Marina Bagan our Senior Architectural Technician at PRE gives a detailed insight into why open plan office hot desking may become the past and Flexi hybrid workspace the future.

” As we have seen for the last weeks (and months) Covid-19 is changing everything around us. From the way we learn, work and communicate, to the way we shop, take part in events and work out. So as someone in the architecture industry I wonder, how will all this affect the future of office architecture?”

Office Architecture in a post Covid-19 world

If we have a look at the present times, due to government measure to stop the spread, office spaces, homes, supermarkets, etc, are already changing their space distribution, the way they are being used and their spaces.

In 2017 only 5% of Europe’s working force was working from home, however, since this crisis started, we have only seen more and more people starting to work remotely, to the point that now more than half the population is working from home. So the way we conceive work and our office spaces is changing. 

What this forced-to-work-from-home “experiment” is showing us is not just the obvious benefits, like the reduction in pollution, the increase in productivity, etc. But also that remote work is possible and positive, and has also presented opportunities to companies considering hiring people from all over the world focusing in talent not in location. So what could this mean? Well, it means two things. On one hand, companies allowing people to work remotely would need smaller office spaces or office spaces that are more flexible. We have already seen companies renting desk for others to use. This could be the moment for architects and designers to push new designs that underpin this transition. 

On the other hand, it means that our homes will become our new office –  a space to work, to be productive and focused, take calls, etc. Until now, housing search didn’t always consider that the design should include a proper space to be used as an office. We would typically consider having things like a living room, maybe a bathtub or a garden, or even a garage. But now our priorities, points of view and experience have changed, and maybe from now on we will need an office in our homes (or at least a flexible space that can be used as a home office) and therefore future housing designs will have to include this. And it’s not just the home office. We have discovered that to be able to work from home and still take proper breaks, spend quality time with family or spend time on hobbies, we need inspiring spaces. Inspiring spaces that have the power of changing your working state of mind to a different state of mind. It can be a small corner with a chair where you can have a coffee, or a terrace where you can plant some tomatoes or a room where you can practice some exercise. Those spaces have become more important since the lockdown, so the present and future home design is going to have to cater to these new and important demands.

A possible new Office

It also important to bring up the concept of social distancing in an office building, because this crisis will be overcome and the offices will open again but it makes you think that we should learn something from this. We should consider that maybe our architecture and design could help to prevent or slow down the spread of any other disease that may come. For example, it’s likely that from now on we will find sanitiser dispensers in office buildings as we find fire extinguishers. Also, maybe some parts in our buildings could be redesigned to avoid unnecessary contact with people, like in the toilets or the entrance areas. We are used to no partitions in our office space, but what impact would have to bring back some of the partitioning? These, and lots of other ideas, will have to be thought and studied in future designs. 

We’ve gone From the 40s when the open plan offices started to be in style (The Apartment movie, 1960), to the 80s-90s where the cubicles appeared (Office Space movie, 1999), to the present, where you can find office spaces mixed with eating spaces, resting spaces and networking. It’s clear that architecture has always evolved to accommodate new needs and demands, and this time architects will have to be prepared to take fast action and find efficient design solutions. 

Flexible spaces and new concepts

We can already see how some buildings have changed – the utility they had before the crisis to a new utility so they can be help in different ways in the current situation. As examples, we have the Cleveland Clinic School that has become a temporary medical hospital, as well as the New Berlin airport. This makes a lot of sense if we consider that some hospitals can’t cope with all the patients they have, and at the same time some airports have very little traffic and that most of the schools and universities are closed.

At present, we can also find that architects and designers have come up with designs to encourage fast responses and help with the highly overcrowded hospitals. Examples of this are shipping containers used as health care centres, pavilions used for patients and doctors, urban quarantine camps, emergency medical shelters etc. All these designs have important concepts of mobility, temporality, efficiency and safety that are going to open a new future for these kinds of designs.

Also, in the last few weeks there has been more than one case of an Airbnb host, who couldn’t rent their place due to the outbreak, but instead lent it for free to a nurse so they could rest without having to travel all the way home when they needed it.

New ideas and projects are coming up to help patients, hospitals and supermarkets, to overcome this crisis. The architecture can’t be oblivious to the change required, not just in the designs, but also in their process of thinking. More than ever architects and designers need to be resilient and responsive. It is time to think deeply about what we can learn from this crisis, and also to find points where our architecture still needs to be moulded into a solution. It’s going to be a long process, but as new trends merge, responsiveness and flexibility will shape our future.

For more information about this article or a competitive proposal for Architectural or Measured Surveys please do contact one of our account managers [email protected] 

“In Q1 2020 our Dilapidations Team successfully negotiated a large reduction in the original landlords claim of a prime retail shop on Oxford Street, London W1.  A great result for our client, an International Luxury Italian bag Retailer, in these very testing and difficult times – COVID-19.” 

“PRE possesses a range of technical experience and skills giving you the client proactive best value.  We are Nationwide, Mobile & Fast – A big well done to everyone involved in the negotiations”

 

1. What options are available to a landlords if tenants default on paying their rent?

A landlord will usually have the option to forfeit the lease if rent remains unpaid for a certain period. However, in many cases it will often not be in the landlord’s interest to do so as they may not be able to quickly re-let the premises to a new tenant (especially when other commercial tenants are likely to be under the same strain). Therefore, rather than receiving no income from an unoccupied property, a rent suspension or reduction may be preferable. A potential rent concession may be for the frequency of rent payments to be varied or for rent to be paid based on a percentage of turnover.

 

2. What Protection can tenants receive?

The government has recognised that many landlords and tenants are making voluntary arrangements to preserve tenancies affected by COVID-19, but that more legislative protection is needed for businesses struggling with cashflow and concerned about eviction. These protective measures have been added to the Coronavirus Act 2020 which came into force on Wednesday 25 March.

In effect, the measures will provide that:

1. A landlord is unable to exercise a right of re-entry or forfeiture (termination) of a tenancy for non-payment of rent from the day after the Coronavirus Act comes into force (26 March) until 30 June 2020 (the ‘relevant period’). The relevant period may be extended by the Secretary of State. ‘Rent’ includes any sum a tenant is liable to pay under a business tenancy, including insurance rent and service charge.
2. For existing litigation based on forfeiture for rent arrears, a tenant cannot be evicted until after the end of the relevant period (currently 30 June 2020).
3. Failure to pay the rent during the relevant period cannot be treated by the landlord as persistent delay in paying rent.

 

3. The potential problem with Landlord Dilapidation claims

Dilapidation claims stem from the way a tenant uses a property. Should the tenant choose to alter the property, as many retail, industrial and office occupiers do, they pledge in their lease to return the property in the same condition that it was given. If a landlord does not feel that the property is being kept in a suitable condition, or if the property is not returned in adequate condition at the end of a lease, they can undertake remedial works themselves, and charge the cost back to the tenant.

Landlords rely on the ability to make dilapidation claims to put their properties back into a lettable state and maintain the infrastructure and fabric of assets. The most diligent of landlords will have worked in estimates and forecasts for likely claims on each of their assets as part of their budgets and financial planning. One of the biggest long-term financial dangers for them is, therefore, multiple occupiers exiting a space en masse in financial difficulty, leaving landlords with a diminished ability to claim for dilapidations. This could lead to gaping holes in their finances, running into the multi-millions across portfolios.

 

4. How Landlords can reduce their exposure

While the risk of occupiers closing is not something that can be controlled, there are a number of measures that landlords can take to try to minimise risks during this difficult time. In order to keep tenants that survive for the long term, landlords must be willing to work with them, without sacrificing the need to maintain the value of their assets. There is a real need, now more than ever, to inject some humanity into this situation, to mitigate the effects of COVID-19 on businesses.

 

5. Lease monitoring

Landlords should examine their tenants’ leases carefully. This is especially important for landlords with large portfolios – it is easy to let things slip through the cracks.

One of the most common (and costly) culprits is notice periods. Leases generally require tenants to remove alterations, and landlords must often provide notice to do so within a prescribed time frame. Failure to provide notice could result in the landlord missing its window for reinstatement claims. If lease renewal negotiations are ongoing, it is key to accompany the formal notice with a well-considered letter explaining why it is necessary to serve notice in this manner. This maintains relationships while also protecting the landlord’s position.

 

6. Break clauses

A break will often be conditional on providing vacant possession or, in some cases, complying with covenants in the lease. With the current ability to undertake works significantly hampered by government-imposed restrictions, and much of construction grinding to a halt, how will tenants comply? In a significant number of cases, it is expected that they won’t, but it is yet to be seen if landlords will seek to frustrate break clauses on this basis. Careful consideration and legal input should be obtained as courts may potentially take a dim view of a landlord’s actions depending on the particular circumstances. A short-term lease extension may be a feasible alternative.

 

“Should you require further information regarding this article or are a Landlord/Tenant who would like dilapidations advice, such as lease liabilities relating to repairing, decorating, and creating or removing alterations and additions, please do contact one of our  specialists who can guide you through what can be a complex process”

Nicholas Woodman our Assistant Building Surveyor at PRE gives a detailed insight into why Green Wall Facades are on the increase+% in old and new buildings.

” The COVID-19 lockdown has led to cleaner air, but will do little to address the issue of air pollution in the long run.  Working from home will become the norm with current buildings having different uses.  The world has changed and the Environmental, Social and Financial impacts need addressing.  Can Living walls help cities worldwide tackle these important issues?”

 

What are Green walls/facades?

Green walls also known as Living walls, introduce plants into building facades. They can be split into three fundamental types; Wall climbing, where soil is planted at ground level or in planted boxes so the plant naturally climbs the façade, this requires no supporting structure. Hanging Down, which involves soil in planted boxes located on each story of a building enabling the plants to grow freely. Lastly Module, these are lightweight mounted panels which require supporting structures to be built on the façade. They are a feature which is growing in use and becoming more and more popular especially in cities. Below is an image of Edgware Road Underground station.

There are factors involved with green walls and these can be grouped into environmental, social and economic.

 

Environmental Factors

There are several benefits to the environment that occur using green walls. Particularly relevant in cities, direct shading can be caused by green walls which results in not only the building experiencing a relatively low temperature but also the local area such as the external roads and pavements. Secondly, plantation, especially trees effectively reduce levels of gaseous and particulate pollutants through the process of photosynthesis. This process leads to the air quality improving within the local environment. In more urban areas there is a substantial lack of green land resulting in a greater presence of pollution, with green walls being adaptable to skyscrapers and office buildings they can provide a substantial improvement to air quality. In addition to this, green walls supply an alternative habitat to urban plants and native wildlife, this can improve the ecological quality of the environment. Lastly, plants are proven to reduce sound frequencies through absorption. By implementing them onto a façade of a building, reductions in noise pollution become evident.

Social Factors

In addition to the environmental benefits, green walls also play a role in the social aspect of the local environment. Plants can provide areas for playing, meeting and establishing social contacts, isolation and escape from urban life. As mentioned previously, green walls have a positive impact in relation to the air quality in the environment. The improved air quality results in direct health benefits for occupants and people in and around the building. Also, visual contact with green spaces can reduce stress, improve patient recovery and build a higher resistance to illness.

Economic Factors

Many of the economic benefits through the use of green walls are a consequence of the environmental impacts. For example, the plant surfaces can retain water meaning that storm water can run off and be absorbed by plants reducing the extent of storm water drainage. The life of a building can be prolonged in the sense that the green façade can reduce the climatic stress of the construction which means the cost of maintenance is reduced. Studies have proven that green walls reduce the cooling loads required to maintain comfortable temperatures inside buildings, although this is only beneficial during day times. On the other hand, a green façade can in many cases require more maintenance than a traditional wall, the cost of this must be considered by developers when working out Life Cycle Assessments.

For more information about this article or a competitive proposal for Building Surveying of Project Management please do contact one of our account managers [email protected] 

James Clarke, our Senior Land Surveyor provides some thoughts on the latest tool in the surveyor’s box.

“Over the last 5 years a rapid development in drone surveying technology has allow for cheaper, faster, easier to use equipment and software to reach surveyor’s arsenal. However, with all new technology, there are drawbacks.”

Here are some of the benefits and limitations of using drone surveys:-

 

#Benefits:

“A drone survey can cover a much greater area a lot faster than ground based surveying.

It can measure inaccessible areas that have physical limitations (roofs) or safety limitations.

Depending on the flight path/height and the sensors equipped a variety of resolutions can be recorded, dependent on the clients need for level of detail.

The data recorded is both useful and also visually pleasing, which can be a bonus for showing clients or posting online.

Combining drone data with a terrestrial survey allows buildings to be completely surveyed/modelled.”

#Limitations:

“Although the cost of drones will give you more ‘bang for buck’ than a few years ago, it can be expensive to get up and running, once the initial cost of buying/hiring the hardware and software and the necessary training and licenses have been paid for.

Unlike some of the newest terrestrial laser scanners, which are almost ‘plugin and play’, drone surveying can be very technical for beginners.

Depending on the subject, the data and the post processing can be data heavy, adding additional time.

There are a lot of restrictions and regulations stipulating where/when/ how close/ how high you can fly, which may cause some issues with data capture.

All commercial drone flying is monitored by the Civil Aviation Authority, so it isn’t something that anyone can just do quickly without going through the necessary steps.

Finally, the weather conditions on the day of survey will have a much greater impact than with traditional ground based surveying techniques.”

#Summary:

“To conclude, drone surveys will play a greater and more important role in data aquistion for surveyors in the next few years. With every new drone being released the technology is improving and becoming more affordable. The data offers a unique view that is often difficult or impossible to capture using traditional methods. However, it needs well trained operators or serious issues may arise.

Over the next few years it will be exciting to see what this new technology will present, and what potential developments it may lead to.”

For more information about this article or a competitive proposal for a drone survey please do contact one of our account managers [email protected] 

In Q1 2020 PRE Technical Due Diligence (TDD) Building Consultancy team are pleased to have undertaken comprehensive advice on behalf of a National PropCo to facilitate the acquisition of a prime Retail Warehouse Investment.  Great work by all the team at PRE – a big well done. Nationwide, Mobile & Fast

Investment Summary

• 128,106 sq ft (11,901 sq. m) total GIA arranged over seven retail warehouse units, an A3 pod and two additional storage units.
• A diverse tenant line up including Next, Boots, TK Maxx, Argos, Home Bargains, Decathlon, Peacocks and Costa.
• Vendor was seeking offers in excess of £21,100,000 (Twenty One Million One Hundred Thousand Pounds) subject to contract and exclusive of VAT.
• A purchase at this level reflects a 8.25% Net Initial Yield after purchasers costs of 6.75

Client Technical Due Diligence:-  

1. Building Condition Survey      

Every property and instruction is unique, and PRE Chartered Surveyors’ Building Surveying services are tailored accordingly to meet your objectives, effectively manage your risk and add the maximum possible value.

When weighing up whether to acquire or lease a building, it is critical that you have the right information to hand, from its general condition, to whether the interior layout is fit for requirements – producing reports to help you reach a considered decision.

Our TDD service at PRE  seeks to reveal the true nature of a building, starting with a building survey, assessing repair obligations for leases and benchmarking the property against industry standards. PRE can advise on the core elements of property such as; structure and fabric, building engineering services, legal and compliance matters, energy and sustainability, maintenance and projected capital expenditure.

2. Mechanical & Electrical Survey

Working with our M&E Building Services partners, PRE provide a joined up working approach to ensure that our clients receive a comprehensive service in accordance with requirements.

PRE work together with our M&E building services partners to provide due diligence building surveys and innovative design solutions that are tailored to our customers’ specific requirements in connection with our project management services. As a result, PRE  ensure that our clients can rely on specialist information and designs for all aspects of building services.

3. Reinstatement Survey (RCA)

Accuracy is essential in ensuring that a property is adequately insured, should the property be completely destroyed. Most underwriters will insist of a professional evaluation of a building. Our expert team is highly experienced and has the technical expertise to carry out this assessment.

4. Area Measurement Report

Bringing fast, accurate and due diligent expertise to referencing buildings. In order to maintain and safeguard the trust and confidence of our clients, we place paramount importance on the maintenance of certain standards of conduct. PRE standards of conduct are principally made up of certain rules, regulations and ethical principles.

Our specialist property team offers you considerable experience in preparing Area Measurement Reports and Measured Building Surveys/Architectural. Our reputation for providing a fast, accurate and cost-effective service – whether for city centre offices, retail premises or industrial sites – is underpinned by using the latest technology for reporting.

Whatever the type and wherever the property, PRE Chartered Surveyors can help you with facility and asset management through the use of technology.

We provide a unique blend of aerial mapping and land planning expertise to produce detailed site assessment, terrain modelling and hydrology assessment. We also provide roof inspections, aerial photography and filming services giving you more information which may not be possible from the ground.

6. Phase 1 Environmental Report   

Our environmental due diligence specialists are able to cover the whole of the UK. 

Whether clients are planning a small transaction on a single building, a multi-site multi-regional property portfolio transaction, or a large corporate acquisition, we can help by providing insightful due diligence consultancy that supports decision making and facilitates deals. We know that tight timelines and confidentiality go with the territory and we have built a reputation for quickly mobilising resources.

7. Cladding & Fire Risk Assessment 

Working with our specialist Cladding & Fire Risk partners, PRE provide a joined up working approach to ensure that our clients receive a comprehensive service in accordance with requirements.

 

Please do get in touch with one of our experienced team members for advice or a competitive proposal.

“Tara French Director of Operations at PRE and mother of 3 daughters gives some tips and advice on how she’s juggling working from home, dealing with her mental health and Wellbeing.

If you are staying at home more than you usually would, it might feel more difficult than usual to take care of your mental health and wellbeing.”

These are some ideas which may help:

Connect with People

• Make plans to video chat with people or groups you’d normally see in person.
• You can also arrange phone calls or send instant messages or texts.
• If you’re worried that you might run out of stuff to talk about, make a plan with someone to watch a show or read a book separately so that you can discuss it when you contact each other.
• Think of other ways to keep in contact with people while meeting in person is not possible. For example, you could check your phone numbers are up to date, or that you have current email addresses for friends you’ve not seen for a while.

Decide on your routine

• Plan how you’ll spend your time. It might help to write this down on paper and put it on the wall.
• Try to follow your ordinary routine as much as possible. Get up at the same time as normal, follow your usual morning routines, and go to bed at your usual time. Set alarms to remind you of your new schedule if that helps.
• If you aren’t happy with your usual routine, this might be a chance to do things differently. For example, you could go to bed earlier, spend more time cooking or do other things you don’t usually have time for.
• Think about how you’ll spend time by yourself at home. For example, plan activities to do on different days or habits you want to start or keep up.

If you live with other people, it may help to do the following:

• Agree on a household routine. Try to give everyone you live with a say in this agreement.
• Try to respect each other’s privacy and give each other space. For example, some people might want to discuss everything they’re doing while others won’t.

Try to keep Active

Build physical activity into your daily routine, if possible. Most of us don’t have exercise equipment like treadmills where we live, but there are still activities you can do. Exercising at home can be simple and there are options for most ages and abilities, such as:

• cleaning your home
• Where possible and safe get fresh air go for a walk and get some nature.
• dancing to music
• going up and down stairs
• seated exercises
• online exercise workouts that you can follow
• sitting less – if you notice you’ve been sitting down for an hour, just getting up or changing position can help.

Find ways to spend your time

• Try having a clear out. You could sort through your possessions and put them away tidily, or have a spring clean.
• You could also have a digital clear out. Delete any old files and apps you don’t use, upgrade your software, update all your passwords or clear out your inboxes.
• Write letters or emails, or make phone calls with people you’ve been meaning to catch up with.

Please do get in touch with Tara French, Director of Operations by mobile 07387 267 800 or email [email protected] to discuss this article or any other items of business. 

During what is supposed to be a hopeful time of year, we wish our team, clients, friends and family a safe Easter.  Stay positive and heathy this bank holiday weekend.  We would like to thank everyone who’s been supportive both clients, service providers and our important team members.

 

Over the last few weeks, we have all had to make sacrifices in some shape or form along with very difficult decisions, both on a personal and on a business level.  We thank everyone who has supported us, its very much appreciated and won’t go unforgotten.  If we can help you or your company in anyway please get in touch.  Everyone is in need of a much needed restful Easter break and we are very much looking forward to going back into the office and meeting clients face to face at some future point.  Our thanks and thoughts go out to all the Covid workers across the world. 

We will all bounce back!

Minimum Energy Efficiency Standards (MEES) – TIMELINE

 the United Nations has just postponed the COP26 climate change meeting in Glasgow (due to COVID-19) is now postponed until summer 2021 and its anticipated that following COP26, the UK government is likely to announce proposed changes to environmental legislation that will include MEES. This is designed to assist the UK government in terms of meeting their Net Zero Carbon target by 2050.

This legislation broadly ensures that the most poorly performing and the least energy efficient buildings are required to be improved.

 

TIMELINE

1st April 2016

Tenants of residential properties had the right to request energy efficiency improvements from Landlords.  Does not apply to commercial properties.

1st April 2018

Unlawful to grant a new tenancy for either residential or commercial properties with an F or G EPC Rating.

1st April 2020

It is now unlawful to let any residential property (does not apply to commercial property), including those with an agreement already in place, if it does not meet the MEES.  The minimum EPC rating is set to E, meaning that before letting or selling a property, the owner must ensure that the property is higher than F (also capturing renewals).

1st April 2023

Commercial Landlords cannot continue to let the properties with an F or G rating MEES will apply to all leases.  The Minimum EPC rating is set to E. (also capturing renewals).

1st April 2030

It is anticipated that the UK government will raise the MEES and therefore likely that all commercial properties will require a minimum EPC rating of B or C. This will require building owners to implement real improvements to the energy performance of their buildings.

1st April 2050

 the United Nations has just postponed the COP26 climate change meeting in Glasgow (due to COVID-19). This is now likely postponed until summer 2021. We anticipate that following COP26, the UK government is likely to announce proposed changes to environmental legislation that will include MEES. This is designed to assist the UK government in terms of meeting their Net Zero Carbon target by 2050.

What properties are Exempt?

Most of the exemptions to obtaining an EPC rely on the European Performance Buildings Directive (EPBD) laws, UK legislation and Part L Building Regulations (BR).  Some of these apply to places of worship, listed buildings etc.  If you would like a full list please contact us.  Other exemptions (outside of the above legislations) which apply to relevant ‘energy efficiency improvement’ or combination of relevant energy efficiency improvements, could result in a reduction of more than 5% in the market value of the domestic property, or of the building of which it forms part (e.g. internal wall insulation reducing the internal area of the property).  A tenant refusing to give consent to Green Deal measures can also be used, although this does not apply for empty properties and will also be listed on the PRS Exemptions Register.

Apart from the above, commercial properties also have further exemptions:

1. On a tenancy granted for a term not exceeding six months, unless (i) the tenancy agreement contains provision for renewing the term or for extending it beyond six months from its beginning, or (ii) at the time when the tenancy is granted, the tenant has been in occupation for a continuous period which exceeds 12 months, or
2. On a tenancy granted for a term certain of 99 years or more.
3. Obtain in writing from an approved independent installer that the ‘improvement’ could cause a negative impact on the fabric or structure.  Note: you will need a letter for each improvement measure from a qualified and accredited installer.
4. Does not apply to new landlords until six months after purchase.

I thought Listed Buildings were exempt and didn’t need EPCs?

Yes listed buildings are exempt however you still need to carry out an assessment to see if the ratings recommendations could be down to items which are not listed.  for example this could be poor low efficient Heating and ventilation Air Conditioning (HVAC) and or lighting, which is not listed and could be changed.

Do I need the common parts of a residential block assessed separately from the self contained flats?

Yes if this area has Heating and ventilation Air Conditioning (HVAC), this area would come under none domestic assessment and have its own separate certificate.

What Should Landlords be doing?

If landlords do not comply, there may be the risk of a financial penalty and summons to court. Worse still, poor energy performance will inevitably impact upon the ability to re-let or sell certain properties, with a subsequent negative impact upon property valuations.

The most proactive landlords are already taking steps now, to identify the “at risk” properties, so that a strategy can be implemented for improvements to energy performance and future proofing.

As part of our Planned Preventative Maintenance and also Technical Due Diligence during acquisition, PRE are currently advising clients on their strategy ahead of the anticipated increase in MEES.

 

We are in lockdown.

Whether the coronavirus pandemic lasts for two months or two years, the way that we live and work will be altered irrevocably

Supermarket shelves are stripped bare. Flights are grounded. Workers have been laid off; furloughed; transformed into primary school teachers. A Conservative government has nationalised the railways and is paying people not to work. And this is still only week two. In less than a fortnight, Britain has experienced the kind of social and political upheaval that normally only comes when you guillotine some royals, or storm a winter palace. But is this a brief moment of national solidarity, or a ‘new normal’?

That all depends on how long the coronavirus crisis lasts. Experts believe a vaccine for Covid-19 (the disease caused by the Sars-CoV-2 virus) is still at least 18 months away, which makes Donald Trump’s promises that the US will “reopen” in three weeks seem optimistic at best. In the UK, the more likely reality was laid out in a report by researchers at Imperial College London, which estimated that elements of the new normal – social distancing, self-isolation, rolling lockdowns – could last until September 2021. So what’s likely to happen as the coronavirus crisis continues?

The reality is, nobody knows. We have never faced something like Covid-19 before and though there are analogues in the way that countries adapt to traumas like war and famine, in the global west at least, this situation is unprecedented in the modern age. Already, the impact of the coronavirus crisis on everything from the economy to social interactions to the environment has been enormous.

Lansec cancels dividend and sets up £80m relief fund for customers.  Segro still paying dividends as it received 71% of expected quarterly rent.  BNP Paribas guarantees staff salaries for next three months.  Cushman & Wakefield make redundancies and some of the other bigger firms to include LSH,  JLL & Rapleys have put some of their employees on the Coronavirus Job Retention Scheme.  We understand that Savills are still paying all staff, but for how long.  JLL pays their employees 2019 bonuses however Rapleys holds these back.

However what about the million sole director/shareholder owner-managed limited companies in the UK who don’t qualify as self-employed individuals (although they will complete an income tax self assessment return)?

 

 

Here are some of the most frequently asked questions about how the government’s furlough scheme applies to owner-managed limited companies.

Typically, they take some remuneration through PAYE by way of salary, usually at a level just above the NIC threshold, with the remainder taken as dividends. So can these directors make use of the Coronavirus Job Retention Scheme? The simple answer is yes, but only to the value of their PAYE salary. Dividends are not included as part of the amount that can be claimed. The other key issue is that the director must stop working completely in the business to be eligible for the scheme. We understand that statutory duties can be carried out but no services or revenue-generating work.

Based on the information published so far by the government, set out below  it is our understanding of some frequently asked questions. However, we should stress that we are awaiting further guidance and therefore our comments should be seen as provisional and may change.

What can I claim?

You can claim a grant of up to 80% of your ‘regular wage’ or £2,500 (whichever is lower). This claim can be backdated to 1 March 2020. The scheme will last for at least three months.

By when does my PAYE scheme need to be in place?

The employers’ PAYE scheme must have been created and started by 28 February 2020 and you must also have a bank account in the UK. You must be on the payroll as at this date.

Can I claim if I work part-time in the business?

Yes, full-time and part-time directors on the payroll can claim.

What if my salary is paid annually?

ICAEW’s current understanding is that this should be acceptable.

What if I just reduce my hours or pay?

If the director is still working, even for reduced hours or pay, they will not be able to claim via this scheme.

How do I calculate my ‘regular wage’?

Your regular wage is the higher of the same month’s earnings from the previous year or the average monthly earnings from the 2019-20 tax year.

How to claim

You might need to take legal advice on this, but as a minimum we suggest that the company writes a letter advising the director that they have been ‘furloughed’ and a copy of this should be kept on the file to support any claim. Again, we suggest you keep an eye on government websites in case this advice changes. Wages must continue to be paid (along with tax and NI) to directors at least until the portal is up and running to make the claim for the grant at a minimum of 80% of their regular wage or £2,500 per month.

How is the grant accounted for in the company’s books?

As income subject to corporation tax.

For the latest news and guidance on the ongoing impact of COVID-19 for businesses and accountants, visit ICAEW’s dedicated coronavirus hub.

Decoding The Coronavirus Lockdown Rules For Property Professionals.

We all know that listening to the science on coronavirus is really important, especially now, but the government’s come in for a lot of criticism over its advice to business during the coronavirus crisis.

“I cannot stand here and tell you that by the end of June that we will be on the downward slope,” Johnson said on 20 March. “It’s possible but I simply can’t say that that’s for certain. We don’t know how long this thing will go on for. But what I can say is that this is going to be finite.”

Translation: it’ll be ending at some point before the Rapture. Crystal clear. Since then we’ve moved into full-on lockdown, with stringent measures in place to stop people passing coronavirus around.

As a Member of the RICS or working within the property profession what can you do and what can’t you do? Where should you go and where shouldn’t you go? What’s safe and what’s potentially unwise?

Here are some of our advice for the property industry, which does meet all government guidance and RICS regulations.

What does the new advice change? What can’t I do that I could before?

Monday evening’s address from Johnson changed pretty much everything. Every “non-essential” shop is closed, as are libraries, playgrounds, outdoor gyms and places of worship. They were pretty much the only places still open after Friday’s order to close pubs, restaurants and places you’d usually hang out and have a big laugh. Weddings and baptisms are off too. You can still exercise, but only for one session a day outside. Don’t take the piss and go for a four-hour run though. The London marathon’s been punted to autumn anyway.

You can go outside to pick up food from the shops – “infrequently”, the government insists – or to look after a vulnerable person, or to get to and from work if it’s “absolutely necessary”. That last one, like a lot of the government’s guidance, is kind of open to interpretation, but really you shouldn’t be going anywhere.

PRE are still able to operate our multidisciplinary services, however only on when the projects meet specific criteria. We have had to really adapt and be flexible, for example not using public transport and working out of hours of the property is occupied.  Using Zip Cars for each surveyor to travel and proving PPE.

Can I still carry out Surveys?

Surveyors should not expect to carry out non-urgent surveys in homes or buildings where people are in residence, and no inspections should take place if any person in the property is showing symptoms, self-isolating or being shielded.

It may be possible to carry out some of your work online and also carry out urgent surveys on empty properties, or those where the occupants are out of the property or following guidance to stay at home and away from others.

• Surveyors should follow the latest government guidance which currently (26 March 2020) states that work carried out in people’s homes or placed of work can continue, provided the surveyor is well and has no symptoms of coronavirus (COVID-19).
• It is important to ensure government guidelines are followed, including maintaining a 2 metre distance from others, and washing their hands with soap and water often for at least 20 seconds (or using hand sanitiser gel if soap and water is not available).
• No work should be carried out by a person who has coronavirus (COVID-19) symptoms, however mild.

PRE are no longer working in teams or groups and now surveying properties by ourselves.  This does add more time onto the project however allows us to still attend.

What about Viewings of Properties?

If your property is already on the market, you can continue to advertise it as being for sale or lettings but you should not allow people in to view your property.

• There should not be any visitors into your home or place of work, and you should therefore not let people visit your property for viewings. Your agent may be able to conduct virtual viewings and you could speak to them about this possibility.  However if the property is vacant, then this will not apply.

PRE clients are still marketing properties and are using PropTech to combat the problem of access.

Buying and selling properties during this stay-at-home period

Given the situation in the UK with regard to the outbreak of coronavirus (COVID-19), the government urge parties involved in home moving to adapt and be flexible to alter their usual processes.

There is no need to pull out of transactions, but we all need to ensure we are following guidance to stay at home and away from others at all times, including the specific measures for those who are presenting symptoms, self-isolating or shielding. Prioritising the health of individuals and the public must be the priority.

Where the property being moved into is vacant, then you can continue with this transaction although you should follow the guidance in this document on home removals.

Where the property is currently occupied, we encourage all parties to do all they can to amicably agree alternative dates to move, for a time when it is likely that stay-at-home measures against coronavirus (COVID-19) will no longer be in place.

In the new emergency enforcement powers that the police have been given to respond to coronavirus, there is an exemption for critical home moves, in the event that a new date is unable to be agreed.

Recognising parties will need to alter common practice, the government have sought to ease this process for all involved by:

1. Issuing this guidance, developed with Public Health England, to home buyers and those involved in the selling and moving process.
2. Agreeing with banks that mortgage offers should be extended where delay to completions takes place in order to prioritise safety.

Working with conveyancers to develop a standard legal process for moving completion dates.

People are still using the Tube. Is it safer to get the bus? Should I be going anywhere?

If you live in London, Tube services are being cut down and 40 stations have been shut. Sadiq Khan really wants you to stop moving around if you don’t need to.

“I can’t say this clearly enough,” the mayor said on 20 March. “People should not be travelling by any means unless they absolutely must. The scientific advice on this is very clear. Londoners should be avoiding social interaction unless absolutely necessary.”

There isn’t really a ‘safest’ form of public transport either.

“It just takes one person to have been there before you got on and left lots of the virus around, or while you’re there,” says Yardley. “You wouldn’t necessarily know that the person that was in your seat 10 minutes ago was coughing their guts up all over it.”

All of which makes the lack of guidance on how to get to hospital without using public transport or a taxi all the more puzzling.

PRE are using Zip cars to travel to and from vacant properties or sites.

Can I meet my clients or co-workers? They’re not coughing or anything yet.

Gatherings of more than two people are out of the question, aside from people in your household. It’s just you and your flatmates/partner/family for the foreseeable. Children whose parents live in different houses will be allowed to move between them though.  however if this is work related then yes you can meet your co-workers however two metres away from each other.  We are using conference calls with camera activated for a more effective meeting, we are human after all.

What about getting the train across the country? Does it matter where I’m going to and from?

Although the government has said this is not a good idea. If you go to a different city, the risk is you’ll transmit between cities, the whole point of the self-isolation thing is to slow the spread of coronavirus across the country and give the NHS time and capacity to treat people. Travelling out of London to visit buildings in other cities isn’t advised, as infection rates are far higher in the capital and you’re likely to speed up the spread of coronavirus that way.

Equally if you’re going into London – everyone who’s outside of London should avoid it if they possibly can, because they don’t want to bring back infection from there.

However, if this is for work purposes there is no reason why you cannot drive to a property or site for inspection a long as you are following the guidelines and distancing, taking all the precautions.  PPE is advisable and all precautions taken.

If I’ve got symptoms, how long do I self-isolate? Two weeks? More?

This one’s got a lot of people confused. The government and NHS say: “If you live alone and you have symptoms of coronavirus illness (Covid-19), however mild, stay at home for seven days from when your symptoms started.

“If you live with others and you are the first in the household to have symptoms of coronavirus, then you must stay at home for seven days, but all other household members who remain well must stay at home and not leave the house for 14 days. The 14-day period starts from the day when the first person in the house became ill.”

The information in this story is accurate as of the publication date. While we are attempting to keep our content as up-to-date as possible, the situation surrounding the coronavirus pandemic continues to develop rapidly, so it’s possible that some information and recommendations may have changed since publishing. For any concerns and latest advice, visit the World Health Organisation. If you’re in the UK, the National Health Service can also provide useful information and support, while US users can contact the Center for Disease Control and Prevention.

For more advice, visit the following recommended websites:

• World Health Organisation
• UK Government
• NHS