35 minute read
health in the workplace
Mental health in the workplace
Promoting positive mental health and encouraging open conversations among staff about their wellbeing are high on the agenda at Fisher German.
At any one time at least one in six workers are experiencing depression, anxiety or problems relating to stress. This is just one of many sobering statistics (see box) that highlight why mental health in the workplace is being taken increasingly seriously by employers. Unsurprisingly, Covid-19 has exacerbated mental health conditions, with nearly 70 per cent of adults reporting in 2020 concern about the impact of the pandemic on their wellbeing.
Fisher German was quick to respond when Covid hit, putting in place support platforms for all 600 colleagues. As the world moved onto virtual conferencing spaces to communicate, Fisher German made a significant investment in online resources, including a programme of webinars for all employees, covering a diverse range of topics, such as: financial wellbeing; understanding stress; managing stress; sleep; coping with change; understanding burn-out; and wellbeing while working from home, as well as Q&As with a registered dietician. “This was a very clear way we could demonstrate in practice our dedication to put colleague wellbeing first,” says Fisher German HR director Maria Hawley.
The positive response to these webinars resulted in the formation of a four-week programme, led by a professional coach, on personal and professional resilience. And for those seeking to improve their health and fitness, a monthly online yoga session was provided by a qualified instructor.
“We were very aware of the importance of talking to other colleagues when we weren’t able to meet face to face,” says Maria, “so we created Business Blend, a system that randomly pairs colleagues across the business and emails them monthly to encourage them to chat to each other, either on the phone or via video conferencing.”
Enthusiastic feedback from this initiative led to the firm’s first Time to Talk Day, earlier this year, when 100 colleagues joined a live speed-networking session to chat to each other online about anything from work projects to hobbies and their personal coping strategies during lockdown.
Maria adds: “People approach things in different ways, and while the online resources were very well-received, we recognised that there was also demand for more physical ways to improve mental wellbeing. So, we introduced a walking challenge, where people formed virtual groups of five [usually within their business team] and logged the distance they covered on their individual daily walks. The response was astounding: more than 200 colleagues took part and we found that some individuals were covering over 100 miles per week.”
The importance of small gestures that can have a big impact has also been noted, with the firm sending out brownies to colleagues as a surprise pick-me-up on Valentine’s Day. “All of the things we have done to promote mental wellbeing during lockdown follow on from an initiative that started well before the pandemic, when Fisher German joined the nationwide Time to Change programme,” says Maria.
That resulted in the appointment of 15 mental health first aiders throughout the firm.
Just like physical health first aiders they received formal training, but rather than learning how to dress burns and perform CPR, they were taught how to listen to their colleagues and watch for signs of mental distress. Maria explains: “Our mental health first aiders are able to recognise tell-tale signs, often from casual conversations, which indicate that someone might be anxious, depressed or even suicidal, and then tactfully point them in the direction of help.”
Change of mindset
When Fisher German signed the Time to Change pledge, few other property companies were making similar commitments, perhaps highlighting how challenging acknowledging mental health issues can be in a sector that has historically shied away from individuals’ personal issues. “I’m really keen that people bring their whole selves to work,” says Maria. “The reality of life means that all of us will face challenging situations at some time or another, whether it is a medical problem, depression or the death of someone we’re close to.
“Until recently, we felt we had to put on a professional face and come in to work pretending that nothing's happened. Now we are encouraging everyone to realise that they don’t have to leave part of their life behind when they walk out of the front door. It doesn’t mean they can’t do their job to the best of their ability, but it does mean they can be themselves in the workplace, have a conversation if they want to and know that there is support for them if they need it.”
Putting this into practice involves changing often deeply entrenched mindsets, so Fisher German’s senior management team has been instrumental in underlining one of the company’s core commitments – supporting people in and out of the workplace – with the firm’s managing partner and chair both speaking publicly about how they have personally dealt with mental health issues.
Attending to mental health doesn’t just make good business sense by increasing employee retention. Maria adds: “It also creates a happier, healthier workplace. And I think everyone would much rather work somewhere where they feel energised.”
What is Time to Change?
Time to Change is a campaign which ran between 2007 and March 2021, led by national mental health charity Mind and Rethink Mental Illness and funded by Comic Relief, the National Lottery Community Fund and the Department of Health and Social Care.
The campaign encouraged a total of 1,500 participating businesses to roll out a 12-month action plan to promote positive mental health across their firm. Plans typically included: encouraging open conversation about mental health and the support available when employees are struggling; ensuring employees have a healthy work-life balance; and ensuring employees are routinely monitoring their mental health and wellbeing.
Even though Time to Change has now closed resources can still be found online at: www.time-to-change.org.uk
Mental health at work in numbers
• One in six workers experience depression, anxiety or problems relating to stress at any one time • One in five people take a day off due to stress. Yet, 90 per cent of these people cite a different reason for their absence • The cost to business is £1,300 per employee whose mental health needs are unsupported • Mental ill health is responsible for 72 million working days lost and costs £34.9bn each year • 69 per cent of UK line managers say supporting employee wellbeing is a core skill but only 13 per cent have received mental health training Source: MHFA England
Maria Hawley
07918 677572
maria.hawley@fishergerman.co.uk
As demand for industrial premises from smaller businesses rapidly grows, developers are overhauling existing space to keep up with the high take-up as well as ensuring the properties are environmentally sustainable as the UK aims to become carbon neutral.
While the pandemic has wreaked havoc across certain parts of the UK economy, some businesses are weathering the storm much better than expected. They include many of the small to medium-sized businesses, which are based on multi-tenanted industrial parks the length and breadth of the country. “It’s so refreshing to have good news to report,” says Andrew Smith, Fisher German’s head of client relationships for commercial property management. “Across the portfolios in general, we’re collecting well over 70 per cent of rents shortly after the quarterly rent date. That’s partly down to good landlord and tenant relationships, but also what we’re seeing is that a lot of these businesses are back to operating at or near full capacity, although many are having to work in new ways to accommodate social distancing and colleague welfare.”
Demand for industrial premises from businesses such as The Filter Design Company and 3 Pugs Gin (see Occupier profile boxes) was already growing before Covid-19 hit, but the amount of new and refurbished accommodation coming to the market hasn’t been keeping up. As developers focused attention on building on larger warehouses for the likes of major logistics companies and online retailers, only a select few of specialist providers led development on smaller units for the remainder of the market. As a result, we are seeing demand exceed supply across many parts of the country.
Andrew explains: “As a result, developers and investors have been refurbishing this kind of accommodation at a pace and not simply to respond to the high level of demand. The push for the UK to become carbon neutral by 2050 and environmental sustainability coming to the forefront of market thinking means there are social, environment and governance requirements that are prompting owners of these types of property to bring forward improvements across their portfolios.”
Refurbishing an industrial estate in 2021 doesn’t just mean focusing attention on the buildings alone. It also involves enhancing the surroundings, common parts and immediate vicinity, sometimes in conjunction with other landowners or local authorities. Andrew says: “Occupiers have higher expectations of their environment, so, for example, they now look for space for their colleagues to meet outside, for recycling points, and provision of a myriad of social and work place amenities. In addition, landlords are also acknowledging that they can improve their environment footprint by making simple adjustments such as on-site composting for estate plant waste, LED lighting across the estate, communal bike sheds and electric vehicle charging points.”
Planning for growth
With new developments being eagerly taken up by occupiers across the country and supply of refurbished space limited for the foreseeable future, occupiers will need to be much more attuned to what is happening in their local property market if they are to secure the size and quality of space they require, especially if it is location specific. While long-term space planning was previously something only much larger companies would consider, smaller companies are now having to look at the same, as they can no longer guarantee that the space they need will be available immediately.
Smaller businesses are now realising that the cost of taking space that isn’t immediately required can be quite marginal compared with their total operating costs.”
Increasingly, businesses are forward planning space requirements well in advance. “Although historically smaller businesses have only occupied what they needed and either taken additional space or moved to new premises as and when they grew,” says Andrew, “they are now realising that the cost of taking additional accommodation that isn’t immediately required can be marginal compared with their total operating costs and can potentially relieve more pressing logistical problems in the future.”
The shortage of good quality industrial and logistics space has pushed rents up across the UK, which can sometimes be an unwelcome surprise for occupiers assessing the market for the first time over the past five years. Andrew explains: “It can be a difficult conversation to have with some tenants when they come to renew and find that the world has moved on considerably since the rent was reviewed last.”
However, he also advises landlords not to become complacent: “Multi-tenanted estates are changing and occupiers are more discerning than ever. They are becoming more engaged with their local communities and the occupier profile will become increasingly more diverse as retail and leisure patterns evolve. Such developments will become destinations,
Occupier profile: 3 Pugs Gin
It was a chance ‘speed gin tasting’ in 2015 that led Christine Ditchfield and husband Ste into the world of gin production. After sampling a homemade gin, Christine realised that the couple could do the same and, after visiting a gin school in Leicester, started distilling one of the UK’s favourite alcoholic beverages in the couple’s garden shed. Named after the trio of Ditchfield pugs (Pepsi, TuTu and MoJo) the brand soon took off and by 2018 production had reached 15,000 bottles.
“At that point we realised we needed both of us to work full time on the business and move into proper premises, otherwise we’d fail,” recalls Christine. They looked for space near their Warrington home and found choices were limited, so Christine made a bold move. “I decided to rent the largest property at a price we could afford, so that we could grow into it.”
Since taking more than 2,000 sq ft at Penketh Business Park, the business hasn’t looked back. While a sale of 3 Pugs Gin to a larger drinks company is part of the firm’s long-term strategy, Christine is adamant the pugs themselves won’t be part of the deal!
Occupier profile: The Filter Design Company
From humble beginnings with just three employees in a 3,000 sq ft industrial unit, The Filter Design Company has grown substantially in its home town of St Helens, Merseyside, where it now occupies a total of 40,000 sq ft in two locations and employs more than 50 people.
As the name suggests, the firm specialises in the design, testing, automation and manufacture of filtration devices. It has played an important part during the current pandemic by providing essential air filter products, including respirators used by healthcare staff and filter units fitted into hospital wards and pharmaceutical processing zones.
“During the pandemic, it became clear that we needed more space to hold our inventory and stock, as the demand for our products was increasing day by day,” says marketing executive Hannah Scott. The company chose a 5,000 sq ft unit at nearby Withins Point. Hannah explains: “We viewed various sites, but Withins Point was a good fit for us as it was very close to our main site and provided ample space for holding inventory and stock, as well as having additional office and warehouse space for further product lines.”
not just for manufacturers and traditional trades but also for more retail and leisure based users and the property offered will need to match expectations.”
Andrew Smith
07918 628991
andrew.smith@fishergerman.co.uk
Sustainability focus
In a new regular section, we will cover key sustainability issues affecting the business sectors we operate in and feature examples of sustainable energy projects and other schemes with a clear sustainability focus.
Demand for renewable energy valuations rises
The government-backed Feed-in Tariff (FiT) and Renewable Heat Incentive (RHI) schemes have spurred on the development of thousands of renewable energy projects nationally, providing developers with a guaranteed income for electricity or heat generated for up to 20 years.
Fisher German partner and head of sustainable energy Darren Edwards says now that these energy installations have been up and running for some time and have a track record of performance, lenders are willing to offer more competitive rates on loans secured against this type of property: “Electricity and gas prices are continuing to creep upwards, meaning renewable energy installations are increasing in value and we are seeing growing demand from businesses that are either looking to refinance an existing borrowing arrangement or secure new funding for investment elsewhere in their operations. They are coming to us to provide a detailed valuation that will be accepted by lenders.”
Unlike standard commercial or rural property valuations, however, those involving renewable energy installations require a high level of specialist knowledge. Darren says: “Over the life of the FiT and RHI schemes, the rules changed countless times and there is a disproportionately higher risk of valuations being reported incorrectly where the valuer was not actively involved in the sector through the life of the schemes. Knowing how much a renewable energy plant is worth today depends on many factors, including the dates of installation, commissioning and accreditation, as well as a broad understanding of a scheme’s back history and the state of the market and relevant technology when equipment was installed.”
Demand for these types of valuations (and for expert witnesses in legal disputes over renewables installations) is likely to continue for the foreseeable future. Darren says: “Even if you're valuing a scheme in 2025, you need to know exactly when it was commissioned and Ofgem accredited in, say, 2015, as many of the calculations needed to determine value link back to the day that it was first switched on.”
Hydrogen offers green energy potential in remote areas
Current and future renewable energy projects may soon have the option of using their electricity output to manufacture hydrogen, which can then be transported to remote areas where it could be used to provide power for a variety of uses. Fisher German senior associate Jenny Salt explains: “We are currently working on a number of solar and wind turbine schemes where the electricity that is generated, rather than being stored in a battery, could power a local scale electrolyser plant to create hydrogen gas. The hydrogen can then be exported in canisters to wherever it's needed and can either be used by machines that run directly on hydrogen or be converted back into electricity.
“This opens up a huge amount of potential uses, especially at remote sites which don’t have access to the mains grid. Hydrogen could be used to power electric vehicle charging points, for example, or in many other industrial and domestic settings.”
Case study: Solar energy drives grain handling in Kent
Private company Frontier Agriculture set out to develop a 1.1MW ground-mounted solar PV installation, which would occupy around six acres of land, to generate green electricity for self-supply, including 80 per cent of the power demand at the company’s grain handling facility.
Fisher German worked closely with Frontier to fully understand the firm’s needs and requirements and was responsible for project management and delivery of the scheme. This included discharging the planning conditions imposed by the local authority, negotiating with and appointing the EPC contractor and overseeing the implementation of the £1m-plus project to a short delivery timeframe with minimal onsite disruption.
The project delivers on Frontier’s ESG requirements by reducing the carbon footprint of the company’s business operation while also saving costs and futureproofing against inevitable electricity price rises.
to fully understand the project motives and then completed detailed sensitivity analysis and financial modelling based on projected market conditions and risks. Regular communication with the client ensured the site was valued subject to several key assumptions required to satisfy the funder. The site was ultimately valued at more than £20m and the detailed valuation report was accepted by the funder, allowing construction to commence. It is anticipated that the plant will come online later in 2021.
Case study: Valuation helps fund transitional energy scheme in St Helens
A new mains gas-driven 20MW export capacity ‘peaking plant’ is under construction on a 0.56 acre site on Merseyside. A private client instructed Fisher German to undertake due diligence and complete a valuation of their interest in the development, which will provide reactive power to the National Grid at times of need, helping the UK transition away from fossil fuel generation to more renewable energy sources, in turn making the electricity network more sustainable.
Fisher German reviewed the history of the site and background of the development
Case study: Wind turbine helps secure future of family farm
A farming family in Nottinghamshire wished to make a capital investment of around £1.3m to develop and install a 500kW wind turbine with a 50-metre hub height and 54-metre blade diameter, giving a total height of 77 metres. The diversified income it would generate would permit investment elsewhere on the farm, ensuring it continues for future generations.
Fisher German guided the family through the feasibility, site design, obtaining of planning, financing, procurement, and implementation stages of the project, ensuring the family obtained the best value from contractors and suppliers. The project’s progress through planning was not straightforward as an objection was received from National Air Traffic Services (NATS) resulting in delays, a refusal and a successful appeal.
Other work carried out included obtaining third-party wayleaves to enable the grid connection, securing project accreditation with Ofgem and managing various stakeholder needs and objections over a six-year period. The approved scheme is now fully operational and providing a healthy return on investment over the project life while also supplying green electricity into the local grid network.
Construction of the wind turbine can be viewed online: https://youtu.be/cpvy6nSqLkg
Long-serving partners retire from the Partnership
The Partnership has announced that three long-serving partners – Andrew Jackson, Tim Shuldham and John Palmer – have retired from the Equity A Partnership. Consultant partner Richard Sanders also retired from Fisher German in March this year.
Andrew Jackson founded Fisher German in 2000, merging Germans and Fisher Hoggarth, alongside joint managing partner Henry Sale. During his time at Fisher German, Andrew was the contract director for major pipeline management contracts with Exxon Mobil and Valero. He oversaw the merger of 11 complementary firms into the Fisher German fold, launched LinesearchbeforeUdig (LSBUD) and led the firm to an annual turnover of more than £33m in 2019.
Andrew will continue to provide his expertise and knowledge from a long career at Fisher German as a consultant.
Formerly of Shuldham Calverley (est. 1989), Tim Shuldman joined Fisher German in 2010 following a merger between the two companies. Having served as both deputy managing partner from 2013 to 2019 and a regional managing partner, Tim will continue his current senior partner role until September 2021 to ensure a smooth transition to the next incumbent.
John Palmer joined Fisher Hoggarth in 1985. He became a partner in 1994 and played a key role in the emergence of Fisher German when a meeting between himself and David Merton (of Germans) identified complementary services. The end result, on 1 September 2000, was Fisher German.
Obituaries
It is with sadness that the Market Harborough office mourned the deaths of two long-serving employees at the beginning of this year.
Mrs Beatrice Jean Barwick (Jean) was born on 17 October 1931. She joined Fisher & Co on 14 August 1950 as a junior secretary. Jean was meticulous with her work and was always willing to help others with a smile. She maintained accurate records of all AMC valuations for the Major and typed all his confidential reports and valuations. After the Major retired in 1981 she continued with the same responsibilities working for Michael Sandell, when the firm became known as Fisher Hoggarth. She retired having completed 50 years with the firm.
She died on 24 February 2021 leaving her son, Neil, and two grandsons.
Miss Barbara Alice Triscott (Barbara) was born on 1 February 1933. She joined Fisher & Co on 1 October 1950 as a junior accounts clerk. Shortly after, she became responsible for keeping all rental records on managed agricultural estates for clients, issuing rent accounts at the correct time and chasing up arrears as necessary. She did this with great attention to detail throughout her time with the firm until she retired after 42 years on 30 April 1993.
Barbara never married but throughout her life she was a great help to others, particularly her parents and later her brother. She also loved to show her Corgis. Barbara died on 27 January 2021. Fisher German’s Partnership has confirmed several promotions as of the 1 April 2021.
Yan Gittins has progressed to Equity B Partner, while Matthew Hodgetts and Matthew Trewartha have been invited to join the Equity Partnership at C level.
Richard Sanders worked for Fisher German and its founding firms for more than 35 years, spending most of his time leading the Farms Department from the Market Harborough office. He contributed to the growth of the business in many other ways, including in a successful spell as senior partner for Fisher German between 2011 and 2016.
Partnership reveals promotions
Partner spotlight
Mark Gilkes
Mark Gilkes joined Fisher German in 2008, progressing through the ranks to become Partner in 2020 working in the infrastructure services team.
Like many of my colleagues here at Fisher German I studied at Harper Adams, joined the firm straight after in 2008, and despite numerous offers and pleas I have never left! When I first started, I was employed as a graduate surveyor, which was a wide ranging role that also grew to include covering GIS work – for the uninitiated, GIS stands for Graphical Information Systems, which we’d call digital mapping these days – in a time before a GIS team existed. It’s safe to say that the GIS world has come a long way since then and now exists as a specialism in its own right. There have been massive improvements to colleague skill sets, databases, systems, the technology itself as well as the infamous FME software. As a result, we’re now able to manage big data easily, accurately and safely.
I’ve really enjoyed progressing through the ranks and I found I got a definite buzz from working on larger infrastructure projects. As a result, I now work on Nationally Significant Infrastructure Projects. These can include new utility infrastructure, large renewable energy projects, new airports and airport extensions, and major rail and road projects – it doesn’t get much more high profile or challenging in this industry.
One of the reasons I was drawn to Fisher German in the first place was that I liked the idea of dealing with all walks of life and having a good mix of office and site responsibilities. I’ve found that I really excel in a multidisciplinary environment, so I’m part of multiple project teams externally and internally. My main responsibilities involve delivery of lands services (referencing, land rights negotiations, and compulsory purchase advice) to clients on their flagship schemes. I’ve also become a bit of an expert on pipelines!
My day starts around 6am and for the next couple of hours it’s breakfast carnage with my young one. Then as soon as he’s in safe hands I get stuck into virtual dial-ins with the team, joining client project dial-ins to update on progress or challenges, preparing reports, liaising and workshopping with clients on key topics, liaising with landowners on specific issues, as well as trying to follow up on a never-ending to-do list. Success for me depends on good communication skills, the ability to manage a number of work fronts simultaneously and being able to ‘flex’ my style to suit many different people and colleagues.
I’m at my best facing project delivery challenges and when I’m meeting and working with lots of people from different organisations. Seeing colleagues develop their careers is also very rewarding. Graduates arriving in our team shouldn’t be surprised that the work we do is actually good fun, though they can expect to be thrown in at the deep end, with plenty of field and site work, and are likely to have client-facing responsibilities sooner than they imagine.
When I look back at how my working environment has changed over the past decade it’s really clear that the approach to safety, lone working and behavioural safety has come forward in leaps and bounds, which I personally think is a great achievement, and I’m proud that Fisher German clearly leads from the front in that respect. And looking ahead, I’m very focused on developing the Development Consent Order (DCO) client market (see p.12).
Outside work, my ambitions extend to having a happy family and managing a work/life balance. I’m fortunate to now be living in rural Oxfordshire, which has some really nice villages, down to earth people, fantastic pubs and is good dog walking country. I’m at my happiest entertaining our 10-month-old son and our sausage dog, as well as slowly refurbishing our house. Having said the last bit, I would also (like half the UK population no doubt) absolutely love to get abroad this year!
Sector insight
Potential new policies on agenda
David Merton, head of rural
We now have a clear sight of the demise of the Basic Payment Scheme; final payments will be made in 2027 with most impact felt from 2024. Implications are getting easier to read and the eventual loss of direct subsidy necessitates all farm businesses to appraise and understand their enterprises.
Defra are now consulting on two important policies: delinking direct payments from the land from 2024; and the offer of a lump sum payment in place of any further direct payments from 2022/23.
The policies aim to enable older generations of farmers to retire, while freeing up land for younger farmers who might otherwise struggle to get into the industry. There are still a number of questions to be answered, not least what the term ‘retirement’ will mean, the likely level of the lump sum and whether this will be subject to income tax. While attractive to some, the government will need to use the results of the consultation to ensure it is attractive enough to make the impact they desire. I am not convinced that for most farmers this option will be appealing; if a tenant of an average-sized farm was to receive a lump sum of £50,000 and this was taxed, they would be left with a relatively small sum to secure a new property or to secure a pension.
Both the Agriculture Act and the impending Environment Act set clear markers for both habitat protection and carbon reduction. Countryside Stewardship and the new Environment Land Management scheme are becoming increasingly important in the income mix, with plenty of smaller and older farmers looking at opportunities to increase income from these schemes.
Brexit trade deals continue to dominate the thoughts of many and remain uncertain. These factors mean more risk in farming and income volatility and may result in some downward pressure of agricultural rents.
David Merton
01530 410806
david.merton@fishergerman.co.uk
Competing for space
Duncan Bedhall, head of commercial
Our year has proved to be much more positive than we could ever have hoped for. We are fortunate that much of our commercial business is in the warehouse/industrial property sector.
Rental collections, occupancy levels and new tenant demand have all been strong and have exceeded even our most optimistic projections. Many warehouse parks and industrial estates are full and enquiries for any space put on the market are numerous. Rental levels are consequently rising across the country as businesses compete for space.
This demand has been driven by several factors including the move to online shopping and increasing stock levels due to some fracturing in supply chains. If this is coupled with a construction hiatus of some months last year, it is not difficult to see the causes of a real lack of supply of what we affectionately call ‘sheds’. If any of our farming readers have redundant buildings which could be suitable for conversion, now could be the time to consider taking this forward.
Sadly, the shed’s market gain is retail property’s loss. Choose almost any high street in the country and a quick walk through both the prime and secondary pitches will reveal the huge number of closed shops and failed businesses. A change of mindset will be needed for the high street to be able to evolve. This requires a rebasing of values, alternative uses for excess retail space and brave strategy from property owners, planners and politicians.
The office market is still in hibernation as businesses decide what their work models will be as normality returns. Views appear to be polarised between all in or all out of the office. I think a hybrid model will emerge and the office will change to accommodate this. Offices will still be needed, but they will be different. The market is not yet sure how this will affect space requirements, hence the pause in activity.
Duncan Bedhall
07831 824663
duncan.bedhall@fishergerman.co.uk
Moving forward
Darren Edwards, head of sustainable energy
The overriding priority of the past 15 months has been to safeguard and stabilise people, liquidity, operations, supply chains and markets. Everything else of pre-Covid importance including the environment and tackling climate change has, well, come a distant second.
The enforced lockdowns brought about change in human behaviour and energy usage patterns. Huge drop-offs in demand (average 25 per cent globally) triggered National Grid to impose output constraints on operators and even shutdown conventional generation plants in order to rebalance the grid. Renewable energy sources did, however, thrive, outstripping fossil fuel supplies through much of 2020.
What also became clear is that energy security remains a cornerstone of our economy. Electricity security and resilient energy systems are more indispensable than ever in modern day society.
It therefore came as no great surprise when in November the government announced its Ten Point Plan for a ‘Green Industrial Revolution’ to build back better, support green jobs and accelerate the UK’s path to net zero. Boris Johnson acknowledged that clean energy transitions must be at the centre of economic recovery and stimulus plans.
Focused on tackling emissions in homes, industry and on the road, £12bn worth of investment has been pledged to create and support 250,000 new jobs in the sector and spur over three times as much private investment by 2030. This is all positive news for the energy and sustainability sectors and consequently we have already seen a sharp rise in demand for advisory services linked to the energy efficiency of commercial buildings (see p.8), EV charging forecourts and green hydrogen production, as well as mainstream renewable technologies. Exciting times lie ahead.
Darren Edwards
07918 677571
darren.edwards@fishergerman.co.uk
Fisher German’s sector heads look forward to what lies ahead for the firm and its clients.
The rise of land values
Ben Marshalsay, head of development
This calendar year and during the final two quarters of last year, the demand for both consented land and development land in general (including strategic land) has given rise to upward pressure on land values.
There is quite clearly a shortage of supply of consented development sites coming through planning successfully to be brought to the market. The prime size in residential development sites is still in the 50-250 dwelling range and it is the specific lack of opportunities of this quantum that is pushing land values upwards.
During the second quarter of 2020, where we saw hesitancy in the acquisition profile of most developers, the market has rebounded in an extraordinary way. There is huge demand for consented land from SME developers through to the large PLCs, who are ‘hand to mouth’ in their strategies and have become more accustomed to ‘oven-ready’ sites being brought to the market.
Those consented sites that Fisher German’s Development Department brought to market within the timescales stated have over delivered on expectations. However, also underpinning this increase in land values, despite the increasing build costs and lack of availability of materials, is the planning system in general. Frustrations borne out of local politics, buoyed by the emotive topic of development in green fields, has meant that many local plans have not progressed as intended.
This will mean increased pressure from central government but delays locally when promoting strategic development opportunities. This has not dampened the enthusiasm and demand from strategic operators in the market though. We have seen increased demand over the past nine months from land promoters and developers seeking longer term development opportunities, both of a residential and commercial bias.
Ben Marshalsay
01530 567465
ben.marshalsay@fishergerman.co.uk
Moving with confidence
Alasdair Dunne, head of residential
The residential property market has been regularly in headline news. Last year the mortgage approvals were at a 13-year high and transaction numbers 15 per cent higher than the five-year average. We saw house prices jump by approximately 7.5 per cent by the end of 2020 and a further 4 per cent so far this year.
Why? There have been two key drivers: government intervention to stabilise the economy including the Stamp Duty holiday; and working from home becoming possible, allowed people to move to the country in pursuit of a better lifestyle. But what about the future? We know that people are looking at property portals such as Rightmove and Zoopla in very high numbers, which offers a good indication of future intention. Mortgage affordability remains good and many predict that the base rate won’t increase until 2025. We also have the governments mortgage guarantee scheme making banks more confident about offering high LTV mortgages. We are now seeing a significant shortage of new property coming to the market, which is holding transactional activity back and pushing prices up. Strong transactions and rapid house price growth are typical signs of a bubble; however, the current level of house prices looks sustainable because of the percentage of income required to service our loans. In previous crashes we have seen 60 to 80 per cent of take-home pay being required to service mortgages on lending multiples of four to five times salary. We’re comfortably around 40 per cent even though that means multiples of seven times a salary because interest rates are historically low. If you’re considering a move, there are strong arguments to suggest you can do so with confidence.
Alasdair Dunne
07501 720412
alasdair.dunne@fishergerman.co.uk
Pause for thought – an ecologically sustainable future
Giles Lister, head of utilities & infrastructure
Utility companies provide essential services across the UK where there is ageing infrastructure that is expensive and difficult to maintain. Over the past year they have had the opportunity to evaluate how their network performance can be improved to ensure they can deal with the challenges of climate change and population growth. They are now making use of this data to inform decisions associated with asset optimisation and sustainability.
The significant shift to renewable energies, carbon-free technologies and reduced energy use has driven the demand for smart grids, green hydrogen, and batteries. Smart grid deployment will extend the life and create efficiencies for their assets. Green hydrogen will have a positive impact on renewables down the line where existing and new gas networks will be used for transmission and distribution. Fisher German provides innovative solutions, services and input into the rights required to facilitate the required transition.
Within the water sector over the coming years the big issues are that of population growth and the environment. Technical improvements with the network and infrastructure are being developed to support this. There is also collaboration with the EA, who operate water transfer infrastructure to reinforce supplies across the country, and other key stakeholders to manage the water supply risk which includes the use of desalination plants, new reservoirs and more efficient abstraction. Longterm water security requires improved supply and significant investment in infrastructure. Fisher German has been able to assist our clients with their long-term strategy providing the proactive support necessary working in partnership with their teams.
Giles Lister
01227 477870
giles.lister@fishergerman.co.uk
Offce directory
1 Ashby de la Zouch
The Estates Office, Norman Court, LE65 2UZ
01530 412821
2 Aycliffe
Unit 4, Block 3, Bede House Durham Way Newton Aycliffe, DL5 6DX
03708 505150
3 Banbury
50 South Bar Banbury, OX16 9AB
01295 271555
4 Bedford
Unit 8, Stephenson Court Fraser Road Priory Business Park Bedford, MK44 3WJ
01234 823661
5 Birmingham
326 High Street Harborne Birmingham, B17 9PU
0121 561 7888
6 Canterbury
Court Lodge Farm Offices Godmersham Park Canterbury, CT4 7DT
01227 477877
7 Chester
4 Vicars Lane Chester, CH1 1QU
01244 409660 8 Cwmbran
Suite 5, Raglan House William Brown Close Llantarnam Business Park Cwmbran, NP44 3AB
03708 505150
9 Doncaster
Unit 2, Carolina Court Lakeside Business Park Doncaster, DN4 5RA
01302 243930
10 Glasgow
3 Somerset Place Glasgow, G3 7JT
03708 505150
11 Head office
Ivanhoe Office Park Ivanhoe Park Way Ashby de la Zouch
01530 412821
12 Hereford
The Middle Granary Brockhampton Hereford, HR1 4SE
01432 802545
13 High Wycombe
Office 12, Devonshire House 1 Cliveden Office Village Lancaster Road High Wycombe, HP12 3YZ
03708 505150
14 Hungerford
Firn House 61 Church Street Hungerford, RG17 0JH
01488 662750 15 Knutsford
Charles House 1-2 Royal Court Tatton Street Knutsford, WA16 6EN
01565 757970
16 London
Henry Wood House 2 Riding House St London, W1W 7FA
03708 505150
17 Market Harborough
40 High Street Market Harborough, LE16 7NX
01858 410200
18 Newark
12 Halifax Court Fernwood Business Park Cross Lane Newark, NG24 3JP
01636 642500
19 Newcastle
Suite 4E, Spaceworks Benton Park Road Newcastle upon Tyne, NE7 7LX
03708 505150
20 Rossendale
Suite 16A, Link 665 Business Centre Todd Hall Road Haslingden, Rossendale
03708 505150 21 Rotherham
Office 16C, Manvers House Pioneer Close Rotherham, S63 7JZ
03708 505150
22 Stafford
2 Rutherford Court Staffordshire Technology Park Stafford, ST18 0GP
01785 220044
23 Southampton
Unit 14, Basepoint Business Centre Andersons Road Southampton, SO14 5FE
03708 505150
24 Thame
17 High Street Thame, OX9 2BZ
01844 212004
25 Worcester
Global House Hindlip Lane Worcester, WR3 8SB
01905 453275
10
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Commercial Development Residential Rural Sustainable Energy Utilities & Infrastructure Agency Agribusiness Building Consultancy Compensation Expert Witness & Dispute Resolution Infrastructure Services Landlord & Tenant Property Management Planning Telecoms Valuations
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We are slowly reopening our offices in line with client needs and government guidelines, following the Covid-19 pandemic. If your local office is currently closed to visitors, all your usual contacts will still be available to speak to via phone, email and video. Find contact details on our website at fishergerman.co.uk/team.
