Michael Luttners Tickner our Apprentice Building Surveyor gives an insight into a recent Project Management for a CAT A office refurbishment in central London, W1.

Mike joined PRE in March 2018 as a Trainee Surveyor and in the last 6 months has become a valuable member of the Building Surveying Team headed up by Matt McGettigan MRICS.

Having graduated in November in 2016 with a Product Design degree from UAL, Mike started out his career as a carpenter following which he developed an interest in property.

In March 2018 he joined PRE Chartered Surveyors Building Surveying apprentice scheme, with an end goal to become a member of the RICS.

He initially joined the PRE measured building surveying division, where he undertook a variety of projects including NIA/GIA, IPMS, ITZA, 3D Scanning and EPC’s. During this time he gained experience and knowledge in the property sector.

Mike chose to study a distance learning, 2 year masters degree at Northumbria University and will graduate in March 2021. So far he has worked through modules including, The Business Environment, Law, and Sustainable Construction and Technologies and this year became fully enrolled in the RICS APC graduate scheme.

He is currently providing support to the Building Surveying Team on Due Diligence, Party Walls, Dilapidations and most recently Project Management and Contract Administration for a Cat A refurbishment at Castle House in London’s West End.

Here’s what Mike had to say following completion the CAT A Office refurbishment project;

“I’m thrilled to have positively contributed to the successful completion of a Cat A refurbishment for a West End Office of approximately 7,000 sq. ft, allowing the office to undergo a new letting. Under the guidance of my Supervisor Matt McGettigan I was able to experience first hand how a project is run from inception all the way to completion and what each stage involves. For example, I assisted in preparing and submitting the planning application to Westminster City Council and was responsible for ensuring approval of the application.

I learned that a large part of the pre-construction work was in preparing the relevant project documentation such as; Asbestos reports, noise consultancy and CDM (so that current legislation could be complied with).

It has been an amazing experience to work alongside the appointed contractor to deliver this excellent project to an extremely high spec. There has been a lot of learning throughout this project, from contract administration, valuations and even chairing my first ever site meeting!

Of all that I have learnt throughout this project, it has become clear what how crucial and beneficial it is for continuous clear and effective communication to remain for the whole project.
The biggest challenge during this project was to implement a sustainable design that would achieve improved energy efficiency for the client, I learned that this could be achieved through PRE having a clear communication channel from client and contractor alike and having the ability to influence design where necessary.
To say I’m excited for what’s to come is an understatement!”

Michael Luttners Tickner and Nick Woodman had a brilliant evening attending the RICS Masquerade Ball last week. A very successful and enjoyable event with great company. Many thanks to Construction Supplier Group and all those responsible for organising. Bring on next year!

Planned Preventative Maintenance

Over the course of time, all buildings will naturally degrade without maintenance.  Having a Planned Preventative Maintenance Report in place will enable a client to look after an asset (inclusive of serviced equipment) and ensure that the property will last longer, look better and retain its value.  This in turn would make it more attractive to Landlords and Leaseholders. 

Planned Preventative Maintenance (also known in the industry as PPM) survey reports are an essential tool that can enable building owners/occupiers to maintain, manage and improve their assets in a proactive way, as opposed to reactive.

As a surveyor, preparing a PPM report involves a very detailed survey inspection of an asset in the first instance, in order to assess the general condition and record defects. Following the capture of data on site, a detailed report is then prepared, which typically includes a schedule of recommended works in coming years.  These can also be split into immediate, short, medium and long term timeframes, to give our client a decent snapshot of what is likely be coming up in the near/ far future. 

Mechanical and Electrical (M&E) systems and plant are essential within most assets and such systems can vary in type, design, frequency of use and age.  Moreover, M&E can be costly to repair/replace. That is why we work with our specialist M&E survey team, in order to give a full and comprehensive overview of the building, inclusive of all its components (including M&E).

From the PPM report, a surveyor is then able to advise in regard to any necessary remedial works along with indicative timeframes and estimated budget costs, so that a client/ property owner can budget accordingly. For us this means that we work closely with our clients, or their property managers, in a collaborative way in order to work out what the best strategy would be going forward.

PPM’s are not just a useful tool for realising maintenance and repair works, they will also consider health and safety issues, matters of statutory compliance, thermal performance issues and suitability/fitness for purpose, etc.

Another key objective of PPM’s is to provide some foresight of any unexpected or costly repairs based on the detailed information that we collect on site (de-risking if you will). We find that clients benefit from PPMs regardless of economic or political climate. For example, we know that when an economic downturn occurs (or even a departure from the EU!), this can give rise to increased due diligence within the industry.  Subsequently, in the current climate PRE have seen that many clients have decided to focus more on the assets they have at present, as opposed to any potential future acquisitions or disposals.

Essentially, our expert advice and reports can enable our clients to maintain and optimise the value of their portfolios over any particular timeframe, which ultimately means that they can be assured that their assets are in good repair and well looked after.  Furthermore, where required, we can also arrange for measured surveys, asbestos surveys and Energy Performance Certificates (EPC’s) to be undertaken simultaneously.

Whatever the situation, PRE will make sure that our client maintenance plan is tailored to your requirements.

If you are looking for PPM, building surveying or property advice then please do get in touch with the team here at PRE on +44 (0)208 406 3000 or email us at [email protected]

PRE Chartered Surveyors

 

September’s Team Member of the Month has been announced and it is our newest team member Sam O’Connor. Sam was voted as he has brought a lot of fun to the office but is always willing to go that extra mile when necessary. Well done!

A bit more about Sam:

My career history:

I am current working as an Apprentice Surveyor at PRE and enjoying the position immensely. Prior to joining PRE Surveyors I received a BSC in Product Design at Bournemouth University. I also worked part-time as a Bartender in South London for 2 years. This gave me the free time to work on a product idea.

My career highlight:

Winning the Morgan Innovation & Technology award for most commercially viable product which was a device that reduces mosquito oviposition. I was also a finalist in the MIAT Prize competition at the Santander headquarters in London.

What I do differently:

I have an inquisitive nature so I am always asking lots of questions. I want to learn as much as I can.

My favourite travel destination:

I have travelled across many countries in Europe and I have to say my favourite destination is Belgium. I am going to San Francisco at the end of the month so maybe my answer will change.

My favourite drink:
I tend to stick to a pint of beer however I am partial to a few tequilas on a night out.

What keeps me busy in my spare time:
I love to travel and I also enjoy playing Age of Magic.

My favourite food:
There’s not many cuisines I don’t enjoy however I think Mexican has to be at the top of my list.

My favourite eatery:
In Brighton (where my partner lives) there is a Mexican restaurant called La Choza.

Not many people know this about me:
I like drawing and painting.

A surprising busy Q3 over the summer but well received. Matt McGettigan our expert Building Surveyor & Project Manager completed some great projects in central London & Bristol

Clients confirm we are still the GO TO for competitively priced Measured Surveys across the UK.

Distinguishing ourselves against cost, time & customer service.

PRE would like to congratulate our August Employee of the Month, Charlotte Fearnley. Charlotte has only been with us Since January and has already won the award twice for her hard work and always going that extra mile. Charlotte is always smiling and is a great addition to the team! Well done!

A bit more about Charlotte:

My career history:
Prior to joining PRE Surveyors in January 2019 I relocated from Wales to London and I worked at Global Response/International Medical Group in Cardiff for 11 years.

My career highlight:
Getting to travel the world (USA, Istanbul, Portugal and Frankfurt) whilst representing my company.
What keeps me motivated:
I love learning new skills and feel at PRE I am constantly evolving.

What I do differently:
I consider myself a people person and use my skills in communication to form strong relationships with clients and colleagues.

My favourite travel destination:
I don’t have one favourite place in particular but I do love the US, Canada and Thailand.

My favourite drink:
As many people know I love a social drink. Generally, I tend to stick to a G & T with Elderflower tonic, however I am partial to a glass of a New Zealand Sauvignon Blanc (and on weekends a Jagerbomb)..

What keeps me busy in my spare time:
My partner and I love to travel. Whether its back home to Wales for the weekend to spend time with my friends and family or exploring overseas, I just can’t get enough of it. I also love skiing however, I don’t get to go as often as I would like.

My favourite food:
I love many cuisines however, I think Italian has to be at the top of my list. The only food I tend to avoid is sushi!

My favourite eatery:
In Penarth (my home town), there is a restaurant called Pier 64 which is on the harbour. They do the best steaks! There are many places that I am yet to visit in London but I do enjoy going to the Archduke Jazz Bar by Waterloo Station.

Not many people know this about me:
I am in the process of learning Dutch as my Partner is half Dutch and half Danish.

PRE guide to measuring and zoning retail units

Our Services

PRE Chartered Surveyors Ltd is the UK’s leading niche Chartered Surveying firm offering specialist professional services to both landlords and tenants.
We are regulated by the Royal Institution of Chartered Surveyors (RICS).
Clients nationwide benefit from the wide ranging expertise, experience and accuracy of our in-house property teams. The ability to pick and choose from our wide range of services saves you time and cost.

Our services are tailored for your project, delivering maximum efficiency from inception to completion.

▪ Architectural
▪ Land and Environmental Surveys
▪ Building Information Modelling (BIM) & Revit Models
▪ Energy and Sustainability
▪ Area Measurement Reports
▪ PropTech
▪ Building Surveying
▪ Rights of Light, Daylight & Sunlight
▪ Project Management
▪ Professional Services
▪ Quantity Surveying
▪ Mechanical and Electrical Building Services Consultancy

ZONING AND OVERALL VALUATON METHODS

There are two principal valuation methods – the overall valuation approach and the zoning valuation approach (applied to retail shops).
Examples of the overall method of valuation are set out below: –

Overall (applying a single rate per sq ft to whole area) for GIA

Food store 50,000 sq ft @ £20 per sq ft (psf) £1,000,000 per annum exclusive (pax)

Dept Store 100,000 sq ft @ £10 psf £1,000,000 pax

Food store may be on more than one level, i.e. ground (G/F), basement (Bmt), first (F/F) and may have covered / canopied yard / loading area or plant on roof.

On GIA overall basis of valuation all main space (G/F, Bmt, F/F) valued at same rate psf but covered yard or plant at 25% or similar

Say G/F 30,000 sq ft, Bmt 5,000 sq ft, F/F 15,000 sq ft, covered loading bay 5,000 sq ft

Assume rate is £20 psf

VALUE is 50,000 sq ft x £20 + 5,000 sq ft @ £5 psf £1,025,000 pax

ZONING OF SHOP UNITS

• Retail property (other than large stores, department stores, variety stores and food stores which are valued on the overall basis) are zoned.

• Zoning as a basis of valuation is borrowed from my two valuations.

• It has been in use since the 1950’s.

• It is a total hypothetical basis of valuation because it assumes front part of shop is twice as valuable as next section, etc.

• It applies the concept of halving back whereby each zone is given a name, i.e. A, B, C, D and remainder.

• In England, 20-foot zones (except Oxford Street- 30-foot zones)

• In Scotland, 30-foot zones

• Zoning is an arithmetic tool for comparison

• Can compare ‘long thin’ shop with ‘short fat’ shop

ZONING – ZONES A, B, C etc. TO GET ITZA

See the previous two examples of a ‘long thin shop’ and a ‘short fat’ shop.

Both are the same total size, 1,200 sq ft BUT when zoned the figures derived for these two shops, Shop Unit X and Shop Unit Y are very different.

SHOP X

ZONE A 20 X 20 = 400 X A/1 = 400 units

ZONE B 20 X 20 = 400 X A/2 = 200 units

ZONE C 20 X 20 = 400 X A/4 = 100 units

Area in terms of Zone A (ITZA) = 700 units

SHOP Y

ZONE A 30 X 20 = 600 X A/1 = 600 units

ZONE B 30 X 20 = 600 X A/2 = 300 units

Area in terms of Zone A (ITZA) = 900 units

VALUATION

When valuing retail shop property we express the ground floor area IN TERMS OF ZONE A (ITZA).

SHOP X and SHOP Y expressed in terms of Zone A units are as follows:-

Value Shop X ITZA 700 units x £100 = £70,000 per annum

Value Shop Y ITZA 900 units x £100 = £90,000 per annum

For convenience the ITZA figure is used when valuing a retail unit and also when devaluing the rent of a retail unit as below:-

If rent of SHOP X is £70,000 per annum what is the Zone A rate?

£70,000 + 700 units £100 Zone A

If rent of SHOP Y is £90,000 per annum what is the Zone A rate?

£90,000 + 900 units £100 Zone A

COMPOSITE ITZA’S

Retail units are often arranged on more than one level sometimes with basement, first, second, third floors etc. Each of these ancillary levels can also be expressed in terms of Zone A units such that you can derive a composite ITZA – see example below: –

G/F say 1,200 sq ft (sales) ITZA 700 units

F/F say 1,000 sq ft (stock) @ say A/20 = 50 units

2/F say 500 sq ft (staff) @say A/40 = 12.5 units

COMPOSITE ITZA                    762.5 units

The composite Zone A can then be used to make valuation of retail units and devaluation of retail units much simpler- see below.

Valuation 762.5 ITZA units x £100 Zone A = £76,250 pax

Devaluation £76,250 pax / 762.5 ITZA units = £100 Zone A

MIRROR ZONING

Not all retail units have frontages which are in line with the adjoining units – some have frontages which are oblique or irregularly shaped (with pop out shop fronts).

In these cases is it customary but not mandatory to adopt what is called ‘mirror’ zoning whereby the measurements taken and the areas calculated for each zone (A, B, C etc) replicate the front Zone A so that at each of the left hand and right hand edges of the shop you measure back 20 foot (if it is a 20 foot zone) and then calculate the area of that zone doing the same in Zones B, C etc.

NATURAL ZONING

SOME SHOPS HAVE UNSUAL PHYSICAL CHARACTERISTICS IE. CHANGE IN FLOOR LEVEL (STEPS UP OR DOWN) IE. NARROWING OF WIDTH / PINCH POINT

In any of the above cases it may be appropriate to abandon conventional zoning in 20 foot zones A, B, C etc. on the basis that at the point at which the unusual physical characteristic is positioned within the shop that a new zone should apply at that point.

For instance, if a shop a change in floor level after say 35-foot depth you have two options:

1. Either start Zone C at 35 feet

2. Or adjust usual A/4 rate for Zone C to A/6

The natural zoning approach starting Zone C at 35 feet would be favourable to the tenant whereas the landlord would prefer to treat the first 15 feet of Zone A at normal rate (A/4) and then the remaining 5 foot of depth of Zone Cat say A/6.

FOR THE HIGHEST RENT THE LANDLORD ARGUES FOR DEDUCTION TO THE AFFECTED ZONE A ONLY

FOR LOWEST RENT THE TENANT ARGUES FOR %AGE DISCOUNT OFF WHOLE SHOP

RETURN FRONTAGE

Where a retail unit occupies a corner position it may have glazing on part of the side elevation and we refer to this as return frontage (R/F).

JEWELLERS IN PARTICULAR LIKE CORNER SHOPS WITH R/F OR SPLAYED FRONTAGE

If the returned glazed frontage runs for the entire length of the shop, then it will be appropriate to apply a percentage additional to the value of the whole shop.

Dependent on the quality of the return frontage (is it facing other retail units – does it substantially add to the prominence of the shop – is there a secondary entrance from the return frontage elevation). One might add 10% or 7.5%, 5% or 2.5% to the total rental value of the ground floor to reflect the benefit of the return frontage.

In a situation whereby, the glazed return frontage is partial (i.e. only part of the shops return frontage benefits from glazing and the rest is a solid structure an addition to the rental value should be made for the area of the shop which benefits from the glazed frontage). So, for example, if the first 10 feet of Zone A had a glazed return frontage then an addition of 10% / 7.5% / 5% / 2.5% would be added to the first 10 feet only.

When negotiating for a landlord or for a tenant in relation to the value (or otherwise) of return frontage the following positive arguments could be advanced – R/F increases prominence of the shop – customers can see inside the shop thus enhancing the tenant’s opportunity to attract more customers – the tenant has a greater opportunity to display their wares.

The negative arguments would be: –

– Most retailers now seek the maximum amount of linear wall space and so do not want a glazed return frontage because they could not rack against that frontage and so lose linear wall space.

– The dressing of shop windows is time consuming and costly

– The insurance premises are higher for a unit with a glazed return frontage

DISPROPORTIONATE FRONTAGE TO DEPTH (FTD)

Where a shop has a large frontage but limited shop depth it will be regarded as having disproportionate frontage to depth for which an allowance (discount) might be made.

REMEMBER SHOP Y- Frontage 30ft Shop Depth 40ft – ITZA 900 units

Is it really worth £90,000 pax when SHOP X (700 ITZA) is only £70,000 pax?

Does SHOP Y have FTD, i.e.. is it penalised by the Zoning method of valuation?

SHOP Y – Ratio 1:1.5 (Whereas SHOP x 20 x 60 is ratio 1 :3)

% age of ITZA to total G/F SHOP X is 58.33% (700 /1,200)

% age of ITZA to total G/F SHOP Y is 75% (900/1 ,200)

If FTD applies, then make an allowance (discount)

Say 10% for FTD so true rental value of SHOP Y is £81,000 pax

ALLOWANCES (DISCOUNTS & ADDITIONS)

We refer to all adjustments (discounts/additions) as allowances.

Allowances can be made for any variation from the norm.

PHYSICAL issues- R/F, FTD, Quantum, irregular shape, hard frontage

LEASE issues – restrictive user, restricted alienation, long lease term

There is case law on every issue & evidence to support/undermine

Jason Antill becomes a member of The Chartered Surveyors Company

Jason becomes a freedmen of the City of London and joins the Chartered Surveyors Company.

The City of London livery companies began as a way of protecting the interests of particular trades and the practitioners of those trades. Today there are 110 livery companies, some of modern origin (Builders’ Merchants, Environmental Cleaners, Information Technologists) and some of ancient origin (Mercers, Goldsmiths, Weavers, Fishmongers).

The oldest companies began by setting standards, protecting the quality and reputation of the trade and the members of the company. The oldest Charter of Incorporation of a livery company is 1155 (Weavers). The livery companies are custodians of much City of London heritage and are trustees of many traditional and innovative charitable and educational endeavours.

The success of the livery companies has been achieved by doing what they have always done – fostering their professions, crafts and trades in a wide context, serving the community, supporting the City of London and promoting key skills and professional development.

PRE are proud to celebrate #PRIDE19

This year, Pride month is looking bigger and bolder than ever before. 2019 marks 50 years since the Stonewall riots, which was a catalyst for the Gay Liberation movement, and the following decades saw an increase in acceptance and legal rights for the LGBT community. In 2018, London Pride attracted one million partygoers, so let’s make this Jubilee year really one to celebrate. Get involved in this years Pride month…….

 

 

Service charges – what’s actually changed?

This professional statement sets a marker for the standards of management required in commercial property and provides mandatory obligations that RICS members and regulated firms engaged in this area must comply with. It has been endorsed by property bodies representing all sides of the property industry and widely acknowledged as a significant step forward for the property industry. This document is effective from 1st April 2019.

The aims and objectives of this professional statement are to:

• improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property

• ensure timely issue of budgets and year-end certificates

• reduce the causes of disputes and to provide guidance on resolution, and

• provide guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice.

Although this document is a first edition PS, it supersedes the previous 3 editions published as codes of practice from 1 April 2019.

The changes will apply to RICS members and regulated firms throughout the UK. The new service charge requirements are more prescriptive than the current regime and set out mandatory requirements for landlords.  And while much of the guidance remains the same as the previous Code of Practice, there are a number of updates that will affect those in the industry.

It will also have the regulatory effect of formalising the Code within the RICS best practice framework.

The new changes are particularly noteworthy for those involved as disputes between landlords and tenants often relate to the level of service charges levied. Therefore both parties — landlords and tenants — will need to be aware of the requirements of the updated service charge regime.

History

Guidance for the management and administration of service charges in commercial property was first published in 1996. This is the 6th iteration of what has become known as the Service Charge Code. In the 23 years since its inception, the Code is generally considered to have had a positive impact on the commercial property sector and has facilitated major improvements in standards of delivery and accountability for service charges.

Aims and objectives of the professional statement

• improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property

• ensure timely issue of budgets and year-end certificates

• reduce the causes of disputes, and to provide guidance on the resolution of disputes if these arise and

• provide guidance to solicitors, their clients (whether owners or occupiers) and managers of service charges in the negotiation, drafting, interpretation and operation of leases, in accordance with best practice.

Requirements

Under the new Service Charge professional statement, RICS members and regulated firms must comply with the following mandatory requirements:

1. All expenditure that the owner and manager seek to recover must be in accordance with the terms of the lease.

2. Owners and managers must seek to recover no more than 100% of the proper and actual costs of the provision or supply of the services.

3. Owners and managers must ensure that service charge budgets, including appropriate explanatory commentary, are issued annually to all tenants.

4. Owners and managers must ensure that an approved set of service charge accounts showing a true and accurate record of the actual expenditure constituting the service charge are provided annually to all tenants.

5. Owners and managers must ensure that a service charge apportionment matrix for their property is provided annually to all tenants.

6. Service charge monies (including reserve and sinking funds) must be held in one or more discrete (or virtual) bank accounts.

7. Interest earned on service charge accounts — or where separate accounts per property are not operated, a proper and reasonable amount of interest calculated on normal commercial rates — must be credited to the service charge account after appropriate deductions have been made.

8. Where acting on behalf of a tenant, practitioners must advise their clients that if a dispute exists any service charge payment withheld by the tenant should reflect only the actual sums in dispute.

9. When acting on behalf of a landlord, practitioners must advise their clients that following resolution of a dispute, any service charge that has been raised incorrectly should be adjusted to reflect the error without undue delay.

Statement v Lease

One important point to note is that the new Statement cannot override lease terms. However, it is advised that service charge provisions must be laid out and considered in conjunction with the statement, in order to help identify the best interpretation of the lease, and to ensure compliance as far as possible. Failure to do so would be taken into consideration in the event of a dispute between tenant and landlord.

Outcomes

It is hoped that the new Statement will continue to improve the standard of delivery in landlord services and provide accountability for spending what is effectively tenants’ money.

In the main managing agents and landlords already abide by the principles of the existing code, but naturally, there are many instances where best practice has been ignored, in some cases to extreme degrees. Such behaviour is, of course, unacceptable and it is moments such as these that RICS are looking to significantly reduce, not to mention improving procedures and landlord/tenant relationships across the board.

What should landlords be doing to ensure they are compliant?

Tenants are likely to be better informed of their rights in relation to service charges incurred and more confident in service charge disputes with landlords. Therefore in the build up to 1 April 2019, landlords should ensure that they are able to meet the mandatory requirements set out above.

It will also be interesting to consider the effect on lease renewal proceedings under the Landlord and Tenant Act 1954 and whether tenants’ increasingly request to modernise the service charge arrangements in a renewal lease, in line with the professional statement.

The RICS will also take account of the professional statement when deciding if a RICS member has acted with reasonable competence during disciplinary proceedings and it is likely to be referred to during professional negligence claims against surveyors

JASON ANTILL BSc (Hons) MRICS DipNDEA

Director

M:   +44 (0) 7855 520 223

E:    [email protected]

W:  https://presurveyors.co.uk

Chairman of https://www.obrems.co.uk

PA & Account Manager:  [email protected]

Multi-Disciplinary Chartered Surveyors

London:           +44 (0) 20 7233 6688

Croydon:         +44 (0) 20 8406 3000

Bristol:            +44 (0) 1172 39 9303

#PropSail2019, 65 PropSailers, 15 boats, over 1 day , 3 back to back races!

What a fantastic few days team PRE had at PropSail 2019 at The Royal London Yacht Club in Cowes, Isle of Wight.

For the second year running, PRE are proud to be the one of the main sponsors of this fantastic property networking event which is open to all abilities.

After some heavy competition PRE came very close to 3rd.  Conditions were perfect with south to southwesterly winds 10-15 knots. A big improvement on last years whether which was canceled due to lack of winds.

PRE are already looking forward to #propsail2020 3rd year, with a view to even winning!

The following day 35 PropSailers jumped onto Rigid Inflatable Boats (RIB’s) and headed up the west coast of the Island past Yarmouth, to The Hut in Colwell Bay for lunch.

RESULTS

J70 Class

Rapleys (1st) overall winners of the J70 Regatta, skippered by Nick Hornby of Investra  (won two, second once)

but a close call withAvison Young (2^nd), skippered by Ivor McNamara of Avison Young (won one, second twice)

and closely chased down by Veritas (3^rd) skippered by Seb McKenzie Wilson of Vigilance Properties & PRE Surveyors skippered by their very own Jason Antill, crewed by Matt McGettigan , Claud Baker and Louise Burney.

Sonar Class

1^st         CMC, skippered by Mike Wood (CMC)

2^nd        Coyote’s training day paid off, skippered by Steve Murphy (Coyote)

3^rd         Malcolm Hollis, skippered by Lawrence Sly (AIA)

Charity – LandAid  (over £1K raised from the event)

THANK YOU TO THE PROPSAIL COMMITTEE & THE ROYAL LONDON YACHT CLUB TEAM FOR AN WELL ORGANISED EVENT!

The Burning Issue… Considerations for Property Professionals in Respect of Fire Safety to Assets.

Its important for property professionals and clients to be aware of fire safety to assets, especially in light of recent events such as Grenfell.  Although, Grenfell is only a recent example, we should not forget that there have been several significant disasters that have occurred over the decades, such as Lakanal House (South East London, 2009), Ronan Point (East End London, 1968), Commercial Court (2018) amongst many others; in the UK and beyond. I guess you could say even back as far as The Great Fire of London 1212!

Legislation

For property professionals, grey areas are often encountered through legislation and available guidance.  Having recently attended RICS Building Surveying Conference 2019, it was explained that misunderstanding of the Building Regulations is a common cause of fault.   Approved Document B (AD B) was amended recently (in 2018), to clarify and reduce the complexity of fire safety guidance in the Building Regulations following the recommendations made by Dame Judith Hackitt.

Following the Grenfell tower fire, a particular focus of the amended AD B relates to building cladding systems.  It is understood that Grenfell and Larkanal Houses had an Aluminium Composite Material (ACM) rainscreen cladding, which tragically enabled the spread of fire up the building.  So what is ACM and why do we need to be aware of the impacts that ACM can have on a buildings fire integrity?

Number of private residential blocks over 18m high with ACM

Image & data courtesy of Property Week – August 2018

ACM is essentially two skins of aluminium bonded either side of a core of material such as polyethylene (PE), polyurethane (PUR), profiled metal or a mineral core.  It is understood that ACM can delaminate during a blaze and therefore exposing the core material, which in some cases can be ‘more flammable’ compared to other core material alternatives, and in Grenfell’s case, the core contributed to the acceleration and spread of fire up the outside of the tower with fatal consequences.

We must however remember that it’s not just the most recent AD B amendments that one needs to be aware of.  Other key pieces of legislation that needs to be considered and aware of can include; The Regulatory Reform Order 2005, British Standard BS: 9999, Approved Document 7 and Building Regulations to name a few.

Building Surveys

Here at PRE, we know that each property we survey should assessed holistically and in entirety in order to fully understand how all the fire engineering principles work together, as opposed to in isolation.  The sensible starting point prior to our site surveys is to identify the fire strategy for the property followed by the establishment of fire detection and warning systems.

For high-rise residential properties in particular, this may involve an ‘evacuation’ or ‘stay put’ policy, the latter of which has seen huge scrutiny following Grenfell.  Although as we know, other deficiencies (such as cladding mentioned above), could be considered to have compromised this policy, which is why it is important to assess holistically, as mentioned.  As we approach an era where ‘vertical village living’ may become more popular (especially with the demand for housing), its important that fire strategy is carefully considered.

A Building Surveyor should also have a good understanding of the occupation densities, protected means of escape, emergency lighting and signage for the property they are inspecting.

In line with AD B, the height of the building should be assessed to establish whether it is more than 18 metres in height and whether the building is clad with any combustible material, such as rainscreen cladding (which may be able to be identified upon review of the as built documentation).  In some cases, the suspected cladding may require testing if any information is not available.  An interesting question was raised during this year’s RICS Building Surveying Conference, as to why the definition is limited to 18m at such a time when fire safety is paramount, a definitive answer was not available at the time.

Fire Risk Assessments

Fire Risk Assessments (FRAs), can sometimes be a good source of pre-survey information, although we often find that the quality of FRA’s can be poor.  As part of our survey due diligence here at PRE, we interrogate the quality of FRA’s, because after all this is a significant for the safety of people and property.  We also concern ourselves in relation to whether raised FRA items have been closed out, or are they being addressed? How often is the assessment reviewed? Unfortunately, industry fire experts have reported that fire safety checks have declined which brings unease, but it is important that the deficiencies are flagged up and any further recommendations made (and justified by specialists if necessary).

The general view at this year’s RICS Building Surveying Conference was that there is a huge need for FRA’s to be qualified across the industry in the very near future in order to improve FRA quality, in a way similar to that which was implemented for the International Property Measurement Standards (IPMS), if you will.  RICS are also looking forward and intend to review the Fire Safety competency would will be reportedly assessed to a new level (level 4), which should help industry professionals.

Other documentation we may be able to assess may include any building control certification(s), firefighting systems and equipment test certification, compartmentation surveys, testing of as built elements and any third party installation accreditation.  Of course, it is paramount that surveyors validate the data room information when the time comes to carry out the site inspection.

Thinking and Surveying Holistically

Some key considerations here are Passive Fire Protection (PFP) and Active Fire Protection (AFP)

The purpose of PFP is to compartmentalise a property through fire resistance rated floors and walls in order to prevent/ hinder a blaze spreading quickly, which may enable time for evacuation.  Examples may consist of dampers, fire doors, fire walls/ floors.

PFP – Fire Dampers & Ablative Coated Batt

On the other hand, AFP is commonly known as a group of systems that require a level of action to work during a fire, either manually (e.g. fire extinguisher) or automatically (e.g. sprinklers).

AFP – Fire Alarm Control Panel

It is absolutely essential that active and passive systems work together. It is therefore very important that surveys investigate in as much detail as possible, especially within areas where fire spread could accelerate in particular, for example, raised access floors, ceiling voids, plant rooms and risers. 

The surveyor should be familiar with fire stopping methods such as fire collars, sleeves, batts and the like.  Is there any evidence to suggest that protection has been installed correctly and are they certified (if necessary)?  It may be necessary for opening up investigations to be undertaken, for example to assess cavity barriers behind rainscreen cladding.  Fire stopping quality assurance should be considered, in some cases it may be recommended that third party certification is sought. 

Whilst most issues during the construction/ development of a building may be observed by the Clerk of Works (if there is one!), standards often slip later on during the building lifecycle when works are undertaken by Landlords and Tenants.

In our experience disturbed, inadequate or no fire stopping is often identified where new installations are carried out, which obviously does not provide the necessary levels of protection and should be reported back to the property manager or client for resolution. 

 

Poorly installed expanding foam and missing batt protection  

Missing fire stopping through floor slab within service riser.

Its important to remember that Building Surveyors are not Fire Engineers, however it is essential that a Building Surveyors report provides a sound understanding of fire safety arrangements, responsibilities and how a property may prevent or limit fire spread, and if need be, advise/ recommend for further specialist advice to be sought.

If you are looking for building surveying or professional property advice, then please do get in touch with the team here at PRE on; +44 (0) 208 406 3000 or email; [email protected]

 

At PRE its not all work and no play.  

We closed the office on Friday afternoon so we could all attend a team lunch with some games and team bonding. 

 

“Pure Real Estate Services Ltd (PRE Surveyors) are Members of the Royal Institution of Chartered Surveyors (RICS) and cover the entire UK with offices in Central London, East Croydon and most recently the heart of Bristol.

PRE  are expanding and are looking to increase their building Surveying division by employing an apprenticeship.

The successful apprenticeship candidate will be working from the East Croydon offices will be working closely with the rest of the experienced team and Director of operations.

They will have the autonomy to be given a high level of responsibility with projects predominantly working within the M25 and South East to include full Measured Building and topographical land surveys, working with Point Cloud Data to produce Architectural Drawings, 2D AutoCAD and 3D REVIT models.

The ideal person may have a building/construction related qualification, such as a University degree in Architectural Technology, BTEC in Construction or Land Surveying. We are primarily looking for self-starter’s keen to pursue their professional careers. A positive and proactive “can do” attitude, strong communication skills, great organisational and problem-solving skills are a must.

This represents a unique opportunity for a college leaver or university graduate who may be looking for a change in their current carrear or further their skills and development along with their career and take advantage of an established large commercial sector client base.

The apprenticeship surveying scheme will enable you to become a member of the RICS.

Please email your CV and short covering letter to [email protected]

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Apprenticeship benefits

• Earn a salary while you study
• Learn on the job, out of the classroom
• No student loans and no tuition fees — no debt
• Gain an industry-recognised qualification that is in global demand
• Open the door to a diverse and exciting range of careers

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Requirements for the position – East Croydon Offices

• Construction/Survey related qualification or self-starters.
• Keen to learn how to use a Leica scanner and total station for surveys.
• Commercially astute with the ability to work independently and within a team.
• Excellent written and verbal communication skills.
• High level attention to detail.
• Able to meet tight deadlines.
• Proactive can-do attitude to fit in well with the team.
• Happy to travel and stay overnight in locations for inspection purposes.
• Full-time with opportunity to go on study leave.
• Salary and benefits on application

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Heres what our current Apprenticeships say about working for PRE:-

“PRE has given me the opportunities to succeed in the surveying industry, through both a structured Masters and by sharing the knowledge and experience that the company has. I feel like I am on the right track to build a successful career in surveying” Michael Tickner

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“I feel my time working at PRE has been excellent. I have learned a tremendous amount after entering the role with very little experience and knowledge in the industry. I really enjoy my job role, in particularly being out and about onsite and seeing a project develop from inspection to final draft. Joining PRE, my outlook was to dedicate myself to gaining as much knowledge as possible and start my Building Surveying course with an insight to the industry. Almost a year on, I am now over halfway through year one of the course. My colleagues are great and I enjoy working alongside them. Nick Woodman

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To join the PRE Team, please email your CV and short covering letter to [email protected]

Our NEW offices are located at, The Old Stock Exchange, St Nicholas Street, Bristol, BS1 1TG

T: +44 (0) 1172 39 9303            

E: [email protected]

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Jason Antill MRICS, Managing Director

“Bristol is located only c.120 miles west of London and is the largest city in the south west of England.  Bath Spa is about 12 miles to the east of the city, and 45 miles away across the Bristol Channel is Cardiff in Wales.

The property market in the city has grown year by year at a phenomenal rate with a reported 532,000 sq ft take up of office space  across 105 deals during 2018.  24% being Grade A and achieving rents of c.£30.  This has increased by 8% since 2017.

Since our 10-year anniversary in 2018 and becoming a Multi-Disciplinary surveying firm with 24 services, PRE have surveyed over 100 commercial buildings in Bristol!

So that we can still offer competitively priced consultancy at a high level with a quick turnaround, the PRE Team thought it would be beneficial to our clients to open an office situated in the heart of the City.

We would be delighted if you could join us at our PRE Bristol-Launch Party, please do RSVP to [email protected]

Alternatively we are very happy to meet you at your offices in London or Bristol to discuss any potential projects and run through all our services, which include due-diligence for NIA/GIA Measured and Building condition Surveys, Project Management, Rights of Light & Neighbourly Matters.

Thank you to all our loyal clients for all your support over the last 10 years, it’s very much appreciated.”

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TOP 5 FACT about Bristol

1. Voted Best City to Live in Britain in The Sunday Times Best Places to Live Guide 2017. We have also been named as one of the 10 happiest cities to work in the UK by The Guardian.
2. Five Michelin-starred restaurants: Casamia, The Pony & Trap, Paco Tapas, Wilks and Bulrush.
3. The world’s biggest manufacturers of hot air balloons, as well as the host of Europe’s largest hot air balloon fiesta every August.
4. Very own currency – the Bristol Pound! Launched in 2012 and still going strong, you can exchange your cash into Bristol Pounds at points around the city, including the Tourist Information Centre.
5. Lower Manhattan – the ‘Bristol Basin’ was built using rubble from the city after the Second World War and has a plaque to commemorate its origins.

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The Old Stock Exchange, St Nicholas Street, Bristol, BS1 1TG

T: +44 (0) 1172 39 9303            

E: [email protected]

 

On the 24th March 2019 The PRE Team braved the night-time, cold, hard floor to raise funds to help homeless people off the streets and into positive, independent lives.

Our target was to raise £1,000 which we smashed and we raised over £1,250.

#endhomelessness #EvolveSleepOut

PRE Surveyors are very excited to be sponsoring the PropSail Sailing Regatta for the second year running.

Held over one day and evening with a gala dinner, this event is now firmly in the property industries calendar.

Similar to PropSKI, while networking, fun and fundraising are the essence of the PropSail, there are also two highly-competitive sailing regattas to win, with bragging rights and PropSail 2019 trophies awaiting the worthy winners.  I am a great believer in team sports involving all abilities, levels and ages which brings people together.  Racing sailing boats does this.   Jason Antill – Director of PRE 

This year’s regattas will follow a slightly different format to last year’s inaugural event. Due to the overwhelming interest we have received, and having listened to feedback, we have created more spaces and introduced a new fleet of boats… the J70s

The Sonar & J70 regattas will be hosted simultaneously in different areas of the solent, with the best of three races taking the trophy

PropSail Event Schedule

Thursday 21st May 2019
Skipper & Crew Networking Briefing
Royal Ocean Racing Club, St James’s Place
6pm – late

Thursday 6th June 2019
Race Day, Regatta Dinner & Overnight Stay in Cowes
Royal London Yacht Club, Cowes, IOW

Friday 7th June 2019
RIB Ride & Lunch at The Hut
Cowes to Colwell Bay (and back)
Noon – 4pm

DO YOU NEED AN EPC FOR SALE/LETTING’S FOR LISTED BUILDINGS?

There are over 9,000 Grade I listed buildings and 20,000 Grade II* listed buildings in England.  In the past there has been an assumption that listed buildings would be exempt, however this isn’t the case.

With  the advent  of minimum energy efficiency standards  (MEES)  all  building  will  require  an  EPC  to  see  if  they  are  exempt  from  improvements   (recommendations)   for  let.

For example the windows and externals are listed, if the EPC recommendations suggest replacing these with say PVC double glazing then this does not need to be implemented.  Therefore you could be exempt from carrying out these works.

 

Minimum Energy Efficiency Standards (MEES) which make it unlawful to grant new leases of properties with an F or G rating.

From 2023 these standards will make subsisting lettings of F or G-rated commercial properties unlawful too (2020 for residential properties).

EPC regulations do not simply state that listed buildings are exempt from the requirement to obtain EPCs but rather they are exempt, insofar as compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance.  This is a subtle, but important, difference.

For example, if it was suggested that the old single-pane sash windows of a listed property be replaced with new double-glazed windows, then this is likely to “unacceptably alter” the character of a property where the façade and/or windows were the listed feature resulting in the property being exempt from the EPC requirements. However, if it was simply recommended that the internal lighting be replaced with more efficient LED lighting, then the façade would be unaffected and so in this circumstance the character and nature of the property would not be unacceptably altered and the property would not be exempt for EPC purposes.

In order to determine whether a particular property is exempt, a property owner will first need to work out (i) what the potential or recommended energy efficiency improvement works are for the property and (ii) whether implementing those recommendations would unacceptably alter the character or appearance of the property. It is likely that an EPC assessor will need to be instructed to evaluate this.  Property owners essentially need to undertake an EPC survey to work out whether an EPC survey is required.

A property owner would also have to inspect the listing particulars of the property to ascertain what the unique listed characteristics are. There is ambiguity as to what constitutes “unacceptably altering” those listed features and who is the arbiter of that decision; is the property owner, the EPC surveyor, English Heritage or the local planning authority?

Should you need any further clarification or advice on this subject, please do get in touch with PRE Surveyors or

JASON ANTILL BSc (Hons) MRICS DipNDEA, Director
M:   +44 (0) 7855 520 223
T:    +44 (0) 20 7233 6688
E:    [email protected]
W:  https://presurveyors.co.uk

MIPIM Accomplished

After what can only be described as a highly beneficial (and sunny) week at MIPIM, I started to reflect on my time at Cannes since the very quiet (but very busy), flight back to London and well into last week.

This was my first time at the event and I think that it’s fantastic that approximately 30,000 likeminded property professionals travel from across the globe to congregate at MIPIM in Cannes each year.

This year was a big year for PRE Surveyors at MIPIM because on the Wednesday we hosted our first ever client brunch that was an enormous success! We caught up with 50 of our clients who joined us on the morning to enjoy breakfast and drinks on the beach which lasted well into the afternoon.

I learned fairly early on in the week that MIPIM is not just about meeting new/ potential clients, it’s also as much about catching up with clients you already work with regularly.  Equally, I found that it is also about understanding what other people do and helping others make good connections to help their business, in most cases I found that this would be reciprocal, so well worth doing.

Following our brunch was a busy but comfortable schedule of pre-planned meetings, lunches, dinners and evening networking events.  We would like to thanks to everyone who hosted us during our time at MIPIM.

Like myself, there is a desire amongst all attendees to make the right connections, and why not?  MIPIM is the perfect platform to meet people whether that’s at presentations, events, lunches, I realised that the event is perfectly designed to enable you to do so and subsequently better your own business, no matter what background or sector you may work in.

MIPIM Types

A regular reference I came across when speaking to other delegates were what are known as ‘MIPIM types’ – at first my mind boggled, what does that mean?  I found out that this essentially refers to the personality types you would meet at MIPIM, for example ‘Speed daters’ who would have the art of their offering perfected, but not robotic.  ‘The elevator pitch’ for example was a really handy technique which informs your fellow networker(s) of what you do without being that person who just goes on, and on, and on – don’t be that person.

‘Hard sellers’ – you know the types, those who force their business card upon you before any introduction or shake of a hand.  Perhaps this technique justifies the reason why it was mostly their business cards which were spread across the floor of the hole venue late into the night?

Those of you who saw my pre-MIPIM article, the main advice my colleague Jason Antill gave was to relax, and it’s totally true.  Not only is it in-keeping with the relaxed 15 degree Celsius beach environment, but others, like myself, are more comfortable in a relaxed environment than anything which generally lends itself to decent enjoyable conversations.

I met many likeminded professionals not just from the UK, but from many other countries; Spain, France, Czech Republic, Belgium, US, UAE and Russia to name a few.  Brexit was a keen topic amongst non-UK nationals, but I will leave that one there…

So what next?

I guess like most things in professional life and business, it is only as good as what you put in.  Having had a successful trip, it’s paramount that you follow up with the contacts you made.  Last week was a busy week responding to those we met and indeed it is still ongoing as I write this article.

Overall, everyone I met recognised the opportunity the conference brings, it’s probably the most people I have ever met in such a small window of time.  I would say the spike on LinkedIn also backs that up. Bizarrely, I even found that it was easier to find time to meet at MIPIM than in London amongst busy schedules.

My memories of MIPIM are hugely positive, having met so many great new contacts who were friendly, relaxed, like minded and interested in property. I can really see the benefits for our business and already we are looking forward to MIPIM 2020!

PRE’s Jason Antill and Gareth Owens will be attending the Total Housing 2019 conference in Brighton on the 6th March.

The conference brings together Housing professionals from London and the South East of England. We will be attending seminars which discuss the Housing challenges in the near and long term future as a result of London’s  increasing population. We will also be meeting surveyors from national housebuilders and housing associations.

 

If you would like to arrange a meeting with us please contact him [email protected]; or  [email protected];

 

 

 

 

 

Regulatory Developments Round-Up: January 2019

Introduction

With the Brexit deadline looming in less than two months, Firms should be prepared for the no deal scenario and how this will impact your activities. Breaking news on Friday was ESMA’s announcement that a Memorandum of understanding had been signed allowing delegation of UK Firms to continue for example providing investment management services. This will provide welcome certainty to a number of firms.  We explore the various Brexit scenarios in further detail below and would be delighted to share further insights on this or any other regulatory topic.

Nancy King
[email protected]
Telephone: 0207 205 2249
Portman Compliance Consulting LLP
85 Gresham Street, London EC2V 7NQ
www.portmancompliance.com

Brexit

Post-(no deal) Brexit Temporary Regimes

We update our previous newsletter to note that the FCA is now receiving notifications with regard to the Temporary Permission Regime.

You should familiarise yourself with the TPR requirements NOW if you are an:

• EEA based firm currently passporting into the UK; or
• EEA-domiciled investment fund (UCITS and AIFs such as EuVECASs, EuSEFs, ELTIFs, MMFs) marketing into the UK under the relevant passport.

If you fall under either of the above categories and wish to continue to passport services into the UK or market your EEA fund into the UK, in the event of a “no deal” Brexit, you must notify the FCA that you wish to enter the “Temporary Permissions Regime”. This will enable you to continue to provide services or market your fund into the UK whilst you apply for full authorisation and lasts up to 3 years from exit day.  The FCA is now able to receive TPR notifications (the “notification window” opened on 7^thJanuary 2019 and will close at the end of 28^thMarch 2019).

For fuller guidance on how to make the notification and the rules that will apply, please consult the FCA TPR

FCA Statement on EU Withdrawal Impact Assessment

This was published 29^thNovember and outlined the FCA’s view of the impact analysis of a deal/no deal Brexit (in which the FCA purports to take a neutral stance).

No Deal

1. No implementation period
2. UK would be a “3^rd country” and would fall under WTO rules (individual EU member states or National rules apply)
3. EU laws convert to “UK laws” via EU withdrawal Act.
4. FCA and BoE likely to be given powers to assist the transition of financial services
5. No passporting (as no supervisory co-operation)
6. Execution of Firm contingency plans may cause market fragmentation and cross-border risk.
7. Longer term reduction in competition and increased costs for consumers (UK and EU).
8. Outcomes depend upon unknowns e.g. how countries will merge oversight of common functions such as market oversight.

Deal

1. Implementation period (30^thMar ’18 – 31^stDec ’20). Extendable by mutual consent (during which time UK would be subject to EU rules without input).
2. Avoids “cliff edge” risks.  FCA says “the risks presented in an implementation period are preferable to the risks of a no-deal scenario”.
3. UK will need to implement any new EU laws during implementation period (without input).
4. Will be a political declaration outlining “equivalence” between UK and EU
5. FCA will cease to be a “voting member” of ESMA – FCA believes a strong case for continued UK close cooperation.
6. Exit without agreement = greater risk and uncertainty.
7. FCA believes that the longer the transition continues the greater the risks regarding future EU legislation.

Financial Crime

Cyber/Technology Resilience: FCA report (December 2018)

The Report highlights output from 296 self-assessments completed by firms assessing their technology and cyber capabilities.  The focus areas were: governance, delivery of change management, managing third party risks, effective cyber defences.

• Summary:
  • Cyber-attacks account for 18% of the operational incidents reported to the FCA Oct 17-Sept 18.
  • Firms felt governance was their strongest control e.g. allocating responsibility to Board level.
  • Main areas of cyber weakness: people, 3^rdparty management, protection of key assets.Main issues re controlling information held, identifying/managing high risk staff, 3^rdparty issues such as IT failure.

 

 

Portman Compliance Consulting LLP specialises in providing pragmatic and commercially-aware regulatory support to small and medium sized FCA regulated firms. Our clients can determine which level of outsourcing they require:

• FCA Authorisation
• Ongoing
• Special Projects

We build strong relationships with our clients by understanding their individual business models, risk profiles and by establishing good communication links.

Our objective is to supply comprehensive compliance support to enable our clients to focus on growth and opportunity.

Please get in touch with Nancy King by email  [email protected] or phone 0207 205 2249 to find out more information how we can help you in financial compliance.  We would be delighted to provide a client CPD at your offices to go through in more detail about this article.