ANNUAL REVIEW 2014–15 C O NTENTS 1 Chairman’s Foreword 3 Chief Executive’s Review 6 Completed Projects 26 Projects Under Development 58 AHF Financial Information 62 About the AHF FRONT COVER: High Mill (p.18) INSIDE FRONT COVER: Hutchesons’ Hall (p.21) CHAIRMAN’S FOREWORD The last year has seen radical change in the heritage sector, and in the Architectural Heritage Fund. Several of our funding partners are still in the throes of reorganisation and many recipients of our loans and grants have had to respond to the harsh economic climate in new and imaginative ways. All those who care about our built heritage, and understand how it can bring social and cultural benefit, can take heart from what has been achieved in the last 12 months. The need for the AHF’s advice, loans and Finally, I would like to thank my fellow grants has never been clearer. To help Trustees for their wisdom and support, and meet our partners’ expectations the AHF all of the staff for the dedicated way in which has reduced its own management costs. they pursue the AHF’s work. There is a It is also strengthening its staffing in the shared sense of commitment, which makes regions, where there is most potential for involvement with the AHF such a pleasure. regeneration through better use of heritage assets. We shall be freeing up funds for the After 16 years on the Council I shall excellent work that our Support Officers be standing down, in many ways with are doing, by moving to a smaller London considerable regret because the AHF office with the Society for the Protection is moving in exciting new directions. of Ancient Buildings as our neighbours. I greatly appreciated the Council’s invitation to become Chairman, to help steer the The Council greatly appreciates the efforts organisation through choppy waters and that our partner organisations and our own to find an effective successor, and at the staff have made to secure the repayment time I made clear that I would not serve of a few substantial and long overdue loans. the usual full term. I could not be more Most clients understand that the terms delighted that Liz Peace is to succeed me of our loans have to be respected, and as Chairman, bringing all her experience repayments made in full, because that is as a former Chief Executive of the British the way that other worthwhile projects can Property Federation, a senior civil servant proceed. The AHF is a sympathetic lender, and a serving trustee of several leading and we will always listen to requests to alter conservation organisations. the terms of our loans if that is the best way to achieve our objectives. But this depends The AHF is also fortunate to have recruited on openness and the sharing of information Ian Morrison to succeed Ian Lush as Chief at an early stage. Failure to repay loans Executive and to build on his excellent threatens the very future of the AHF. work, described in last year’s Annual Review. Ian Morrison has joined us from the Heritage For the first time this Review includes a Lottery Fund, where he helped to initiate brief report on the impact of the AHF’s work several important new grant programmes, over the last 10 years. As you will see, the and where he got to know us well. I shall be figures are impressive and underline the leaving the AHF with plans for an expanding vital contribution made by the AHF to the role, and in exceptionally capable hands. conservation of the UK’s rich architectural heritage. Future Annual Reviews will include more detailed impact reports. These achievements have been made possible by the tremendous support and generosity of our sponsors, particularly Historic England Merlin Waterson and Historic Environment Scotland, Chairman to whom we are immensely grateful. October 2015 ABOVE (top; middle; bottom): Lomeshaye Bridge Mill (p.9) Sion Mills Stables (p.17) Dawes Twine Works (The Ropewalk) (p.8) 1 29 Braehead (p.49) CHIEF EXECUTIVE’S REVIEW It is a real privilege to succeed Ian Lush as Chief Executive of the Architectural Heritage Fund (AHF) and to write my first introduction to an Annual Review. Having only joined the AHF in late March, I can claim no credit whatsoever for the achievements listed in this report. The extraordinary variety of community-inspired projects across the country which the AHF has helped move forward is testament to the outstanding skill, knowledge and dedication of the AHF staff and trustees, both past and present. Therefore, before I set out my priorities for the year ahead, it is fitting for me to review the achievements of the AHF over the last 10 years. The facts are compelling: 190 historic buildings at risk rescued across the UK thanks to £2.3 million of AHF grants and £33 million of AHF loans, and a staggering £278 million of additional investment levered in to these completed projects as a direct result of the AHF’s initial commitment (made up of £106 million from Lottery distributors, £34 million from central government, £15 million from local authorities and £123 million from trusts, foundations and private sources). Moreover, an analysis of a sample of projects that property markets. Yet, demand for AHF benefitted from an AHF early project grant loans is increasing significantly as a direct Impact of the AHF since 2004 over the last few years found that they were result of communities being encouraged far more likely to achieve success with their and empowered to take over the ownership grant application to the Heritage Lottery and management of historic buildings that 1 9 0 Fund than those projects that were not are currently in public ownership. A key historic buildings at risk repaired helped by the AHF. objective for the AHF is to grow our resources to meet this demand, and we These achievements are impressive and are very grateful to both Historic England 3 6 8 underline the vital role of the AHF. Our focus and Historic Environment Scotland for the organisations supported on providing advice and financial assistance additional investment provided soon after with an offer of a grant or loan early on can help ensure a project sets off my appointment to help achieve this goal. down the right path, saving valuable time and resources whilst also unlocking Despite the successes reported above, £ 2 . 3 m substantial investment. We will be seeking these remain very challenging times for of early project grants awarded to expand our advice and grants service the heritage sector, for the AHF’s clients in the years ahead. and for the AHF itself. The decline in public funding for heritage, which began its £ 3 3 m We also intend to increase the amount of downward trajectory as far back as 2003, of loans offered projects we are able to support through the is accelerating rapidly. The loss of grant provision of acquisition and working capital support, combined with the recent loans. The AHF was set up in 1976 as the inflationary pressures on construction £ 2 7 8 m ‘heritage bank’, and this remains a vital costs and the appalling drop in numbers of additional investment secured core part of our business. Since then we of local authority conservation officers, add have recycled our capital by a factor of 12 up to a very tough environment in which and have now awarded loans with a total to operate. Too many of the AHF’s clients 6 0 % value of £121 million to 870 projects across have been caught out by following business Heritage Lottery Fund success the UK. Our current lending resources have plans that were either heavily dependent rate for AHF-supported projects remained at almost an identical level over on public grant subsidy or that did not take the last ten years; no small achievement sufficient account of fluctuating market given the volatility of the financial and conditions (or both). ABOVE: Govanhill Baths (p.22) 3 Applications The heritage sector as a whole has little As a result, there is more demand than choice but to adjust to these new economic ever before for the services offered by the for our grants and financial realities and develop robust AHF. Our contracted Support Officers – Gavin are at a record business plans that focus on income Richards, Gordon Barr, Tessa Hilder, Lucie generation. That is why I introduced the Oakley and Josephine Brown – continue high, reflecting Heritage Enterprise Grant programme to field many hundreds of enquiries from the rise we whilst at the Heritage Lottery Fund (HLF), community groups each year, all of whom a scheme created specifically to encourage wish to save a local historic building that is have seen in the commercial use of historic buildings precious to them and turn it into a community the number of at risk. Heritage Enterprise was designed asset. Applications for our grants are at a with Building Preservation Trusts (BPTs) record high, reflecting the rise we have seen loan requests. in mind, as it can be a useful mechanism in the number of loan requests. The AHF whereby BPTs can both rescue a historic investment team – Andy Richardson and Ian building and also develop it as a commercial Rice – work tirelessly on assessing new loan enterprise that will generate an ongoing applications whilst also maintaining good revenue income (which can be reinvested communication with our existing clients. into new projects). We hope BPTs and other community organisations will embrace The AHF has always tried to be both the opportunities offered by Heritage flexible and supportive to our borrowers, Enterprise, and we intend to work closely renegotiating loan terms where possible with the HLF and with the Association of to ensure repayment schedules are realistic Preservation Trusts to help generate better and affordable.