taking an approach that with almost 10,000 others - and he could and has effective frameworks in place comes across as more yo-yo in character. clearly see the trajectory of the pandemic to create and cascade strategy without At the time of writing around 15% in the future. It is worth remembering having to be present in a particular place. of office workers are believed to have malaria was only eradicated from Europe If we consider a multi-national company returned to their previous way of working in the 1970s and climate change will allow with global operations, our issues pale and it would seem in risk terms, there insects and other vectors of disease to in comparison when set against multiple is only downside in doing this, even if establish far broader habitats than before. languages, time zones and genuine deep marginal. The more traditional estate In many ways this present pandemic is a cultural differences. For more in this area, of town halls and similar buildings that wake-up call. my introductory articles on leadership and councils use are particularly unsuited to management can be found in the 2018 easy adaptation to staff circulation and Summer and Autumn Terriers. other issues. Case studies from South

THE TERRIER - AUTUMN 2020 29 Korea have shown that virus spread in the TR Property REIT annual report. Big for businesses, this will help the local office and restaurant situations can be very companies such as Intu, Hammerson, business if they vacate. but will cause specific, so there are many factors at play. Land Securities and Capital and Counties authority budget pressures. A recent France has introduced masks in offices. have all sought to stabilise their report on the radio by the boss of a Potentially the biggest inconsistency positions. European shopping centres small London consultancy illustrates in the 2 areas above is the lack of face have become much less desirable assets these pressures: he had terminated his mask use in the teaching and office and asset sales of retail both in UK and lease and the company immediately environments and the autumn will show Europe have not proceeded. had a 25% benefit in its bottom line and how serious this issue is and how urgently In the United States, Simon Properties his colleagues working from home had it needs to be addressed. Studies showing remains the largest mall and asset owner received the equivalent of a 20% salary work place transmission continue to and has a capitalisation of $21bn. They increase with travel, food and incidental develop along with knowledge about have set between 5% and 10% of their costs disappearing. The nature of their children of different ages and their capital base scale aside for investing in business means they intend to work asymptomatic role and ability to carry virus main mall tenants, and are a key group remotely and from home permanently. load, which can be significant according to in the consortium which has bought Shared space will be especially some studies. the venerable US gentlemen’s outfitters, vulnerable and in some centres in London Brooks Brothers. Other historic names such the charge is up to £1,200 per month. Commercialisation as J Crew have gone into administration as Cutting off this outgoing is a clear enough the ownership vehicles carried too much decision. However, the commentary that Some reports have indicated that cultural debt through private equity mechanisms. suggests offices will become collaborative venues and other bodies that have A similar position in the UK would leave hubs seems wide of the mark to me at been seeking to be more commercial shopping centre owners particularly this point. Put simply, there are 3 issues: have paradoxically been more seriously exposed. Simon has the scale and is any space or accommodation going to hit through the lock down actions and muscle to outlast smaller fry, both in be a petri dish; are appropriate mitigation understandable wariness of customers mall and other retail ownership, and a measures in place that I have confidence to return. Libraries have been reopening similar scorched earth position could in; and finally, is being here the best and and naturally potentially offer an easily develop in the UK. This country most valuable way of doing this activity vis important third space for children and has tended to follow the US retail a vis risk? young people. The persistence of C-19 environment very closely and experience Recent reports suggest that even the means that similar precautions have had the same issues. That said, even at $21bn, most traditional organisations of legal to be taken over the stock to that taken by Simon Properties is 20% smaller than this advisers, consultants, accountants, and booksellers and a quarantining of items year’s revenues at Alibaba, the Chinese auditors are fundamentally altering their has become necessary. internet giant, where they have leapt 30% ways of working. While these issues are at The Financial Times recently reported to $26bn. This emphasises the tectonic an organisational level, societal norms will that e-retail was almost reaching a 30% shifts that are merely accelerating for have an increasingly clear effect. In the far penetration in this country, which is much commercial reasons and now being turbo east, the previous experiences with SARS higher than Europe and pro-rata higher charged by the C-19 situation. and MERS and other disease outbreaks than the United States. This is very fertile Informal discussions with public sector have shown their preparedness and ground for the major companies in this colleagues have suggested a reasonable adaptation to the present circumstances. area, as the significant stepping up of its rent collection, although what the position The use of masks and courteous approach services from Amazon, especially on the later in the year will show is uncertain. to other members of society will be grocery side, indicates. However, the paper Seagro and Urban Logistics have benefits for the long term. also reported separately that the margins specialised in logistic and ecommerce- for supermarkets were being squeezed supporting assets and their position stand as operation costs significantly increased in strong contrast to the traditional market. and a number of other factors, such as fuel First quarter and second quarter rent sales, also added to cash flow weakness. collections at Seagro were 99% and 95%. A specialist supermarket Real Estate For Urban Logistics 98% of third quarter Investment Trust has recently bought a rents were collected by early July. The local Morrisons at a reported 5.9% yield, specialist REIT PHP healthcare collected according to the Shropshire Star. This almost all second quarter rent and 96% medium-size store is part of a modern, new third quarter rent due, according to the build retail hub within a new town. Investors Chronicle.

Property investment issues Business centres and shared space Over the course of the 2019/20 financial year, local authorities were responsible Many local authorities offer SME support for 30% of the retail sector asset through business centres. Where easy- purchases, at some £250m, according to in and easy-out options are available

30 THE TERRIER - AUTUMN 2020 ASSET MANAGEMENT PLANS Adapt or Die! Chris Brain FRICS [email protected]

“Our asset management plan is a critical corporate document, and we cannot afford to Chris spent nearly 25 years working in local government, involved in estate allow it to become a ‘shelf document’ that is out of date quickly”. Chris proposes that management and strategic asset to retain credibility, AMPs should take “a fluid and adaptable form which is constantly management. Having moved on to CIPFA updated in real time” and include more than our own assets. in 2003, Chris has been delivering property consultancy and training across the public A new approach to asset local government over the past 20 years? It sector. In 2019, he established his own management plans consultancy, Chris Brain Associates, and is time to adapt and move on. We need to he continues to support the public sector One thing is certain over the recent reset and reinvent. with property consultancy and training months - that is the unprecedented use of As I see it, there are 2 fundamental throughout the UK, in strategic asset the word unprecedented! areas where the local authority asset management, organisational efficiency, and In my previous Terrier article [Ed – see management plan needs radically to asset valuation. 2020 Summer Terrier], I talked about the change. The first is the scope of the plan. need to frame the future of local authority The second is the form of the plan. Chris is a member of ACES and he asset management, not through the lens has recently taken on the role of ACES’ of the past, but through the lens of a range Valuation Liaison Officer. Scope of the plan of alternative futures. Looking behind you will be of limited value in unprecedented Let’s start with the scope. Apart from times, as we have no direct experience to a very small number of examples, draw upon. Instead, by assessing a range the traditional local authority asset of possible futures, we may be better management plan is generally limited in equipped to cope with what lies ahead the context of the property assets owned which, for most of us, is something of an and operated by the local authority. unknown beast. They rarely look beyond these assets, and In this article, I am moving on to most plans concentrate on what is going explore what the new asset management to happen to those assets over the life of plan might look like. It is my belief that the plan. traditional asset management is no longer The plan will often talk about the assets fit for purpose. We need a new approach. that will be disposed of because they are We need a new model to work to. no longer fit for purpose. It will talk about The C-19 crisis has completely changed assets that while fit for purpose, need some the landscape within which strategic asset investment to re-purpose or refurbish management now takes place. We are them. And it will talk about assets that adopting new ways of working. We are are generally fit for purpose and will be experiencing seismic changes to our town managed and maintained in a steady state. and city centres which will be with us for In my view this is now too limiting. We many years to come. We are living through need to broaden the scope of our asset financial instability. All at a time when councils management plans. They need to be are seeking to deliver climate emergency plans that look beyond our legal interests strategies and tackle air quality issues. and bring in consideration of the wider With all these variables in play, how property assets across the local authority can we possibly stick with a form of asset area, and how the council is going to seek management plan that we have seen in to use, deploy and influence those assets,

THE TERRIER - AUTUMN 2020 31 for the betterment of the area. many months to complete. While I was at management plan is a critical corporate The plan should perhaps consider CIPFA I developed the Asset Management document, and we cannot afford to allow strategic acquisitions and projects that Plan Framework, which set out a tried and it to become a ‘shelf document’ that is out will bring about or influence radical trusted process that I had been using over of date quickly, does not keep pace with change to the property landscape of the past 20 years or so. It subsequently the organisation or the policy context, and the area. It should increasingly focus on became the ‘CIPFA way’ of doing things. If which as a result loses credibility. When property partnerships and collaboration. you have not seen it, then I recommend it comes to asset management plans, By doing so, the council can support the that you try to get hold of a copy, as it credibility is everything. local economy, provide business space to has since become the standard by which Our future asset management plans protect and create jobs, and inject life back asset management plan preparation is need to be dynamic documents that live into any ailing town or city centres. benchmarked [Ed – thanks to CIPFA for and breathe the organisation’s strategic There are also opportunities to influence allowing this to be uploaded onto the asset direction. They are being prepared the way privately owned property ACES’ website: go to ‘ACES library’ in the in a constantly moving backdrop, and the assets are used and managed through members area and search under ‘Reports’]. plan needs to move with that backdrop, programmes around carbon reduction, That framework process still holds flowing and flexing to adapt to changing promoting biodiversity, improving air good. It is the resulting plan that needs to circumstances and pressures. The old quality, and other national and corporate change. In my view, the days of the printed ‘static’ 30-page asset management plan policy initiatives. Our asset management asset management plan in the form we will not cut it any longer. plans can no longer be just about our have seen in the past, is no longer fit for The clients I am working with assets. The issues are much wider now. purpose for most organisations. Things understand this fully. I am working with are changing too quickly. The future is them to devise an entirely different model Form of the plan uncertain. for their asset management plans. One It was always the case that you could which takes a fluid and adaptable form The second area where I believe asset find yourself in a situation where your which is constantly updated in ‘real time’. management plans need to change is the asset management plan was out of date Maybe it is about time you started to think form that they take. In the main, asset before the ink was dry. And that in a in those terms too. management plans are created in a word steady environment which, while subject There you have it. My views on 2 processor environment, a few photographs to constant change, was not seeing the fundamental areas where I believe local and graphics added to make it look nice, extreme and volatile change that we are authority asset management plans need and then converted to PDF, so that it can currently experiencing, and which we will to change and adapt. As the saying goes, be readily communicated and shared. continue to experience. adapt or die. The asset management plan can take We are in new times. Our asset STRATEGIES LONG TERM Oh no, not another ‘insight’ into the impact of the pandemic! Brian Thompson see Brian’s other article for author details.

Brian gives a preview of the findings from a research project concerning the longer-term impacts of C-19 on workplace and real estate strategies.

Every week, or more frequently, a new combined a questionnaire survey with a management, regeneration and localism, ground-breaking piece of research into the series of discussions (interviews would and the health and wellbeing agenda. impact of the pandemic on the workplace be too formal a term) with leaders in The RICS got behind us and helped or the future of the office hits the inbox real estate across the globe. As a result, to raise awareness of the research or is featured in a blog. Some of us cynics realestateworks, HLM Architects and project and Neil Webster, ACES’ Business always check out who authored the latest Avison Young collaborated on what & Marketing Manager, kindly nudged recommendations or predictions, to put the we believe is a unique study into the colleagues within ACES. supposedly objective reflections into context. longer-term impacts of the pandemic on As a result of this nudging and the When the first avalanche started to workplace and real estate strategies. application of persuasion with direct appear in early summer, a few like- In part by coincidence rather than contacts, the public sector notched up 29% minded individuals came together, with design, the research is particularly timely, of all responses to the questionnaire, while a mission to generate some genuinely given the sharpened focus on issues such also being represented in our schedule of objective research findings that cut as the transformation of public service detailed discussions. In total, we received across sectors and geographies, and delivery, the Net Zero Carbon agenda, cost over 100 responses. Is this representative?

32 THE TERRIER - AUTUMN 2020 heard, we felt it was our responsibility and implementing their estate strategies. to add our own thoughts on the Our examination of the linkage between big issues around workplace and workforce and real estate strategies real estate strategies. And we suggested that a much greater degree of don’t want to be accused of alignment is just around the corner. just stating the obvious. As a A constant rationale behind investment result, on occasions we have in the workplace over last 20 years or so branched off at a tangent, but has been the improved staff recruitment, always with a link to the core retention, wellbeing, and user experience. purpose of the research. Organisations have tried to a greater or lesser degree to align the workforce The big messages strategy and real estate strategy. What’s different now is that employee We have sliced and diced the expectations have changed, even though findings in many ways according many have only experienced the benefits to business sector, scale of the of remote working for the first time. And organisation responding, geographic they found they liked it! The misalignment location and so on. Needless to say, the between these expectations and the shape comparison of public and private sector of the portfolio now needs to be closed. responses generated some interesting Secondly, tenants should be able to insights at first glance, but are perfectly exert leverage over landlords in a sector Probably not, but that doesn’t matter. understandable if you know how the where we can reasonably predict an excess What matters is the richness of the public sector works. The full report of supply over demand – the office market content, the openness and honesty of comments on the public-private division of in cities in particular is a perfect example. those who engaged, and the common opinion in several areas. And some of the landlords we spoke to threads that emerged. For the purposes of this ‘sneak preview’ were tuned in to this outcome. In fact, article, we want to share a number of big shortly after a discussion with one very Health warning! messages. well-known landlord, it hit the press with an announcement of its first green lease. This is an advance notice of some of the Balance of power – there appears to be an key findings as we are still finalising the unexpected shift in what we have termed Business models – many organisations are still full report. If anyone reading this wants a the balance of power in 2 important taking stock of the outcome of the pandemic copy when the report is published, please areas. Firstly, those who are able to work on their business model, whereas others get in touch so you don’t have to look out remotely will indirectly be able to shape have been forced into a radical shake-up. For for press releases, social media notices, the scale, nature and location of a real some, the pandemic has brought forward a and so on. estate portfolio – if, and it is a big if, particular form of restructuring that had been And another warning - rather than just employers stick to their promise to consult considered in the recent past, but had been summarising what we discovered and widely with employees when developing dropped into the ‘too difficult’ box.

THE TERRIER - AUTUMN 2020 33 workforce plans to maintain delivery One organisation with a large city centre road that we need to get over. We want to of services in the long term, and what presence came to the conclusion rather learn lessons.” are the implications for the estate? quickly that it needed to downgrade the scale of operations in the city centre and “C-19 has provided a great excuse to dig • Performance, satisfaction, health replaced it with a series of satellite offices. out that old strategy about getting out of the and wellbeing and productivity – There was a recognition that this could HQ and setting up a network closer to our what tools and techniques will you bring double dividends – an immediate customers.” use to measure these outcomes and cost reduction and an improvement in the not just for those working remotely, wellbeing, job satisfaction and personal “We now need to get serious about but also for those continuing to visit wealth of the workforce, as they witnessed calculating the added value the estate brings a workplace on a full-time or part- the end of the season ticket. to our business.” time basis? • Remote working – what is the Measurement – this refers to measuring “I think management has developed relative costs and benefits of and tracking the productivity, satisfaction a much higher degree of trust in our strategies to support more remote and health and wellbeing of the workforce. employees. We have seen that working from working or investing more in In general, there was an acknowledgement home is now within the DNA of the business, the workplace (accepting that that measurement and tracking of these and it works.” they aren’t entirely independent outcomes had been far from a corporate strategies)? priority for the majority of organisations. At “Down the line, we only expect people to the same time, there was almost universal come to our headquarters for collaboration, • Culture – what culture do we want commitment to mainstreaming these learning and where face to face meetings are to build and how can the workplace issues at a corporate level going forward. essential.” and our real estate strategy support It remains to be seen what that that culture, rather than pulling in a commitment translates into in practice. “The role of Group Property has different direction? So long as the balance of power rests with undoubtedly been raised in profile.” • Flexibility – with an uncertain the employee, it is reasonable to expect future, how will we embed flexibility tangible and sustained action rather than So what? at optimum cost into workplaces just words. and our real estate strategy? What does it mean for the public sector Levelling up – while we rigidly avoided property asset manager? dipping into political issues, there could be All asset managers have been busy The members of the team working on an outcome equivalent to the expectations working out how to get people back to the research project believe we have of the government’s levelling up and the workplace or how to support home come up with something that should ‘Places for Growth’ agendas. At a sub- working, depending on the prevailing be of interest to real estate leaders, regional level, it is reasonable to expect directives of any given week, and helping but also their counterparts in senior towns to benefit from the decentralisation to sustain the delivery of front line services. management. Well we would, wouldn’t activities alluded to in the discussion on The purpose of the research project was we? The real test is whether people like business models above. This won’t just to explore the longer term impacts on the you, having read through to the end of happen by default though – towns hoping workplace and portfolio strategies. We the article, also think so! for crumbs from the table or much more never aimed to provide the answer and will need to fight hard and construct a anyone who claims to have one is looking compelling sales pitch. If they do this too simplistically or superficially, or most while promoting localism in the wider likely both. sense, there is much to be gained for local Instead, we have landed on a series of communities [Ed – see Brian’s other article challenging but very relevant questions that on the #bettertowns roadmap]. need to be answered. The good news is that the final report will contain a comprehensive What did they say? checklist in the form of a series of questions, highlighting things to do or think about We captured some really insightful and when revising the workplace and the wider personal comments from the market. It portfolio strategy.These questions are as is a shame to keep them to ourselves, so relevant to the chief executive as they are here are a few of the more memorable and to the asset manager, given their long-term pertinent observations. As promised to all implications. They relate to: those we spoke to, we have maintained • Future business model - how should confidentiality. They are in no particular our current model be adapted order, other than perhaps in terms of and placed on a more sustainable memorability. footing? “The pandemic isn’t just a bump in the • Workforce planning – what are our

34 THE TERRIER - AUTUMN 2020 NHS ‘OPEN SPACE’ NHS Open Space launches 40 new sites offering flexible working spaces across the UK NHS Property Services

ACES’ Council member, Helen Stubbs, has sent this update on an exciting initiative from NHS Property Services.

Summary About NHS or examination rooms, office spaces and Property Services • The NHS has opened over 530 minor operation suites. rooms across 60 sites in the NHS to NHS Open Space will help provide NHS Property Services brings property businesses looking for affordable an alternative, cost effective option for and facilities management expertise space to work from businesses of all kinds looking to work to thousands of sites across the NHS closer to home, while keeping their estate. At a time of major change • The scheme will allow further funds finances healthy. With almost half (48%) and increasing demand for the NHS, to be reinvested back into the NHS of registrations for space coming from NHS Property Services is reducing over the course of the next year private sector businesses since the launch costs, creating a more fit for purpose • NHS Open Space is set to continue of the scheme, NHS Open Space ensures estate and generating vital funds its expansion, with a further 40-60 businesses big and small are able to work that are being reinvested to support sites set to join in March 2021, in a cost-effective and flexible way, all improvements in frontline patient care. increasing to a total of 250 sites in within government guidelines. The company’s portfolio consists the next 2years John Westwood, Director of Asset of 3,500 properties, which represents Management at NHS Property Services, is around 10% of the entire NHS estate. The NHS Open confident that this scheme will continue to The vast majority of our sites are used Space opportunity expand and improve ways of working for for clinical and local healthcare and businesses at this time. He said: “We know fall into one of three categories: health Following a successful reopening of sites many healthcare providers and businesses centres and GP surgeries; hospitals/ over summer post-lockdown, NHS Open will be looking for alternative property hospital-related properties; and offices. Space has announced the launch of 40 options in the wake of the pandemic. Flexible new sites across the UK. The scheme, which room booking means we can address this About NHS Open Space offers clinical and meeting space within need and make better use of NHS space, the NHS on a pay-as-you-go basis, now with additional services being offered to NHS Open Space embraces the use of includes over 530 rooms across 60 sites communities that need them most. innovative technology and best-practice from Sunderland to Portsmouth. “Our customers can count on us to onsite management, to provide a greater With the addition of these new sites, the ensure that all available sites are cleaned choice of flexible accommodation in scheme will be able to reinvest additional and maintained to the highest of safety the heart of our local communities. funds into the NHS and has ambitious standards as we work with our parent The service has been designed and expansion plans, with another 40-60 sites company, NHS Property Services, to developed collaboratively with its users joining the scheme by March 2021. The provide facilities management.” and the experiences attained over a scheme will then rapidly expand across To find out more about NHS Open Space 2-year pilot at 19 properties. In total, the NHS Property Services portfolio, and the properties and rooms on offer in there have been over 112,559 bookings, initially to a total of 250 sites. Rooms your area, visit: https://www.openspace. equating to 674,466 hours of service available include meeting, group activity nhs.uk/. provision to patients.

THE TERRIER - AUTUMN 2020 35 SCOTTISH PRIVATE RENTED SECTOR Long-term issues for the private rented sector in Scotland John Blackwood [email protected]

John has worked in the private rented John outlines the initiatives put into place by the Scottish Association of Landlords, sector for over 25 years and is widely both to improve long-term maintenance of the buildings, and to respond positively to recognised as one of the foremost the many issues resulting from C-19. However, more help is needed from the Scottish experts on all aspects of the Scottish Government for the entire housing sector. private rented sector. He represents the Scottish Association of Landlords (SAL) on a number of Scottish Autumn would normally be too early for a the difficulties in having all owners in Government committees, working review of the year but, in this exceptional a tenement block agree to carry out to inform and influence housing year, I wanted to take you through the common repairs or improvements. policy. John is chief executive of SAL, kind of issues we have been working on For too long, flat owner-occupiers managing director of Gladstones and what it might mean for the longer- and landlords have been unable to force Property Investment Managers and chairman of Scotland’s national term picture for the private rented sector uncooperative co-owners to pay their accreditation scheme for private in Scotland. share of repairs to common property. This landlords and letting agents, Landlord The team at Scottish Association of usually leaves the willing few paying more Accreditation Scotland. John also holds Landlords (SAL) has a pedigree of helping than their fair share when carrying out a judicial appointment as a member members with concerns or questions via essential repairs. of the First-tier Tribunal for Scotland our helpline, as well as listening to their The Under One Roof website, www. (Housing & Property Chamber) and wider concerns and trying to persuade underoneroof.scot offers impartial advice is a Chartered Institute of Housing government to take steps to improve the to flat owners on repairs and maintenance Chartered Member. private rented sector in Scotland. but a small group of organisations, When sitting down to plan our activity including SAL, have been working to 2020, there were a few things we together with Members of the Scottish wanted to tackle, such as how to pay to Parliament (MSPs) across the political carry out common repairs in tenements spectrum on the Tenement Maintenance in Scotland, and beginning to inform the Working Group. This group focussed on debate on rent levels, in advance of the how Scotland can address these issues, Scottish Parliament elections in May 2021. improving the quality of the housing As we all know now, this year has not stock, reducing heating bills, and helping shaped up in a way any of us expected but meet ambitious carbon emissions targets. throughout, SAL has stuck to its values, The Scottish Government has received representing members, helping them the Working Group’s recommendations through challenges, and trying to improve and we are pressing for prompt the rental environment in Scotland. implementation of its findings, including the need for legislation to allow owners to Tackling common repairs compel the payment from neighbours to in tenements carry out repairs.

We started the year focussing on the need Exercising rent controls to tackle one of Scotland’s long-standing housing stock concerns; how to overcome The other strategic piece of work we

36 THE TERRIER - AUTUMN 2020 wanted to begin in early 2020 was reduced rent, cancelled arrears, offered We are continuing to work to improve informing key debates in the lead-up to the properties to key workers and used their and build upon the support available Scottish Parliament election in 2021. One vehicles to distribute meals to hospitals. for both tenants and landlords, having of the most crucial domestic issues has I firmly believe that this immediate developed a strong foundation of been around private rent levels. This has response, anticipating the economic credibility and a coalition with other parts been a particularly hot topic since 2017, difficulties to come, helped show Scottish of the sector. when the Scottish Government introduced Ministers how responsible the private the potential for rent controls, by allowing rented sector was and that our voice Reflecting our members local authorities to apply for areas to be should be listened to. designated as Rent Pressure Zones. At all times, both during the C-19 What we have managed to convince Securing support pandemic and before, our members spokespeople from a ranger of parties is for landlords will always be our top concern. Most the need to gather detailed information recently, our members’ survey made clear on actual rent levels in the private The platform afforded by our landlords the pandemic is going to have a deep rented sector, in the same way that it is stepping up to Ministers’ request for and lasting impact on them individually available in the social sector. This could everyone to respond to the pandemic and, as a result, the wider housing sector be administered by local authorities in a sensitive way, allowed us to ask for in Scotland. alongside landlord registration and would support for landlords as well. The Scottish What we have found is that 95% of allow policy to be based on facts rather Government had already taken action to letting agents had lost an average of than anecdote. extend notice periods for most eviction almost £10,000 due to the pandemic, We also agree with Shelter that “rent grounds to 6 months. However, working while 66% of landlords had lost an controls of any kind offer a useful stop with the civil service, Scottish Government average of almost £5,000 each. We also gap, a breathing space, but is not a long- Ministers as well as opposition MSPs, we found that 44% of landlord and agents term solution…”. Instead, what is needed convinced the politicians to step in and have provided a discount for tenants, is an increase in supply of social housing support some landlords. most commonly of around 20%. for rent, to meet the demand at a local The result was a loan system for Most concerning is that these figures level and reduce the pressure on rents landlords with tenants affected by the only really cover the first 5 months of a in key “hot-spots’’. This, combined with pandemic. Although it has not been as crisis that I think we all acknowledge is accurate rent data, can help us determine effective as it might have been, it has only in its initial stages, certainly for the the need, if any, for rent controls and how nonetheless helped landlords in Scotland economic consequences. That is why we would go about not only legislating continue to operate and will hopefully we have expressed our concerns to the for, but also policing rents. stand them in good stead for the future. Scottish Government that the decision We have seen the issue of rents and to extend the restrictions on evictions evictions continue to be top of the Working with partners to March 2021, without grant support agenda during the C-19 pandemic and it for tenants to pay rent, risks pushing a looks set to be one of the key issues going As the crisis was developing, it was clear problem down the road when it needs to into the election next year. that to preserve the housing sector and be tackled now. ensure it was able to cope with the shocks Pitching in and helping out and pressures caused by C-19, everyone Looking to the future was going to have to work together. We Having made good progress on these campaigned with the Chartered Institute The feedback from our members, 2 important issues in the first couple of Housing Scotland and others, to press along with other quantitative as well as of months of the year, we watched the Scottish Government to not only qualitative data, shows us that the wider as everything changed. Along with help landlords, but to offer more help to housing sector in Scotland is at risk if everyone else in Scotland and the world, tenants as well. Ultimately, if tenants are action is not taken. Ultimately, it will be we were consumed by lockdowns, able to pay their rent, landlords would the Scottish economy and society more emergency legislation and national not see arrears piling up, and then have widely that will suffer if the housing sector crisis. Our team realised that landlords a much harder problem to solve further is critically damaged. would again be at the forefront of policy down the line. Without the right mix of high-quality responses to the crisis. Even before the What we have seen over the summer housing, in the right areas and at the national lockdown began, we urged is a tenant loan fund established, albeit right kind of prices, individuals will not be landlords to be proactive and flexible, with the same limitations as the landlord able to contribute economically and we as well as informing themselves about version, primarily, that tenants might be will see rises in homelessness, health and support available, both for themselves cautious of accessing a loan that would social problems that we are all working to and their tenants. add to their debt. Nonetheless, this shows prevent. In particular, it is logical to think The response was incredible (https:// how communication and working with all that private rented accommodation will scottishlandlords.com/news-and- sides of the private rented sector, pointing play a critical role as people are cautious campaigns/news/sal-members-show- out the problems and benefits, has of taking on mortgages at a time of how-to-bekind/). Despite facing been the most effective way of lobbying uncertainty and may need to be flexible incredible financial challenges, landlords government during this time. for employment purposes.

THE TERRIER - AUTUMN 2020 37 Our challenge, and I think the change, but we must be wise to that and and others, to come up with sustainable challenge for landlords across the UK is, work with others, to press for the right solutions for the long-term viability of the first, not to retreat into ourselves and kind of change that will help us all in the private rented sector in Scotland. Only become insular. Instead, we must also longer-term. by adopting this approach, can we have look outwards and work with as broad a That is certainly the position taken any chance of ensuring that landlords can range of partners as possible, including by the Scottish Government’s Private flourish as the long and arduous road to tenants’ representatives and the third Rented Sector Resilience Group. I am a recovery begins across the UK. sector. Governments will sometimes Co-Chair of that group, sitting alongside look to divide and conquer to prevent Citizens Advice Scotland, Shelter Scotland

STRATEGIC REGENERATION PARTNERSHIP Achieving a Better Queensway through strategic partnerships Alan Richards, Andrew Pack and Frank Klepping [email protected] [email protected]

Following a presentation to a virtual ACES Eastern Branch meeting, which highlighted the LLP partnership approach taken in the Queensway redevelopment project in Southend-on-Sea, Essex, the team working with ACES’ member Alan, and his advisors 31ten and Swan, agreed to prepare this article. It outlines the project from their individual perspectives, and tells us how this challenging project became a reality.

The project

Porters Place Southend-on-Sea LLP - a joint venture between Southend-on- Sea Borough Council and Swan Housing Association - has recently submitted a ‘hybrid’ planning application which should see £500m invested in Southend, through the Better Queensway regeneration project. The planning submission is the culmination of more than 5 years of work, in what is just the latest phase of plans to bring about this large-scale regeneration. The project has been led by Southend- on -Sea Borough Council and which carried out wide ranging stakeholder consultation, completed a soft market testing exercise, secured Housing Infrastructure Fund (HIF) Funding, carried out a full public procurement and then entered into a new Limited Liability Partnership with Swan Housing Association, all before they could even start consulting on the hybrid planning application recently submitted.

38 THE TERRIER - AUTUMN 2020 Alan is Director of Property and Commercial at Southend-on-Sea This hybrid application will establish the to placemaking; planning; housing Borough Council. Alan has been principle of regenerating the site and the and commercial space; environmental with Southend since 2003 and has overall masterplan, as well as the details sustainability; Smart Cities social value land developed his career there. He heads of the highway changes. If approved, the assembly; highways; finance and legal. It up the property team at Southend and project will be transformative. The 4 tower was a significant undertaking for which has significant experience in property blocks that form the current Queensway we retained Sharpe Pritchard as our legal and asset management, valuation and estate would be demolished in stages and advisors and 31ten as lead consultants, has dealt with both the transactional replaced with a high-quality development addressing strategy, procurement and and delivery elements of a number of of up to 1,760 modern new homes, create finance, to help us define our strategy major regeneration and development projects at Southend. He is also Vice attractive new public spaces, including and find the right partner. IBI Architects Chair for ACES Eastern Branch. a new Station Plaza and a large public supported our master planning and Alan is one of the council’s Porters Place park, as well as a range of creative and Cushman & Wakefield advised the council on Southend-on-Sea LLP representatives commercial spaces and improved links to property, CPO, valuations and procurement. (see structure diagram). the town centre for those travelling from Essentially, the deal we offered to the nearby streets. market was that we would put in our land Andy is Director of 31ten Consulting. (our only guaranteed investment). We He is a leading advisor to the public Alan – setting the scene were up for some risk, where there was sector with particular expertise in the and council requirements commensurate reward, but we wanted local government, health and housing sectors, developing innovative models to see meaningful financial returns, and for housing, infrastructure and mixed The Queensway estate was developed for our investment to be balanced with use development, including companies in the 1960s along with many parts private investment. and joint ventures. He has more than of Southend, but is no longer fit for We also weren’t prepared to leave the 20 years’ knowledge and practice of purpose. It is failing residents and it is no future uncertain – we wanted an on- public sector advisory services, co- longer making a positive contribution going role in the governance of Better founding 31ten Consulting in 2015. to Southend town centre. So, after many Queensway and wanted significant years of this project being in the pipeline, influence over design, branding, disposal Frank is Development Director everyone at the council was determined strategy, management and procurement for Swan Housing Association. As Development Director for the east finally to make this happen. through the long term 30-year partnership. region, Frank plays a lead role in the Southend has some very affluent areas While this may seem a big ask, to the delivery of the Swan Group’s existing and some extremely deprived ones – council this was essential. We were clear development pipeline, acquiring including the Queensway estate and we wanted to create a great place, which new business opportunities, and surrounding area. We were committed to stitches back the community which had establishing cross-sector partnerships addressing the disparity for residents of been severed from the town centre by a to deliver a diverse project portfolio. the estate and neighbouring wards which dual carriageway and which also delivers Since joining Swan in 2014, Frank has have significantly poorer health, higher high quality, sustainable, smart, well- contributed to the growth of Swan’s unemployment, and lower levels of skills managed housing. development pipeline to over 8,500 secured residential plots, including and educational achievement compared It is really exciting to see this major over 1,000 on site, and a range of to the borough’s population as a whole. regeneration project move into the next complex, mixed-use development and The estate itself was tired and the design stages, with the planning application regeneration projects across Essex. had not stood the test of time. now submitted. So, we set out to create a 30-year joint venture partnership to deliver the Andrew – the consultant’s roles design, planning construction and long- term management of the development. As a consultancy we specialise in helping To ensure that we achieved a ‘better’ councils use their assets and powers to Queensway, we were clear on the achieve their objectives. We recognised minimum requirements – 20 of them the council’s determination to make this in fact - that the project must achieve. happen and our focus was on ensuring These covered everything from highways, that it could meet its objectives, while parking and permeability, to housing putting together an OJEU package which tenure and design quality, with viability would actually find the council not only a hurdles and social value measures thrown partner, but the right partner. in for good measure. While taking a lead on strategic Through a full OJEU process, we sought procurement and financials was central to bring together a genuine partnership to our approach, a critical element approach, to optimise and fully integrate of our work was first helping to distil the opportunities for Better Queensway. the council’s aspirations into a set of The procurement process included a ‘Minimum Requirements’ that any bidder detailed assessment of the approaches must reach. These included:

THE TERRIER - AUTUMN 2020 39 • Increasing on the 441 affordable homes already on site The Model 100% • Delivering appropriate housing Shares 50% 50% offers to returning residents and Shares Shares Swan BQ new affordable tenants Land Value Equity / / Junior Junior • Demolition of the towers Loan Loan £ Porters Place £ • Addressing the Queensway Southend on Sea Highway (retaining 4 lanes) (LLP) • The red boundary line of the

procurement; and critically Develop Scheme Service / Planning / Develop / Sell / Operate • The proposals being financially viable. Funded from Equity and Senior Debt

1 Achieving this gave us clarity with which to work with teams from across the council and the appointed external advisors, to put together the public procurement. What we ended up with was an innovative and exciting partnership approach that was designed to pull together public funds, in the form of the HIF funding, public land in the form of the council’s investment of the Queensway site, and development and management expertise from the right partner that would have the appropriate blend of development, management and funding expertise. Most importantly, a partner that would have a shared ethos with council’s requirements, which was really out this project but also critically, we the council to deliver a viable scheme, a testament to the partnership approach are happy to manage it for the long high-quality built environment, with an displayed throughout the process: term, as this is our approach to all of our appropriate mixed tenure community listening, challenging and developing regeneration work. By taking a long-term that balanced the requirements of the an offer that was both pragmatic and view on social value and our return, this diverse residents of the area, and a place innovative, demonstrating a close helped us to stand out as a potential that both parties could be proud of. It was alignment of Swan corporate objectives partner for Southend. the long-term stewardship of the lives of with the council, and a shared vision and We’ve been working together really those that lived and worked in the area goals for the partnership. well as an LLP – there’s been a lot to do that was so critical to the council, which A key challenge going forward, and one and a huge commitment from both sides is why a 30-year model was designed which the council has been successfully to get this done. Better Queensway is the that tied parties into the need to deliver navigating to get to the point where opportunity for Swan, to transform the quality. Both parties would be there for the hybrid application was submitted, is area into a vibrant regenerated centre the long term, so would live and die by how the council juggles its many hats. which will provide hundreds of much the actual things they delivered, and It’s a shareholder in the LLP making the needed high-quality new homes for those would benefit from the successes and application, but also the local planning living and growing up on the existing learn from the challenges. authority! It’s the funder of the project, Queensway estate. It will also provide We knew this was a lot to ask the but also appoints directors onto the additional affordable and private homes market, so there was extensive pre-market joint venture board. This is a whole new and high-quality public realm, including engagement with a range of parties, to way of working for the council, but we’re safe places for everyone to enjoy. ensure the package taken to market both delighted with how they and Swan have At a time when Southend-on-Sea, like delivered the council’s requirements and been able to work together, to take us to the rest of the UK, responds to the impact was fundamentally of interest to potential this critical milestone in the project. of C-19, this regeneration will draw in bidders. This process was critical in around £500m of investment into the developing the model that was procured, Frank – joint venture arrangements centre of the town. as shown in the diagram. We’re confident as a LLP that we The procurement process saw Swan As a regenerating housing association have far exceeded on the council’s Housing Association emerge successfully with its own in-house developer, NU ‘Minimum Requirements’ and as a housing as a result of its solution to best fit the living, we can not only design and build association which exists to provide

40 THE TERRIER - AUTUMN 2020 homes, we are delighted that the LLP will Sustainability will play a huge part methods in a future issue of ACES’ Terrier] deliver 512 genuinely affordable homes, in the project. The new homes will be - will improve the overall environmental with a mix of 300 social rented homes and energy-efficient and economical to run, performance of the development. 212 intermediate units (shared equity and while high quality green spaces - the You can find out more about this shared ownership). The council and Swan planting of 190 new trees, the installation project at www.betterqueensway.co.uk are also intending to deliver an additional of electric car charging, and sustainable and view the planning application on the 100 genuinely affordable homes through construction methods [Ed – I’m hoping council’s planning portal. a separate contractual agreement. to feature Swan’s modular construction

SELF BUILD HOUSING Building expertise around custom and self build

Bryony Harrington [email protected] Bryony is the Head of the Right to Build Task Force, a government supported Bryony updates us on activities of the Task Force and how it can assist to encourage organisation working with landowners, all local authorities to become actively involved in supporting this important sector of promoters and local authorities to help housebuilding. Sadly, the take-up remains low, but a key point that Bryony wants local diversify housing supply through custom authorities to take away is the need for them to play a more interventionist role in the and self build. land market, to help improve local opportunities for alternative models.

A founding member of the Task Force, In her 2017 Parliamentary Briefing Paper, been fully overcome and the challenge Bryony previously worked at Graven Wendy Wilson (https://commonslibrary. remains to build on progress to date. Hill, the UK’s largest Custom and Self- Build development. parliament.uk/research-briefings/ The limitations of the legislation were sn06784/) referenced the traditional highlighted in October 2019, when barriers to self building in England: analysis by the National Custom and finance, planning and land. Following Self Build Association (NaCSBA) found a the introduction of the Right to Build mixed picture of activity of how councils legislation, the situation for each has were meeting their responsibilities. This improved with: the now statutory showed that types of activity varied requirement for planning authorities; widely, with many councils adding increased amounts of development qualifying tests to limit people signing up and mortgage finance; and the 10% to the registers and failing to permission requirement for small sites in the National adequate plots. Planning Policy Framework. However, custom and self build acts as The Task Force to date a disruptor to mainstream development in the UK, and is on a slow trajectory of Established in 2017, the Right to Build growth, largely due to lack of experience Task Force is part of a Community Interest and the legislation not quite proving itself Company offering consultancy services fit for purpose. While the direction of travel to local authorities and landowners to is welcome, none of those barriers have support delivery of custom and self

THE TERRIER - AUTUMN 2020 41 build homes. Based on a successful council, with the ability to access portfolio offer, such as the Assessing Demand for Dutch model, it was created to address holders for planning and housing, senior Custom & Self Build Housing Tool, which the lack of knowledge of how to deliver officers and other council members. This we developed in conjunction with Three serviced plots in the UK, drawing on a ensures that the knowledge shared is Dragons, and current demand tools pool of experts to advise clients. Its launch impactful, creating the kind of political created with Custom Build Homes and followed the commencement of the Right energy that drives activity. BuildStore. These can be used to drill to Build legislation in April 2016, which Understanding of custom and self build down locally and regionally, providing the placed a duty on all bodies responsible for is generally very low, so the sessions serve evidence that landowners or managers plan making in England to host, and have as an introduction to the Right to Build, need confidently to put forward sites regard to, a register of those interested in routes to provisioning land for serviced for custom and self build and identify self building locally. plots, and what planning and housing suitable product mix. departments can do to ensure schemes This is important, as while the Sharing good practice are delivered successfully. Pre-session authority’s self build register is a great discussions and research provide a short-term evidence of local demand, it Rising to the challenge, the Right to baseline of what the local authority needs, needs to be combined with other data to Build Task Force is actively working to and identifies gaps in their understanding. give a fuller, longer term picture that is share emerging good practice. While The Task Force is multi-disciplinary in more in tune with local plan time phases. the Task Force has always had support that it draws on a pool of experts from This way, we can ensure that where from government, this year the Ministry planners to developers, to deliver focused serviced plots become available, there are of Housing, Communities and Local follow-on work. So, depending on what people and developers locally that want Government (MHCLG) has provided finance clients want to get from the next steps, we to take them on. to enable it to work with all local authorities then pair them up with a specialist with it has not previously engaged with. the right skills to meet their needs. Reviewing best value This funding is transformative, The initial MHCLG-funded introduction as it means we are able to reach (local authorities only) paves the way Section 123 of the Local Government Act authorities that are not yet advocates for this more detailed work, such as 1972 grants councils the discretion to – crucial in ensuring that action is evidencing demand, drafting better dispose of land how they wish, but with taken nationwide. Since C-19, this policy, or identifying and bringing an expectation that it cannot be disposed initial support takes the form of an on land for custom and self build. For ‘for a consideration less than best that can introductory webinar, and the funding example, one of our experts conducted be reasonably obtained’. Many authorities removes the cost for the local authority. a masterclass in valuing land for pursue financial value as the basis for ‘best’. The other focus area for the Task Force commercial development, specifically However, there is a move towards is land – as it remains one of the most for custom and self build. As well as social value being given more weight in significant barriers to sites coming to the presentation, attendees worked terms of what ‘best’ might be, and custom market. As such, the other target group through a model, valuing a site to apply and self build marries up well with such we’re working with are landowners the learning, so that they understood an interpretation. In this instance, best and promoters, sharing the benefits of the parameters in facilitating land for value can relate to building resilient serviced plots as part of a suite of options serviced plots, both from the council’s communities or, in the case of community in bringing land forward for development. and a developer’s perspective. led homes, affordability that is locked in With these clients, work is usually perpetuity, such as with the Community focussed around building understanding The role of land Land Trust model. of the development models for custom The Marmalade Lane Cohousing and self build, including approaches to The key point that we want local Community in Cambridge, built by TOWN, valuation, lessons learned from other authorities to take away from the shows that custom and self build can be used projects, and what stakeholders can do webinars is the need for them to play for higher density solutions, such as terraces, to identify and successfully bring forward a more interventionist role in the land and not just single plot developments [Ed - suitable land for plots. We see great market, to help grow local opportunities the Task Force was not involved as advisor in potential in the need for 10% of sites to for alternative models. Consequently, this particular project]. be small. we encourage them to review any land Disposing of land for custom and they own, or could purchase, as well as self build can tap into this view of best How we work with brownfield registers, but with small sites value, as people building for themselves local authorities and potential for serviced plots in mind. typically invest more money and energy Equally, we encourage and can offer into their homes, usually build more Over time we have developed a process support for bringing forward a pilot sustainably, and tend to stay in their where we work with each authority scheme to trial process and test policy, or homes for longer than those living in as an individual client, with a webinar working collaboratively with local land market bought homes. Residents also tailored to local circumstances. This promoters, managers and owners. move in with a sense of community way we consider their constraints and Of course, the need for robust evidence garnered through shared experiences, opportunities, and their supply of land. It of demand is imperative, and the Task something that can take years to develop also gives us significant reach within each Force now has a suite of tools it can (if at all) on a standard housing estate.

42 THE TERRIER - AUTUMN 2020 Marmalade Lane Cohousing community - Images supplied by the Task Force

Planning insight registers, and Scottish government will be looking south of the border at our One area where our experience is experiences so that it takes the best invaluable is staying on top of the appeals examples and addresses issues head on. around custom and self build – which are now starting to emerge as the legislation Case study: Carlisle comes of age. These identify common City Council problems in local authority activity around Nowhere is this more evident than for the Right to Build and their interpretation For Carlisle Council we undertook a legacy landowners, who are typically of duties around the registers. programme of work covering detailed disposing of a single windfall parcel of Specifically, authorities have a duty policy guidance, good practice land, such as a farm selling off part of to ‘permission’ sufficient plots to reflect examples and lessons learned from its estate. We have found that in this the demand evidenced by the registers; other custom and self build schemes, scenario, where the vendor will continue how they count permissions is often the and a workshop with officers to unpack to have local links, they are often focus of the appeals. This case law helps and discuss. interested in building ‘better’ homes, and feed into the reform agenda by providing The council went on to commission custom and self build meets this criteria empirical evidence, alerting MHCLG to detailed analysis of current local [Ed – see linked articles on ‘Building Better discrepancies in practice. demand to create a robust evidence Building Beautiful’ and stewardship in What we are seeing from appeals that base to underpin new policies. In 2020 Spring Terrier]. have gone in favour of custom and self addition, the Task Force advised The Right to Build Task Force can build, is that when it is part of a carefully- on identifying and maximising help landowners unlock this potential thought out strategy by a local authority, opportunities to deliver homes, to deliver a better outcome locally. We it is far more likely that the custom and including raising awareness locally know that Sir Oliver Letwin’s ‘Independent self build will be granted permission. among landowners and SME builders. review of build out rates’ found that Because of this discretionary approach, Now the council is progressing work on diversification in housing speeds up the Task Force is publishing its own the St Cuthbert’s Garden Village, with build out rates, but the route has other planning guidance for custom and self an ambition to deliver a custom and advantages, too. Because it typically build. The first parts will be available via self build offer which is responsive to draws on local SME housebuilders to the Task Force website in October, with local demand. deliver homes, it boosts local economies more to be released over the next year. and employment, and it’s also an And this will be ever more pertinent as innovator, championing Modern Methods we move towards the reform mooted by New Housing of Construction. the ‘Planning for the Future’ White Paper, Diversification group For local authorities, when we explain which represent such a huge change to these benefits, they start to see the how we build. A new action group, Housing weight of the argument for inclusion in It’s important to note that it’s not just Diversification, is calling on government policy for custom and self build to be a England where we can offer support, to deliver on its commitment to support source of valuable, additional homes to although the Right to Build is solely a much wider range of routes to housing complement the conventional housing English. Interest is widespread, with development and to boost the number supply. We, and they, know it is harder to Northern Ireland traditionally having of small-to-medium (SME) housebuilders deliver than the speculative housing they strong levels of activity, and Wales who deliver them. are familiar with, but our support can help recently launched Self Build Wales – Housing Diversification is made up of include provision, and secure the delivery offering a route to land and finance. the Federation of Master Builders, the of sites. Scotland now has legislation favouring UK Cohousing Network, the National

THE TERRIER - AUTUMN 2020 43 Community Land Trust Network and Some statistics • The figure of 130,000 extra homes NaCSBA, working under a common banner. by 2025 is made up of an extra Currently, volume house builders and • The Federation of Master Builders 73,500 custom and self build the housing association sector deliver represents 7,500 SME firms across homes and half (see note below) the majority of England’s housing, the UK, half of which build new of the potential 65,000 homes and yet together they are not able to homes. FMB members expect that could be delivered by SMEs, deliver on government’s ambitions for to build more than 12,000 new were the sector to return to 300,000 homes per year. The number homes in 2021 delivering 40% of all new homes, of SME housebuilders halved following • NaCSBA reports that custom and as it did in the 1980s. Finally, the the last recession. Currently, the SME self build delivers 14,000 homes 23,000 community led homes sector, comprising small housebuilders, annually - with full support this figure is added to this total to community led housing and custom could be 73,500 by 2025 reach 129,000 homes, rounded up and self build, is delivering a minimum to 130,000. of 20,000 homes annually, but it has the • There are 10,780 community led potential to deliver significantly more homes in ‘live applications’ on A note on counting: Roughly 50% of housing – up to 130,000 extra homes by Homes England system awaiting SME housebuilder output is custom 2025 (see statistics below). These homes delivery, part of a wider pipeline or self build, so the 20,000 figure are sustainable, beautiful, innovative, of of 23,000 homes (Source: http:// represents 14,000 custom and self- high quality, support local economies and www.communitylandtrusts.org. build homes and half the annual FMB provide training and employment. uk/_filecache/387/a2e/905-clh- delivery figure of 12,000 homes to Diversifying the housing market is a pipeline-analisys-dr-tom-archer- prevent double counting. Community core pillar of the government’s housing feb-2020.pdf) led homes are, therefore, in addition to policy, but to ensure we ‘Build Back • Many of the live projects are this figure. Better’ it must be a core part of a wider reliant on the Community strategy for recovery from C-19. Housing Housing Fund 5-year renewal. Diversification is calling for: 1. The establishment of a high-level departments to help them make Find out more Housing Diversification Taskforce, determinations quicker and address For advice or to enquire about support, with a range of items set out for the bottleneck created by lockdown visit the Right to Build Task Force consideration (see Appendix) • Address loopholes in the Right to www.righttobuildtoolkit.org.uk 2. Commitment to a 5-year renewal Build legislation and how activity is of the Community Housing Fund reported as part of the Comprehensive • Deliver on government’s Spending Review commitment to extend Help to Buy 3. The creation of a robust and (or introduce a new loan scheme) to statutory system of reporting custom and self build to address the on diversification as part of current unfair competition government housing statistics, • Create a strategy for Homes England including the NPPF requirement for that supports diversification, 10% of homes to be delivered on including ensuring it is embedded small sites (one hectare or less). and actively encouraged through Andrew Baddeley-Chappell, CEO, NaCSBA, the upcoming Delivery Partner and spokesperson for the group said: Panel 3 process “Despite the importance of houses to our • Require Homes England to adopt lives and the scale of their cost, there is a policy whereby 10% of homes currently too little choice when it comes that are delivered as a result of their to new homes in this country. We have investment or land disposals are built come together to deliver more passion, on sites of no more than one hectare quality, and care into the new homes and the new communities that we, as a nation, • Explore the scope for local need to be creating. authorities routinely to set up developer forums that bring Appendix together a range of views (planning officers; SME house builders; Recommendations for consideration by community representatives) the Housing Diversification Taskforce: to assess housing demand and strategies to meet this. • Invest in local authority planning

44 THE TERRIER - AUTUMN 2020 NEW SETTLEMENTS How important are new settlements for providing for housing need? The question raised in the Planning White Paper Janice Morphet, BSc, MA, PhD, Dip TP FRTPI FAcSS [email protected] and Dr. Ben Clifford [email protected]

Janice and Ben discuss in detail how the existing and proposed planning systems should deal with applications for new settlements: should it be locally or centrally decided? The authors put forward the pros and cons of the two processes for the development of major housing proposals.

Janice is a Visiting Professor in the Bartlett School of Planning at Planning consultation documents be a bit obscure to those more focused University College London. Janice was on house building. The DCO process a Senior Adviser on local government This summer has seen the launch of has been used for major infrastructure at DCLG 2000-2005, having been Chief Executive of Rutland CC, consultation on different aspects of delivery in England and Wales, although Director of Technical Services at planning in England including reforms Wales is now implementing a separate Woking, and Professorial Head of the to Use Classes Order (1), PD rights (2), system. However, this question is worth School of Planning and Landscape at and a White Paper (WP), ‘Planning for the a closer look at the role in might play in Birmingham Polytechnic. Future’. While discussion on many aspects the delivery of new communities, whether of the WP, including design, infrastructure the current legal frameworks in the 2008 Ben is Associate Professor in and housing numbers, have been Act are fit for this purpose and what kind Spatial Planning and Government underway across the development sector of contribution to housing delivery this at the Bartlett School of Planning, – public, private and interest groups - process can make. Does it also fit into UCL. His research interests centre on the relationship between state one important policy question has not the broader style and intent of the WP modernisation and the planning received much attention. This is set out through its proposed introduction of non- system in the UK. Recent work has in question 9c in the WP and concerns negotiable zoning and associated funding included projects on devolution and the extent to which the 2008 Planning with delivery, both centrally driven? spatial planning, planning for national Act regime should be used to granting Question 9c in the WP opens up the infrastructure, the implications of office- Development Consent Orders (DCO) that possibilities of more New Towns in line to-residential permitted development, provide combined planning, consenting with this thinking. Perhaps, this is a policy and local authority delivery of housing. and compulsory acquisition powers over that occurs in every 50-year cycle, as the He has been working on a project land to scheme promoters. The question Addison Act in 1919 promoted large scale looking at the relationship between organisational form of planning in the WP asks: council construction of out-of-county services and the realisation of the estates, while the new towns were a major public interest. Do you think there is a case for tool for economic restructuring after allowing new settlements to be brought 1945 (3). While England is not recovering Jan has recently published a book forward under the Nationally Significant from war, there are major considerations ‘Changing contexts in spatial planning’ Infrastructure Projects regime? of institutional restructuring after (2018 Routledge) and a joint book by Brexit. What might be the role of new Policy Press ‘Reviving local authority There may have been little discussion settlements in this new order as asked in housing delivery’. about this question as it may appear to the WP?

THE TERRIER - AUTUMN 2020 45 New settlements and local plans and funding support for these new particularly important for some schemes development corporations have to be such as energy where DCOs are required When considering the question 9c in announced, but there appears to be a for promoters to enter the energy the WP, this has to be viewed within government appetite to increase the auctions. its immediate planning context. The centrally led approach to housing growth, Initially, the Infrastructure Planning Inspector’s response to the North Essex in addition to that indicated through the Commission (IPC) established by the Authorities (NEA) local plan proposes housing allocation algorithm outcome for 2008 Planning Act was responsible not for new (garden) communities met each local authority. only for examining the scheme but also the partial buffers in May 2020, calling making decisions on it. This was changed for a rethink of the way in which local Nationally Significant by the Localism Act 2011, where the plans can deal with larger, longer term Infrastructure Projects autonomy of the IPC was removed and development for new communities, the examining inspectors were made rather than large new housing estates. So, if the government is considering part of the Planning Inspectorate (PINS). Other councils have fared better in these moves for new communities, how As part of these reforms, PINS could now their local plans, such as Cheltenham would the use of the Planning Act 2008 only make recommendations to minsters and its Golden Valley development, but make any difference? For those who are who had the final 3months to make their in this case the council owns the land not familiar with the use of this Act, it decision. and it has been strongly backed by the was formulated by the government in While providing an agreed timescale, relevant Local Economic Partnership response to the Treasury commissioned other issues about the DCO process (LEP), including some contributions Eddington transport review into planning emerged. Firstly, the amount of time to funding. This support from the LEP, delays on the Terminal 5 inquiry (6). taken for project acceptance into the through the government framed growth Further examination demonstrates system started to lengthen and research deal, together with funding for projects that the government had been seeking demonstrated that there was no difference through the government led Homes to change the legal process for major in the average time taken under the and Communities Agency, through infrastructure development processes planning system and the DCO approach, Housing and Infrastructure Fund (HIF), since 1996 with a range of regulation once the pre-application stages were appears to provide greater certainty of laid but most not used (7). The Planning included (9) Secondly, while there was a success at local plan examinations. This Act 2008 removed these major projects, time limit provided for the whole process, was confirmed in the NEA case, where now designated as Nationally Significant there was no time limits for subsequent the whole development was not part Infrastructure Projects (NSIPs) from the changes required and this provided an of the Essex LEP 2014 growth plan, but planning system and into a framework for inbuilt inflexibility into the process (10) those parts that found favour with the England and Wales that was supported and our research has showed that scheme examining inspector were supported though Parliamentary processes. The promoters are using a range of tools, by HIF funding (the proposals were for overarching framework was provided including making use of the Town and 3 new garden settlements, of which the by National Policy Statements for Country Planning Act system for associated inspector supported only one because of infrastructure, including different types of developments, to modify and amend viability concerns). energy, transport and water (8). In some their schemes in order to implement cases, schemes were required to follow them (11). Local authorities were seen Development corporations this route to achieve a DCO and in others as being antagonistic to many of these scheme promoters could request this NSIP schemes, but once approved they There is also a second background process over others. have been essential to project delivery. policy development that is underway The NSIP process requires a long pre- Consultation and commitments given to that may have been overlooked. Last submission process before acceptance communities and consultees at the pre- autumn the government launched of each proposal that includes acceptance stage have been lost in the a consultation on the reform of new environmental assessments and public process and to some extent compromised town, mayoral and urban development and stakeholder consultation. Once in by the pressure for daily side agreements corporations – to align their governance the system, the proposals are subject between the promoter and other parties and powers including providing all with to a 6-month inquisitorial examination throughout the examination period (12). CPO powers (5). While the government which cannot consider the principle of This approach to examination has also has yet to respond to this consultation, development (as in the 1947 Act and served to hinder delivery when (apart in the 2020 Budget, the Chancellor subsequently) which has been established from road and railway schemes), after the announced that there would be 4 new by Parliament through the National DCO, the project is typically sold on to development corporations in the Oxford Policy Statements (NPS), following which another organisation and then often again to Cambridge Arc and subsequently there is a 3 month process of review by to a third that will run the facility. Finally, staff have been recruited by MHCLG to the examiners and then 3 months for the time limits set in the NSIP process progress these initiatives. In addition to a decision to be made, with the whole are now wearing thin. The NPS were those government policies, Milton Keynes formal process taking one year. It was expected to be subject to regular reviews Council has also proposed establishing an argued that this would give certainty to in commitments made by the Minister in extension to its new town, to add to this scheme promoters, that could be from the House of Commons but these have growth model. As yet the mechanisms the private or public sector. This was not been undertaken, and NSIPs are being

46 THE TERRIER - AUTUMN 2020 References taken to judicial review for being out of best minimum size to be used, although step with subsequent government policies others may argue that this would not 1. https://www.legislation.gov.uk/ e.g. on climate change. Ministers are be a large enough scale to provide the uksi/2020/757/made also stretching the time period for their mixed development required for a new 2. https://www.gov.uk/government/ decision making; lastly, a high proportion community rather than a large housing news/new-laws-to-extend-homes- of recent schemes have been refused by estate. South Woodham Ferrers had a upwards-and-revitalise-town- Minsters, an unexpected outcome for population of 17,000 for example. centres#history what was initially set out as a more certain While integrated consenting and consenting process for promoters. compulsory purchase powers are 3. Swenarton, M. (2018). Homes fit for The NSIP system has adjusted over time attractive to scheme promoters, there heroes: The politics and architecture and some of the experience of inflexibility may be public issues for projects that of early state housing in Britain. has been addressed through improved may take decades to complete. The Routledge drafting of DCOs, which is undertaken Planning Act 2008 was established for 4. https://www.braintree.gov.uk/ by the scheme promoters and through a design, build and operate system, downloads/file/9294/ied022_-_ codes of construction that are adopted with the completed private sector inspectors_post-hearing_letter_to_ to promote more flexibility. Consultation infrastructure often being operated neas_-_15th_may_2020 and community engagement practices longer term by a different organisation are also changing in some schemes. from the scheme promoter. The granting 5. https://www.gov.uk/government/ Those who are using the Planning of a DCO does not require the scheme consultations/development- Act 2008 regularly argue that its still promoter to implement the project and corporation-reform-technical- provides some certainty for promoters, this has been particularly true in energy consultation and nothing compares with its ‘one stop as well as other NSIP projects. If a DCO is 6. https://webarchive.nationalarchives. shop’ approach for integrating a range granted, will this lead to land speculation gov.uk/20081230093524/http:// of consents and compulsory acquisition and frozen development sites across the www.dft.gov.uk/about/strategy/ powers. They are now arguing, through country? As the Planning Act 2008 does transportstrategy/eddingtonstudy/ their expected responses to the white not require the principle of development paper consultation, that the 2008 Act to be established through the DCO 7. Morphet and Clifford 2017 https:// should be extended to the provision of process, will this require a Parliamentary www.nipa-uk.org/uploads/news/ new communities (13). Hence question 9c lead and little local influence over the (UCL)_Morphet_and_Clifford_-_ requires some consideration of the issues new community and its location? When NIPA_Main_Report_-_June_2017. for the potential extension of the 2008 Act combined with the revised development pdf to the development of new communities. corporations, then will these be the new 8. https://infrastructure. governmnet appointed organisations planninginspectorate.gov.uk/ Key issues to implement these new communities legislation-and-advice/national- or will they be run and operated by the policy-statements/ What key issues need to be considered scheme promoters? in response to question 9c? The first is These issues need to be addressed 9. Marshall, T., & Cowell, R. (2016). whether this is to be an approach for in the consultation. Question 9c has all Infrastructure, planning and the another wave of new towns – that is part the hallmarks of a seemly small policy command of time. Environment and of a national economic and social strategy question that could result in a major Planning C: Government and Policy, as after 1945 that is set out in a NPS, or feature of our new planning approach 34(8), 1843-1866. will it be left to scheme promoters to in England and, as such, it deserves 10. Clifford and Morphet 2017 https:// argue that their new community proposal more attention. This typifies a broader www.nipa-uk.org/uploads/news/ is nationally significant? There have been trend in the white paper, namely that it (UCL)_Clifford_and_Morphet_-_ privately promoted new towns before, contains a large number of proposals, NIPA_Technical_Report_-_ such as South Woodham Ferrers in Essex many of which would have dramatic June_2017.pdf and Lower Earley in Berkshire, although impacts if implemented, but about which both of these had strong local authority there is only scant detail at present. 11. Morphet and Clifford 2019 https:// involvement. If there is a NPS for new There are important potential changes www.nipa-uk.org/uploads/news/ communities, how will this relate to to the planning system coming, and it Morphet_and_Clifford_-_NIPA_II_ other national development proposals, will be useful to keep a close eye on the Project_B_Report_-_Final_(1).pdf particularly for infrastructure? practicalities of these. 12. Clifford and Morphet 2019 https:// Second, should there be a minimum www.nipa-uk.org/uploads/news/ size for these new communities? Some are Clifford_and_Morphet_-_NIPA_II_ suggesting that there may be a need for Project_A_Report_-_Final_.pdf nationally significant new communities 13. Barton Willmore 2020 https://www. that are small in scale but are required nipa-uk.org/uploads/news/Clifford_ to support other investment, particularly and_Morphet_-_NIPA_II_Project_A_ in more rural areas. Some developers Report_-_Final_.pdf would consider 5,000 homes to be the

THE TERRIER - AUTUMN 2020 47 WOODLAND UPDATE What opportunities exist for property professionals? John A. Lockhart FRICS FBIAC CEnv [email protected]

Having listened to an extremely informative RICS Webinar by John on Biodiversity Net Gain, he kindly agreed to write a full article for ACES’ Terrier. Here, John explains the importance of an effective programme of woodland creation and management. John is Chairman of Lockhart Garratt When placed in context of the challenges creation and on improving management. (www.lockhart-garratt.co.uk) one posed by the C-19 pandemic of the last of the UK’s largest independent 6 months, the 2019 election now seems Meeting ambitious environmental planning and forestry a lifetime away. With the UK facing an planting targets consultancies and has 2 offices anticipated second spike at the time of in the Midlands. He has 30 years’ writing, and many regions facing additional It is anticipated that the new strategy experience as a rural chartered restrictions and possible lockdowns, will set out policies to expand tree cover, surveyor, specialising in forestry and it may seem ill-timed to consider the support woodland management and environmental planning and served opportunities around woodlands. increase public engagement with trees as Chairman of the RICS Rural However, despite all the distractions, and woodlands. Not least, it will aim to Professional Board. woodland creation, the environment and affirm the government’s tree planting climate change remain at the heart of the commitment of increasing planting to John has participated in numerous government’s policy agenda. 30,000 hectares p.a. across the UK, an government-led forums on forestry, The pandemic will pass, but trees anticipated 10,000 ha p.a. of which will tree health, carbon and biodiversity net and woodlands will continue to play an be in England, by 2025. If this is to be gain and has presented on business important part in our future, offering delivered, it will require government opportunities around woodland creation, potential across a range of areas as to work closely with devolved natural capital and green infrastructure. articulated in the consultation on the administrations, communities and He currently leads on green infrastructure England Tree Strategy (1), which focused landowners in both the public and private and environmental net gain on a number on achieving a step change in woodland sectors. With the emerging Agriculture of large-scale development projects. He has also recently been appointed as Non-Executive Director to the Forest Service Board.

48 THE TERRIER - AUTUMN 2020 Bill 2019-2020 and our departure Act. However, despite this upward natural capital benefits such as carbon from the EU at the end of the year, we trajectory, tree-planting and proactive sequestration, water quality, flooding, will see fundamental changes in land woodland management in England is still landscape, biodiversity, health and well- management as farmers and landowners woefully short of what’s needed. In fact, being, and air quality. But we will only adapt to the loss of production subsidies, 101 years later, England is looking to learn be able to capitalise on this potential by accompanied by a refocus on the delivery lessons from Scotland, where the sector finding ways of supporting such benefits of public money to support public goods. has successfully challenged and supported and securing the new planting needed to The Environment Bill 2019-2020 is also leaders in government and the Forestry meet the ambitious targets of the Clean set to influence policy around Biodiversity Commission to make tree-planting Growth Strategy - and the ultimate goal of Net Gain, with an anticipated mandatory objectives a reality. It is clear that without Carbon Net Zero in 2050. requirement for all developments to similar strong leadership and collaboration deliver a 10% net gain in biodiversity. between government and the forestry New woodland creation Forestry and trees in their widest sense sector, this will not happen in England. are now seen as possibly the most Where to plant? important element in helping address Short-term assistance, the challenges of climate change, air long term gains A key consideration is finding the right and water quality, carbon capture (2), land to plant on. Land suitable for recovering nature, and health and A significant barrier to businesses woodland creation is often in competition well-being. These public goods and the investing in woodland is the fact that it with better-understood alternative uses, values they bring to society are now is a long-term commitment, generally some of which may yield shorter term being recognised as the key priority for considered to be a permanent change of gains such as energy crops, development, woodlands for the future, providing a land use. Forestry, woodland and trees food production, biodiversity offsetting significant catalyst for change. across the majority of England, were, and rewilding. We are seeing a massive increase in and still are, seen as a marginal business It doesn’t make economic sense to use interest in woodland management and activity at best, with most owners content our best and most versatile agricultural tree planting, from both within the sector with achieving little more than covering land; but equally, we need to avoid it and outside. Landowners and other their costs. impacting areas of high biodiversity stakeholders are now looking at the For new woodlands, returns from or environmental value. The good feasibility of new woodlands, as well as timber sales are far into the future; and news is that this still leaves many the management of existing woodlands. with high capital costs associated with possible options, especially across local establishment, returns are poor and government land portfolios, including: Learning lessons highly unpredictable. • low-grade arable and temporary from the past Current grants, while significant, have grassland not been sufficient to overcome these After a steady decline going back to the barriers at any real scale. Funding that • marginal upland farmland 12th century, woodland as a percentage is simpler to access can be supported by • ex-mineral restored sites; and of land area in England increased in the private investment through a range of 20th century, inspired by a realisation of blended finance models and will be critical • historic landfill sites (which the importance of a sustainable timber to effect real change. However, the long- surprisingly account for some 0.85% resource after 2 World Wars and the term opportunities that woodlands present of land area in England and Wales) (3). subsequent establishment of the Forestry are substantial, ensured by their longevity, Commission as part of the 1919 Forestry ability to deliver against a vast range of As well as the land itself, a flexible

THE TERRIER - AUTUMN 2020 49 Mountpark Bardon attract criticism. So, it’s important to consider how site assessment and comprehensive vermin control at landscape scale can offer potential alternatives • The issues don’t disappear after planting, and the demands of ongoing maintenance are often underestimated and neglected. In some parts of the sector, current delivery frameworks do not favour innovative and integrated solutions. However, efficiencies can be secured through considered design, facilitation of mechanisation, and a more scientific approach, understanding and responding effectively to the requirements of the crop • It is also important to consider the real cost of any short-term revenues that may be foregone and cash flow implications of the substantial costs of establishment. Acknowledging these costs and thinking about how they can be offset through the delivery of real benefits that can be recognised and funded, to reflect their real value to the public, will be key. In particular, it is hoped that the forthcoming Environmental Land Management approach is needed for tenure, with long Forests. Integration of large-scale Scheme (4), which proposes to target leaseholds, pie crust leaseholds and joint woodland creation in association with public money to the delivery of public venture/share (tree) farming all being strategic development may also offer goods, will recognise and support possible options. It’s also critical that exceptional opportunities to create these real values. we learn from mistakes of the past, such unique long-term landscape settings as inappropriate planting on unique • When choosing plants, careful peatland habitats in the Flow Country in consideration needs to be given What are the opportunities the 1980s. to availability, species diversity, for business? resilience, provenance, climate What are the real costs? change and the timetable. We need So, with an understanding of the real to broaden thinking from purely costs, we are able to explore where Every investment involves costs, financial native species, to secure long-term the tangible business opportunities lie and otherwise, particularly when sustainability. Opportunities also and how these might help support our embarking on woodland creation for exist in terms of scale, engagement investment models. future financial gain. However, there and possible investment in supply are also many opportunities to manage chain development Timber and mitigate these costs to maximise investment potential. • At the planting stage, potential The planned Urban Lung timber issues include labour availability, skyscraper in Cardiff (5) is an emblem skills, health and safety, lack of of the future, and of a return to this • The necessary design and process technology and investment, and aesthetically pleasing building material stage must be adhered to before processes and technique. However, as we increasingly turn away from steel any project can be given the green new opportunities through increased and concrete, inspired by the 2050 zero light, but resulting opportunities mechanisation and scale and cost carbon target. Timber construction arise in terms of engagement, the engineered design can deliver techniques are improving and evolving Woodland Creation Planning Grant, excellent savings as many construction companies see the scale and collective approach, as increased use of home-grown timber well as possible working models • Once planted, vulnerable trees must as a key goal. Recent studies have with third sector partners such as be protected from vermin; however, also indicated that the use of Hybrid the National Forest and Community the use of plastic and excessive fencing in order to do this can Cross Laminated Timber has resulted

50 THE TERRIER - AUTUMN 2020 Grafham Water in reductions of up to 75% in transport construction trips during the construction phase of a development (6).

Carbon

Accountability around carbon emissions was finally taken seriously when plans for a third runway at Heathrow were rejected by the Court of Appeal in February, on the grounds that the proposals did not adequately incorporate the government’s responsibilities in terms of carbon emissions, as stated in the Paris Climate Agreement. As the first sector with established carbon accounting, under the Woodland Carbon Code (7), woodland creation now has a clear pathway to revenue. In addition, the Woodland Carbon Guarantee scheme (8) is now offering the prospect of realistic returns for sequestered carbon, with offers being made under the first 2 rounds in the region of £24/tonne Co2 and £19/ tonne Co2 respectively. The third round is scheduled to run from 26 October to 1 November 2020.

Water quality and flooding and improves physical and mental health and woodlands is also recognised, with As recent history has shown, flooding is through public access to green spaces aspirations for increased planting and a major issue across the UK. As well as – something which has become a key canopy cover targets for the urban providing natural flood management, the priority during the current Covid crisis. environment. As recognition of the planting of trees can also help reduce soil The tangible value that access to high public goods that trees and woodlands erosion and nitrate pollution. Some large- quality green spaces offers society in provide rises to the top of the agenda and scale woodland projects are now in the supporting both our physical and mental complementary policy is drawn up, we are pipeline, with partners working closely health is now recognised. Woodlands, likely to see new opportunities emerging. with local authorities to address water both new and existing, have an important However, we must not forget the quality issues across key catchments. role to play in this. fundamental function of woodlands is for the production of timber; whether Biodiversity The existing resource for construction, fuel or high-quality furniture, timber is a uniquely sustainable As noted earlier, the Environment Bill While government’s key focus is on product. Recent years have seen 2019-20 was created to “address the expanding our woodland resource, significant increases in timber values hidden costs of development”, with consideration also needs to be given to that have “opened the door” for many the Bill proposing that developments existing woodlands and trees. Over many historically unproductive woodlands be required to provide a 10% gain in years, they have been considered the poor to be brought back into functional and biodiversity from the baseline figure. As relation in comparison to other property sustainable management. a long-term land use, new and existing assets. However, the critical importance There are undoubtedly challenges woodlands can deliver real biodiversity of these assets, not least in terms of on the horizon, not least the relentless benefits more securely than other habitat natural capital and biodiversity, is now progression of ash dieback, as well creation models that will only be secured becoming more widely recognised. as other pest and disease problems. for 30 years. The England Tree Strategy also focuses However, these can also offer on enhanced protection of some of our opportunities to change the thinking Landscape, health and well-being most valued assets, in particular ancient around woodland, recognising it as a woodland and veteran trees. There is also growing asset that requires proactive and Woodland creation offers a unique likely to be greater protection offered effective management, to ensure that it opportunity to create and restore beauty through the planning system, particularly continues to deliver its high value benefits to our landscape. In turn, this enhances where trees are cleared in advance of for generations to come. landscape recovery, benefits air quality development. The value of urban trees

THE TERRIER - AUTUMN 2020 51 Woodlands as the pathway References height%20air%20purifying%20 to a greener future atrium. 1. https://consult.defra.gov.uk/ 6. https://www.markidesassociates. The real benefits woodland offers society forestry/england-tree-strategy/ co.uk/news/cross-laminated-timber- are well known and understood, reflected the-benefits-in-transport-terms/ by the government’s aspirational targets for 2. https://www.theccc.org.uk/ woodland creation in the UK and England. publication/land-use-policies-for-a- 7. https://www.woodlandcarboncode. However, if these targets are to be met, real net-zero-uk/ org.uk/ and effective leadership and cooperation is 3. Total land area of England & Wales 8. https://www.gov.uk/guidance/ needed across the whole sector. is 58,300 sq. miles x 259 ha per sq. woodland-carbon-guarantee The creation and preservation of mile – 15m ha. 127,173 ha is 0.85% woodland is a long-term commitment. of 15 million ha. As a society, if we wish to secure these benefits for both our future and that of 4. https://www.gov.uk/government/ coming generations, we need to ensure consultations/environmental-land- that these benefits are supported, based management-policy-discussion- on their real values. If we can achieve document this, we will see woodland become a real 5. https://www.evolo.us/ and sustainable part of rural property the-urban-lung-timber- business, delivering a greener future to skyscraper/#:~:text=The%20 which we all aspire. Urban%20lung%20is%20a,full%20

COUNTY FARMS Graeme Willis [email protected]

Graeme first outlined CPRE’s research into the importance of county farms in 2020 Spring Terrier. This article is an update on progress, including the first recent workshop with ACES’ members, and how CPRE hopes the project will become more relevant, with greater impact over the coming year. Graeme has worked as a rural Introduction team has had to work in the available policy campaigner at CPRE national light of Google and Zoom and navigate charity in London since 2006, Shared Assets (SA), New Economics the ups and downs of furloughing. majoring on food and farming since Foundation (NEF) and CPRE are working With the presence of coronavirus, we’ve 2013, and as agricultural lead since in partnership to develop a new vision also reframed the work to consider the 2019. He represents CPRE on Defra’s for the future of county farms, to explore potential of county farms in tackling not Rural Development Programme for England monitoring committee, and how they might do more for new entrants only the ongoing crises of climate change Environmental Land Management and wider public goods, and to promote and biodiversity, but also what they might Scheme stakeholder group, and this vision with key policy and decision contribute to ‘green recovery’ or ‘building in partnership working with a makers. The project is funded by the back better’ and other frames that have wide body of food, farming and Farming the Future programme of A Team emerged since March 2020. conservation bodies. He previously and Roddick Foundations until July 2021 worked at PriceWaterhouse (www.farmingthefuture.uk). Work has carried on in 3 main areas set Coopers and as a senior lecturer/ out in our original project plan: tutor at Anglia Ruskin and Essex universities. He completed a Masters Reviving the county farms project in Environment, Science and Society • NEF strengthening the evidence at Essex in 2004. He grew up in base through desk research and a Cheshire, working frequently on Now underway since February under wider literature review, to understand family farms. lockdown and loosening up, the project

52 THE TERRIER - AUTUMN 2020 county farms in the broader context build on important work by ACES, Tenancy to take on farms; on this there was a of the transition to sustainable Reform Industry Group and others: we do mixed picture as also in some areas, farming, delivery of wider public not want ‘to reinvent the wheel’. strong applicants were coming benefits and developing a framework So over the next few months we are through with a good track record, to describe them convening a series of workshops with talent and innovation. Questions ACES estate managers, councillors, council arose whether people need such • SA has led on researching new, tenant farmers, prospective new entrants, experience - are they really new innovative and emerging models and the wider sector of food, farming and entrants or perhaps from farming of public land ownership and conservation organisations. families anyway? management. Its work draws on case studies from across Europe, as well as E-workshop 22 September What should the shared vision for county the United States and New Zealand, farms be in 2040, and what tools from this to put together a picture of tried and The first of these e-workshops with ACES project might help achieve that? tested practices of public farmland and Defra Future Farming team was ownership and management held on 22 September with around a including land holding organisations, • There is a good story to tell dozen estates managers and members municipal programmes of peri-urban nationally about the contribution of the Defra team. We are very grateful agriculture and farm incubators, of county farms to the tenanted to Charles Coats [Ed – ACES’ lead for the plus models of land management sector with longer lets, availability Rural Branch] for his assistance in this. from sectors such as housing and of fully equipped holdings, and a This was held under Chatham House conservation high percentage of new entrants rules so we can report here some of the – they make a strong and special • CPRE has worked on the Agriculture findings, but without attributing them to contribution which could be Bill, with a view ideally to change any participant. showcased: more could be done policy, but the government Attendees discussed 2 main questions. collectively to do this not being minded to accept At this stage there was no aim to reach a amendments. We’ve been pragmatic consensus so from the rich conversations, • New opportunities are emerging and have sought to raise political here are some of the equally fruitful around climate change (and awareness of the issue and to keep observations: potentially collective action on county farms in mind in the wider this), the new Environmental Land debate. County farms featured in the What are the main barriers for county Management Scheme and the fund Public Bill Committee, Commons and farms at present and what opportunities for new entrants Defra is developing Lords but notably a wholesome 250 are there for county farms in future? • With the right political support, lines of Hansard records speeches local authorities can prove less risk in the Lords Committee by Lords • Local authorities are juggling averse than some long-standing Whitty and Curry among others. In multiple demands on land and many large estates and there is scope for these debates Lord Gardiner for the potential uses and objectives, not innovation and experimentation, and government confirmed there would least planning and housing, tackling a chance to learn from different pilots be future investment in new entrants the climate emergency and green and trials across the country and county farms as outlined in energy and land for biodiversity net February 2020 (‘Farming for the • New entrants might experiment with gain - farming and rural issues have future’ policy document [Ed – see more bare land rentals; supplying to compete with these. The risk of 2020 Spring Terrier]) local food; selling carbon storage; sale of assets remains or housing share farming with livestock • As a fourth strand, the team has also from farmsteads, while new entrants supporting arable farmers locally discussed what is planned with the want houses Defra Future Farming team and the • Building relationships externally, • Land and farm estates are finite and in Secretary of State George Eustice MP. ie with other landowners, will be local terms they may only be able to important to increase opportunities offer limited opportunities for new entrants to progress and The project has now moved onto an • There is a need for support from move on. exciting phase - to reimagine county council members and from key farms for the future and build that into a senior officers such as directors of compelling vision for the medium to long On drafting a new vision finance, if county farms are to be term. We want to co-develop that vision successful. But there is a challenge and identify which tools are needed to Any vision needs to recognise the national of continuity with coming and going build support for it with those who can picture and illustrate what county farm of council members and staff with a make it happen. We’ve been guided in estates can deliver as a whole, collectively, loss of expertise this by an expert panel, including advisors as the sum of their parts. This will give from the Tenant Farmers Association, • Farming itself may be a barrier with value to even the smallest estates and ACES, Royal Agricultural University, Land the career less attractive to some, so what they can achieve. Workers Alliance, and Food for Change, to slowing the flow of good applicants The vision needs to be broad so

THE TERRIER - AUTUMN 2020 53 that it can work nationally and locally. Next steps for the project familiar and long-standing challenges for It will need to be adaptable for local those present, but also reflected the new circumstances; individual estates provide This workshop was an important start to thinking needed to respond to the almost multifaceted services that need to be a process of investigation, through which seismic shifts occurring in public policy, determined by local priorities. No vison we hope to build stronger relationships particularly around farming and food can deliver everything so this vision needs with a wide range of stakeholders and production, trade and the environment. to be achievable and balance providing develop a deeper understanding of the A year or two back I attended a opportunities for new entrants to farming issues from different perspectives. We conference in Cambridge where a with wider sustainability issues (economic plan to do follow-up interviews with those professor explained that, post Brexit and and environmental). willing to give us more detailed insights, in terms of farming policy, we were going Farming and food production need to and to take our findings back to get through a fundamental realignment of be central and a vision must be grounded feedback on what emerges. Please get in the relationship between the public and in reality, be flexible, and develop a touch if you would like your perspective private sectors. County farms are very consensus within agricultural and to be included. much at that interface between public tenanted sectors about what the county The overarching objective remains and private and so caught up in that farm service will deliver. to co-develop the vision and the tools debate. This is a fast-evolving area but Biodiversity net gain, carbon needed to promote it and build support. perhaps one thing has emerged positively and other drivers – such as new So we are already planning our next from C-19 – and indeed from the 2008 employment, business units, social events with tenant farmers, those who financial crisis – is a better understanding prescribing - are major opportunities want to go into farming and growing, and of the essential role governments national for county farms to be more progressive councillors. While the vision looks to the and local have in supporting investment and take risks to meet local challenges longer term, a key part of the immediate and innovation. Undoubtedly, and to and needs [Ed – also see article on value of this work will be, we believe, to help address the myriad issues we face, woodland in this issue of ACES’ Terrier]. help the Defra team in its work to develop the way we use land to farm, grow Health and environmental issues can the new programme of funding for new food, manage nature, and support the now be formally included in objectives entrants – we want this work to feed into community will need substantial doses at and there is potential to shift to its evidence base and design process. both levels of government. And in that, optimising the benefits rather than with the right political support, county maximising financial returns. Conclusion farm estates have every chance to play a Work needs to start on reviewing leadership role. outcomes and ensuring that the tools This is a crucial time for this project to such as indicators, benchmarking of engage with ACES’ members. We were performance, and assessments of natural encouraged by the willingness to engage, capital value –are in place to enable professionalism, experience and openness delivery of wider benefits that can be of those who attended the workshop. reliably quantified and captured. The issues which emerged were both

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54 THE TERRIER - AUTUMN 2020 SUSTAINABLE DEVELOPMENT Green gables Kevin Joyce [email protected] Kevin gives readers a comprehensive whistle-stop tour of initiatives in modular construction, sustainable energy and building materials.

Climate emergency around delivery of each could be Kevin is a London based public markedly different. sector surveyor with a particular The importance of delivering sustainable interest in the sustainability of development in the built environment, New build development buildings and climate change. within the context of combating and preventing irreversible climate change New construction projects can have a damage to our planet, is now widely number of sustainability facets to them, recognised at local, regional, national whether this should relate to construction and international levels. Following a 2016 methods, choices of building materials, Paris Agreement on Climate Change and the use of reclaimed materials to help in which most countries committed to minimise embodied carbon impacts, or bringing about zero carbon emissions the use of renewable energy technologies by 2050, there is a view today that this at a time when the country is transitioning 2050 target date needs to be brought away from a dependence on fossil fuels forward to a much earlier date, if serious as an energy source, in favour of energy environmental threats to our quality of life decarbonisation alternatives. are to be averted. In the UK public sector for example, Modular construction some 245 councils declared a Climate Emergency in February 2020, with 149 Arguably, one of the most striking of the authorities setting a zero carbon changes in the recent evolution of the emissions date of 2030 or earlier. The construction industry, alongside BIM, councils included 26 of the London has been the emergence of high-rise boroughs, which had earlier issued a modular construction methods. Until Joint Statement on Climate Change in now, modular construction has mainly November 2019, setting out details of involved low carbon home modules cross-borough working programmes. The being manufactured off-site in factory programmes include the building of a environments, with the modules then low carbon and green economy, ensuring being transported to low rise housing sites 100% renewable energy now and in the for assembly there. Precision engineered future, retrofitting of all domestic and manufacturing processes in controlled non-domestic buildings to an average EPC and enclosed factory environments enable B standard, and securing new low carbon production advantages to be realised as a buildings and infrastructure through the result of the co-ordination and repetition use of local planning authority powers (1). of manufacturing activities, which activities Although both new build development have become increasingly automated. and estates renewal or remodelling Being precision engineered, the modules programmes to existing property are likely to have fewer defects, be fully stock might seek to achieve similar airtight and well insulated, and result in sustainability benefits, the complexities less wastage of materials (2).

THE TERRIER - AUTUMN 2020 55 Practical project delivery benefits may reduce heat loss from buildings in In its Summer 2020 Annual Report include reductions in snagging phases, winter and minimise heat gain in to Parliament, a UK Committee for and reductions or elimination of rework, summer. Insulation could involve the Climate Change (CCC) has set out enabling construction schedules to be use of synthetic materials such as recommendations detailing what each improved. As the on-site element of mineral wool, glass mineral wool, or government department needs to do to modular construction is generally focused rigid plastics, or the use of a range or achieve net zero carbon by 2050. As part around the assembly of the modules, naturally occurring insulation materials of a C-19 ‘green and resilient recovery’ benefits for surrounding residents could such as wool, hemp, cob (clay, straw initiative, the committee is looking at include shorter periods of disruption and earth mix), or even straw bales (5), low-carbon building retrofits, and the during construction, lower numbers of and can be used in combination with introduction of green passports setting heavy vehicle movements to and from other renewable technologies. A 2012 out details of actions taken, or to be sites, and reductions in levels of air and built, 2-storey Aberystwyth University taken, to improve the energy efficiency noise pollution emanating from the Institute of Biological, Environmental of buildings, with financing costs being building sites (2) (3). and Rural Sciences building, for brought forward to fund the schemes (9). High rise modular construction can, example, is insulated with sheep’s wool, Encouragingly, some major landowners though, make considerable demands on with other renewable technologies in the private sector are also taking these the skills of architects and design firms to including a biodiverse green roof, challenges very seriously. British Land, get a building’s design and engineering natural ventilation, a 4,000 sq m ground with a £14.8bn property portfolio under right at the outset, as well as involve them source heat pump system, and rainwater management, has plans to transform the in detailed logistics around suppliers, harvesting. The building achieved a entire estate to net zero carbon by 2030, transportation to site, and handling on BREEAM excellent rating (6). with building retrofits being financed site. Any client changes made to the through a transition fund. The company’s project after the manufacturing processes Renewable energy customers will also be supported have been set in motion, can also prove in transforming their own spaces to costly (2). While early solar panel installations reduce carbon emissions (10). Canary Construction could involve 2D attracted some criticism on aesthetic Wharf Group, the owner of the 97-acre modules or 3D volumetric modules, or impact grounds, panels design has Canary Wharf financial estate in London a combination of both, depending on improved to the point where some Docklands, has pledged to reduce carbon site constraints, or hybrid development panels can now fit almost seamlessly emissions by 65% by 2030, having already involving, for example, a mix of traditional with standard roof tiles on buildings. cut emissions by 34% since 2012, and to construction on the lower levels of the Panels may be either solar photovoltaic, ensure that 60% of their suppliers have building, with modular build above (2) with heat generated from daylight cells, science-based targets in place by 2025. (3). A high-rise modular development at creating energy for use as it is generated, The group now buys 100% renewable 101 George Street in central Croydon in or solar thermal, which generates energy electricity for the estate (11). south London, is reportedly the highest through absorbing direct sunlight to modular scheme in the UK at present. collectors that both heat buildings Ground source heat pumps The 546 apartments development of 2 and provide hot water, with the hot towers involved the manufacture of 1,500 water being stored for use in overcast The CCC has determined that from 2025, steel framed modules, which were 95% conditions or at night (7). no new homes are to be connected to the complete at the point of installation, with Whichever renewable technologies UK gas grid, with homes instead being windows, electrics and plumbing already should be decided on to generate energy, heated using low-carbon energy sources fitted. The modules sit on a traditionally projects could also include other design that have high levels of energy efficiency, built, double height concrete podium features to maximise energy usage and have appropriate ventilation, and should which houses community and flexible minimise waste, such as LED lighting, also be of timber frame construction space facilities, with gyms and club rooms smart metering, solar shading to reduce where possible. The CCC has suggested in a 2-storey basement (4). solar heat gain in buildings, and rainwater that the country needs 2.5m heat pumps In addition to decision making around harvesting to help reduce water waste. by 2030 and 25m heat pumps by 2050 choices of construction methods, clients, (12). With around 80% of UK heating their architects and designers might Existing property stock currently being supplied by gas, c1.6m need to determine which renewable new gas boilers being sold annually, and energy technology or combination of Replacing gas and oil energy sources between 20-30,000 heat pumps only (of technologies could be best utilised for with renewable energy generation which around 4,000 are ground source their particular projects, taking account of alternatives, either as part of estates heat pumps (GSHPs)) currently being considerations including variations in cost renewal and remodelling retrofit sold each year, the scale of the task to with different options. programmes or as free-standing decarbonise heating is challenging. (12). projects, may prove costly for property GSHPs are dependent on there being Insulation investors and owners, but equally sufficient land available, and on the may be unavoidable if full energy ground’s geology being suitable, to Thermal insulation may be a decarbonisation in the built environment enable the installations to be made. comparatively inexpensive way to is to be achieved. Being a non-combustion heating system,

56 THE TERRIER - AUTUMN 2020 the GSHPs absorb heat from the ground to fit in a cupboard or under a sink (12). decks and structures projects, but to draw it into buildings in a highly In Sunderland, the Gentoo Core external cladding projects in aggressive efficient way which is unaffected by air 364 project has involved a gas supply and corrosive environments, and other temperature, is recharged by solar energy replacement to 364 flats in 7 tower blocks structural refurbishment and repair works. and rainfall, and produces up to 3 times with a GSHP micro communal district An FRP aqueduct at Chorley in more energy than it consumes (8) (12). heating system extracting heat from an Lancashire which carries the River Chor For, say, a single house or pair of underground aquifer below the blocks, over a railway line, was constructed in houses with land around them, the and accessed via open loop boreholes 2015 to replace a Victorian cast iron technology can enable either a straight drilled to depths of about 60m. The GSHPs predecessor (14). On Christmas Eve in pipe or ‘slinkies’ - pre-coiled pipework to not only provide the flats with renewable 2015, severe storms caused the Dover be laid in trenches 1-2m below ground source heating, but also provide Seawall and 250m of rail track to collapse. to extract heat. For large buildings or consistent ambient temperatures for the Network Rail commissioned replacement estates, the technology can enable tower block communal areas, to prevent works for a new ‘rock armour’ reinforced shared ground loop arrays to be laid heat loss and overheating. Annual carbon concrete piled raft structure, and a deep underground, so that communal emissions have been reduced by around steel footbridge with 2 FRP composite heating can be provided in a way that 420 tons of CO2 (12). pedestrian footbridges. The project mimics traditional gas frameworks, and Another leading GSHP manufacturer, won an Institute of Civil Engineering is suitable for heating both single and the Vaillant Group, has installed GSHP ‘Best Infrastructure Project in South East multiple occupancy dwellings, with each systems as part of the refurbishment England’ award for the engineering firms dwelling having its individual heat pump. of 2 estates near Market Drayton in Costain and Tony Gee and Partners (15). The shared ground loop arrays system is Shropshire and in Solihull in the West Another innovative building material, infinitely scalable for larger developments Midlands, for Bromford social landlord. currently in development, which or estates, allowing economics of scale The project involved installation of appears to me to be as remarkable, is on installation costs to be made (12). geoTHERM Micro District GSHPs to heat hydroceramics. Barcelona’s Institute of Installation involves the drilling of deep 15 properties across 2 sites at Hodnet Advanced Architecture in Catelonia (IAAC) boreholes for closed loop ground array Village and Cleobury Mortimer, with the architecture school has developed a pipework to be laid. pumps extracting thermal energy via hydroceramics external cladding material, If there should be an accessible source boreholes about 110m deep, to provide made of ceramics panels and an insoluble of surface water nearby, such as a lake, the properties with heating and hot polymer – hydrogel - that can apparently canal, river, or the sea, then an alternative water. With no gas availability in Hodnet, absorb 500 times its own weight and closed loop array system, involving the and an existing electric storage heating passively cool buildings by as much as 5 use of pond mats and a slinky pipe on system considered to be inefficient, the degrees Celsius, enabling savings in air steel frames in the water, can deliver a geoTHERM heat pumps are now providing conditioning energy consumption to be highly efficient and cost effective way the properties with their own sustainable made. On hot days, cone shaped holes in of extracting heat (12). An open loop and cost-effective renewable energy the cladding absorb water and air into the variation, involving extracting ground supply. In Solihull, Vaillant upgraded a hydrogel, and the building is gradually water from an underground aquifer or New Road 37-homes sheltered housing cooled as water in the polymer begins to mine, could be an option in former coal scheme with 3 GSHPs, cutting carbon evaporate. IAAC researchers estimate that or tin mine areas for example, to offer emissions by around 131,900 kg p.a., the hydroceramics cladding could reduce air an efficient source of heat extraction, equivalent of planting 289 trees. conditioning costs by as much as 28%, although also being more costly to depending on climate (16). maintain and with corrosion, filtration and Future innovation in In addition to new building materials, extraction considerations to be taken into sustainable development sustainable construction can also benefit account (12). from imaginative thinking around The Kensa Group has delivered GSHP In my carbon reduction’ article [Ed –see different ways of repurposing or recycling projects for both Enfield Council in north 2012 Spring Terrier], I made reference existing materials. With insulation for London and the Gentoo Group housing to the potential of fibre reinforcement example, the use of natural and recycled association in Sunderland. At Enfield, the polymer bars, known as rockbars and insulation materials is now extending project involved a GSHP installation to previously used in the Russian space to the use of recycled newspapers, with heat 8 13-storey tower blocks of 402 flats, programme, for use in infrastructure fire retardant additives such as boron with 96 deep boreholes of around 212m, projects. The bars are stronger than that reportedly improve fire resistance enabling a shared ground loop array to regular steel, are much lighter, more performance (17). An Enterprise Centre be laid. The project is realising about corrosion resistant, and having some at the University of East Anglia, designed 773 tons of CO2 annual savings, roughly excellent durability qualities, were used by Architype Architects, has achieved equivalent to taking 2,000 cars off the to reinforce a concrete bridge deck on a BREEAM Outstanding rating, for a road. For the residents, their heating costs the Thompson single-span road bridge building that incorporates a number of have been reduced from about £900 pa to in Northern Ireland, a scheme designed locally sourced natural and bio-renewable around £350 pa. A feature of the project is and project managed by Amey (13). materials in its construction, including Kensa’s Evo Series Shoebox heat pump in Today, Fibre Reinforced Polymers (FRP) recycled newspaper insulation. The each dwelling, which is compact enough applications include not just bridge insulation is also believed to have good

THE TERRIER - AUTUMN 2020 57 5. Goth, Jamie (June 2010) ‘Current 16. Williams, Len (11 January 2019) hygroscopic qualities for absorbing and Thinking on Insulation’ EIBI ‘Five innovative materials that could releasing water, to help reduce risks of Fundamental CPD Programme change construction’ E & T condensation in buildings (17). Series 8 Module 2 17. Smit, Josephine (January/ ……..and the bigger picture 6. ‘Building environmental excellence February 2019) ‘Insulation joins the – Aberystwyth University’ (1 sustainable revolution’ Products In Although ‘green gables’ construction October 2013) www.aber.co.uk Practice might be the aspect of sustainable 7. Burgess, Chris (February 2011) 18. Burko, Richard (September 2020) development and renewable energy ‘Current Thinking on Photovoltaics’ ‘Smart Grids Power On’ EIBI generation that property professionals EIBI Fundamental CPD Programme Fundamental CPD Programme may find themselves most likely to be Series 8 Module 8 Series 18 Module 3 engaged with in the years ahead, other parts of the challenge to bring about 8. Campbell, Clare (January 2011) 19. ‘Renewables set new records’ decarbonisation of our environment, ‘Make heat pumps the natural (September 2020) EIBI such as our ability successfully to harness choice’ EIBI www.eibi.co.uk www.eibi.co.uk wind and solar power on a large scale, are 9. ‘CCC details investment priorities equally important. – Urgent steps for Post Covid 19 In 2019, renewable energy amounted to recovery’ (July/August 2020) EIBI almost 26% of all UK energy generation, www.eibi.co.uk in part because of a rapid expansion of offshore and onshore wind farms, and 10. ‘Landlord aims to transform increases in the numbers of solar farms property portfolio’ (July/August (18). By mid-2020, renewable energy 2020) EIBI www.eibi.co.uk generation had increased by a reported 11. Clarence-Smith, Louisa (20 July 32%, with wind, solar and biomass setting 2020) ‘Canary Wharf pledges to new levels for energy generation (19). cut emissions 65 per cent in next decade’ The Times Sources 12. ‘Ground Source Heat Pumps – 5th Generation District Heating’ Kensa 1. ‘Climate Change/London Councils’ Contracting www.londoncouncils.gov.uk 13. Joyce, Kevin (Spring 2012) ‘How 2. ‘Modular Buildings’ Green Is My Valley : The Challenges (7 September 2020) Of Carbon Reduction’ The Terrier www.designingbuildings.co.uk 14. Smale, Katherine (18 January 3. ‘The health and safety of benefits 2016) ‘Delivering Differently / Fibre of modular construction’ (15 Reinforced Polymers’ New Civil November 2019) Engineer www.pbctoday.co.uk 15. Robson, Beth ‘Dover seawall 4. ‘High-rise heat and power’ restoration team wins Institute of (November/December 2019) Energy Civil Engineering Gong’ brobson@ in Buildings and Industry thekmgroup.co.uk www.eibi.co.uk

ACES Terrier is published quarterly by ACES. The inclusion of any individual article in the Terrier should not be taken as any indication that ACES approves of or agrees with the contents of the article. ACES The Terrier ACES Secretary: Trevor Bishop MRICS 07853 262255 - 01257 793009 - [email protected] ACES Editor: Betty Albon [email protected]

58 THE TERRIER - AUTUMN 2020 ELECTRIC VEHICLES Charging ahead – electric vehicles and the opportunities for income generation Clare Davey [email protected]

Clare outlines the ways local authorities could exploit financially the government’s Clare is an Associate in Carter intention to promote electric vehicles. She describes the range of charging models but Jonas’ Infrastructure & Energy team. emphasises that we need to get in on the act now. She has over 7 years’ experience in environmental assessment, planning September 2020 produced some key the DfT, this was the first time that more and land matters for a range of developments in the world of electric alternative fuel cars than diesel cars projects, with particular expertise vehicles (EVs), including the first World were registered in 3 months. in energy developments (including EV Day. A simple yet effective concept, medium wind, solar, hydro, biomass, its purpose – to celebrate EV ownership, Background energy storage and gas generation). worldwide. To mark the day, Transport Clare provides technical expertise, Secretary Grant Shapps announced These events come at a time when professional advice and assistance £12m in funding to propel ground- the government is looking to advance with development matters on all breaking EV research. Later in the measures to ensure that all new cars and types of energy projects, from month, official figures released by the vans are ultra-low emission. feasibility and planning, through to Department for Transport (DfT) revealed In February 2020, the government management, site promotion, due that sales of green cars have jumped announced plans to bring forward the diligence and valuation. above diesel for the first time. The data end to the sale of new petrol, diesel and shows that 33,000 pure electric and hybrid cars and vans, from 2040 to 2035, hybrid vehicles were registered between or earlier if a faster transition appears April and June, compared with 29,900 feasible. A consultation that was launched types of diesel vehicles. According to on the matter ended on 31 July, and many MPs are now applying significant pressure for this target to be advanced to 2030, for the UK to align with other countries within Europe. Despite the headlines, there are 32.5m cars on UK roads, and Battery Electric Vehicles and Plug-in Hybrid Electric Vehicles make up only a small proportion of this amount. Nonetheless, due to advancements in technology and government support, sales are rising, with a 5-fold increase in EV market share in 2020 against 2019. To serve the escalating numbers of EVs already on the road, and the future targets, a step-change in the availability of charging infrastructure is required. While 60-70% of charging is expected to take place at home, not everyone has access to

THE TERRIER - AUTUMN 2020 59 Suitable sites are those with parking for staff, fleet vehicles or visitors. Examples include fast food and coffee outlets, leisure, retail parks, theme parks, supermarkets, offices, and commercial buildings. Landowners could expect to receive between £1,500 and £5,000/space p.a over a 20-year term, while futureproofing/ diversifying their business and staying ahead of the game against their competition, attracting a greater number of visitors. Again, the implementation of EV charge points would likely assist in meeting CSR objectives.

Residential/commercial development a dedicated parking space. It is estimated There is also the potential for charging that at least 20-30% of charging is likely infrastructure to raise revenue for These are slower chargers fitted on to occur at the workplace or visitor councils. driveways, residential streets and within attractions, and 10% on the road network There are 3 distinct categories: roadside commercial property developments, to at forecourts. (EV forecourts); workplace and visitor charge when at home (typically overnight) These considerations present a wide attractions, and residential/commercial or business premises. Local planning range of opportunities for landowners development. authorities often require the installation and developers, including local of EV charging within new residential authorities, looking to share in the profits EV forecourt developments. Slow chargers can charge from EV charging. a battery from empty in around 12 hours. This is essentially a 21st-century filling Any residential or commercial property Technology station, offering ultra-rapid charging, development is viable, providing there with an ability to charge a full vehicle is sufficient grid capacity on-site, and Dwell time is key to identifying the battery from empty within 30 minutes. As generally includes large employers, right charger capacity for any site. is the case with a more typical motorway companies with large EV fleets, hotel There is a range of charging technology service area, additional provisions for chains and multi-storey car parks. infrastructure available, ranging from food and drink, groceries and meetings Landowners can expect to achieve 3kW to 350kW. These can charge will be available. charging at a reduced rate, paying vehicles from empty to full between Suitable sites are between 0.5-2.5 more like 14p/kWh versus up to 35p/ 30 minutes and 12 hours, depending acres, require road frontage adjacent to kWh charging en-route. Furthermore, on the EV battery size. Lower capacity the strategic highway, with over 25,000 grants are available to encourage the infrastructure charges over a longer vehicle movements per day, have an implementation of charging, especially period. Higher capacity infrastructure, appropriate grid connection, and limited on new housing and commercial that provides a speedier way to top up, planning constraints on or adjacent to the developments where there is a planning is typically found on motorways and site. There are often renewables, including condition for this to be implemented. A-roads. While higher-capacity charging solar PV and battery storage, on-site or provides a faster solution, the cost of the adjacent, to reduce the site’s reliance on Act now charge point is much greater than those the National Grid at peak times and to producing charge over a longer period. ensure the security of supply. Many local authorities are already Faster charging stations also require Landowners could expect to receive considering the prospects of the additional grid infrastructure, and this up to £100,000 p.a. to lease the land EV market. As well as presenting an is often competing with other sources to a developer over a 20-30-year term, opportunity for income generation, the of demand or generation on the same while also contributing to Corporate additional benefits, such as reducing constrained network. Social Responsibility (CSR) goals and reliance on fossil fuels, are well- futureproofing the road network for a established. However, there is much Opportunities dramatic increase in EVs year-on-year. competition for grid connection, as more large-scale generation connects The range of different models available Visitor attraction to the network across the UK. Couple include options where provision is this with there being a finite number of left to private businesses. Here the This type of charging relates to dedicated opportunities in strategic locations means commercial outlay will be taken on by parking spaces for staff or customers, that those acting on the opportunity the private firms with the benefit that offering fast or rapid charging, with an ability quickly will gain a first-mover advantage. the local authority exposure is minimal. to charge a full vehicle battery in 1-4 hours.

60 THE TERRIER - AUTUMN 2020 CLOUDS WE KNOW WHERE TO FIND THE SILVER BITS

When the forecasts get gloomy, our team of extraordinary people can draw on years of expertise to provide enlightening wisdom.

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Follow us on Twitter, LinkedIn and Instagram CASELAW 1 Blackfriars Ltd (in administration) revisited Tony Mulhall [email protected]

Tony is an Associate Director, Tony outlines a recent high-profile case conducted virtually. The eye-watering variations to the Professional Groups and Forums, at the valuations raises questions about whether RICS guidance was being followed appropriately. RICS. He has worked in a wide range of areas of planning and property in both the public and private sectors. After a 4-week trial, evidence taking in Background He is actively involved in promoting the Blackfriars case concluded at the an understanding of development beginning of July. This is a case taken In 2006, developer ‘Beethams’ bought the economics within the planning system by the joint liquidator against the site 1 Blackfriars on London’s South Bank and has given evidence to the UK administrator, mainly alleging an under- from Sainsbury’s, for £48m. The site had House of Commons Select Committee sale of the site 1 Blackfriars in 2011 to an extant office permission. on Town Centre Planning Policy. clear the bank debt, and a failure to To exploit its further potential, at the He represents RICS in a number of bodies, including the International pursue a funded rescue of 1 Blackfriars height of the financial/property boom Federation for Housing and Planning. Ltd, the owner of the site. This is a high- in 2007, Beetham set about revising the He has presented at UN/World Bank profile case emanating from the Global permission to a deluxe hotel/apartment Conferences and gives occasional Financial Crisis (GFC) and in the context of development in a 51-storey landmark lectures at several universities. C-19 did well to get off the ground at all. building. The site was valued by Savills In a ground-breaking move this in 2007, for refinancing by an RBS-led complex, lengthy, expensive and syndicate on a Red Book valuation of consequential case was heard online, after £210m, assuming permission for the the decision to proceed was contested by scheme. A further Savills valuation for the respondents. The entire proceedings UBS (2008) put the site value at £240m. were available to members of the public By the time the planning application was with one-click access, something a lot of granted in 2009, Lehman Brothers had platforms could well learn from. When I collapsed, the financial markets were in say the entire proceedings, I mean each melt-down and the appetite for 6-star session was presented on screen, 4 small luxury had evaporated. In 2009 the site video images, one of the judge online at was valued by Savills at £135m. home in Norfolk, and the 2 opposing QCs Beethams, already financially stretched located somewhere in central London. on towers in Manchester, Birmingham The individual witnesses were set in their and Liverpool, recruited a Russian partner, own particular locations, the most exotic Mirax to take an equity stake in the of which was the developer who was, as proposal. Repeated failure by Mirax to he described, ‘trapped in the British Virgin provide sufficient funds to prevent the Islands’. What you didn’t get the sense loan covenant being breached, exhausted of were the phalanxes of supporting the bank syndicate’s patience. They finally lawyers and teams of witnesses, mostly appointed joint administrators from BDO, distributed in their own homes, all of who following marketing by CBRE, sold whom would have normally occupied the site to Berkeley Homes for £72m and the body of the courtroom. Mercifully, recovered the bank debt. Berkeley Homes apart from a couple of minor glitches the paid an additional £5.5m to the Beethams. technology held up. The joint liquidator for 1 Blackfriars Ltd

62 THE TERRIER - AUTUMN 2020 alleged that the sale of the company’s The opinions surprising and seemingly unnecessary sole asset at an undervalue by the interrogation on the workings of the administrator, and a failure to conduct the Yet at this remove, the expert witness Capital Asset Pricing Model, a financial administration to pursue a funded rescue for the applicant considered the site model that calculates the expected return of the company, was in breach of their would have represented an ‘exceptional on a security based on its level of risk. obligations. proposition’ for funders based on a This is an area of investment finance that combination of senior debt (60%), has come under scrutiny since the GFC. It The facts mezzanine finance (20%) and equity falls into the category of ‘Portfolio Theory’ (20%). Dispute arose about the returns which postulates efficient markets. Evidence of fact was called first from to be earned for different tranches of RICS valuation methods and underlying the witnesses involved in the case at funding. It was suggested a short-term assumptions are linked to these concepts the time. At the outset, one of the joint equity participant could put in £10m for a of efficient markets and ‘rational’ liquidators was subjected to intensive year, to obtain planning consent and earn economic behaviour. These assumptions questioning about the conduct of the 100% return from the increase in value. are now being seriously questioned by administration, particularly whether the The QC argued that before any lender the likes of George Soros, Mervyn King administrator had allowed the lending would allow a funded rescue, it would and John Kay. syndicate headed by RBS too much of a need to know there were resources The RICS valuation review might role in the administration. There is a legal to build the scheme. A letter from a usefully address some of these obligation on the administrator to act in bank offering a commitment to fund in fundamental articles of faith. I also sense the interest of all the creditors, and not principle was regarded by the banking the expectations of an expert witness as alleged in this case in the interest of expert as worthless, peppered with across a range of scales of development the banks solely. caveats and written with the intention of will need revisiting. So will actual conflicts The question then was whether the exiting the commitment if the weather of interest, and perceptions of conflicts of administrator and their advisers, CBRE, changed. How often as a banker he must interest, in conducting a statutory duty. were happy to sell the site at a price have provided such ‘letters of assurance’ which reflected the value of the debt, to borrowers! The judge’s decision at just over £70m, when the developer had a Red Book valuation at the time Banking risk - the 3 Cs There will be much to pour over for RICS for £125m. The further question was members and the Institution, when the whether the sales and marketing One of the banking experts said judge hands down his decision in due conducted was appropriate, and whether valuation is not a main driver for lenders. course. RICS guidance, the ‘Red Book’, the the price achieved reflected the market Both experts identified 3 lending ‘Valuation of development land’, among in 2011 when there were tentative signs principles: Character, Capability and others was frequently quoted. It will be of recovery. Collateral. Yet the valuation of that interesting to see whether the judge A great deal of time was spent with the collateral must surely be of interest comments on how well they have been developers at the start of the trial trying to the underwriter. Cross examining adhered to by professionals, based on the to distinguish between ‘unfunded’ bids QC laughed at the idea that Beetham/ evidence of this case. and ‘funded’ bids. The last days of the Mirax had the character and capability trial were spent trying to establish with to deliver this project. Beetham needed experts what money really was available a new equity partner, but was there in the market in 2011 to fund a rescue anyone available ‘to hold Beetham’s or execute a transaction. This was well hand’. (As it turned out, a restructured trodden ground from the developers’ Mirax Group, strapped for cash in evidence, where cross-examining QC 2010/11 completed the 93-storey explored the numerous approaches to Federation Tower, the tallest building in prospective funders, alternative lenders, Russia in 2013). potential joint venture partners, and other Although it seems there was a lot of forms of equity providers. No matter who capital available in 2011, the risk appetite was approached, they never came up was low compared with the buccaneering with that crucial ingredient – money. The days of 2006/7. According to the expert Shard’s Irving Sellar was approached. Even ‘lending is a risk business and assessment Cerberus, an American fund well known of that risk is what lending is about. for picking up distressed debt, gradually Planning permission is one of the risks, suffocating the debtor and seizing the but senior lenders do not take planning assets, passed up on the opportunity. risk.’ Delivery and demand risks are also Aptly named, Cerberus was the dog that significant, not to mention inputs to guarded the gates of Hades to prevent the development appraisals which carry their damned escaping. own combination of risks. At one point QC for the applicant subjected the expert witness to a

THE TERRIER - AUTUMN 2020 63 RATING AND VALUATION THOUGHTS “Well, what fun!” Roger G. Messenger, BSc FRICS FIRRV REV MCIArb Hon. CAAV MIPAV (Hons) RICS Registered Valuer, Vice Chairman, TEGOV . [email protected]

Roger summarises some of the rating, valuation and investment challenges ahead, all of Roger is a Senior Partner at Wilks Head which will put extreme pressure on local authority revenues. & Eve LLP, Chartered Surveyors, and Director Rates Plus. He is a highly So here we are writing this in mid- Retail and food establishments relying experienced rating practitioner, who September with some major ‘local’ on footfall from office workers in cities has been President of the IRRV on 2 lockdowns starting and fears of a second and town centres have had a nasty occasions and also President of the spike in C-19 dominating the news [Ed reality check. That of course is in addition Rating Surveyors Association. He has – Roger wrote this before the tightening to the structural shift in shopping over 36 years’ experience in the rating of public sector property and has been at of restrictions of late September were patterns, which has moved vast amounts the forefront of central negotiations with implemented]. of people’s shopping habits online, the Valuation Office Agency at every The threat of recovery for non-payment probably permanently. Some argue revaluation since 1990, in respect of a of rent and evictions has just been stayed that the retail online migration which number of classes of property until the end of the year. John Lewis was happening pre-Covid has been Partnership, historically a barometer of accelerated by the pandemic by at least 5 the high street, has just announced a first years. The move to more flexible working half year loss of £55m. The government and working from home for office-based furlough scheme is set to end in a few staff, which started from a much lower short weeks and while there is talk of base, has also grown exponentially. more targeted new help on the horizon - The arts sector has been devastated that ship is not yet in view. through the lockdown. Live Talking of ships, all cruise lines are entertainment, with theatre and in port with their ships and cruises concerts, is still off the agenda. Major abandoned for 2020 and possibly beyond. sporting events including football are Of course, you could always fly…. Well, still struggling with how fans might to some places and then you might have attend a match safely [Ed – again back off to quarantine on your return. The result the agenda]. of all this is to take a break in the UK and Among all the negatives there are a have a staycation. That message has been few positives: schools and universities a saviour – at least in the short term to are back, and pubs, restaurants, hotels the UK hospitality industry which suffered and leisure facilities are open, albeit heavily through lockdown. with limitations. Much of this we are Currently we are told that more than told will be short-term – though the 70% of office workers have got used to definition of that is unclear. What is working from home and prefer it. Part clear, is that when we do return to what time office work has resumed for some we might describe as ‘normal’, those and full time for very few. Some large new norms in lots of aspects will be companies have now said the home-work different to pre-Covid norms. regime is permanent, some putting off a We have a new planning regime decision as to when or whether to return emerging in the form of regulation until later in 2021. or draft law. This brings forward an

64 THE TERRIER - AUTUMN 2020 accelerated process for getting new interpretation. We shall see. where we are, where some would like us homes actually built, but also addresses Alongside deferral of a quarter’s VAT, to be, and looking at financial realities – I the decline of retail in high streets and self-employed tax, business rates came am not going to guess at an outcome, nor how property and uses are to be re into sharp focus with a government relief any timescale for it. purposed. We have a short-term Stamp scheme for certain types of property, Duty benefit to restart the housing removing business rates for the financial Property market market. year 2020/21. Quite a lot of major and necessary intervention. The records of In the meantime, in the real world of Rating changes business ratepayers were then further property, we have a collapsed retail used to identify recipients of grants from market with many Company Voluntary In addition, the prospect of the shorter government, of either £10,000 or £25,000, Arrangements, the latest granting up periods between rating revaluations has to assist in dealing with business shut to 4 years’ rent free for some shops in a for the moment evaporated, with the down. fashion chain. Non-payment of rent as 2021 revaluation being scrapped and the Nobody knows whether this will be being unaffordable is evidenced across all existing legislated revaluation for 2022 extended beyond the current financial types of property; there are empty office being pushed out to 2023. Originally, year. The calls for systemic reform are buildings; occupiers looking to downsize we had a valuation date (Antecedent around facilitating a major reduction or change; in hospitality, a number of Valuation Date) of 1.4.19. That was a week in the Uniform Business Rate, down to permanent closures. into lockdown and was never going to about £0.30p/£ from just over £0.50p/£ Rental evidence is at best scarce survive. The options were to move it on currently, together with a reform agenda and struck under somewhat difficult a year and have a one-year AVD. In the to simplify reliefs and exemptions. circumstances. Investment yields are event we have an AVD of 2021 and a Government needs the money raised attractive to investors, given historically revaluation in 2023. from business rates and arguably, would low interest rates and provided you can All this set against the background have to be raised from something else achieve the rental payments, for some still of a government having launched a if that happened. Nobody seems keen a good investment. ‘fundamental’ review of business rates on a domestic Council Tax revaluation Freehold values of shopping centres to be published later this year. Looking for predictable political reasons, so we are a problem and large speculative at the exact scope of that review does are left looking at increasing other taxes office buildings may be mothballed or make the word ‘fundamental’ open to and on-line sales taxes and similar. Given reconsidered. The RICs is encouraging us

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THE TERRIER - AUTUMN 2020 65 not to use ‘material uncertainty’ clauses authority – business rates - looking at an of valuation needing an evidence base for most types of property valuations as unknown somewhat uncertain future. – life is a bit tricky. Valuer opinion over recipients don’t like them. That is apart from the anticipated losses hard evidence is likely to be the order of Property traditionally lags behind in in rateable value, as ratepayers pursue the day and that will sort the sheep from the effects of an economic downturn and valuation reductions on the back of C-19 the goats. We will all need to work to we have seen a market that is all over the effects. the basis we might often be in error, but place, with good and appalling in unequal Forecasting future income from the tax never in doubt… measure. For local authorities, those that base, even without fundamental change, Still never mind, we know government decided to invest in commercial property looks to be very difficult and almost is keen on algorithms and we have a by borrowing at very low interest rates certainly from a revenue perspective, all number of automated valuation software and seeking a higher yield have had likely to be bad news. systems being marketed. They will no in some cases a rude awakening, with doubt save us all. Just like the algorithm- unpaid rents or re-negotiated lower rents, Evidence based students exam results this year– I destroying much of the purchase decision am sure we can all look to them with rationale and for many significant capital So, whether the valuer is looking at an confidence. After all – what could possibly value loss as well. AVD of April 2021 for business rates, go wrong! All set against a background of one of an investment value of let property, a It won’t be boring – that’s for sure. the major sources of revenue for the local development appraisal, or any other kind

THE MODEL ESTATE 2020 Model Estate Performance Heena Gadhavi [email protected]

The Model Estate report has been featured for a number of years, lastly in 2019 Spring Terrier. It provides useful trends for asset classes typically managed by local authority surveyors, and comparisons against other investment types. While the changes over the past year are modest, I’m sure next year’s report will see dramatic changes. Heena works as an analyst in the research team at Carter Jonas, reporting on market trends and The Model Estate Report for annual change and its longer-term themes across both the rural and 2019 performance performance. commercial divisions. The model estate was valued at The ‘Model Estate’ is a notional agricultural £39.75m in December 2019, representing estate created by Carter Jonas in 2010. a modest but respectable annual increase The estate comprises 3,168 acres, which of 0.8%. This rise was driven by a positive includes a combination of let and in-hand performance across all components, with farms, a commercial and residential the exception of the residential portfolio, portfolio, and a solar farm. It is located in and was in contrast to the 1.7% annual Oxfordshire. decrease witnessed in 2018. The model estate is also used to compare the performance of agricultural Let farms: 1.3% land against a basket of alternative asset classes: residential and commercial The estate’s growth was supported by the property, equities, gold, fine wine and value of its let farms, which increased by classic cars. By recording the data since 1.3% in 2019, in contrast to the previous 2010, the report can focus on the estate’s 2 years’ negative growth rate. While the

66 THE TERRIER - AUTUMN 2020 2019 Model Estate Component Performance Other: 0.5% Source: Carter Jonas

3 The “other” category of the estate saw 2.4 3 2 capital values increase by 0.5% in 2019, 1.4 1.2 2 1.3 1.1 which was entirely due to the annualised 1 0.8 0.5 1 0.2 increase in revenue of the solar farm. Both - the capital value and rental income from (1) (1) the telecoms mast, commercial shoot and (2) fishing rights all remained static over the (2) (3) -2.0 same time period. Other Commercial: 0.2% Let Farms Residential Commercial Total Estate In HandFarms The commercial element of the estate remains fully occupied and increased Total Estate(excl Manor)

In HandFarms - exclmanor by 0.2% in 2019, due to a small uplift in Total Estate(excl Commercial) 2019 the rental values of both the workshop/ storage and office, while yields remained constant. Occupier demand throughout the UK’s regional office markets remained 2019 Asset Performance robust throughout 2019. Low volumes Source: Carter Jonas of speculative development continue to fuel rents. This will have a positive impact 20 18.2 on rural office locations, with occupiers

15 14.2 increasingly demanding a good quality working environment with crucial internet 10 connectivity.

5 2.2 Residential: -2.0% 0.8 -

-1.5 The residential portfolio was the only -3.0 (5) component which saw values fall in

-6.7 2019, by 2.0%. Despite this reduction (10) in capital values, rental levels remained Gold

FTSE stable during the year and demand

Fine Wine Fine for good quality, well-located rental Classiccars Model Estate Model accommodation in rural locations remains MSCI Residential MSCI MSCICommercial strong. This decline contrasts with trends witnessed in the national housing market, where pricing levels during the year increased, particularly after the December cottages saw a small decrease in value a negative impact on the sub-sector’s general election. In Oxfordshire however, over the year, arable land increased by performance; in-hand farms excluding the price growth was relatively muted. just under 3%, bolstering the sub-sector’s Manor House showed growth of 2.4%. performance. As a result of the unprecedented wet Model estate versus weather conditions over the last year, the alternative asset classes In-hand farms: 1.1% cropping rotation has been impacted, with a higher acreage of spring produce The model estate ranked fourth in this The performance of the in-hand farming incorporated. The oilseed rape crop year’s alternative asset class rankings, with component rose by 1.1% during 2019, has also been subject to cabbage stem its one-year performance outstripped by in comparison to the previous year’s flea beetle, and the combination of gold, equities and residential property. 2.6% decline. This rise was entirely due these factors has significantly reduced Over the longer-term, annualised growth to the increase in arable land values over the projected income for 2020. There remained strong, at 1.5% on a 5-year basis the course of the year, with pasture and may be further impacts to this due to and 3.9% over a 7-year period. woodland values remaining static. The changing commodity prices, following value of the Manor House reduced by the coronavirus outbreak. Furthermore, Gold 1.1%, in contrast to the previous year’s with the extraction of minerals resource improvement, although in line with the scheduled for 2020, 25 acres of land was The price of gold surged in 2019, wider country house market. This had removed from the cropping rotation. increasing by 18.2% during the year,

THE TERRIER - AUTUMN 2020 67 Alternative Asset Class Performance Source: Carter Jonas 20 18.2

15 14.2

11.1 10 9.3 9.3

5.2 4.5 4.9 4.5 4.8 4.8 5 3.9 4.2 3.9 3.5 3.1 2.7 2.7 2.2 2.2 2.2 1.5 0.8 0.8 0.6 - (0.3) (0.4) (0.8) (1.2) (1.5) (1.7) (1.5) (2.6) (3.0) (5)

(6.7)

(10) 2019 2-year annualised 3-year annualised 5-year annualised 7-year annualised

Gold Equities MSCI Residential Total Estate MSCI Commercial Fine wine Classic Cars

compared with 1.2% in 2018. In actual and 0.2% respectively. Price increases the year on 302.6 points, down by 3% terms, this equated to $1,512/oz at the are forecast for 2020, buoyed by the annually. During the year, the index end of 2019, the highest year-end figure clear general election result and by the dipped slightly before it peaked in since 2012. Demand for gold was strong anticipated stamp duty increase from 15% August, and then declined rapidly each throughout the year and, in US dollars, to 18% for overseas buyers in the Spring month until December. While the short- price growth increased most during the Budget. These purchasers are expected to term trends are negative, over a 5- and summer months, as a result of the 75 basis rush to acquire before the Budget, which 7-year period, the index increased by 4.9% points fall in the US Federal Reserve bank may temporarily strengthen the market. p.a. and 2.2% p.a. respectively. rate to 1.5% in October. Commercial Classic cars Equities The fall in commercial capital values in Uncertainty surrounding Brexit and the In the equities market, the FTSE All 2019 was once again driven by significant US-China trade conflict has also affected Share index ended the year up by 14.2% reductions in the retail sector, where the classic car market. A decline of 6.7% annually at 4,196 points. This was the values declined by 7.7%. This was in was recorded in 2019. However, such highest month-end result for the year comparison to a relatively stagnant assets are thought of as being longer- and was inflated by the Conservative performance in the office sector of 0.1% term investments. Over a 5-year period, party majority in the December general during 2019. While the industrial sector annualised growth of 4.2% was recorded, election, which pointed to more certainty has experienced double-digit growth and this increased to 11.1% over 7 years, in the UK Government as we move into a over the last 2 years, a lower but positive showing the asset’s strong long-term post-Brexit period. increase of 1.7% has again resulted in the investment potential. sector performing most strongly. Residential Fine wine Annual house price growth in the UK increased by 2.2% during 2019; however, Pricing of luxury asset classes was regional variances were apparent. Wales restrained in 2019, facing various recorded the largest annual increase of headwinds, including Brexit uncertainty 7.8%, while the South East and London and new US tariffs on European wines. saw slower, but positive, rises of 1.0% As a result, the fine wine index ended

68 THE TERRIER - AUTUMN 2020 HOMELESSNESS AND SQUATTING Will there be a rise in squatting this winter? David Asker [email protected]

Conditions are ripe for an increase in squatting, with homeless people living in residential and commercial properties. David outlines the necessary steps that can be taken to protect premises from unwanted guests, and the risks involved with evictions and clear-up. David is an authorised High Court Enforcement Officer with over 35 The UK faces a perfect storm for a fall through the net. years’ experience in specialist evictions property crisis for both residential Evidence suggests that around 40% and enforcement. He is the director for corporate governance and compliance and commercial property this winter. of single homeless people squat after at The Sheriff’s Office and regularly Landlords have been prevented from approaching shelters and hostels for works with the National Eviction Team, undertaking forfeiture of commercial assistance. At any one point in time, 6% of both companies being part of High leases (with the moratorium extended homeless people are squatting. Court Enforcement Group. to at least 31 December 2020) and from A lack of available housing, coupled evicting residential tenants. In addition to with an increase in empty commercial He has a wealth of experience in significant rent arrears, many commercial spaces, might well create circumstances dealing with high profile enforcement landlords are likely to lose a good number that are ripe for an increase in squatting. operations and has planned and led of tenants over the coming months, operations to remove demonstrators from complex locations, including as many companies move towards Squatting St Paul’s Cathedral (OCCUPY!), permanent home working or, sadly, go Admiralty Arch, Parliament Square, out of business. Squatting in commercial property Bexhill-Hastings by-pass, nuclear The resumption of residential evictions isn’t a crime, so empty commercial power sites and numerous fracking on 20 September is likely to lead to property is vulnerable to squatters, sites, including Balcombe. an increase in homelessness, putting particularly during the winter months. increased pressure on local authorities to This is likely to include property of all house those who are evicted, but there types including retail, office and leisure, will be those who, for whatever reason, and the hospitality sector of pubs, bars and restaurants. The reality is that any unoccupied building can become a target. Any commercial property owner should be looking at the necessary steps that can be taken to protect the premises from unwanted guests. As they say, prevention is better than cure.

Here are some security measures you can take • Conduct regular security patrols • Erect strong fences, fit barbed wire • Fit CCTV, alarms, security doors and motion detector lights • Consider property guardians [Ed – see article in 2020 Summer Terrier]

THE TERRIER - AUTUMN 2020 69 We also undertook an eviction of squatters from a derelict hospital with specialists in full protective clothing, as we were made aware that the building was contaminated with asbestos. We entered to discover the individuals who had taken up residence were ripping, with zero protective clothing, the asbestos lagging from copper pipes to remove the copper.

Post eviction clear-up

Once the squatters have been removed, the building can be left needing a proper deep clean using protective equipment and a licence for the disposal of hazardous waste. In the current climate, this is exacerbated by the pandemic and the necessary sanitisation that needs to be carried out, to ensure the building is deemed safe. We are also wary of what can lie behind closed doors and some of the sights we have witnessed cannot be unseen. These include: • Bio-hazardous materials • Exposed wires • Flooding • Dogs and other animals • Human and animal waste • Asbestos contamination • Flea infestations • Booby traps • Drug paraphernalia.

As a High Court Enforcement Officer, • Disconnect water and power supply case, even if the commercial sanctions I have worked on many high profile right away to deter occupiers (you are of forfeiture and commercial rent arrears infrastructure projects and, for me, not permitted to disconnect services recovery remain in place for some time. planning takes priority; I need to risk once they have moved in). Many squatters are vulnerable, with assess fully any situation and ensure significant welfare needs, both physical I’ve taken the appropriate measures to Considerations for and mental health. These need to be mitigate risk for everyone involved. squatter evictions taken into consideration before action is More often than not, the individuals taken and a risk assessment undertaken. I deal with on the evictions side make Squatters will be evicted under a High Training in vulnerability awareness and decisions that put themselves at risk, and Court writ of possession. In most cases the ensuring a thorough risk assessment it is up to me to have the foresight to action will be started in the county court has taken place should be of paramount ensure we’ve covered everything in the and can then be transferred to the High importance for anyone doing this work. risk assessment, and we are fully prepared Court. The writ will be against “persons When evicting squatters we have for squatters to make incredibly foolish unknown” and court permission is not experienced some terrifying scenarios, decisions that could be life endangering. required to transfer. including a property that had been set up The issuing of a writ of possession with a gas canister on a heated electric against persons unknown and its ring waiting to explode - a booby trap enforcement were permitted during that could have caused serious injury or lockdown, so it is likely to remain the even death.

70 THE TERRIER - AUTUMN 2020 ACES HEART OF ENGLAND PRIZE An undergraduate’s view of the similarities and differences between the strategic aims and objectives faced by corporate real estate managers in the public and private sector William is an undergraduate at Nottingham Trent University William Clarke For a number of years the Heart of England Branch has been supporting Nottingham Trent University with its BSc ( Hons) Real Estate first degree course, by providing a talk on corporate real estate management in the public sector and giving a prize for the best work undertaken by an undergraduate student on a public sector property related topic. Due to the coronavirus lockdown, no talk was given this year, but a prize was awarded to the student who produced the best 1,000 essay.

The competition barriers asset managers face in the public For a number of years the Heart of sector making it difficult to attract and England Branch has been supporting retain staff. The other considered that the Nottingham Trent University with its BSc public sector could not be as efficient as ( Hons) Real Estate first degree course. A the private sector due to bureaucratic prize was awarded to the student who barriers and lack of funding, and so produced the best essay on: “Compare concluded that the public sector was and contrast the different strategic aims inefficient. This view may not have been and objectives faced by corporate real so strong had it been possible for the estate asset managers in the public and students to receive the ACES talk. Not private sectors in the UK”. surprisingly, as this was not possible, none The winner was William Clark who of the students mentioned how asset was chosen from the 3 best answers management had evolved in the public selected by the university course leader. sector over the last 20 years; breaking Choosing a winner was a difficult task as down silo working; using property as all 3 approached the answer differently. a driver for transformational change; William concluded that the aims and developing a corporate approach to objectives were similar, with both the the use of property; and moving to a public and private sector aiming to align collaborative approach across the whole the real estate portfolio to business needs of the public sector. Neither did any of in the most economical and effective way. the students mention that the approach The major differences, he concluded, were adopted by real estate surveyors to the need for the public sector to achieve deliver the strategic aims and objectives value for money with relative inflexibility was more about process in the public from an aging property portfolio, while sector than in the private sector, where it the private sector could focus mainly on is more about technique. financial gain, with secondary objectives to support the community. The other 2 students did not disagree with these views, but one also highlighted the

THE TERRIER - AUTUMN 2020 71 The winning essay from William operational and investment assets, and invest in properties within their LA, or with continued strain on capital, the need purchase prime properties elsewhere with Companies within the public and private for CREAM within the public sector has stronger yields. Buying property within sectors have several similar aims and increased, leading to the introduction the LA adds an additional incentive to objectives. Most private companies aim to of public sector asset management improve the area, both enhancing the maximise profitability, while public bodies guidelines by the RICS. micro-economy, and ensuring business aim to provide services with available In contrast to the flexibility and rates, a major source of income, remain resources for the benefit of taxpayers. extravagance that private sector firms attainable. Both will have environmental, social and can exhibit, the public sector is under The RICS published the names of governance values embedded. Corporate constant scrutiny from the taxpayer as to councils opting to invest within their real estate asset management (CREAM) how it spends money, therefore unable LA, boosting regeneration, which aims to align business and property to portray itself in the same way. It is include Bournemouth Borough Council. strategies, directly impacting efficiency commonly considered that many LAs fail Alternatively, Torbay Council look to within both sectors. properly to understand their assets, some separate their funding into regeneration Differences between the 2 derive from not recognising the extent of their estate. within the LA, and safer investments the ‘customer’ - all citizens in the public Much of the operational property has across the UK. Councils that choose sector but individuals or a smaller group been in occupation for extended periods solely to invest outside of their LA were in the private sector. Public sector bodies and has become outdated and inefficient. kept confidential to avoid criticism are primarily funded through taxation Offices are commonly spread across LAs, from taxpayers, as choosing not to and therefore face political pressures regularly not central, and this creates a invest locally outlines a lack of belief to ensure that ‘value for money’ is met. disjointed appearance. To reduce costs, in the community and reduces the LA’s Local authorities (LAs) have a duty to LAs outsource or share some services with incentives to aid regeneration. their electorate, creating a need for others, meaning that occupational costs LAs can borrow money at reduced rates, transparency and increasing criteria when can be distributed accordingly. aiding their ability to invest. Performance managing assets. An example of a LA that has attempted is open to scrutiny, however, and With elections every 4 years, LAs are to save costs and increase efficiency additional risk is taken on. If the property under pressure to produce results in this through CREAM is Leeds City Council. does not perform as anticipated, debts time for fear of not being re-elected. In 2018, the LA consolidated 17 of their must be paid from the public purse, which Conversely, stakeholders within private offices into 4, including centralising all could lead to a reduction in funding for companies are often more receptive to client-facing services into one office in the public services. longer term strategies to increase value. city centre. The LA worked with its private An example of where investment Private companies strive to reflect their sector landlords to dispose of assets and within the LA has looked to support the goals and brand in the properties they agree a deal to occupy a refurbished community is Trafford Council which, operate from. An example of a firm that Grade B office space. This move was jointly with Bruntwood, purchased 2 does this successfully is the technology stated to have saved taxpayers £27m and shopping centres within its LA in 2020. company Apple. Apple has traditionally only increase efficiency by housing all public With retail values declining, the joint taken space in prime retailing locations, services under one roof, in justification. venture looks to regenerate the centres, integrating the use of glass and lighting An example of where the pressures by incorporating office and residential to reflect the company’s technological created by public scrutiny have prevented development to increase footfall. In status. Similarly, Apple is set to take space such a move is Kirklees Council, doing this, the LA can ensure control in the newly redeveloped Battersea Huddersfield. Here, the council occupies of the future of the assets and look to Power Station, emulating the campus- several upper floor offices spread across improve the centres. This will ensure style set-up seen in tech locations such the centre. To consolidate offices and that business rates are maintained or as Silicone Valley. The banking sector of streamline services, the council aimed to increased, and opportunity to create the firm, Apple Pay, has also agreed to build a new office block on a brownfield returns from the investment coincides take office space in 22 Bishopsgate, a site. To further justify the move, various with helping the community. skyscraper, currently under construction sustainable additions were proposed, To conclude, the aims and objectives in London’s financial district. This new such as wind turbines, solar panels, and for CREAM professionals in the public specification estate boasts a plethora of green water usage. However, once fully and private sectors remain similar. The technological and environmental advances, costed, the proposed scheme could not major difference between the 2 is the again, in keeping with Apple’s values, and be justified as money well spent. An asset responsibility applied to the public exemplifies the flexibility and expenditure manager in the private sector would sector to achieve value for money, that private companies can justify to boost not face the same issues, being able to within each parliamentary term. The their reputation, promote their brand, and argue an improvement in staff well-being, age of the public sector and relative increase shareholder value. greater efficiency, and enhanced external inflexibility add to these difficulties, The National Audit Office reported a perceptions. This highlights a significant while the private sector can focus halving in funding to LAs from central difference between the 2 sectors. mainly on financial gain, with secondary government since 2010, creating a When acquiring investment properties, objectives to aid the community. greater reliance on alternative income. councils must spread their risk to ensure A LA’s property portfolio combines stable returns. They can choose to either

72 THE TERRIER - AUTUMN 2020 Branches News HEATHER HOSKING, LONDON BRANCH Meeting on 15 May which are being used to assemble how we could attract new members from and distribute food parcels, and as a The meeting was held on-line. 25 the wider public sector, in addition to drive-through testing facility; another members and guests attended, including local authorities. council thought that visitor drop-in Peter Gregory, ACES President. at offices may be discontinued in Discussion on the response to the long-term; another public body Presentation on recruitment the C-19 pandemic had issues with access to buildings, - Richard Gelder of Hays a. Portfolio property. The range of particularly high-rise, where use of actions to deal with rent payments lifts is essential, but it may only be Richard Gelder gave a very interesting were: possible to accommodate one person and informative presentation on the One council had offered tenants a at a time; a director level rôle has been current recruitment situation and the 3-month rent holiday; another council created to lead on the move out of changing expectations of people seeking said that each case was reviewed on the pandemic arrangements and to employment. Key point of interest: an individual basis and some small identify how ways of working can be • The gap in pay between the public businesses had been given grants; permanently changed in the future; and private sectors is narrowing in some cases, individual payment while there is no effective vaccine, plans were agreed where supporting the assumption is that working from • Only 2-3% of applicants respond to evidence of hardship was provided; home will continue; the situation adverts elsewhere, council’s consultants were has identified the need to provide • Pay is 40-50% of what candidates carrying out interviews with all tenants more services locally; one council had consider when applying for a job to establish their circumstances; tenants identified a cost of £500,000 to change are being offered monthly payment fire doors, to allow them to remain • Young job seekers are looking for a arrangements where they usually pay open and reduce hand contact wider work “experience” quarterly; businesses identified by c. Remote working and staff/HR matters. • The public sector offers a quality and the government as having to close One public body is carrying out a staff breadth of professional experience, temporarily had been offered 3 months’ survey on how people are coping with and flexible working, and needs to rent free. However, it has become clear working arrangements and how they highlight this, particularly to attract that many of those businesses have want to work in the future. There has young applicants furloughed staff, have been given a been a mixed response, with some • The public sector needs to adopt 1-year business rates holiday and have people missing the work setting, some faster processes in appointing staff. received grant support not having suitable facilities at home, b. Operational property. Members but some preferring it; one council has an issue with a staff member who Danielle Northam of GPP commented discussed the effects of the C-19 does not have broadband and will not on the work being undertaken by the pandemic on operational buildings. pay for installation, as there is concern GPP to promote the public sector as Arrangements were being prepared over setting a precedent; another an interesting and fulfilling place for to allow a phased return to buildings, concern is liability for ensuring that property professionals to work. All agreed requiring measures for social home working arrangements meet on the need for the RICS to attract new distancing to be put in place. Most H&S requirements – particularly desk/ talent into the profession and for the commented that the effectiveness display equipment/suitable chairs; public sector to ensure that the benefits of working at home has emerged there are issues around staff not taking of working in this sector are promoted. as a significant outcome, which is likely to affect future policy on leave during lockdown – implications for office cover when restrictions on President of ACES – Peter Gregory accommodation. The need for face to face reception facilities and some travel are reduced or lifted For other services, arrangements Peter emphasised the importance of other meetings has now been shown for inspections for RTB valuations our partnerships and relationships with to be questionable suggest using the government other public sector bodies and with One council said that guidance on guidelines for residential estate the private sector. He also encouraged transport methods is likely to increase agents, and desktop valuations the sharing of best practice between cycling, and therefore the need for where possible; one organisation branches and the need to ensure that shower facilities in offices. Some has carried out on-line job membership is of value and attendance social services meetings have worked interviews successfully. However, the at meetings worthwhile, to encourage better using video links than when in Unison view is that there could be continuing growth in membership. He a traditional office setting. There is no employment law implications for on- also suggested that we should consider date for re-opening sports centres,

THE TERRIER - AUTUMN 2020 73 line interviews, as some people could Meeting on 17 July home and have been told that, for be disadvantaged their wellbeing, they should take 10 The meeting was held on-line. 27 days’ leave by the end of September; d. Support to NHS. There continue members and guests attended. daily on-line meetings are being to be some requests from NHS for offered to staff. At another public accommodation for pandemic related Presentation on The effect of the sector organisation, staff can seek activities. It was noted that the pandemic on rent and service charge agreement to work from their usual emergency situation had led to very collection – Andrew Waller and Steph office location if they have difficulties good working relationships being Yates of Remit Consulting working from home. Elsewhere, an developed between public bodies, on-line risk assessment and booking particularly between health and local Andrew and Steph gave a presentation on of desk space has been set up, but- authorities. their research into the level and timings take up has been very low, possibly of payment of rent and service charge, because of staff concern about using ACES matters contrasting the typical average collection public transport to get to work. At levels and timescale for receipt with the another council, desks have now ACES award for Excellence – details to be experiences of property managers for the been removed to ensure that social issued shortly. This will include projects March and June quarter days. This was distancing is maintained to cover C-19 initiatives [Ed – see ACES’ analysed by property sector and type, website for details]. and tenant size. They also provided data d. Future property reviews and Council Meeting, 24 April. Chris Rhodes on the level of rent concessions sought requirements – many councils reported on the key topics discussed – in by tenants and eventually agreed and outlined proposals either to put summary: documented. office review on hold, or to adopt rationalisation of accommodation as • Membership is showing an increase Discussion items part of budgetary savings • Terrier – next edition will be on-line e. Provision of accommodation for Frequency of branch meetings - There was • Municipal Journal awards postponed homeless people - more permanent a discussion about the benefits of holding accommodation is being sought at • Next year’s conference will be held in informal on-line meetings between one council, as it is anticipated that Peterborough regular branch meetings to discuss hotels will return to more normal issues arising because of the pandemic. trading in the autumn RICS matters It was agreed that we should retain the 6 formal, minuted meetings each year, with f. Asset valuations and uncertainty - Neil Webster advised that the RICS had additional informal meetings between as The effects of the uncertainty in the suggested that ACES should provide a forum to discuss topical issues and share property market on asset valuations evidence to the Public Accounts advice and information. was discussed [Ed – see CIPFA report Committee’s consideration of local in this issue of ACES’ Terrier]. authority spending on investment Response to and effects of the C-19 properties, and that Paul Bagust of RICS pandemic: Exchange of Information. would be thanked for putting ACES a. S25 Notices - generally authorities forward. were delaying service of S25 notices • One council was recruiting a graduate because of the uncertainty in the and senior surveyor. Approximately Exchange of information. property market, but safeguarding 100 applications have been received their position on leases excluded from for the graduate post • One council continued to work on the security of tenure provisions of • One member was seeking help in development schemes, although the 1954 Act dealing with CHP projects it is proving challenging to keep b. Support for tenants – one council developments on course, both • Right to Buy valuations – one reported that the majority of because of issues with staff (social member reported pressure to tenants had been able to reopen distancing) and the supply of carry out physical inspections. two their businesses. Many tenants are materials councils were still doing desktop requesting support, but the council valuations and would consider • Most committee meetings at one is taking into account the other internal inspections subject to risk council had been suspended help being made available by the assessment. government; a balance is required • The original proposals for the London between the need to support the Cancer Hub have been changed and local economy, regeneration, and a building is now being converted to provision of employment against the an Innovation Centre; 3 properties need for income from investment had been sold at auction before the properties lockdown – one has completed, but the other 2 have been delayed c. Return to offices – one council stated because of C-19. that staff are continuing to work from

74 THE TERRIER - AUTUMN 2020 SARA CAMERON – EASTERN BRANCH July to September 2020 26 August 2020 – ‘Town centre and high street futures in a post C-19 world’. Over the summer months, Eastern Mark Stewart, Head of Health & Safety, Steven’s presentation covered the Branch haS continued to hold regular Property and Asset Management at trends and challenges to our towns and update meetings with members and Lambert Smith Hampton – ‘C-19 Response high streets, how we can fix town centres guests on MS Teams. The regular calls in property management’. and the future ‘ghost towns or new dawn?’ have focussed on members’ experience Mark’s presentation covered operational [Ed – see Steven’s article in 2020 Summer in responding to C-19 and sharing measures and controls before premises Terrier]. experiences of how best to deal with are re-opened, during re-occupation and matters arising, such as reoccupation how to deal with incident management. Key actions/interventions: preparedness and criteria, to wider He also introduced the guidance LSH has • Critical mix – diversify or die impacts such as rent and tenancy issues. published for its clients – ‘C-19: Managed We circulated a survey which we Property Operation Plan’ [Ed – see full • Policy reform – out with the old anticipate re-circulating among article in this issue of ACES’ Terrier]. • Occupancy costs – level the playing members. The responses showed that field there was an overwhelming feeling Learning outcomes: that there will be major asset reviews • Fragmented ownership – take back • Ensure risk assessments are following recovery, that generally office control undertaken/reviewed and controls requirements would reduce by 20-40% implemented • Strategic visions – why, where and by adopting new ways of working, how much? that there would also be a reduction in • Implement suitable preventative service and customer accommodation. controls • Funding and investment. We also covered market expectations • Develop a robust incident response and the expected shift from a traditional The resounding message is that we need procedure investment model to more strategic to place our high streets once again at regeneration and employment needs. • Record events, review findings and the ‘beating heart’ of our communities We have also reviewed and discussed continually improve. and make them exciting and entertaining, the Health and Safety Executive report liveable and loveable, green and safe. from the Department of Work and 20 September 2020 Pensions offices in Leeds highlighting the lessons to be learned to make a bIn Dr Steven Norris, Director and National addition to these calls, we have held 2 Head of Planning, Development & formal meetings with guest presenters: Regeneration at Lambert Smith Hampton

GILL BOYLE, NORTH WEST BRANCH

6 March meeting all CVAs end badly: some are more the Topics also discussed included The branch held its OGM at Kilhey Court result of poor management or financial approaches to dealing with travellers Hotel in Standish, near Wigan. The irregularities. Members had a range of and the issue of local authority meeting was attended by 25 members questions, with their impact of CVAs on investment in commercial property, in and 2 guests. rents and rent reviews being of particular the light of the recent National Audit In the past few years, the branch has interest. Our speakers made clear that report on the subject. run a successful workshop programme, there is limited comparable evidence and Since the normality of the OGM, life with the last one in November on asset limited awareness of them being tested at ACES NW, like everything else, has valuations, attracting around 40 surveyors at reviews. Our speakers also responded changed dramatically. All meetings are (both ACES members and non-members). to a question on the difference between a virtual, and members are keeping in touch It was agreed that the workshop CVA and administration, noting that CVAs by e-mail, phone, or through ACES’ Forum. programme should continue. have a big advantage for tenants as they A topic much in discussion at the moment are not in breach of their lease terms, as is how we deal with distressed tenants in Presentation on Company Voluntary would be the case with an administration. our own property portfolios. Arrangements (CVAs) by Ben Moorhouse CVAs will have an effect on investment of CBRE and Tom Prescott of Baker valuations, covenant strength, and rent Virtual meetings 2020 Proudlove (specialist retail agent). For levels. It will be interesting to see how CVAs to take effect, 75% of creditors (by they may be used in the context of the All members have stepped up to the value) need to support the proposal. Not C-19 crisis. challenge of virtual meetings. Since March,

THE TERRIER - SPRING 2020 75 we have held 2 executive and one open and experiences of working remotely. reinforced, an increased appreciation of meeting, initially by Google hangouts and Generally, members seemed to be coping physical retail, and a closer collaboration latterly by Microsoft Teams, kindly hosted well but there were things that are between tenants and landlords, which by Phil Haslam. Our first virtual open missed, including the day to day casual tends to produce better outcomes. meeting took place on 12 June. interactions, use of printers, and face to Some retailers have stopped paying Ian Carruthers from the VO gave his face meetings. rent; some paid in part; many issues professional update. Among issues raised, remain unresolved. Rent deferment Ian noted that the RICS is looking at DRC Meeting on 24 July is a good approach, maybe with no valuations, in particular the problem or reduced interest charges. The RICS with using the BCIS indices at the current The meeting was held on-line, hosted by introduced a non-binding mediation time. It is recognised in the industry that Farida Ahmed. 16 members attended. scheme but take up has been small. there may not be any comparables for Negotiated lease modifications, some valuations. Ian’s colleague Celia Talk by the ACES National President- Peter including backdated turnover rents, or Read then gave us an update on financial Gregory - Peter talked about the value lease extensions in exchange for rent viability, following the publication of of ACES including networking, mutual deferment, might work. There is no the 2018 National Planning Guidance support and learning, and valuing partner single response position being adopted (NPG) and RICS consultation paper on the contributions. He posed the question – how from private sector landlords. Many valuation aspects of undertaking viability do we build on lessons learnt from Covid confidentiality agreements are being assessments. The aim of the NPG is for 19? He saw the answer to that including signed between landlords and tenants these assessments to take place at plan valuing what we have, apply lessons where arrangements have been agreed. stage, avoiding the need for scheme- learnt to other challenges, embracing the Retailers are not being treated in a specific viability assessments. technology and new ways of working. consistent manner, even where there is Most authorities represented at the OGM a common landlord. Some are agreeing maintain tenanted commercial property The Impact of C-19 on rents – Patrick backdated switches to turnover rents, and C-19 has had a significant impact on Kearney of Knight Frank - Pat has been particularly high-end retail in London. some sectors. Businesses in the food & closely involved for landlords, investors Major landlords have different drink, retail and leisure sectors have been and occupiers working on strategies for approaches. The most common approach seriously impacted, but for authorities now and going forward. There are lots of is rent deferment and then possibly a whose tenants are mostly in industrial/ statistics available showing the massive discount on due rents from March 2020 distribution sectors, the impact has been impact for retailers. Even “essential” on a sliding scale, in exchange for a far more limited. The impact of C-19 on retailers who continued trading didn’t all 12-month rent extension. rental income is a subject uppermost in have a good time. There are viability issues There is a minus-20%-70% difference the minds of many property managers and on store re-openings – trade and sale on sales across retail sectors since re- it was acknowledged that there is a fine volumes down and rising operating costs. opening, compared to last year’s figures. balance to be achieved between securing There could be some positive Smaller retail centres and mid-sized towns this income, but also supporting tenants outcomes, such as a full review of the are doing better. Most operators are now and the local economy. business rates system, an overdue retail wanting turnover rents. More CVAs are The focus of the discussion then turned industry shakeup, the co-dependencies expected in the leisure/restaurant sector to the premises authorities occupy between online and physical stores than the shopping sector. GERRY DIVINE, WELSH BRANCH Following the cancellation of our Spring lockdown planning. This was a short Swansea but was transferred into the ether Meeting due to be held at Aberystwyth meeting with limited numbers but many and shortened in time. Branch Chairman, on 2 April, our branch members, almost all issues such as revised desk layouts, Lorna Cross, welcomed Peter Gregory for of whom were now working from home, suspension or termination of hot-desking, his President’s visit, postponed from the found themselves faced with several use of common service facilities such cancelled spring meeting, and also Branch unprecedented issues, e.g. retail tenants as photocopiers/printers, toilets and Liaison Officer, Keith Jewsbury, to this seeking rent holidays while not trading kitchens, continual or regular cleaning of ‘virtual’ meeting attended by 27 members due to the lockdown, office tenants unable door handles, etc., generated some lively of ACES and/or CLAW. Lorna commented to use the offices, and many similar issues. and thought-provoking discussions. The on just how well the public sector had Corporate landlords found themselves consensus was that this was a worthwhile responded to the pandemic. thinking about the many changes that first attempt at a ‘virtual’ meeting for the would need to be made to their offices to branch and served as a useful pilot for our Peter Gregory, ACES’ National President enable staff to return (if indeed at all) safely summer meeting. to an office environment. Peter agreed and said this had been A virtual meeting on MS Teams was Summer Meeting achieved by various public sector bodies arranged for 12 May for a small sub- working together in partnerships. ACES group to discuss C-19 issues and post- This had been planned for 2 July in also works with partners who had helped

76 THE TERRIER - AUTUMN 2020 out recently by providing webinars for to feed back to him their expectations Community Asset Transfer (CAT) – Kelly members. He reminded us of the ACES’ as to the nature, content and style of his Daniel of Rhondda Cynon Taf Council website redesign – the new website contribution. presented her research findings, drawn went live just the previous day, 1 July from 56 responding councils across – appealed for feedback as one of the Re-opening office accommodation - the UK. The aim of the research was to aims was better communication not only discussions centred around the varying understand how local authorities manage within ACES but also as a shop window approaches to the management of the process, the financial commitment to drive membership. More members investment properties and proposals for involved and general experiences of potentially means more influence, tenants’ rentals. Richard Baker from the outcomes, including reasons for failures. especially in responding to consultations, Welsh Government gave a presentation The research identified a range of different and he exhorted us to make our views on their experiences and approach to re- approaches from the respondents, known. ACES also promotes best practice opening office accommodation. including the following conclusions: through the ACES Award for Excellence. • The main reasons for the failure He is influencing and promoting the ACES ACES recruitment initiative – members of CATs were the failure of the Business Plan – there is huge expertise recognised the need to address this issue, community group to sustain its in this organisation - and his message including the skills agenda, and recognised financial commitments, followed by was ’let’s use it across the country’. Keith the potential value of the ACES/CIPFA the failure of the group itself pointed out the benefits of sharing Diploma in Asset Management. best practice which we do as ACES • Statutory testing and inspections members, by using the new website and Council house building – the Welsh appear to be an area that local contributing to ACES’ Terrier. Government’s decision to suspend the authority landlords need to address Right to Buy has enabled local authorities • The availability of best practice guides There followed a wide-ranging agenda, to invest in new social housing without would be helpful, as would local which included debate and discussion on: the prospect of losing stock. Welsh authorities learning from each other. authorities have the right to bid for C-19 – Tony Bamford outlined to his home funding from the Land Release Fund, Our next meetings, AGM and ordinary branch his role as ACES’ Covid Liaison which is geared to narrowing the viability business, are scheduled for 19 November and, Officer. He acknowledged the challenges gap for the development of affordable with local lockdowns popping up, it appears of the responsibilities and asked members and social housing. they will also need to be held virtually. Other interest areas

MUSINGS 3 The last three months Simon Eades

I am sure that, like everyone, these working from home, some with the added last few months have been different. distraction of home schooling, has been Lockdown arrangements have placed new humbling. Perhaps this time I ought to be constraints on life which we have never more respectful of those who are not as experienced before and may have made fortunate as I am. the tone of my 2 earlier articles appear Lockdown may have seemed to be a both light hearted and flippant at times. golden opportunity for me to complete Simon started his career in the commercial field, moving to private I had no intention of looking back the clearance exercise and I have practice in 1983. In the mid-1990s this time with rose tinted spectacles, continued to do so. However, lockdown he joined Great Yarmouth Borough rather to take a more measured look started with the death of my father in Council and in 2006 moved to at my life as a chartered surveyor. The early March at the age of 94 and my life Waveney District Council and retired efforts of watching from the sidelines was diverted in another direction. The in 2018. those keeping the workplace going difficulty of dealing with probate matters

THE TERRIER - AUTUMN 2020 77 became a priority and hopefully the end others, the assets in the north of England there would be a conflict of interest. My of the first phase is in sight. It is at this and Scotland and did involve some client was a chartered surveyor and had time in life that, perhaps, you have the travel. The opportunity to go to places dealt with father on many occasions. opportunity to review life when someone like Edinburgh, York and Hartlepool were Both had a high regard for each other close to you has gone. I have realised pleasant and thoroughly enjoyable. Our and the client was having nothing of it! how inspirational my father was to me paths did not cross in a professional way, Accordingly, I was required to confirm and the sad fact is that there will never but he was always keen to hear how I was formally to my client, my employers, both be the opportunity to ask him questions. doing. The differences between the legal sets of solicitors and the retained surveyor It is a time to reflect and look back with systems in Scotland and England were employed by the retailer that my father memories from many people, and to hear a subject we talked about on more than was the chairman of the tenant company. how his life affected so many people. one occasion. I completed the negotiations and a new It is a strange sensation going back to After 5 years I wanted a change of lease was agreed. sort out the house and his possessions and emphasis and decided to enter private Eighteen months later the tenant papers when he is no longer there. He had practice in Norwich. This gave the bought the freehold and the need for moved into a care home last December opportunity to expand my experience and the offices subsequently diminished. when he was no longer safe at home and hopefully undertake work for Norwich Eventually the building was demolished I started the task to clear the house. It Union. I found working in private practice and the retailer extended its car park! This was strange clearing through his papers equally stimulating and the opportunity case could have caused some difficulty at that time, knowing that he was not to generate a caseload of client work a and it was suggested by some in the coming home. However, there was little challenge. However, father and I were office that, for my own security, I should opportunity to talk in detail as his memory careful that my role in private practice was ask father for his client list. My immediate was poor and his health was in decline. not seen as an extension of his practice. reply was that this was a hypothetical I discovered early on that he was In any event his clients, for the most part, question: I had no right to his privileged someone who kept everything - I now had established agents and where I did information but if it was in the public know from whom I inherited my habit act, it tended to be against his practice. It domain then that was another matter. of keeping everything. He had a notice was always good to get a successful result! Father always had the knack of knowing at home which read: “If in doubt throw In 1986 I moved to a commercial when things were going in the wrong it out.” The task of clearing his house practice in Norwich where I spent 9 years direction. In 1995 I was made redundant illustrated that he was never in doubt and undertaking landlord and tenant work, and it was a difficult few months. I had all subscribed to this motto absolutely. before becoming responsible for the the support that I could have asked for He worked as a solicitor in Norwich for agency department. It was exciting work and I joined local government with some 36 years and after retiring, continued as and I continued to attract clients, but trepidation, but I have never looked back. a consultant for some years afterwards. I hardly ever from his practice. I may have He also knew how to ask questions. once joked with one of his former clients, been instructed by clients who employed In 1976 he was Chairman of the Norfolk and a good friend of the family, that his practice as their legal advisors, but we and Norwich Incorporated Law Society. he was happy to pay for his advice. He did not discuss work matters at home. He invited me to the annual dinner. I replied that he was and was also sure we I soon became aware of the actual accepted. On the morning of the dinner received advice from father. I said that we implications of the concept of conflict of he reminded me and then said that I did but we did not pay for it. Quickly he interest and the RICS requirements that would be driving him to the dinner – and commented that he was sure I did pay, needed to be put in place. Father had some accordingly, I would need a clear head! As but not necessarily in financial terms! outside interests as a consequence of his we drove to the venue, he dropped into We got on very well, but as with any work. We were aware of some and several the conversation that he would like me to family we had our moments. He was there continued after he retired as a partner. take his principal guest back to his hotel. It when I needed his advice. In 1987 I was instructed by a solicitor was only when I read the menu that I saw My sandwich course at Trent to represent the landlord in a rent review that his principal guest was Sir Frederick Polytechnic included a year of of a small office block let to a firm of Lawton a Lord Justice of Appeal and, at the professional training in the estates chartered surveyors in a market town in time, one of the most senior judges in the department of Norwich Union in Norwich. Norfolk. I concluded the rent review and country. He delivered his humorous speech An integral part of the course was the thought nothing more. In due course, full of recollections of his life and times completion of a dissertation. I decided the tenant moved out and the landlord without any notes. It was an evening I still to do a study on lease terms and father – the former senior partner of the firm remember. I have never driven so carefully did provide some tips for me to consider. of chartered surveyors - let the building through Norwich City Centre! Some were useful but others were as offices to the principal retailer in the These last 3 months have been a discounted! They may have been used in town. The lease came to an end and I was voyage of discovery and recollection. practice, but they could be omitted from instructed in the renewal. It is only by looking back that the past my dissertation! My difficulty and real conflict was makes sense, but I wish I had had the I returned to Norwich Union when I that father was the Chairman of the chance to ask him some more questions. completed my degree and qualified as board of directors. I had known of this Sadly his health had declined and I a chartered surveyor in 1980. My role in particular appointment for several years never had the opportunity. property management involved, with and so offered to stand down, as I felt

78 THE TERRIER - AUTUMN 2020 HERDWICK TALES A well-known local character

Dave Pogson

I’m pleased to have cajoled Dave into writing more Selwyn tales.

An introduction Politically it has a ‘hung’ council with the The Selwyn series that preceded ‘Herdwick Liberals being the largest party, followed Tales’ was written specifically for the Terrier. by the Tories, plus a handful of Labour Each story was a self-contained episode in and Independent councillors, meaning For 50 years until retirement the life of an early-retired council property that the membership and chairmanship of Dave practiced as a surveyor manager from 2002 to the present day committees and working groups is shared in Lancashire and Cumbria, and beyond, as he continued to maintain between the parties. becoming a Fellow of the RICS occasional contact with his former ‘Thanks for the water. What are you and working for the Department of the Environment, Lancashire colleagues from the fictional Herdwick drinking? Rampant Ram just like your County Council, South Lakeland District Council. They can still be read in father … although Selwyn would have had District Council and the NPS back-issues of the Terrier, starting from ‘The a pint not a half of course.’ Group. During that time, he wrote Final Vote’ in 2017/18 Winter Terrier [Ed – They laughed. articles on surveying topics and www.aces.org.uk/library/ ]. ‘Yes he liked the local ale.’ work experiences which allowed The characters often presented Farah, the current Chief Executive and him to introduce some controversy, controversial and outspoken opinions former Property Services Manager of humour and the odd bit of fiction. on local and central government policy Herdwick District Council and Lisa, Selwyn’s https://davidlewispogson. and practice. The stories were fictitious daughter from his first marriage, were wordpress.com and occasional historical background seated in the front window booth of the details may have been changed to fit the Wandering Tup on Sheepfold Lane, looking chronology. The views expressed were across at Shepdale Town Hall. It was sunny those of the author, not those of ACES. The for the time of year and the street was initial series ended with Selwyn’s death crowded with shoppers, office workers from old age in 2036. seeking lunch and late-season tourists Herdwick Tales is a supplement to that following the Walter Winster town trail, original series and the same disclaimer before dispersing to the fells to marvel at applies. The author offers thanks to the unique Herdwick sheep which now former ACES member Martin Haworth played such an important role in saving (ex-Lancashire County Council) for the planet. The timeline on the electronic contributing suggestions to help improve banner running across the town hall’s first this series. floor balcony was on a loop reading: *** 12:25 Friday 24 October 2036: … Herdwick District is a large, attractive Breaking News … Shepdale Museum rural area in the north west of England. honours well-known local character… Its main, centrally-placed administrative Farah nodded towards the timeline and town is Shepdale with an assortment of said, ‘He deserves the honour.’ smaller market towns and many villages ‘No doubt you had a lot to do with it?’ scattered around it. It has fells and valleys ‘Well, he was my mentor but it wasn’t and lakes. Its western edge wraps itself my idea. However, when the Friends of around Herdwick Bay in the Irish Sea. The Shepdale Museum raised it I was happy main employment is farming, forestry to help. Herdwick District doesn’t have a and tourism and in the summer it fills to lot of famous sons or daughters to choose bursting point with tourists. In winter the from, so why not honour the ones it has. Herdwick sheep outnumber the residents. There’s Walter Winster, the world-famous

THE TERRIER - AUTUMN 2020 79 Photo courtesy of Garry Lindsay

Herdwick dialect poet of course, who fell off ‘So what have you brought for me? I inside its case. the roof of this very pub and is reckoned to recognise his old briefcase.’ We also have 2 matching leather-cased still haunt it. And there’s Philip, who is still Lisa made a space between the drinks, 100-feet Rabone Chesterman imperial/ very much alive as Managing Director of hoisted it off the floor and plonked it on decimal tape measures. He was never Herdwick Powersource. His development of the table. comfortable with the laser gadgets. One the nuclear fusion battery, thereby single- ‘After dad’s funeral, my stepmother tape measure has ‘Buying’ written on it and handedly saving the planet, will earn him invited me up to go through his ‘Selling’ is written on the other in indelible his place in history. So he deserves to be possessions and said that I could take any ink. You must have heard him tell that old there after his death, but he’s far too young personal items of his that I might like. This surveying joke about these; that one was to be history yet. And that’s about it. Let’s was lodged in the bottom of a wardrobe. shorter than the other, depending upon face it, the big world events have pretty- When you mentioned that the museum what the job entailed.’ much passed Herdwick District by. But was looking for exhibits, I thought that its Farah laughed. ‘Yes, I remember him history can be modern as well as old, and contents summed up dad admirably.’ catching me out with that when I first of local as well as national importance, so Lisa opened it up and began to describe started as his trainee. How he laughed at why not an exhibition about one of its well- the contents as she placed each of them on my gullibility when I believed him.’ known local characters?’ the table. ‘The envelope contains some old photos ‘But dad’s fame isn’t really in the same ‘There’s his old ‘Associate’ and ‘Fellow’ of dad with various people at presentations league as those others. He spent all his Chartered Surveying certificates which and leaving-dos. You’ll recognise a younger working life at the council, but others have he refused to send back to the Royal you on some of them. There’s an early one done that too … you included, apart from Institution on principle after terminating with his old boss Arthur, and some with your maternity breaks. He wrote a few fell- his membership, following his early his drinking mates Jim and Eric and others. walking guide books which gained him the retirement in 2003. He said he was keeping Most of them died before he did. nick-name ‘Pilot of the Fells’ and generated a them, as they’d been more-than-paid-for I’ve also brought a set of the signed, bit of national interest, but that’s about all.’ through annual membership fees for in first-edition guide books that must have ‘No matter. That’s enough to be famous excess of 30 years. been presented to him by the Herdwick in Herdwick and I think it’s fitting that There’s a well-thumbed copy of Parry’s Gazette when they originally printed they honour Selwyn. After all, people Valuation Tables 1966 Edition with tax them. They may be worth a few bob now, in Westminster have been granted supplement at 8sh/3p in the £, which but I’d rather put them on permanent knighthoods for less effort. He also did lots he must have bought as a student. Also, loan at the museum for anyone to see, of other things – training loads of student his last photo-identity badge from his rather than lock them away in a cupboard. surveyors, including me, over the years, Herdwick District Council days. You’ll These are what earned him that “Pilot of coming back to help out with the asset probably recognise those items tied in the Fells” nickname.’ valuations after he retired, helping save the a bundle with pink deed-parcel string. Farah smiled and nodded, ‘They were museum. When you think about it, he did They’re an assortment of imperial and before my time. He must have walked lots for the community on the quiet.’ metric scale-rulers which appear to be every footpath and fell in Herdwick when ‘Well I suppose so. He’d appreciate you his career-long collection, judging by the he was a young surveyor in the 60s, 70s saying that, even though dad would be faded colours and worn graduations on and later – hence the titles ‘Footpaths amazed and, most likely, too embarrassed some of them. That small, wooden one and Fells of Herdwick District’ - and spent to admit it.’ looks ancient. hours photographing and sketching and ‘What happened to Bob, Selwyn’s old There’s a solar-powered Sanyo calculator, annotating all the routes in incredible collie?’ I guess from the 1980s, because he detail. They are now an historical record in ‘My stepmother was too old to exercise hated relying on anything that needed their own right. I’m told that second-hand him. He went to spend his retirement with replacement batteries. Remarkably, it still copies still sell on e-bay and people still Bernard on the farm up in the Shepdale works and has a small handwritten booklet collect them. I’ve heard that the Herdwick Valley. Plenty of sheep for him to watch up of imperial/metric conversion tables for Gazette is thinking of bringing out a re- there. He seems quite happy.’ area, distance, volume etc, cut to tuck print as it still receives requests for them

80 THE TERRIER - AUTUMN 2020 from all over the country. They’ll go well time, travel to the Peoples’ Republic of ‘Maybe so but they might offend the with his old office desk which they’ve China was just opening up and I was descendants of those people. You know already taken as an exhibit. Anything else?’ the only European living in the City of what it’s like in Shepdale – kick one and ‘Yes, there is. This.’ Huainan. Phone calls to and from China they all limp. However, they are interesting, Lisa reached into her pocket and pulled were difficult to make and very expensive, particularly to me, and you can read the out a small, wafer-thin plastic square with so I exchanged e-mails with my parents transcripts if you want to. As you know a paper label stuck to it with the word ‘Lisa’ instead – mostly regular short ones with dad had a very respectful and professional written on it. my mother. In between her e-mails, about public manner when he worked for the ‘Err, is that an old floppy disk? I haven’t once a month, dad would write longer council but these e-mails show that private seen one of those in decades. Now that is ones. Initially they were intended to side of his character that he kept hidden. modern history. I wonder what’s on it.’ help me overcome my home-sickness, He does express some rather irreverent ‘Well, I was curious myself, so I managed especially as that was when mam was just views on his colleagues and the workings to find someone with some ancient gear starting with her illness although, to be of local government.’ who was able to fire it up and read it. I’m fair, we didn’t know then how bad that ‘In that case I definitely want to read not sure that the contents should be made would become. As you know, working for them,’ said Farah. ‘I just hope that he spoke available to the museum though.’ the council was his life, so dad would tell kindly of me.’ ‘Now I’m really intrigued.’ me about issues that arose at work, about *** ‘Well, you may not remember, but in his colleagues at the council and about 2001 I took a gap year between getting his clashes with the councillors. He called Selwyn’s emails from 2001 will appear as my B.A. and starting my M.A. I went them ‘Herdwick Tales’.’ further Herdwick Tales in future issues of ‘Teaching English as a Foreign Language’ ‘I guess most of the people mentioned in ACES’ Terrier. on mainland China for 6 months. At that them will be dead by now.’ THE RETIRED RAMBLER

“What does this have to do with real spoof headline was fairly accurate in that Music News property”, you may well ask! Well, it was prediction. However, as for hanging up the 23 May 2019 part of the front cover of Estates Gazette guitars, the 2020 “No Filters” tour had to of 24 September 2005, part of an advert be postponed but it seems the Stones are Rolling Stones: placed by a retail specialist firm called still pretty keen to tour! Some of the other “One More Tour” Lunson Mitchenall which was celebrating predictions in the advert may turn out to Ageing rockers the Rolling Stones have its silver anniversary at that time. The front be a little wider of the mark though…… finally decided to hang up the guitars cover advert was in the form of a selection for good and call it a day. Again. But not of ‘spoof’ newspaper clips looking forward Other clips were: before surviving members Mick Jagger 25 years from 2005, with the caption, and Keith Richards have taken the “Prepared for the next 25 years, whatever 9 May 2010 band out on the road for one last time. they may bring”. – Apple launches its new I-POD 2010 Despite being 76, lead singer Jagger Being a bit of an old rocker, the ‘Music commented “It’s great to be singing News, 23 May 2019 - Rolling Stones: “One 27 September 2024, 3.28 am songs like “Let’s Spend the Night More Tour”’ headline caught my eye. – Man on Mars!! Together” and “Start Me Up” to a whole And what were The Rolling Stones doing new generation of fans.” in 2019? From June to September they SPORT – 3 June 2026 were on a tour of North America, so the – England Win World Cup

THE TERRIER - AUTUMN 2020 81 .

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DVS EXPERIENCED DELIVERY TO We value REGIONAL, LOCAL AND DEVOLVED GOVERNMENT. property

Being part of the public sector means we understand the needs of our many public sector clients and the challenges they face. DVS has national coverage but prides itself on its local experience and knowledge.

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ACES ONLINE CONFERENCE 2020 PUBLIC PROPERTY IN RECOVERY

A series of webinars for ACES members and others working for the public sector Date: 311 November 2020. FREE for ACES Members, public sector employees, sponsors and their staff

Covid-19 has exacerbated the public sector’s pre-existing challenges such as climate change and environmental emergency, housing provision and economic growth, and has crystallised concerns around local authority property investments and the fu- ture of our town centres. At the same time we now face sweeping and permanent changes to working practices and the tradition- al office base, combined with damaging economic prospects. The ACES Conference will explore the role of public sector asset managers not just as recovery agents but as innovators. As this unprecedented year draws to a close, we will consider how we can deal proactively with the challenges we face and the opportunities we are presented with. We will examine how we can secure the optimum performance from all our assets to help our organisations through the gathering economic, environmental, social and financial storms. Potential Programme:

Public Sector Property in a PostCovid World Considering the future for the public sector, our world, our economy and our resources. Dis- cussion of the role of the public sector asset manager as a recovery agent.

Recovery through Regeneration The challenges and opportunities of growth, the future of our town centres, “build, buld, build”, the role of the public sector acquisition and disposal of assets.

Decisive action in an Environmental Emergency A focus on the asset manager’s role in managing the environment, including a look at climate change and carbon neutrality, waste and contamination.

The Property Market A tool for Recovery Considering how the public sector can benefit from the property market to realise financial income, rationalise property holdings, manage development and facilitate economic intervention.

Professional Perspectives A selection of presentations of interest to practitioners.

Right people, right place, right time A look at the changing face of the public sector workforce and working practices and the challenges of recruitment and skills resourcing facing public sector property managers.

What Next? Public Sector Property Investments A look at public sector property investments, their role and performance, the impact of a changing regulatory regime and their risks in recessionary times.

ACES: A 2020 Look at Local Challenges An insight into ACES members’ experiences of facing up to the challenges of 2020 and beyond.

Providing homes for all A discussion on the housing shortage and the public sector’s rising to the challenge of meet- ing its responsibilities to house our population.

For more information, please visit www.aces.org.uk, or click HERE