Monday, October 28, 2013

Construction Professions - Employability Skills – A Key Element of Undergraduate Education

I have heard many working in the construction professions comment that they do not think that Universities provide the depth of knowledge and skills necessary to prepare graduates for the rigours of the professional world. But is this a fair assessment?

Source: http://www.tailoredrecruitmentservices.co.uk
During my many years in professional practice, I have worked with numerous graduate construction professionals, fresh from University and ready to enter the professional world, in many cases armed with little more than the knowledge they had gained from University.  When employing graduates in practice we were looking for potential in terms of attitude, drive, entusiasm etc and we would not have unrealistic expectations in terms of technical knowledge at this point (although this would be assessed through the recruitment process). I have heard many working in the construction professions comment that they do not think that Universities provide the depth of knowledge and skills necessary to prepare graduates for the rigours of the professional world. But is this a fair assessment? At University we try our very best to ensure that the content of our courses is continually updated and importantly relevant to the various built environment professions. Infact 75% to 80% of the content of built enviroment courses is determined by what our accrediting bodies require and expect.  We also try wherever possible to allow students to apply this knowledge in practically based, industry relevant assessments wherever possible.  In truth, and I am sure most would agree, the real learning/experience of each particular profession actually starts in the workplace.  Although we try our utmost to arm our students with relevant up to date knowledge and as many practical skills as possible there will always be limitations to what can be achieved in an academic environment. 

Most people will be aware of the significant changes to University funding over the last few years and in particular the significant increase in the amount a student is required to pay if they want to come to University.  In reality the cost of most undergraduate courses has not changed, what has changed is that the government no longer subsidise a large percentage of the fee (for the student) which they used too.  The outcome is that students are now faced with tuition fees of between £8,000 and £9,000 per year (fees vary between universities), resulting in an investment of between £24,000 and £27,000 for a three year course without even thinking about living costs and other expenses. Although a low interest loan can be sought to cover tuition fees, in addition to thier degree, most graduating students will leave University with a large debt.  All of this has resulted in students thinking very carefully about the type of courses they will undertake or whether they will go to university at all.  Nowadays, students should expect and demand a high level of service, high quality teaching, a modern learning environment and an overall positive experience throughout their time at University, which will ultimately provide them with good career prospects and good earning potential.  This is something our University has worked very hard to achieve. In fact Coventry University have recently leapt up 10 places in The Times and Sunday Times Good University Guide 2014; putting us 45th in the overall rankings. This is the highest listing for a modern university in the history of these guides; sealing our title as the UK’s top modern university. We still however have room for improvement and we will work hard to make further positive enhancement/improvement to the University, our courses and to the student experience.

Source: http://www.sqa.org.uk
As an Admissions Tutor and Senior Lecturer, teaching on RICS, CIAT, CIOB and CIBSE accredited courses I have noticed a significant increase in the amount of enquiries and questions that applicant’s and in particular thier parents ask, especially at open days.  Many of these questions, revolve around career opportunites available once they graduate, and not just focussing on questions relating to the course itself.  This has highlighted a very interesting and important point, as it appears that applicant’s are now thinking much more about the likely return on their (increased) investment and how their academic studies will translate into employability. 

In order to ensure the continued supply of construction professionals it is extremely important that undergradate teaching is underpinned with employability skills, to help ensure that graduates are as prepared as much as possible for the rigors of the professional world.  At Coventry University we adopt our own ‘activity led learning’ method of teaching and delivery, where our students are given practical, industry relevant activities, as often as possible, by providing them with projects that reflect as closely as possible situations that they will undertake in professional practice once they graduate. We try to move away from a traditional ‘chalk and talk’ style of teaching and learning wherever we can.  In adopting this style of delivery we are supported by a number of employers within the West Midlands area, who are happy to provide our students with projects and to give them the opportunity to present their findings and recieve feedback from those working in the industry.  One such employer is Severn Trent.  For the last three years they have provided our second year building surveyors with access to one of their buildings.  The assessment brief requires a professionally presented building survey report, with an analysis and explanation of defects and an option appraisal of what the client could do with the building.  Students then present thier findings to members of Severn Trent’s Property and Asset Managment Team, at their headquarters in Coventry, where they were challenged and questioned on their proposals. This is just one example of how we try to engage our students with industry partners in order to improve their employability skills.

A combined approach of undergraduate teaching and professional experience is fundamental to ensuring a continued stream of high quality graduates into the built environemnt professions. Our students are very popular with employers, particuarly in the Midlands area.  We encourage our students to secure a year out placement opportunity during their studies and we have some excellent students, some who will soon be starting the process of applying for positions for 2013.   If you are employer, who is thinking about placement or graduate positions now or in the future, please contact me at Coventry University. 

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Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Monday, October 21, 2013

First time buyers – Step onto the property ladder while you still can!

The Government can introduce as many incentive schemes as they like, such as help to buy, however although undoubtedly some will benefit in the short term (and good luck to them!), the reality is that many more will suffer in the long term

Source:http://emerginggrowth.com
First time buyers are always faced with the dilemma of deciding when the ‘optimum’ time to enter the property market actually is.  As house prices in the UK have increased significantly over the last thirty years or so, the ability to take this first step is often tempered with the reality of having to save for a large deposit.  Without any equity to fall back on first time buyers must despair when they see house prices starting to increase, and proportionally the amount they will need to save for a deposit will increase with it. The result of the significant increase in UK house prices over the last 30 years is that average house prices have increased from £25,580 in 1982 to £167,294 in Q2 2013 (Nationwide 2012)  With many lenders now requiring a deposit of around 20% it is not difficult to see why so many first time buyers are struggling to enter the market.

Last month (06th September 2013), www.thisismoney.co.uk summarised the outlook for the UK property market:

‘House prices are back on the up. Fuelled by cheap mortgages and the Government plugging its deposit-boosting Help to Buy scheme, the property market has swung back into growth. Since January, cheaper mortgages from Funding for Lending have begun to filter through, Chancellor George Osborne nailed his flag firmly to the property market mast, and a chunk of Britain's home buyers appear to have decided they have had enough of sitting on their hands. Transactions still remain well below the long-term average rate seen before the 2007 property market peak, but both they and prices are on the up’

This could be interpreted as either good or bad news depending upon where you are on the property ladder.  For developers this is good news as increasing house prices will in most cases result in increased margins.  This is demonstrated starkly by the buy to let market where the Council of Mortgage Lenders have reported strong growth over the last few months:
‘15,200 buy to let (BTL) loans were advanced in July, an increase of 12% compared to June. This represents a value of £2bn which was 11% higher than in June. Lending for BTL house purchase was up 7% in July compared to June, a total of 7,600 loans. The value of these loans was £900m, up 13% from June. There was strong growth in BTL remortgage lending which increased by 24% in July compared to June, a value of £1.1bn. This equated to 7,200 loans in July for BTL remortgage in total, an increase by 13.4% on June 2013’
This however is of no benefit to the first time buyer.  In fact, factors such as buy to let investors, disproportionate house prices increases in certain parts of the country, particularly London and the South East and in particular a general lack of supply of affordable first time houses all help to contribute to a big slap in the face for those looking to invest in the property market for the first time. 
Source: http://www.itv.com
The Government will no doubt argue that their help to buy scheme will alleviate some of these problems and provide easier access to the housing market for those who may not have previously been able to enter.  As a short term measure there is little doubt that the help to buy scheme will bring more first time buyers to the market, in fact this is already happening.  There is however one fundamental flaw in the scheme.  House prices are determined by the market.  Whether we like it or not basic economic principles such as demand and supply will always determine the price level.  This is true of all markets, not just the housing market. The problem we have in the UK, one which we have had for many years, is that we just do not have enough houses.  With a restricted supply and high demand the market will naturally re-adjust, resulting in increasing house prices.  Unless we construct more new houses and quickly, there will come a point where all of these house prices levels could become out of control.  Incentivising, large numbers of first time buyers and new investors into a market which already has a restricted supply is not the answer.  Surely, the UK Government must see that investing in large scale housing development is the only real way of dealing with the housing shortage and controlling house prices.
I am lucky enough to have been on the property ladder for many years.  If I were looking at entering the property market for the first time, I would definitely utilise the help to buy scheme while it is available.  As a first time buyer my priority would be to get on the property ladder as soon as possible and I would (selfishly) not be worried about what will happen to the property market afterwards, because I am then highly likely to be generating equity over the next few years. The property market is a different place for those who are already on the ladder.  The Government can introduce as many incentive schemes as they like, such as help to buy, however although undoubtedly some will benefit in the short term (and good luck to them!), the reality is that many more will suffer in the long term.  Long term sustainable housing policies are needed urgently, rather than short term (and short sighted), policies, designed to try and win votes rather than solve the real problems!

The Help to Buy Scheme explained

Below I offer a summary of the help to buy scheme, which I have taken from one of my earlier posts:

The first part of the initiative builds on the existing ‘first buy’ shared equity scheme for which the Government have allocated £3.5 billion for those who want to purchase a new house up to a maximum value of £600,000.  The second part, in simple terms, will see the Government act as guarantor for a percentage of the lender’s debt.  The difference with this new scheme is that the previous cap of a maximum £60,000 income has been removed. The new scheme is also being made available to existing homeowners, whereas the ‘first buy’, scheme was only available to first time buyers.

In order to use the first part of the scheme borrowers will first need to save a deposit of 5% of the value of the property they want to purchase.  They will then be able to apply for an interest free loan for a further 20% of the value of the property, to a maximum loan value of £120,000. Repayment of the loan will then be made when the property is eventually sold. After five years the loan will start to attract what the government call a ‘fee’, which is basically interest at a rate 1.75% which will increase annually thereafter by the current Retail Price Index inflation plus 1%.  The loan is therefore interest free, but you need to read the small print to see that this only applies for five years. Borrowers can access the scheme from 1 April 2013 which is proposed to run for three years.

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Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Monday, October 14, 2013

Planning Reform – New ‘Permitted’ Development Rights are not permitted at all!

I am not sure how the new ‘extended permitted development rights’ make it easier to construct larger extensions, as a developer still has to submit details to a Local Authority and obtain prior approval
Source: pcmsdesign.blogspot.com
Over recent years the UK planning system has received a huge amount of negative publicity, with stories of applications being held up by red tape, planning departments struggling to cope with the volume of applications they receive and the manner in which the planning system is stifling development. In order to try to address some of these issues and to stimulate development the UK government have recently (temporarily) introduced amendments to permitted development rights which allow a wider scope of developments to be undertaken that do not require formal planning permission. These new and amended rights took effect on 30 May 2013 and will be available, in the most part for a period of three years, ending on 30 May 2016.  In summary the main changes to existing permitted development rights for this temporary period include:
  1. Larger single storey rear extensions to residential properties
  2. Larger extensions to industrial and warehousing premises, shops and offices
  3. Conversions between office and residential uses
  4. More flexible uses of shops, offices, residential institutions and agricultural buildings
  5. Easier conversion of premises for school uses
  6. Telecommunications installations in conservation areas

Further details of the new permitted development rights can be found on the Planning Portal: (Link).

Source: http://www.manchesterplanners.co.uk/
The advantages of permitted development to the party proposing the works are clear; Planning applications often require professional advice in order to produce drawings, submit the application in the correct format, liaise with the Local Authority, all of which, in addition the planning fee itself can prove to be expensive.  There is also the possibility that the application may receive objections from neighbours/local residents, which will be taken into account by the Local Authority when making a decision on the application. All of this expense, stress and uncertainty can be avoided if the development is deemed to be 'permitted development'. This is all well and good for the party who propose to undertake the work, but not such good news for those who are likely to be affected by it!

Interestingly, the Planning Portal, ‘the UK Government’s online Planning and Building Regulations resource for England and Wales’ (their words not mine), introduces permitted development by stating You can make certain types of minor changes to your house without needing to apply for planning permission’. To many people, particularly living next door or those in close proximity to someone claiming permitted development rights, may not view a rear residential extension of 8 metres in length, beyond the existing rear wall for a detached dwelling (6 metres for a semi-detached dwelling), and up to 4 metres high, as minor, however this now falls within the extended scope of permitted development.  Although by definition permitted development suggests that works that fall within the scope of the rights, is allowed, without the need for any application or any permission, this is not strictly correct, as the extended permitted development rights have introduced a new ‘procedure’ to confirm that the rights actually apply for larger residential extensions. You could argue that although obtaining confirmation of permitted development rights is a simpler process than submitting a formal planning application, it actually takes away the ‘permitted’ element until the new procedure has been followed.  Therefore in reality the Local Authority is still providing a permission of some description thereby negating one of the main purposes of permitted development. 

New Procedure:

Prior to commencing any works the resident must:
  1. Notify (in writing), the Local Authority of the proposed works with an outline of the proposed works, dimensions, a site plan, adjoining owners addresses and contact details of the developer.
  2. The Local Authority then has 42 days to issue a decision from the date that the information is received.
  3. During the 42 day ‘consideration period’ the Local Authority will invite representations from adjoining owners for a minimum period of 21 days. If any objections are received during this period, a Local Authority prior approval will be required for the extension.
  4. If no objections are raised within the 21 days, the Local Authority will inform the developer that no prior approval is required and confirm that the development can commence.
  5. If the extension is deemed to be acceptable the Local Authority will issue a written notice giving prior approval within the 42 day period. Alternatively, if deemed unacceptable a prior approval refusal notice will be issued by the Local Authority with the 42 day period. This will prevent the development from proceeding, however there is an appeal process available to the developer.
  6.  If a decision is not provided with 42 days by the Local Authority, then permission will be granted automatically
  7.  Any works that are permitted must be completed strictly in accordance with the details already provided to the Local Authority
When you consider the procedure detailed above it is reasonable to ask ‘how is this permitted development’?  In fact apart from the level of detail required, there is very little difference between this new procedure and a formal planning application.  How could this possibly fall under permitted development? It seems that in trying to find a streamlined way to encourage development that the new procedure has actually provided us with what we already have, which is a system that requires an application and a permission.  I am not sure how the new extended ‘permitted development rights’ make it easier to construct larger extensions, as a developer still has to submit details to a Local Authority and obtain prior approval.  Prior approval cannot be permitted development as the notion of gaining an approval and dressing it up as something that is permitted is nothing short of ridiculous.  This really seems like a pointless part of the new temporary permitted development requirements and although other changes may be more effective I am at a loss to see how this will have any impact whatsoever.

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Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Sunday, October 6, 2013

Statutory Approvals - Why ignorance is no excuse for non-compliance

By their very nature Statutory Approvals are mandatory, they are not a choice.  This is something worth thinking about if you are thinking about buildings works now or in the future

Source: http://www.architectsbelfast.com/
Earlier this year an interesting article appeared in the Telegraph with the rather bold headline ‘One in 10 British homeowners have broken planning and building restrictions'. The article suggests that this is largely due to confusing information and guidelines and lack of or misunderstanding of recent changes, particularly to planning laws.  The article then goes onto state:

‘More than 176,000 homeowners have been ordered by council officials to take down or rectify building work carried out on their properties in the past five years, leaving them considerably out of pocket. Some homeowners have been caught out by mistakenly believing it would be easier to obtain planning permission after they have carried out work rather than before’

The above confirms my general experience of dealing with members of the public, over many years, in that there is a general lack of awareness, sometimes complete ignorance of which statutory approvals (permissions) may apply to any works they are proposing to undertake. For the person proposing (or in many cases starting the works without statutory approvals) the implications of not attaining the requisite permissions can be extremely costly, in addition to creating the potential of committing criminal offences and being subject to fines or possible imprisonment.  This is a serious issue and unfortunately for those who decide to proceed without the required permissions they will find that ignorance is no defence.

Source: http://www.getwestlondon.co.uk/
Statutory approvals are required for a variety of reasons and these will inevitably create a difference of opinion between those who propose to have works carried and those who are likely to be impacted by them.  Before being too critical of statutory approvals it is first worth taking a moment to think what the World and indeed your local environment would be like without them.  For example, if there were no planning controls your neighbour may decide to construct an extension or new building as big and as high as their land will permit, which could block your view to the nice rural landscape that you currently enjoy, significantly reduce the amount of natural light into your own building, and affect access to your own land, and so on.... Without Building Regulations approval there would be no control on the quality, standard or safety requirements in which your neighbour should build their extension.  Also, what happens if during the construction your neighbour damages your property? Statutory Approvals such as the Party Wall etc. Act 1996, if applicable, would provide a way of dealing with this.  Therefore, although many may see statutory approvals as an expensive hindrance you can see that the World we live in would be a very different place without some level of control.
 
Source: http://www.abcsolutions.co.uk/our-services/statutory-approvals-cdm/
Prior to undertaking any form of building works it is important to establish if, and if so which statutory approvals apply.  Many Local Authority websites provide a good level of information and guidance to help you to decide if you need to obtain various permissions, however it is always worth getting a professional opinion to answer any of your questions and to advise you more accurately.   This is important because the requirements for statutory approvals is very much dependent of the type/size/scale/location of proposed works and will vary from project to project.  Take planning permission for instance.  There are certain types of works/developments that are classified as ‘permitted development’ and therefore do not require formal planning approval.  I will be discussing this in more detail in next week’s article where you will see that although a formal planning application is not required it is still necessary to obtain something called a Certificate of Lawfulness from the Local Authority to confirm that the proposed works are classified as permitted development.

Members of the public may be surprised by the scope of statutory approvals that may apply and may not think twice about lopping or removing a tree, knocking a wall down in an old building or painting the outside of their house in a bright colour.  Each of these could be in breach of a Tree Preservation Order, Listed Building Consent or Conservation Area Consent respectively.  This provides just three examples where Statutory Approval could quite easily be breached or ignored, however as stated previously, the offending party could end up with a hefty bill for rectification or repair work, alongside a fine or in extreme cases imprisonment.
Consideration of Statutory Approvals for the vast majority of householders in the UK will primarily relate to Planning Permission, Building Regulations Approval and whether the provisions of the Party Wall etc. Act 1996 apply.  The process can be further complicated if you propose works to a Listed Building (usually a heritage building), or want to carry out external works or alterations to a building in a Conservation Area. If any works to, or removal of trees is proposed then enquires need to be made with the Local Authority to establish if Tree Preservation Orders are in place.   A whole host of other statutory considerations are required for developments of a larger or more complex nature, such as consideration of Environmental Impact, Ecological issues such as, Protected Species, Water Courses and Japanese Knotweed, then there are Traffic Assessments, Noise Impact Assessments and so on.

The Statutory Approvals discussed above provide an example of the common types of approvals that are required in the UK, however the list is far from exhaustive.  It would be extremely unwise to proceed too quickly with any proposed works/development until the full scope of Statutory Approvals has been established.  Obtaining Statutory Approvals can prove to be a costly exercise particularly when the Local Authority place conditions on the approval, or an application is refused and an applicant decides to appeal.  It is however sensible to find out any conditions that the Local Authority may impose as early as possible, as these can be factored into financial calculations.  This could mean that a scheme becomes financially unviable, possibly due to budget restraints, however, it is far better to find this out before works begin.

As stated earlier it is always advisable to obtain professional advice in respect of Statutory Approvals as early as possible. If this happens then perhaps we will see a reduction in Local Authority enforcement action as detailed in the news article at the beginning of this post.  There will always be those who want to cut corners and ‘do things under the radar’, however, always beware of taking this approach, as the consequences of enforcement action, is a risk just not worth taking.  Also, during the conveyance process Solicitors will request confirmation and copies of Statutory Approvals.  If you have not got them or cannot find then it is likely that perspective purchasers will be put off. By their very nature Statutory Approvals are mandatory, they are not a choice.  This is something worth thinking about if you are proposing any buildings works now or in the future

Please feel free to share this article and other articles on this site with friends, family and colleagues who you think would be interested


Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.