Qandor Magazine | Issue No. 6 | October 2020

Qandor. ®

M AG AZINE

PENNY MOSGROVE The dynamic CEO of Quintessentially Estates

GLOUCESTER PLACE An impressive Georgian redevelopment

by Matteo Bianchi Studio

TROPOLIS. TM

ISSUE No. 6 | October 2020

IN THIS ISSUE

THE FORMALITIES

04

FOREWORD A letter from our Founder, Matt Siddell

06

TROPOLIS Become part of an exciting new property program

MARKET COMMENTARY

10 SHOW ME THE CAPITAL Paul Oberschneider analyses the property market’s mini-boom

12 WHAT CAN WE EXPECT WHEN IT COMES TO SELLING? Grazina Thompson investigates

Cover image featuring Penny Mosgrove, global CEO of

14 MORTGAGE BROKERAGE

Quintessentially Estates (p.50).

For more information visit quintessentiallyestates.com

ISSUE NO. 6

luxury real estate group

Lee Langley answers some burning questions

18 ON THE UP The dichotomy of a property market boom during a recession. By Mike Bristow

ARCHITECTURE & DESIGN

20 PROPERTY STAGING Benjamin Hall highlights the importance of first impressions

PRIME & INTERNATIONAL PROPERTY

24 THE WINDS OF CHANGE Gary Hersham explains how investor cash from the east is impacting the market

32 STAGING ON STEROIDS Christian Turnier highlights the importance of property showcasing in the prime market

38 WHEN ABROAD Philippa Somerset explains the importance of continuing to manage your prime property even when you’re out the country

42 AN ALPINE INVESTMENT Dylan Mitchell showcases an incredible opportunity an hour from Geneva Airport

DEVELOPMENT & CONSTRUCTION

64 BRIBERY! Michelle Lowe is calling it out

68 TECH IN CONSTRUCTION Jan Tore Grindheim explains how Fonn is leading the way

72 A CRISIS DURING A PANDEMIC Evan Maindonald examines the impact a

PROPERTY OF THE MONTH

recession will have on the market

44 A GEORGIAN MAKEOVER Matteo Bianchi shares a renovation project across two Georgian terrace homes

SUSTAINABILITY

76 SUSTAINABLE PROFIT Doug Johnson tells us how

COVER STORY

52 CHALLENGING THE STATUS QUO Global CEO of Quintessentially Estates, Penny Mosgrove reflects on two decades of ultra-prime service

CASE STUDY

58 CRAFT MEWS Denis Gleeson discusses a smart development in East London

PEER TO PEER

80 PRIVATE LENDING CROWDFUNDING Paul Watson explains this growing trend

WEALTH MANAGEMENT

82 THE BENEFITS OF SIPPs George Ttouli gives us four top tax advantages

84 STUDENT ACCOMMODATION Emma Stubbings explains how the pandemic has affected portfolio performance

LISTED PROPERTY

90 WHAT IS LISTED PROPERTY? Emma Morby explains the various levels of historically important buildings SUCCESS

94 PANDEMIC SURVIVAL MODE Joe MÜhl discusses 10 strategies he implemented that saved his business

ARE LONDON’S STREETS STILL PAVED WITH GOLD? Qandor Founder Matthew Siddell Managing Director Kevin Taylor Managing Editor Gabrielle Winandy

It was recently reported in the news that a pop star’s former home in the capital’s leafy St John’s Wood is on the market for a cool £32 million. It wouldn’t surprise me if one of our agent members has the

QANDOR TEAM Membership Manager Rekha Patel rekha@qandor.org Videographer James Evans james@qandor.org For editorial and advertising enquiries, please email: magazine@qandor.org Visit our website: www.qandor.org

listing on their books! It did remind me that the prime residential market - perhaps a little more volatile than others - is still very buoyant and attracting cash from all over the world in spite of being three quarters through a year that has not been without its challenges, to put it mildly. The geopolitical tension between Hong Kong and China will most likely have a profound impact on London’s prime market as thousands of British Overseas Nationals eye residency closer to home. Gary Hersham of Beachamp Estates has penned a fascinating article about investor cash pouring into the UK from the east, amounting to some 20% of all sales above £10 million (p.24).

Contributors Benjamin Hall Christian Turnier Denis Gleeson Doug Johnson Dylan Mitchell Emma Morby Emma Stubbings Evan Maindonald Gary Hersham George Ttouli Grazina Thompson Jan Tore Grindheim Joe M hl Lee Langley Matteo Bianchi Michelle Lowe Mike Bristow Paul Oberschneider Paul Watson Penny Mosgrove Philippa Somerset

In this issue we also take a look at other factors influencing the prime residential market, from Christian Turnier’s take on showcasing properties as an effective marketing strategy (p.32), to Philippa Somerset’s advice on managing properties from abroad and maintaining their value (p.38). We also peek inside a smart Marylebone Georgian renovation by Matteo Bianchi Studio (p.44) and sit down with Penny Mosgrove for our cover story. As global CEO of Quintessentially Estates, Penny is an expert on luxury lifestyle and renowned for exceeding the expectations of demanding UHNWIs (p.50). Penny’s reflection on lessons learned during her impressive career are testament to the success of her business, evidenced by the September opening of their office on the shores of Hawaii’s Maui Island.

Matt Siddell Founder

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The online modules, prepared and published by our professional and experienced team, are packed with highly valuable content and advice with lifetime access.

Issue No. 6 – Qandor – 007

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Each Expert will deliver an exclusive masterclass, sharing their experience, expertise and property insight.

Alan Waxman Property Developer Landmass London

Ben Keenan Property Developer Broadwing Homes

David Kemp Planning Consultant DRK Planning

Dicky Lewis Architect White Red Architects

Doug Johnson Engineer Mesh Energy

Evan Maindonald Property Developer Melt Property

MORE INFORMATION

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Jamil Qureshi Peak Performance Psychologist

Jonathan Erdman Consultant Solicitor Keystone Law

Lee Langley Mortgage Consultant OnPoint Mortgages

Mike Bristow Investor, Fintech CEO CrowdProperty

Mike Frisby Property Developer Brankin Developments

Naman Pathak Property Developer Mountbatten Homes

Neil Scroxton Architect Scroxton & Partners

Oliver Lowrie Architect Ackroyd Lowrie

Paul Oberschneider Financier Hilltop Credit Partners

Issue No. 6– Qandor – 009

MARKET COMMENTARY

THE MARKET MIGHT BE BOOMING, BUT CAPITAL IS NOT PLAYING BALL. PAUL OBERSCHNEIDER Founder Hilltop Credit Partners www.hilltopcreditpartners.com

The Covid cobwebs have been blasted away with a spectacular recovery in the UK housing market – Rightmove and others report the highest number of monthly sales on record, the highest number of properties coming onto the market in over a decade, record asking prices in many of the regions, etcetera etcetera.

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Stamp Duty and planning changes have accelerated pent-up demand, so these stats come as little surprise, but there are concerns that demand could dry up as the months progress.

From a lender’s perspective, the market is in an interesting place right now. It’s common knowledge that the mainstream lenders are supporting existing customers but not actively looking for new deals. Whilst everything has picked up, new deal volumes have been low since lockdown as developers

concentrate on delivering product and sales in progress rather than taking on something new.

As well as activity levels, leverage is in a state of flux. 60% LTGDV remains the norm for a number of banks, but just as many have announced a reduction to 50% (including NatWest – amongst the most active of the big lenders over the last year or so). To add to the uncertainty, it appears pricing has gone up too, with most mainstreams lending at a minimum 4% over cost of funds, plus arrangement and exit fees have been nudged up. This figure increases to 6% from secondary lenders amongst those (the minority) who’ve shown signs of activity since lockdown.

On paper, location is undergoing a post-Covid revolution. There’s been plenty of media coverage about the Exodus from the cities, the increased desirability of space and environment and the burgeoning practicality of working from home, which is being borne out by a drop in the volume of willing lenders for super prime and city centre projects.

Lower value schemes and metropolitan

suburbs are still finding willing lenders, but when compared to regions such as Devon and Cornwall – currently witnessing record prices – it’s clear to see where the crowd is headed.

Whilst a number of projects are starting to emerge, alternative residential has taken a big Covid hit and nobody really knows how either sector (care homes and PBSA) will pan out yet. There will be winners and losers here but, for the time being, standard resi is easier water to navigate – there will always be demand for houses in the right locations, with the right amenities and at the right price.

Put simply, depending on the what’s and the where’s, post-Covid capital from the big boys is now harder to come by, there’s less in the pot when you find it and it’s going to cost you a little bit more than you’ve been used to paying. This brings the role of the alternate lender increasingly into the spotlight and, with it, plenty of opportunities for savvy capital. During uncertain times, the key to successful investment lies not only in backing the right projects, but in backing the teams with the experience to weather the storm. Q. Issue No. 6 – Qandor – 011

MARKET COMMENTARY

THE STATE OF THE SALES MARKET. GRAZINA THOMPSON Investor & partner Dapatchi Group www.dapatchi.com

Currently, we have a couple of projects which are nearing practical completion and the apartments that are being converted are on the market for sale. With all the uncertainty surrounding us, what can we expect?

The natural consensus, even a couple of months ago, was that the property market would be lingering and stagnant, with property prices dropping. As it was, even in the early months of this perceived uncertainty, the opposite turned out to be true.

I remember launching the sales of our 012 – Qandor – Issue No. 6

apartments in Sheffield just after the first round of lockdown easing, when estate agents were allowed to reopen. Viewings resumed very quickly and reservations started to come in. Of course, there were a few people who believed that due to uncertainty, prices should go down, and asked for discounts. However, there was plenty of interest and the apartments were being reserved at full asking prices.

It is true to say though that the project was in the right location, where the demand was high, and the apartments were refurbished to a high specification, which was much needed for the area.

Another notable difference had been a high interest in properties with any outside

space, even if it is just a front garden or balcony. Apartments that have outside space of any kind seem to be snapped up over other similar apartments with none.

These spaces are a bonus at any time but have become more important in the current (pandemic) times.

Additionally, more recently, there has been a visible increase of interest in the property market due to the government’s helpful holiday on Stamp Duty Land Tax for main residence purchases up to £500K. This is currently a temporary change which is due to last until the 31st of March 2021, but it certainly has encouraged buyers to purchase properties before then and I can certainly say I’ve seen an increase in

reservations since the announcement.

Will the number of property transactions go down after that date?

Whilst I think this initiative has certainly made the property market more active, I saw signs of it being sufficiently buoyant way before then. Even in uncertain times, as long as there is the availability of lending, the general rules of supply and demand will prevail. With housing shortages being an ongoing problem, as long as the location, the targeted market, the specifications and the prices are right, properties should continue to sell and sell relatively quickly. Q.

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MARKET COMMENTARY

THE INS AND OUTS OF MORTGAGE BROKERAGE. LEE LANGLEY Principal OnPoint Mortgages www.onpointmortgages.com

Lee Langley is the Principal of OnPoint Mortgages, and an

The low cost of mortgage funding and flexible affordability calculations mean this is a good time for first time buyers with sufficient deposit. Recently, we have noticed an increase in applicants looking to get on onto the property ladder due to a potential 014 – Qandor – Issue No. 6

reduction in house prices over the coming months. This especially appears to be true amongst those with the ability to work from home, who may now be in a position to expand the location of their search for a property outside of the more expensive areas within cities and towns.

The prevalence towards working from home will certainly be something that developers will want to consider in future projects.

Moving forward, the mortgage industry will need to ensure those reliant on higher LTV products, often those whose families are unable to contribute towards a deposit, are not locked out of buying and are still able to

purchase their own home.

Banks and building societies are also asking questions around the impact of Covid-19 on a customer’s income. If an employed buyer has been furloughed, they will typically only use 80% of the normal basic salary while, for the self-employed, they will look at the sustainability of their business earnings, seeking an understanding of the company’s ability to trade through the pandemic.

pandemic.

In respect to potential downsizers, the market has been working on providing improved solutions for older applicants, such as retirement interest only mortgages and flexible maximum age criteria. With a low rate environment and improved lending options, downsizers as well as second buyers will remain an important demographic for developers.

As they typically require lower LTV’s, second buyers and downsizers remain an attractive proposition for lenders if they meet the same criteria around affordability and the likely sustainability of their income through the

During the height of the pandemic, some BTL funders halted or paused new build applications, as they were not acceptable for remote or desktop valuations. Once physical inspections could take place, borrowing

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for new builds resumed. New build houses are typically accepted at the same LTV as existing properties, while for flats they can be restricted to 65%, but options at 75% remain readily available. BTL lenders are often tougher on certain types of new build flats however, for example high rise blocks, smaller studios and those over commercial premises, so you want to check the ability to mortgage units upfront prior to embarking on a project.

Your home may be repossessed if you do not keep up repayments on your mortgage. Some forms of Buy to Let and Commercial Lending advice are not regulated by the Financial Conduct Authority. Q.

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MARKET COMMENTARY

A SWIFT RECOVERY FOR THE BRITISH PROPERTY MARKET. MICHAEL BRISTOW CEO CrowdProperty www.crowdproperty.com

According to Zoopla’s latest House Price Index report, the postlockdown housing market rebound shows few signs of slowing, despite the UK going into recession.

It appears that the lockdown has encouraged buyers to re-evaluate what they want from a home and accentuated pentup demand after years of historically low transaction volumes which, with the stamp duty holiday stimulus, has resulted in the strongest housing market activity since 018 – Qandor – Issue No. 6

2015: the number of new sales agreed on Zoopla in August is 76% ahead of the 5-year average, with buyer appetite now 34% higher compared to 2019 and the supply of homes up 50% on this time last year.

There is further good news for sellers, as the Nationwide House Price Index revealed that house prices reached an all-time high in August - a 2% month-on-month rise (after taking account of seasonal effects) which is the highest monthly rise since February 2004. As a result, annual house price growth accelerated to 3.7%. “The bounce back

in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions,” said Robert Gardner, Nationwide’s Chief Economist.

As widely reported, buyers’ attitudes have changed in light of Covid-19: research

by Savills shows that 74% of survey respondents have reconsidered their worklife balance as a result of the pandemic.

With 38% of respondents significantly more inclined to work from home, the demand for properties which can offer more indoor space (potentially to accommodate a home office) has risen. With 62% of respondents considering a garden or outdoor space to be more important, it is no surprise that the interest in rural living is also increasing.

According to the Financial Times, “UK’s economic activity improved over the summer months as coronavirus restrictions eased and government support measures underpinned consumer spending”. Experimental statistics from the publication’s UK economic recovery tracker show positive indications for the construction sector - the percentage of construction businesses with reduced turnover, staff on furlough or temporarily closed has decreased, accompanied by a boost in hiring.

Capital Economics proposed that the UK could see a c. 5% boost to GDP as schools reopen this week, enabling the education sector to return to normal and parents who were providing childcare to return to work.

However, the UK Economic Sentiment

Indicator suggests that the economic recovery may be starting to dwindle.

Howard Archer, EY ITEM Club’s Chief Economic Advisor, also commented that “the current pick-up in activity... will prove unsustainable due to challenging fundamentals for consumers” with the housing market “likely to come under pressure over the final months of 2020 when there is likely to be a significant rise in unemployment as the furlough scheme draws to a close in October”. Despite this, the EY ITEM Club anticipates the “housing market activity to gradually improve from early-2021 as the labour market stabilises then starts to improve and the UK’s economic recovery continues”.

There are many moving parts to all of our crystal ball gazing and we suggest a cautious approach in this market, but there is a market again, and the market dynamics feature pentup demand and changing consumer needs.

That always presents opportunity for those with a clear and differentiating strategy. Q. Issue No. 6 – Qandor – 019

INTERIOR DESIGN

DESIGNING TO ATTRACT: THE BENEFITS OF PROPERTY STAGING. BENJAMIN HALL Managing Director LOFT Interiors www.loft.co.uk

First impressions are lasting impressions, and property staging is an essential element for landlords and agents to help capture the attention of target buyers or prospective tenants.

On average, home viewers take 65 minutes before submitting an offer for a home purchase, and with only 27 minutes spent per viewing, it’s vital to help viewers envisage themselves within a space and imagine the aspiration lifestyle they could 020 – Qandor – Issue No. 6

achieve by living there.

How can property staging help attract viewers, and what are the While there’s plenty of evidence showcasing the benefits of property staging, many property agents and landlords have yet to unlock its potential.

According to The Home Staging Association UK & Ireland (2019), 100% of property professionals surveyed believe that property staging makes it easier for a buyer

to visualise the property as their future home, and 94% say it increases the number of viewings.

So why are landlords holding back?

Property staging can transform any space and make a vision a reality without the need to spend thousands of pounds and time by adding cosmetic details, furniture and dressings.

Properties that look beautiful in print, online and in person can help to achieve the best price in the shortest possible time with 75% of homebuyers spending more time viewing a home that is staged, as opposed to a non-staged property.

The art of property staging People tend to perceive an empty room to be smaller than what it actually is. Furnishing a room provides perspective and gives potential buyers the ability to see how a space can be utilised and maximised. It will look Issue No. 6 – Qandor – 021

and feel bigger and proves things like where a double bed can fit, eliminating questions and doubts from a viewer’s mind.

Over the past decade, the demand for open-plan living has dramatically increased and these large, empty spaces can prove challenging for most buyers struggling to envisage where to put their furniture or how the room will feel once their furniture is in place. It’s hard to imagine what we can’t see, so staging a property with carefully placed, well-proportioned furniture and accessories will help viewers see how to divide the areas into their own ‘zones’.

Finally, walking into a beautifully styled space can evoke positive emotions and help instil a desire for a buyer to live in that space.

As such, it can often drive up the price if multiple buyers can picture themselves living

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in the property.

Virtual viewings With the world now needing to adapt and overcome challenges COVID-19 has thrown our way, marketing a property with eyecatching campaign photos and professional open home viewings, be they virtual or in person, is going to be even more crucial.

Virtual property staging involves computer generated visuals of how the space could be styled by digitally enhancing images with furniture and accessories.

All that’s required is professional photography, which is likely already captured for use online, and a discussion on the preferred design style for a space. The images can be turned around quickly, meaning it’s a time and cost effective alternative to physical

property staging, and produces incredible results. It’s especially beneficial for landlords and property agents to utilise these images on adverts or showcase the images in person when viewing an empty space.

Unlocking the potential In 2019, 83% of property developers saw an increase in the offer value of a staged property, 33% of which were above 10% of the original price . So with property staging often resulting in increased yield and return on investment,

it should be a no-brainer in attracting the best viewers to a space.

At LOFT, our Property Staging service has been designed to give landlords and tenants the edge over other properties, as all items are hand selected by our team of highly experienced interior designers with a wealth of knowledge on home staging and property presentation. We take care of everything – from key collection, full delivery and assembly through to the final finishing styling touches.

Property staging isn’t a fad, and the benefits are clear to see. Simple techniques can truly transform a property, whether it’s for in-person viewings, or for online images to capture the attention of those browsing online for their perfect property.

For more information on LOFT and its property staging offering, visit loft.co.uk Q.

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PRIME RESIDENTIAL

THE WINDS OF CHANGE ARE BLOWING FROM THE EAST: HONG KONG- AND MAINLAND CHINA-BASED BUYERS ARE INVESTING IN PRIME CENTRAL LONDON PROPERTY. GARY HERSHAM Founding Director Beauchamp Estates www.beauchamp.com

The UK has had a long and special relationship with Hong Kong, something that has endured from the 1997 handover of the territory by the British back to China.

Hong Kong-based buyers and investors have always been present in the UK’s prime property market at varying levels, but recent developments in the region have seen this activity increase and encompass buyers and investors from mainland China as well.

Hong Kong (HK) and mainland Chinese investment in luxury Prime Central London residential property has soared to new levels, despite

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the global COVID-19 pandemic: leading real estate agency Beauchamp Estates, whose headquarters are in London’s Mayfair, believes that HK and mainland China buyers are currently accounting for 15% of international buyer home sales above £1 million across Prime Central London and 20% of all sales above £10 million. The figures could go higher with the proposed HK visa changes set to open the door to UK citizenship.

Since the UK’s General Election in

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2019, Beauchamp Estates has sold over £300 million worth of luxury London residential property to HK buyers, in locations including Knightsbridge, Belgravia and Islington: Chinese/HK buyers are presently Beauchamp Estates’ single largest group of overseas clients investing in London luxury property, followed

by Russian and Indian clients.

According to the Office for National Statistics (ONS), HK and mainland China buyers invested £7.69 billion in London

Issue No. 6 – Qandor – 027 xxx

property in 2019, including over £750 million in residential property in the City of Westminster and the Royal Borough of Kensington & Chelsea: it is little wonder that some leading newspaper titles are starting to refer to the capital as Beijing on Thames.

The ONS data also shows that there are now some 218,975 properties in London owned by Chinese/HK buyers (98,725 owned

by HK based buyers and 120,250 by mainland Chinese), making London property the most popular investment destination for Chinese in the world.

Beauchamp Estates are seeing five distinct types of Chinese investors purchasing property in London: • The first group are purchasing one and two bedroom new build rental investment apartments priced up to £2 million in locations 028 – Qandor – Issue No. 6

including Canary Wharf, Islington, Battersea, Chelsea and Fulham (investors are looking at a 3-5% yield) and often purchase off-plan and in bulk in order to gain a price discount/ advantage.

• The second group are affluent upper middle class Chinese and Hong Kong families, typically spending between £5 million to £10 million for a London family home/luxury pieda-terre in locations including St John’s Wood, Marylebone or Regent’s Park or £750,000 to £1.5 million for an apartment in Aldwych, Soho or Fitzrovia for their student offspring studying in London. For these families, proximity to good schools or universities is essential. Marylebone and St John’s Wood are particularly popular as they are close to good education facilities and to the Chinese Embassy (49-51 Portland Place), where the Chinese political elite working in

London are based.

• The third buyer group are mainland China and Hong Kong’s super-wealthy business elite who will spend upwards of £15 million on a trophy property, typically something with a prestigious history or ultra-luxury design, located in London’s most prestigious addresses.

Beauchamp Estates’ experience has been that this elite group prefer to buy either mansions in Knightsbridge, Mayfair, Belgravia or Avenue Road in St John’s Wood, priced from £25 million to over £200 million, or penthouses in trophy apartment buildings such as Clarges Mayfair, One Hyde Park, 20 Grosvenor Square or No.1 Grosvenor Square, priced from £20 million up to £80 million.

• The fourth buyer group are China and Hong Kong’s large corporations and property developers. These corporations either invest

in commercial property in the City, Canary Wharf or West End, or undertake direct or joint venture residential projects in the capital.

Over 40% of London’s office investment deals by international firms over the last two years have been done by Hong Kong corporations, including CC Land, CK Asset Holdings, Nan Fung Group and Sino Group. Chinese property corporations have undertaken joint ventures with domestic London developers; examples include Sun Hung Kai Properties with Ballymore and Vanke with Galliard Homes.

• The fifth buyer group are Chinese Sovereign Wealth entities such as CIC, which has been a major investor in London real estate.

“Wealth creation and the development of the property markets in Europe has taken 200 years”, Marcus O’Brien, of Beauchamp Estates Private Office comments, “while in China the

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same process has taken just 20 years. This huge acceleration of wealth creation and property development in China – some cities take just six months to construct – has provided China and Hong Kong with a “new money” middle class and a new money super-rich elite.

“Because China’s wealth is so relatively new, Chinese and Hong Kong buyers in London like purchasing either new homes or historic properties which have newly refurbished superluxury interiors. The Chinese middle-class life is focused around family, whilst the business elite have a very consumer-concentric culture.

They want to be seen to be successful when benchmarked against their peers, so if one buys a London property, a business rival needs to acquire an even better one.”

The five different types of Chinese investor we are generally seeing in the capital are usually discrete, but sometimes these groups overlap.

For example, a large HK corporation buys commercial property in the City, followed by the CEO buying a £100m mansion in Belgravia.

The predominance of Chinese buyers (whether mainland China or HK) in the market has not been diminished by the COVID-19 pandemic and perhaps has been spurred on by current poor Chinese bilateral relationships

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with the USA, Canada and Australia. Formerly many of the Chinese/Hong Kong elite would have purchased property in Malibu, Los Angeles, the Hamptons and Toronto, but they have now retreated from these locations, preferring to invest in London, where there is a long established and sustained relationship.

Despite the UK’s citizenship offer, which could see potentially up to three million HK residents leave for the UK, many do not expect a mass exodus from the territory. While some feel that the territory has changed and that the dynamic, energized Hong Kong of old no longer exists, there are many who wish to remain.

Hong Kong is still an important regional hub for neighboring regions/counties and a key commercial centre. Wealthier residents have always invested in property around the world, with many already holding homes overseas, which may also infer passport entitlement (with conditions). However, if just 10% of the top elite in Hong Kong take up the offer of residency in the UK and buy homes in the capital, this will drive around 15,000 property deals, which would have a massive beneficial impact on the housing market in the UK and in many of the capital’s best addresses. Q.

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PRIME PROPERTY

SHOWCASE IS THE NEW STAGING FOR ULTRA PRIME PROPERTIES. CHRISTIAN TURNIER Managing Director GCT Marketing www.gctmarketing.com

My journey as an entrepreneur started in New York City where, as Sinatra sang, “if you can make it there then you can make it anywhere”. Well! There is a good reason for him to have said that.

GCT Marketing, operating in London and New York, was born out of the desire to make a difference in the real estate and interior design industry. In 2014, the ultra prime luxury market in NYC was booming, and in a city that is always looking for the next 032 – Qandor – Issue No. 6

big thing, there was a need for innovation and passion. The real estate market was getting worldwide attention and yet the marketing was still in its infancy.

As the president of GCT Marketing, I was invited to one of the launch parties of an ultra lux new development in midtown Manhattan being held in a fabulous penthouse. The property was absolutely stunning with all the right finishes and architectural elements one would expect in a £14m listing. The developer had staged the property with top design brands, displaying

very expensive products, and yet… it was such a BORE. It was not designed with a buyer in mind; in fact, it was just a bunch of expensive products on display in an expensive listing.

It was a lot of grey and beige, which in interior design equals “GREIGE”. Each room blended into the next and the property in itself lost the feel of a luxury listing and looked more like an extension of the showroom they had partnered with.

How could something with so much potential become so lifeless? It blended into a déjà vu staging, leaving everyone walking through the space like zombies looking for that spark of life to devour.

As I was touring the property, I spoke to the PR for the development and could not hide my opinion when she asked me for it. She had a sense something was missing and she immediately introduced me to the developer.

Upon our conversation, the developer understood my view that luxury properties

are the perfect canvas to create and to showcase the best of the best. A collaboration of top brands and designers to empower the sale and simultaneously promote a unique design felt so obvious that I decided to put together GCT’s first showcase.

I lived in New York for 20 years and, during that time, GCT Marketing was able to create some of the most amazing staging designs out there, and attracted brands and designers from all over the world wanting to take part in the process.

My inspiration for GCT marketing showcase comes from the showhouse concept that has been a staple in the New York’s Interior design industry for the last two decades.

Much like fashion week, it is a period in the fall when ultra prime properties get a makeover by hosting top designers from all over the world to create one of a kind statement designs known as haute living design.

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Designers use this opportunity to create extraordinary designs not for the compensation, cause there isn’t any, but for the prestige and the publicity that comes with being associated with such an event.

The idea of hosting brands and designers in luxury properties and celebrating their creation made me think how this could be used in the ultra prime real estate market.

Properties selling for £5m and up offer the perfect setting to create a showcase that can attract buyers and sell buildings through the promotion and presentation of something unique and beautiful.

What we call a showcase at GCT Marketing is the idea of using the jewel listing of a building to create a design that will shine above all others and catch even the most discerning buyer’s attention.

GCT Marketing has sold properties

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valued at £19m within a year by simply taking the time to tell a story.

Once a property hits the market, it should take about 3 months to create and generate unique content to market the property, and about 1 year for properties £5m+ and up to sell. Anything longer means something was missed or forgotten.

GCT Marketing showcases designers and brands to compliment the buildings aesthetic and curated products to ensure the caliber reflects what buyers expect to see in luxury listings. We create content that will make any buyer feel as if they have actually visited the property themselves and want to be part of our story.

Content is not just nice photography of the design; it starts by capturing the transformation to the final touches and,

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Content at a minimum should include: • • • • •

finally, the unveiling. In the past, content meant taking a few pictures to generate interest for buyer’s agents to schedule an appointment. Now. as technology has expanded and with new travel restrictions, pictures are not enough.

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Transformation video; Informative Video 360 tour; High Gloss Photography; Introduction Video with Interviews; Marketing Videos.

With GCT’s approach, developers are able to keep in contact with prospective buyers through a scheduled release of information by ways of social media channels, word of mouth, and editorial exposure.

By generating a buzz and a story line, we can create the illusion that buyers are inside the space and part of the vision being created.

Once the property is launched, it is time to schedule some lux events made for the

affluent market. Marketing is broken into 2 categories: Virtual Events and Live Events.

In virtual events, we include small teaser videos that are streamed on social media platforms to keep the conversation alive. Virtual events can be as simple as a coffee making class, setting a dinner table for a chef ’s dinner party and even a discussion panel.

Live events are still very important for the soft sale of the property. We host private dinning experiences, cocktail soirees and tastings, coffee and tea morning tours.

Music recitals are huge at the moment and working with high-end galleries can offer private vernissage for art collectors and connoisseurs. By creating these experiences for the buyer to enjoy, they are drawn into the

space using a softer approach to a hard sale.

GCT Marketing’s showcase is a perfect recipe to sell an ultra prime property and set new records. Q.

Issue No. 6 – Qandor – 037

PRIME REAL ESTATE

MANAGING PRIME PROPERTIES AND ESTATES FROM ABROAD. PHILIPPA SOMERSET Director Somerset Estates www.somersetestates.com

Maintaining a property from abroad can provide international owners with a myriad of logistical challenges, especially if not managed properly. Living far away from a second home or investment property inevitably means a more hands-off approach, which restricts the owner from regular visits or the diagnose any maintenance issues, should they arise unexpectedly.

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As a London-based property management firm with international clients living in destinations across the globe, we appreciate first-hand the challenges for owners living abroad, and we exist to solve these challenges and give our clients the peace of mind that their prime properties and estates, whether occupied or vacant, are in trusted, local hands.

So, how do we help our clients protect their properties from afar? Each property will have different requirements and will therefore require a tailored maintenance plan.

A reputable property management company should always create a completely bespoke service for each property or estate and, above all, remove the stress and hassle of maintaining a home from abroad by providing a complete management service - from day to day tasks, maintenance requirements and emergency call outs to weekly operational inspections.

Regular maintenance protects against damage We all know the value and utmost importance of regular servicing from cars and motorcycles to private jets and super yachts. This is completely necessary to keep them in good working condition, prevent problems arising and ensure they are safe to operate. Homes, particularly luxury residences, should be cared for in the same way.

Whilst maintaining a property can seem an extra expense, a regular maintenance plan can prevent damage and reduce costs. As

technology has evolved, there are naturally more things that can go wrong within a property. Building management systems and property technology should be tested to ensure all software updates have been successfully installed so audio, shading and blinds, cinema, heating and air conditioning work seamlessly.

Issues such as leaks and faulty heating and cooling systems can cause a huge amount of damage if left undetected, not to mention the unnecessary cost and inconvenience when they fail to perform. For example, the regular cleaning of fan coil filters will help keep air conditioning units running at their best for longer, rather like changing the oil regularly in a car. Planned maintenance can save expensive repairs and replacement.

Vacant homes need management Frequent maintenance ensures that properties are kept in good working order so they aren’t affected by seasonal changes (or unexpected Issue No. 6 – Qandor – 039

pandemics), especially if the property is not the main residency. It is standard practice for vacant properties to run heating and cooling systems on a reduced but steady mode often called ‘vacancy mode’ - which keeps the property running efficiently throughout the year. This is recommended, as the effects of making drastic temperature changes to heating and cooling systems can create problems which may not always be easy to resolve. Similarly, some properties may have had heating systems turned off altogether.

In both instances, the systems will require maintenance before they are completely reinstated. This also applies to any seasonal upkeep, such as maintenance of outdoor kitchen appliances and swimming pool chlorination leading to the summer months.

Flushing taps and water outlets to prevent water bacteria from developing is essential if kitchens and bathrooms are not used on a regular basis. It is essential household staff and cleaners do this on a weekly basis to avoid any bacteria build-up within pipes, which is harmful if ingested and a costly headache to eradicate.

homeowner and dedicated property manager via an app from anywhere in the world and having an appointed property manager and representative on the ground allows for an immediate and trusted response to any security threat or false alarms. Additionally, we ensure all insurances are in place with updated policies for cars, contents, building, life, fine art, jewellery and more, and we always complete a full background check on insurance statuses on behalf of our clients.

Safeguarding and Security A critical role we perform for our clients is to safeguard properties, ensuring their homes are safe, secure and not vulnerable to threats. Having in place a security management package, which includes regular security checks, can reduce insurance premiums significantly. Similar to preventive maintenance, we frequently review security measures and perform regular operational checks and planned servicing.

Almost all sophisticated security technology enables cameras within the property to be monitored by both the

Home ‘log book’ Just like a car and other vehicles will have a full-service history, so should a home. A meticulous estate manager should build a comprehensive file for the properties they manage, and should include building and design drawings, system documentation and warranties and appliance information.

Aside from being important in effectively managing a property, it also provides valuable provenance if a client wishes to sell or let their property in the future. Q.

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Social Media We’ve seen this countless times in recent years, and we always advise our clients not to share too much on social media. It can be so innocent to post frustrations of travel restrictions to the world, but open profiles and a luxury property portfolio can be a recipe for disaster without robust security measures in place.

Recently, we came across an interesting (and alarming) statistic: the most subscribed magazine in UK prisons is Hello! Magazine, most probably due to its publicity of high-end homes and celebrity content.

Wi!

YO U A L L T H E WAY We offer an end-to-end service bringing your vision to life - taking the pressure off you. With 10,000

David Phillips can provide -

Contact: David Ives Call +44 (0)7464 540 175

INTERNATIONAL PROPERTY

THE BEAUTIFUL KAMET CHALETS, LES GETS. DYLAN MITCHELL Founder and MD Worldwide Property Company www.worldwideproperty.co

Located just a short 15-minute drive f rom the A40 motorway and approximately one hour f rom Geneva Airport, Les Gets is considered a must-see ski with holidaymakers from the UK. It is quietly nestled within the Portes du Soleil ski area with access to 650km of pistes and conveniently linked to 11 other ski villages. We have handpicked Kamet Chalets as one of the most exciting investment opportunities within this charming resort.

This outstanding new development sits in the heart of the village, a short distance from

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the ski lifts as well as the shops, restaurants and bars. Each of the 17 semi-detached chalets has an interior layout ranging from 98 - 150 sqm with 4 to 5 en-suite bedrooms and exceptional views of the mountains, forest and ski slopes.

The architecture is typically Savoyard in style using traditional elements of locally sourced wood and stone while, in contrast, the interior finishes are contemporary, elegant and refreshing. Key features include private storage cellars, underground parking as well as a private terrace and balconies from which to enjoy the breathtaking views.

A true family-friendly resort, Les Gets is full of authentic Alpine charm. In addition to skiing, winter activities include snowshoeing,

tobogganing, cross country tracks, paragliding, ice-skating on the attractive village ice-rink and even ten-pin bowling.

The ski slopes vary in their level of difficulty, from beginner right up to advanced, with 9 green slopes, 26 blue, 28 red and 9 black as well as 14 draglifts, 27 chairlifts, 3 gondolas and 5 mountain lifts for those who enjoy taking in the spectacular scenery on their long walks in summertime.

As one of the few alpine dual-season resorts, Les Gets summertime activities are just as important as their winter counterparts and there is no shortage of things to do, with an 18-hole golf course, 400 km of mountain biking trails, hiking trails and the hugely popular summer fĂŞtes and festivals.

The village centre is fairly pedestrianised, making shopping and dining out a pleasant

experience. There is also a free shuttle service that runs year-round within the village and surrounds, allowing guests to explore and discover the resort as a whole.

Owners looking to rent their apartments when not staying there can choose to take advantage of new Para Hotelier tax incentives.

This means that they will receive 20% of the purchase price as a tax rebate from the French government, and there is no income tax on the rental income for up to 30 years.

Combined with 85% mortgages and lowinterest rates (e.g. 0.90% Fixed for 15 years, or 1.10% Fixed for 20 years) that can be fixed for up to 25 years, make this a compelling proposition.

For more details, contac t Qandor member Dylan Mitchell at dylan@worldwideproperty.co Q. Issue No. 6 – Qandor – 043

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PROPERTY OF THE MONTH

BREATHING NEW LIFE INTO A GEORGIAN TERRACE. MATTEO BIANCHI Founder & Director Matteo Bianchi Studio www.matteobianchi.co.uk

Founded in 2007 in London and composed of creative and talented designers, Matteo Bianchi Studio is a distinguished international Interior Design practice that has successfully developed more than 140 projects worldwide.

Gloucester Place was a project that we undertook involving two Georgian properties in Central London and converted them into five flats for professional renters, some with families and some who wanted central homes within the city. The criteria was to make an elegant, sophisticated Issue No. 6 – Qandor – 045

and appealing development that would add value to the street and borough as well as attract potential renters quickly. We wanted potential clients to feel at home immediately.

We were tasked with keeping the original features of the building whilst adding a timeless touch. The houses were in poor condition and joining the two buildings was challenging, as well as dealing with the little natural sunlight in a fair number of rooms.

We had to keep the original symmetry of the buildings within the interior.

There were wooden beams to play with, and the studio mixed them with pops of colour. Some were left exposed.

We kept a muted palette throughout, with touches of colour such as deep blues in the bathroom, whilst keeping it bright and airy.

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For the showcase apartment, we utilised the top floor. The loft is 928 sqft of space and boasted lots of light. The buyer was able to choose from options for furniture, lighting and fireplaces.

The client let us know that we blew the comparables for the market by creating flats that went beyond the average price for the rental market of the area. They set a new threshold for the area in terms of design.

The central location of the apartments gave each renter a plethora of option for retail and eating out.

Bespoke Lighting One of the great fruits of this development was the invention of a light called ‘the acorn.’

We had trouble finding a bathroom light with a suitable IP rate that was on the market at the time. After a number of sketches, the studio came up with the idea of a pendant made up of glass and concrete. We partnered with the top lighting manufacturer Penta to create this piece of contrast.

Since project completion, the ‘Acorn’ became very popular and now feature’s permanently on Penta’s website.

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Safety, security, sustainability and innovation Safety, security, accessibility and wellbeing of the occupants were key factors when designing these developments for renting purposes. We added new electrical wiring and latest fuse boxes, and also a new fire control system. The kitchens were positioned near the fire exits and the gas boilers had early carbon monoxide warnings.

Fire safety doors with extra locking mechanisms that could be opened without a key from the inside were installed. The doors also had extra locks with shot bolts on the doorframes and a visible door entry system for tenants.

Energy efficiency was created throughout with external walls fitted with 50mm energy saving plasterboard and foam. Energy efficient boiler systems, shutters installed for noise and heat efficiency and the lighting system being LED meant that each flat would be consuming less than 3 x 100 watts of electricity. Q.

Issue No. 6 – Qandor – 049

COVER STORY

CHALLENGING THE STATUS QUO. Penny Mosgrove CEO Quintessentially Estates www.quintessentiallyestates.com

Penny Mosgrove is the Global CEO of Quintessentially Estates, a company that buys, sells, rents and manages properties for UHNWIs around the world. She sat down with Qandor Magazine for an exclusive interview to discuss the effects of the pandemic on the prime property sector and lessons learned after two decades in the industry.

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How did Quintessentially Estates adapt to the changes brought by the pandemic?

We obviously abided by the government rules, so all the teams started working from home and we adapted what we did for our clients. We couldn’t go out and do inspections and viewings on their properties, but we helped by giving them advice on what they wanted to do then.

We found that a lot of our clients actually wanted to speak to us about what they wanted to do after the lockdown, so there was a lot of consulting. That’s how we adapted. When the property market opened again, off we went. We were all ready to go.

Do you believe we’ll see more people in the countryside than in the city?

Not necessarily. It’s been very interesting – after working in this industry for 20 years, I’ve never seen a trend that is so global.

People who were in smaller places or places without outdoor spaces here, in the city centre, they want gardens or somewhere near a park or something with outside space.

There are some people going out into the country or realising they can go and live in Scotland and still have a job in London, they don’t have to be in the city the whole time. There are still a lot of people buying in central London, but they’re buying the places with gardens and extra rooms that they can convert into studies. That’s the trend we’re seeing.

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Do you feel there are big shifts in the way people do business or live in their homes?

Well, I think one of the big things is that everyone wants a study now, right? I don’t think people want to be working from their bedrooms and living rooms; they want an actual room with proper screens and a proper desk so, in that aspect, I think there is a massive shift in how people are going to work.

Everyone globally was forced into a situation where we have to work from home, it wasn’t a choice. So many people that I’ve spoken to have adapted their houses, changed living rooms – even I have. I changed certain rooms into studies. So, there is definitely a big shift.

And I think a garden has never been so important. A balcony, a garden, private outside spaces – it’s something that everyone wants. I haven’t seen anyone that is not interested in this. It’s paramount. Before, it was like “hmm, maybe”. Now, it’s like “definitely”.

Have you ever considered developing your own properties?

Well, I always like to say: I like to diversify the business. I always like different things to do, but I think there are a lot of great businesses doing great developments and, for now, they should keep doing that and we’ll keep being great at what we do. I’d stretch myself too thin otherwise.

Have you seen a shift in your clients’ behaviours that you can see becoming permanent?

I think those who are workaholics have taken a bit of a reset – well, everyone’s had a reset, and I think that has been a big shift. I don’t think you’re going to easily forget that you were confined to your house for three months.

I think there will also be shifts in the way people’s mindsets work. At the same time, people often forget about the global financial crises we had about ten years ago.

So, we’ll wait and see. It will be interesting to see how this pans out in a year’s time.

What’s the best place to invest in right now, and why?

There are always good places to invest. There are always opportunities. I think investing in anything that’s got outside space is super important.

Gary Hersham, from Beauchamp Estates, is one of our advisers.

He wrote an article for Qandor Magazine about the increase of properties purchased in London by people based in Asia, mainly Hong Kong and China. Have you seen anything similar? People from overseas buying property in countries where they don’t live?

London is cosmopolitan, and it goes through trends. Hong Kong is always popular with the UK, always has been, but I think now people are realising that if they’re going to be locked down somewhere, they want to be locked

“I believe uncertainty breeds opportunities. If everything’s going super well and brilliant all the time, there are no reasons to question the status quo.” down in a place where they feel comfortable.

We have seen a lot of people from Hong Kong and China coming here, we have done for a long time. But we’ve also seen a lot of Americans wanting to come over.

How do you deal with uncertainty?

I’m a glass half-full girl, so I quite like it because I believe uncertainty breeds opportunities. If everything’s going super well and super brilliant all the time, there are no reasons to question the status quo. I always look for opportunities. If there’s a problem, someone else is benefiting somewhere else.

I think a lot of people should have more positive mindsets when it comes to things like that.

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What is one of the most memorable moments in your career?

God, there’s loads! I think the most memorable one was probably five, six years ago. I was lying in bed, it was 10 o’clock and the phone was ringing, which was unusual.

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I was trying to decide whether to pick it up or not.

It was a client of mine who I hadn’t spoken to in six months, when he had asked me if I could find him a penthouse in Rio and I had sent him a few options and hadn’t

heard from him again. He rang me that day and said: “Penny, I’m boarding my private jet now to go to Rio and I want to buy this penthouse.”

“Which one?” I asked as I frantically searched my email to remember what I had sent him six months before. I obviously didn’t sleep much that night. I was on the phone, organizing the viewing and other details, and he asks: “Are you coming?”

I couldn’t go, as I didn’t have a visa. But I set everything up for him and he bought the record-breaking penthouse in Rio, on Ipanema beach, and I think I still hold the record to this day (of highest price). If I hadn’t picked up that phone, he would’ve called someone else and I would have lost the deal.

My biggest advice for my staff or anyone: pick your phone up! You never know how it might change your life. That was a massive deal that will always stay with me.

You started working in property at 16. In your opinion, how much has this industry changed since you started?

Well, I didn’t have a computer when I started, or even a mobile. I had to memorise all the properties and their features. It was just my brain. I had to remember which were the 2-bedroom properties, the 4-bedrooms ones.

Technology has been a massive change.

Everyone can access the information now and make better decisions. And, still, in property, people buy from people. It’s an emotional purchase. That’s never changed in 20 years.

The technology has, and it has made life a little bit easier.

What one piece of advice would you give your younger self, knowing everything you know now?

Don’t care what people think about you. I think that’s one of the biggest lessons. I’ve always been a person who throws herself into something, I’ll get on with it, and I think sometimes people hold themselves back because they fear what other people think about them.

Another thing is patience. I was really inpatient when I was younger. Now I think you have to have a bit of patience. Sometimes things don’t happen, and you just have to keep going. Even if you fall over, just keep going. I see so many people give up. Don’t give up! Keep going.

What is one mistake that you see people making in relation to property?

Oh my goodness, so many! One thing I always say is that you cannot change the sun.

Don’t have your house facing north. However expensive the marble you’re going to put in there, it’s not going to make it any better.

You need that sunlight and that natural light coming through. So, it needs to face south, or it needs to face west – or, if you want the morning sun, face east.

I see people going like “I just need to brighten this up” and I go “you can’t, because the sun’s facing the wrong way and you can’t move the sun”. That’s one thing I see a lot of people do.

Another mistake is not checking out their neighbours and finding out later that there’s a problem. Or that there’s an Issue No. 6 – Qandor – 055

HMO next door. Do your due diligence; you’re spending a lot of money. Ask the right questions to the right people. People generally ask their parents, and if they’re not in property, they’re not going to be able to give great advice. Ask someone who has bought thousands of houses; they’ll know all the pitfalls and I think that’s really important.

What is in your opinion one of Quintessentially Estates craziest achievements?

It’s gotta be the climbing wall in the bedroom.

I had a Russian client who asked me if I could find an interior designer to build a climbing wall in the kid’s bedroom while he was on holiday on his boat.

I was like “never heard that before, but… ok”. I managed to do it. I’ve never seen anything like it and have never been asked to do that again. They were absolutely thrilled.

The child loved it. It looked fantastic – they had a graffiti artist creating a feeling of jungle.

In your career, have you seen an increase of women in property?

There has been a massive increase in comparison to when I started. There are still not enough females who head property companies. That’s the big difference. I can only name two off the top of my head. I think women are very good at emotional intelligence. They pick up on things.

Properties are very tied to emotions.

I’m always like: You can do it, don’t be afraid. I think that’s really key: you don’t have to fear. If you say something wrong, what’s

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going to happen? I always say: what’s the worst that can happen? Nothing really bad is going to happen. So just go for it. There’s been a lot of change in the past 20 years. I’d really like to help more women get into property.

It’s such a fun job.

What advice would you give them?

I think all of us, as a collective, are here to support other women to succeed in property.

So, ask for help. I’d be very surprised to see another woman not wanting to help.

What does the future look like for Quintessentially Estates?

One of the biggest things I’ve done in the past two years has been to expand the business globally. I looked at where different requests came from and thought, hang on, we need a presence in those countries. Now I’m thrilled to announce that we’ve got an office opening in Hawaii, we’ve got one opening in Monaco, we opened one in Saint-Tropez yesterday, we’ve got Spain coming, Germany, Korea, Hong Kong.

We’re such a different business compared to the competition because we have all these international offices in various different locations where all the UHNWI go. For us, I want to make sure we service our clients all over the world at the same level. That’s why I went on this international expansion journey and I’m thrilled to announce they’re opening imminently. Q.

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CASE STUDY

CASE STUDY: CRAFT MEWS. DENIS GLEESON Director Gleeson Build & Develop

Craft Mews is a unique inf ill urban development in Leyton, East London.

Gleeson Build & Develop bought the site of the existing 19 garages commenced in December 2019. Completion is expected in February 2021.

The development is designed in the ‘Arts and Crafts’ style, made famous by Walthamstow native William Morris. The development utilises premium quality brick and clay tiles on steep pitched roofs, a classic hallmark of Issue No. 6 – Qandor – 059

‘Arts and Crafts’ style properties. Premium quality materials will also be used internally to ensure that the development stands out from competing schemes nearby.

The kitchens will benefit from quartz work surfaces and contrasting gloss and matt cupboards to complement a walnut flooring. Qandor affiliate Ocean Bathrooms have designed and supplied the bathrooms and high-quality fixtures, with fittings from Hansgrohe and Duravit. Gleeson Build & Develop completed a similar development in 2018 (Cameron Court, in East London) so we were fully aware of the challenges we would face, building in a residential cul-desac on a site with limited space.

Such sites require careful consideration of onsite material management and deliveries, smart phasing of the superstructure works, and continual and clear liaison with the local community.

Unsurprisingly, Covid 19 is the biggest challenge we have faced to date. We have had to reduce numbers onsite and have seen delays in procuring key materials, which has resulted in overall delays to completion.

A 12-month programme has now become a 14-month programme which, when considering the scale of the challenges faced, is not a bad outcome should we complete on time.

We have decided to market this development off-plan and the launch took place in mid-September. In the past, we have chosen to market our developments only when fully completed. However, we currently find ourselves in a dynamic market which, together with the stamp duty holiday and Help to Buy Scheme, means demand is

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currently very high for properties of the type we are constructing. We are hoping that these market conditions will allow us to realise strong sales at Craft Mews. Some lessons will undoubtedly be learned as we proceed with off-plan sales. Q.

Issue No. 6 – Qandor – 061

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At a glance Project duration

Number of

14 monts (projected)

8

Size

620sqm

Location

Leyton, E10

More www.craftmews.co.uk information www.oceanbathrooms.com

Issue No. 6 – Qandor – 063

CONSTRUCTION

LET’S TALK ABOUT BRIBERY IN THE CONSTRUCTION INDUSTRY, SHALL WE? MICHELLE LOWE Founder Redshell Consulting www.redshell.org

Money makes the world go round. That good old infamous phrase, and offering cash, bribes, kickbacks, and other incentives in exchange for business is a model as old as time.

Although it’s been the way of the world since trading began, it doesn’t curry favour in the modern world. Well, actually, I’m sure it does. But it shouldn’t.

This bold sweeping statement may 064 – Qandor – Issue No. 6

seem naive and innocent, foolish even, and possibly excludes me from some of the games still played in the grand arena.

The construction industry historically has been – and, I suspect, continues to be – rife with these practices. A little teamwork, networking, negotiating, mutual support and partnering is of course entirely beneficial, gracious even and this does indeed keep the wheel turning as a combined fruitful effort. People supporting people and businesses supporting

businesses has its place in the world and it is indeed how it should be.

My distain here is with the unashamed offers of cash or kickbacks to gain business, to be involved in a project or to offer benefits in return for opportunity. Bribery in its perhaps smallest and simplest terms, but still bribery nonetheless.

The world stage in recent times has been episode after episode of corruption, underhand practices, global fraud and conspiracy theories that make our toes curl and our blood boil. You couldn’t make it up.

First, it was the domain of the longhaired and tinfoil hat wearing, then it became mainstream media. Before you know it, we are all seasoned and almost desensitised to the immoral, unethical and lower vibration behaviours that continue to play out in the world.

We’ve all had enough, right? We all judge, complain and react in disbelief at the rigged elections, the political donations for contracts or favours, the parliamentary

whose friends and family are granted positions of power. This is bribery and corruption on a macro scale, of course. But really, a smaller, simpler ‘payment’ in kind is the same practice, is it not? A harmless few grand here and there, what does it matter?

Well, it does matter. And I’ll tell you why.

We all have an inner compass. Morals, ethics, values. Plain and simple. In our profession as construction consultants, we of course have ethical obligations in order to deserve our chartered status and our respected professionalism. Both the RICS and CIOB have required competencies based solely on ethics and moral behaviours and any party found to be operating in a less than savoury practice would warrant investigation and a stripping of our acclaimed ‘charteredness’ - undermining all that we train for, all those accomplishments and our own personal character.

Yet, there are some people to whom this does not matter; they’re interested in the financial gain without the work – they want the perks, the deals, the quick cash for free. Why wouldn’t you want that? I hear you question. Well, I don’t. And if we want the world to be a nicer and a more honourable place, nor should you.

It’s no secret that I take my industry seriously and with a personal passion that cannot be denied. The work that I do is a reflection of my own self, and the projects I work on are sometimes formidable. These come my way on the back of nothing more than my reputation. My own hard grind - doing the long miles whilst others were taking the shortcuts. I wouldn’t change this for the world. Or the cash.

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As such, bringing any company, supplier or person into a project of mine is a direct reflection of myself and the reputation I took 25 years to build. You are downright crazy if you think that a bribe would let me risk that by introducing an unverified, untested and unprofessional element into the mix.

There is no question that the ‘it’s who you know, not what you know’ can indeed be lucrative. Deals and introductions can give hefty cash, quick and seemingly for not much effort. But these aren’t in question; these are upfront open agreements and for the genuine use of someone’s network – again, a network that can take decades to build. Quick cash and fruitful, yes. But underhand and shady, no.

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At Redshell, I have recently been offered incentives. My reaction, of course, was as you would expect. But then my thoughts changed to almost sympathy. I could feel the frustration from the source of the offer, where previous opportunities and orders had been lost to another more expensive supplier because a golden handshake had been offered. It’s not fair, and it’s not just. It’s not a level playing field out there. Those that then try to join the game are condemned for the approach. Stuck between a rock and a hard place.

It’s the way of the world, I was told.

Well, it’s not the way of my world, I am afraid.

Everyone deserves a chance, and I’m fond of an underdog, a fighting spirit and a chancer. But this simply must be backed by unwavering professionalism and commitment to the project, the job and the delivery in hand. Put your best professional foot forward and I’ll see you on the even and fair playing field. Pay and blag your way in, and I’ll show you the benches quicker than it takes to pull a red card.

I cannot change human nature. I cannot simply put my cross face on and expect people and practices to change. What I can do is make sure that my part of the playing field is fair and just, and that the game, as far as we can, is played fair.

With 2020 being, well, 2020, it’s more important than ever to rethink our approach, rethink the importance of things and establish our values. What really matters is a job done right and well and a wholesome approach where we treat each other fairly and with respect and we all feel better as a result.

The high of a quick fix of cash is short term and sometimes empty. Can we do better? Q.

Over a quarter of a billion pounds added to our clients’ bottom line.

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TECHNOLOGY

IMPACT OF COVID19 ON THE UK CONSTRUCTION INDUSTRY. JAN TORE GRINDHEIM Founder, Co-Owner and CEO Fonn Construction www.fonn.io DAVID LAWRENCE Vice President Fonn Construction

I think it’s no surprise that probably every company has been impacted

by COVID19 in some way. I speak to several companies every day and the feedback has been wideranging, from companies having to furlough the majority of their workforce, companies struggling f inancially, all the way up to a handful of companies actually thriving.

In the beginning, we didn’t really know what to expect, how long it would last, or what 068 – Qandor – Issue No. 6

the long-term damage would be, but over the last few months, the picture has started to become clearer. As the industry (and the country) starts to return to normal, the government has started to lay out plans to rescue businesses and stabilise the country.

There have been incentives to support the hospitality sector, which has probably been hit harder than others, VAT reductions, 50% of restaurant meals, and relaxed rules around face coverings.

For the construction industry, Prime Minister Boris Johnson on the 30th of June 2020, via his ‘Build Build Build’ speech has

pledged: • A £12bn affordable homes’ programme that will support up to 180,000 new affordable homes for ownership and rent over the next 8 years.

• Included in the affordable homes programme will be a 1,500-unit pilot of ‘First Homes’: houses that will be sold to first time buyers at a 30% discount which will remain in perpetuity, keeping them affordable for generations of families to own.

• Funds from the £400m Brownfield Land Fund have today been allocated to the West Midlands, Greater Manchester, West Yorkshire, Liverpool City Region, Sheffield City Region, and North of Tyne and Tees Valley to support around 24,000 homes.

• The Home Building Fund that helps smaller developers access to finance for new housing developments will receive an additional £450m boost. This is expected to support the delivery of around 7,200 new homes.

Also announced on the same day, the government launched a planning Policy Paper in July setting out their plan for comprehensive reform of England’s sevendecade-old planning system, to introduce

a new approach that works better for our modern economy and society.

Of course, all of this will require some coordination and I am not going to get into a debate on whether it will be executed perfectly. But at least the government has a plan, and I believe it has a huge amount of potential.

Restarting So, as the country and the construction industry start to ramp up production, several companies are starting to see results. Independent suppliers have seen a huge demand, owing to the fact that they are generally more agile than their bigger competitors, who have struggled to implement social distancing rules and get the workforce back into work quickly.

Many suppliers have quickly adopted a click and collect service in order to offer better service to customers. Construction Enquirer has reported that hire company VP has seen revenues rebound from 55% in April to 80% in June when compared to last year, an indicator that companies are beginning to restart operations.

Construction News reports that Issue No. 6 – Qandor – 069

Skanska’s first-half year profit is up despite Coronavirus. One of the companies that I spoke to is thriving during the lockdown.

They do cinema and theatre refits and refurbs; traditionally they would work on a single screen at a time and would often be working unsociable hours – recently, they have been able to work on entire sites and essentially fast track the projects.

Opportunities A lot of companies have taken the initiative during the lockdown to restructure their business and look at improvements that can be made.

SHEQ advisors are now being tasked at looking how best to work with the current restrictions in place, having to re-think how work is planned, resourced and carried out in the safest way possible. Companies are also using the time to upskill the workforce, through courses and training to improve the skillsets available.

As clients are becoming more and more aware of their responsibilities, they

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are looking at their relationships and what steps their supply chain has taken in order to mitigate risks. Being able to demonstrate to your clients that you have rigorous procedures in place will be key to winning more work, more so than before.

Seamless communication One area that I totally understand is the communication required to manage a project effectively. I started Fonn back in 2016 when working on my own project and having to refit the bathroom 3 times over issues with poor communication. I am sure we can all relate to a time when someone did something wrong because of poor information flow or not being on the same page as everyone else.

Fonn is a cloud-based project management system designed for construction companies of all sizes and disciplines, with a focus on the house building market. I pulled together a team of experts and built the platform from the ground up with client support and adoption very early into the life of the business. This enabled us

to deliver a client-led product that actually works. Fonn is now an award-winning leading software provider in Norway.

We provide a variety of tools to manage the project lifecycle, documents, drawings, forms, snags, RFIs - to name but a few. But the core value is in the collaboration aspect of the system: each of these features is powerful in their own right, but when they are combined and all under one roof, they provide a total project management solution. And because we offer a ‘true’ collaboration system, you can be confident that there are no restrictions.

Other software, such as Microsoft Office or AutoDesk, often charge per user or seat, making companies reluctant to add users unless they are vital. For me, this goes against being a true collaboration tool. We offer a simple pricing plan, with unlimited users, projects, and storage. We encourage you to invite your clients, sub-contractors, suppliers and team to the Fonn platform to get the full benefit of the software.

As I previously mentioned, putting procedures and systems in place demonstrates that you are taking the project seriously, ultimately giving everyone involved in the build visibility over the project in real time, something that hasn’t really existed before. In fact, many companies suffer from a disconnect between head office and the project site, sometimes an ‘us and them’ mentality within their company. Now is the time more than ever to change this attitude and make the industry better for it.

Fonn is currently providing a noobligation free trial of the software for UK companies to help improve communication, remote working and information flow, and this period is extended for Qandor members.

We want to see everyone get an opportunity

to benefit from technology and ultimately improve their business and the value they provide to their clients and end-users.

Fonn recently appointed David Lawrence, Vice President of the UK with more than 20 years of experience in construction, to lead the drive for Fonn in the UK. If you are interested in learning more or taking advantage of the free trial, you can contact David on david@fonn.io. Q.

Issue No. 6 – Qandor – 071

DEVELOPMENT

UK HOUSING CRISIS IN THE MIDST OF THE PANDEMIC. EVAN MAINDONALD Founder & CEO Melt Property www.meltproperty.co.uk

The recent COVID -induced lockdown caused an unprecedented drop of 20.4% in UK GDP in the second quarter of 2020 - the worst quarterly fall since records began. It took us back to where we were in the mid-’80s in terms of levels of economic activity. Following on the heels of a 2% decline in Q1 – also lockdown related – technically this places us in a recession.

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I use the word ‘technical’ because the overall Q1 decline was caused by a 6% decline in March – which means that there was 4% growth in January and February. That was a strong start to the year, and the signs are that, with lockdown now lifting, things are coming back to life with a bang.

Without lockdown, it’s likely that we would have seen a couple of quarters of strong growth in the first half of 2020. Despite this, there’s no doubt that the pandemic has accentuated what is one of the critical issues that the UK is faced with: the housing crisis.

For many years, we have struggled to meet levels of demand for housing or address the affordability issues which have arisen as a consequence of this. Its effect is felt across the nation. The imbalance between need and supply of housing puts people out of the market and causes a series of economic and social problems.

The young and the poor struggle to afford to own their own home. The most vulnerable are forced into substandard living conditions or, even worse, are at risk of being made homeless. Lack of suitable accommodation results in a less flexible labour market – people either cannot afford to move or are not willing to due to the compromises they have to make. This creates an inflexible economy and limits growth.

For many people, the recent lockdown has caused a re-evaluation of current living conditions and a reassessment of family needs and priorities. However, the options

available are constrained, given the supply/ demand imbalance. The situation plays an essential role in defining the way people live.

The key thing that drives the lack of suitable and affordable housing is a planning system which constrains the number of houses that can be built and keeps prices high. In that context, the recently announced changes to the planning system are a step in the right direction. In this article, I share my thoughts about these changes and their likely impact.

With the recent sweeping changes that relax and simplify the UK’s planning laws sparking controversy, are we right to assume that building more and more properties is the answer to our needs as a nation? Where does that founding belief come from, and is it correct to follow it blindly?

Whatever we believe about our needs as a nation, some basic facts remain. We currently have a shortage of suitable housing Issue No. 6 – Qandor – 073

stock. It is estimated that 8.4 million people in England are living in an unaffordable, insecure or unsuitable home. The main thing that keeps us from dealing with these issues is the planning system.

By placing constraints on the number of properties that can be built, it limits the supply of new housing stock and keeps house prices rising. It’s basic economics: supply and demand. Shelter – a suitable place to live – is right at the bottom of Maslow’s hierarchy of needs.

That’s why it is so important to us and why we need to find solutions which enable 074 – Qandor – Issue No. 6

us to build more homes – and better places for people to live.

What problems do the new plans expect to solve that the old ones haven’t? And how long might we have to wait to find out?

By creating certainty about what can be built where, the proposed changes to the planning system will reduce risk for developers and provide greater confidence for them to proceed with projects. It should also provide greater flexibility in terms of design.

The new zoning system should take the pressure off local planning authorities

and streamline the delivery of new homes. It will take at least a few years for the impact to be seen. Ultimately, this will depend on the detail of the plans, some of which are yet to be clarified.

At a time of seismic and sudden consumer attitudes to where and how they want to live, is it time to think more radically than even today’s overhaul?

Planning policy faces the difficulty of striking the right balance between public opinion about development near them and public opinion about the availability of suitable, affordable homes. These two sets of opinions are difficult to reconcile. It is often the same people who object to development that call for more and better homes.

While more radical changes might ultimately be needed, these latest announcements by the Government appear to be a welcome step in the right direction, while not being so radical that they will be socially unacceptable in a more general sense.

We need greater flexibility in terms of types and tenures of housing.

I hope that is exactly what the Governments aspirations and plans translate into. Suitable housing is a basic necessity. If it’s not available, the lacerations this creates in our social and economic fabric are an issue for all. If we don’t act upon this now, we will drift into a much larger scale housing crisis which will continue to affect us in generations to come. Q.

Issue No. 6 – Qandor – 075

SUSTAINABILITY

FOUR TOP TIPS TO BECOMING A MORE ENVIRONMENTALLY CONSCIOUS AND PROFITABLE DEVELOPER. DOUG JOHNSON Director Mesh Energy www.mesh-energy.com

As the pace of sustainable thinking and design in the built environment accelerates, there is an increasing range of opportunities for progressive developers and building designers with the right mindset and team behind them to create buildings which will be purpose in an ever-changing world.

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We’d all like to leave the world a better place and, in the process, make a positive impact. The benefits of more socially responsible and conscientious development are more than feeling great about what you are doing; they also include significant opportunities for increased desirability, marketing opportunities and greater profitability.

If improving the built environment to have less of a detrimental impact on our planet were simple, we would all have done it by now. Without a doubt, we are facing some huge challenges in the coming years. For those who aspire to tackle these challenges head on and become a more environmentally conscious and profitable developer, I have put together four key areas that you should start to think about now to get you from where you are today to confidently navigate the murky waters of this decade and the next.

Adapt, Adapt, Adapt!

The ability to adapt to a rapidly changing economic climate has been brought into sharp focus over recent months. This should set you up well for the sweeping regulation and professional standard changes that the commercial and domestic building sectors will see over the next few years.

Don’t just stick your head in the sand and wait for regulations to change and minimum building performance standards to improve. Start educating yourself now and understand how fast social pressure and client’s desires for trends such as low carbon, low running costs and high air quality buildings can emerge. Stay ahead of the curve.

Sustainability from the start To fully make sustainable developments successful and meet their true marketing potential, you must understand that sustainable elements of modern buildings must be designed first from principles and can no longer be an ‘after-thought’. Start the conversation about sustainability (and the role that this could play) at the very beginning and ensure you fully understand your client’s sustainable project goals.

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Glossing over or ignoring this important step becomes very expensive as the project progresses and the demands of better design and compliance start to bite. Lean into the opportunity from the start!

Lastly, remember that because the time taken to buy, develop and sell sites is measured in years, not months, you need to think about what the market will require next year or the year after when you are deciding your sustainability design goals for projects.

Collaborate and communicate One of the keys to successfully progress in adapting and learning how to develop low energy schemes robustly and profitably is by building the right design and development team. Understand that only a specialist team working together at the key early stages of design and costing will help you deliver buildings fit for the future.

There are now so many interrelated decisions and impacts of seemingly insignificant decisions at a pre-planning and design stage that solo working will set you up for failure. Pull the right team of specialists together at key stages.

In addition, to reduce risk and learn faster, we need to talk to others and share experiences of what works and what doesn’t.

We are all facing a steep learning curve and can learn from other developers’ previous successes and mistakes.

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Invest in expertise We all appreciate the value of excellent advice and due diligence. For those who are interested in getting their sustainable building design ‘game’ fired up and implemented, the smartest move you can make is to understand that investment in early-stage analysis and feasibility of proposed developments is critical.

It is here that opportunity and practicalities of sustainable development are quantified. Investment in the right analysis at this stage can save money and reduce risk for the remainder of the project. The devil and opportunity are in the detail!

If you can make improvements in these four key areas, you will be well on your way to the right mindset and getting ahead of the competition to deliver sustainable, desirable and more profitable developments for a new low energy and carbon-conscious market. Q.

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CROWDFUNDING

WHY ARE WEALTHY INVESTORS USING PEER-TO-PEER LENDING PLATFORMS TO DO PRIVATE LENDING? PAUL WATSON Head of Origination Blend Network www.blendnetwork.com

A recent article described how ultra-rich families with cash on hand have started to pile into private debt to avoid stock market volatility. As a company that is investors, we at Blend Network have witnessed a similar trend with an increased lending appetite 080 – Qandor – Issue No. 6

worth investors.

We are backed by investors such as Cyrus Ardalan, former Vice Chairman of Barclays and current Chairman of OakNorth Bank and Citigroup Global Markets, the Family Office of former Publicis Group CEO Maurice Levy and Jean-Phillipe Blochet, co-

founder of Brevan Howard, one of the world’s largest hedge funds which at its peak had $40bn in assets under management.

Of course, family offices and high net worth investors are looking to private debt because of the attractive returns on offer which are underpinned by an asset with a shortage of supply. Yield on Government bonds are barely positive in the US, while they are negative in Japan and much of Europe. Effectively, investors are guaranteed to lose money by holding those bonds until maturity. If inflation rises, as many expect it to, the losses would be even larger.

Equity markets don’t offer much cause for optimism either. Investors we speak to are nervous that equity markets may see a correction following their recent rise.

Between 19 February and 23 March, the S&P 500 index lost a third of its value. With barely a pause, it has since rocketed, recovering almost all of its losses. While governments around the world have pledged to do ‘whatever it takes’ to see their economies through the crisis, investors are undoubtedly worried that financial markets have got out of whack with the real economy and that something has to give.

Furthermore, even the recent rise in equity markets has been uneven and seen a geographical dislocation. UK and continental Europe stock markets, which are more reliant on industries like car manufacturing, banking and energy, have lagged behind while US markets have rallied mainly due to the outperformance of the tech sector, which now makes up a fifth of the S&P 500 index.

It is no surprise then that family offices and high net worth investors are looking

to the private debt market, often focusing on real estate. According to research firm Preqin, the number of family offices active in private debt has more than doubled since 2015. But while some family offices have highly sophisticated investing operations and are able to originate property deals inhouse, most rely on external origination and in-depth due diligence by professional teams.

Due to their high flexibility and transparency, peer-to-peer property lending platforms are in an ideal position to serve as an origination vehicle for those wealthy investors. We at Blend Network are seeing increased appetite from our investors to source good deals. But while larger funding lines mean peer-to-peer lenders are under pressure to originate more deals, these platforms who have built their reputation and track-record on balanced risk/reward for their lenders are not willing to compromise on quality deals for the sake of quantity.

From the the peer-to-peer lender’s point of view, having a well diversified lender base formed of institutional money, family offices, high net worth investors and retail investors is highly desirable. Of course, that is advantageous for all those retail investors using peer-to-peer lending to deploy cash, since they are effectively able to co-invest with highly sophisticated investors on the same deal and under the same conditions.

Meanwhile, borrowers, of course, like turning to family offices and high net worth private investors due to the extra flexibility and faster access to cash than with most banks. All in all, this increasingly popular way of investing and funding deals appears as a win-win for everyone. Q. Issue No. 6 – Qandor – 081

WEALTH MANAGEMENT

THE TOP 4 TAX BENEFITS OF A SIPP. GEORGE TTOULI Director Burlington Wealth Management www.sjpp.co.uk/burlington

A SIPP (Self-Invested Personal Pension) is a type of personal

“I don’t need a pension, I make money investing in property”. I have probably heard this comment hundreds of times over the years and fully understand. Whilst a SIPP is not suitable for everyone, those who just 082 – Qandor – Issue No. 6

dismiss the idea are missing the tremendous tax advantages available.

Contributions can be made by an employer, and this employer can claim the contribution as a business expense. This reduces the employer’s gross profit and therefore there is a tax saving aspect for the employer.

If the employer is a limited company, it will reduce the Corporation Tax liability.

Many property developers operate using a limited company and they may be on the payroll to receive salary and/or dividends.

This is an example where funds can be invested directly from the trading company to the pension.

If contributions are made by an individual, they will obtain tax relief at their highest marginal rate. So, paying into a SIPP reduces your tax. Up to 45% Income tax relief for an individual contribution or 19% Corporation tax relief for a limited company contribution.

All hosen investments in a SIPP are not subject to Capital Gains Tax. This includes investments in shares, collective investment funds like unit trusts or even commercial property. We have clients where they have purchased a commercial property and operate their businesses from this property.

The property is owned by their SIPP and in the future, when the property is sold, any capital gain is not subject to Capital Gains Tax. Tax-free growth when investing must not be underestimated.

At any age from 55 an individual can draw money from a pension and can take up to 25% of the value of the fund tax free. Having access to 25% of the fund from age 55 is a very useful benefit: there is no tax to pay

on this portion of the fund regardless of an individual’s income tax position.

You could be an additional rate income taxpayer and in the same tax year, if you are over the minimum age, you can draw up to 25% of your pension fund completely free of tax.

On death, the value of your SIPP is outside of your personal estate – therefore, there can be substantial Inheritance tax savings.

With appropriate financial advice, a Trust can be created to receive death benefits from a pension, and you can appoint who your trustees would be to manage your pension fund after you have passed away.

So, in a nutshell, saving in a SIPP reduces your Income tax or Corporation tax.

Along the way, the investment can grow free from Capital Gains Tax. At the age of 55, you can draw up to 25% of the fund tax free and, on death, whatever the value of your pension fund is remaining, it will not form part of your estate and therefore will not be taxed under Inheritance tax.

For an informal discussion on how a pension can be used in your financial planning alongside a property development business or a property investment business, please feel free to get in touch.

I am happy to review all of your existing pension arrangements without a fee or obligation and make sure all the T’s have been crossed and I’s dotted. If you have any questions relating to any type of pension, please feel free to contact me any time on (07721) 518394 or email me directly george@burlington.uk.net Q. Issue No. 6 – Qandor – 083

STUDENT ACCOMMODATION

NAVIGATING THE STUDENT HOUSING MARKET DURING THE COVID CRISIS. EMMA MORBY Investor & Property Developer Ikon Property

2020 has been a challenging year for the student market. In May, one of the national newspapers led with the headline: “Car Crash Year ahead for owners of Student Digs!”

With many universities announcing that courses were moving online and newspapers reporting that students were staying away, what is the reality and how can we overcome the challenges presented by the current situation?

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Rents The student market operates on fixed term contracts usually for 11 or 12 months of the year. Whilst the majority of first year students live in halls of residence or PBSA (Purpose Built Student Accommodation), many secondand third-year students choose to live with groups of friends in privately owned houses.

Students sign tenancy contracts 6/7 months in advance to secure a property, which in a normal market gives student accommodation providers guaranteed rent for the following year and very few void periods.

At the start of the lockdown period, when the Government announced that people should stay where they are, whilst some students decided to continue living in their University accommodation, many decided they would return to their parents’ homes. This created a challenge for Landlords and many small business owners as a high number of tenants questioned whether they had to continue to pay rent and whether they could be released from their contracts early. Some universities & PBSA providers made the decision to waive rents for the final term, putting pressure on everyone else to do the same. Many tenants were also under the impression that because landlords were being exempted from mortgages (mortgage holidays), they could cancel their rents!

Issue No. 6 – Qandor – 085

For many landlords and small businesses that are reliant on day-to-day cashflow, cancelling rents was not an option. There are still many costs that have to be covered (whether tenants are in the properties or not) such as mortgages, licenses, insurances, utility costs, maintenance. The Government was adamant that students should continue to pay rents & that student finance would continue.

At Ikon, we responded to all tenants individually, explaining that mortgage holidays were not an option for us (despite the Government announcing that payment holidays wouldn’t impact future lending, we didn’t want to take the risk and this has been proved correct as lenders are now looking at all payment holidays when assessing new lending). We offered a slight reduction to tenants who pay an all-inclusive rent for bills and services such as cleaning and gardening where these were no longer being used and this was received extremely positively. A

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“hands on” approach to management has been essential during this period, as well as open regular communication with tenants and their guarantors. Our comprehensive vetting process of all tenants has definitely been beneficial too.

Maintenance The initial lockdown period was difficult from a maintenance perspective. Anyone who owns student housing will know that however proactive you are, there is always lots of maintenance in student houses! During the lockdown, understandably, it was hard to find any trades that would work, so repairs were kept to emergencies only. In the last few weeks, we have been able to resume a normal service and all of our cleaners, gardeners and maintenance team have returned to work.

We have also used this period to undertake many light refurbishments across the business. With ever increasing competition

in the sector, it’s important to provide stand out quality, comfortable homes for tenants. Extra investment leads to fewer voids, higher rents & longer tenancies, which increase profitability.

Whilst most people don’t want to spend money currently, we are taking the opposite approach and are investing for the future.

Lettings / Viewings This year has been anything but normal for student lettings. Much of our accommodation was let for the 2020-21 academic year during the usual time period November – January.

However, with many students returning to their parents’ homes in March and with the general uncertainty around lectures and teaching, many students have still not signed contracts for the 2020 -21 academic year. Many landlords & lots of the PBSA have empty rooms and there is a general feeling that students will wait until the last minute to sign contracts.

There has been much speculation about

student numbers & whether students will defer for a year, given the impact of Covid-19 - not only on teaching, but also their social lives!

Our experience over the last month has been the opposite, with many students enquiring whether they can move into properties early.

They have had enough of being at home and are keen to return to normality and living with their friends.

We have also been preparing for the lettings period for 2021-22. This will start in November & if social distancing is still in place, we will move all initial viewings online via video.

Business Performance This has not been the year anyone planned!

Many property businesses have had to adapt and some have had to pivot completely in order to survive Covid-19. What we originally thought would last for a few months now looks like it will be with us certainly well into next

Issue No. 6 – Qandor – 087

year. In order to survive, businesses are learning to live with the “new normal”. In the short term, it’s been critical to adapt quickly, manage cash flow, cut unnecessary costs and plan for the mid term. At Ikon, we are continuing with new building projects that were already in progress and as the year continues will continue to assess new opportunities.

Future The Universities & Colleges Admissions Service UCAS is reporting that application numbers are ahead of 2019/20. It is too early to predict what may happen beyond 2021 but there will definitely be changes to the University sector as some institutions struggle to survive and insolvency becomes a real prospect. The PBSA is heavily dependent on overseas students and there could be considerable distress in this sector if there is a prolonged downturn in numbers.

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In the private housing student market, we remain optimistic. Student sentiment for A Level students starting higher education is strong and the majority of 2nd and 3rd year students seem intent on returning in September.

Student numbers often increase during times of uncertainty as they look to “upskill” and the jobs market becomes increasingly competitive.

Private sector shared housing offers students the opportunity to live with their friends at affordable rents. Some people worry about an oversupply of accommodation, which in many cities is true; however, we believe that there is only an over supply of average rooms and that where quality design led accommodation is provided at a value for money price, there is still very strong demand Q.

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HERITAGE LISTINGS

WHAT ARE HERITAGE LISTINGS AND WHAT DO THEY MEAN? EMMA MORBY Director of Land Acquisition Heritage England www.heritageengland.co.uk

A building is listed when it is of special architectural or historic interest considered to be of national importance and therefore worth protecting. As the term implies, a listed building is actually added to a list: the National Heritage List for England.

A heritage listing puts restrictions on the redevelopment of a property to preserve it in its current condition. Most buildings built between 1700 and 1840 are listed.

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After 1840, more selection is exercised and “particularly careful selection” is applied after 1945. Buildings less than 30 years old are rarely listed unless they are of outstanding quality and under threat - for example, the appearance of a building that is particularly exceptional.

The National Heritage List for England (NHLE) is the only official up-to-date register of all nationally protected historic buildings and sites in England. It’s an online searchable database which includes 400,000 (most but not all) of England’s listed buildings,

scheduled monuments, registered parks and gardens, protected historic wrecks and registered battlefields in one place.

So, what do the listings mean?

Listed buildings come in three categories of ‘significance’: • Grade I for buildings of the highest significance • Grade II* and • Grade II • Grade 3 (less commonly known) Most listed building owners are likely to live in a Grade II building, as these make up 92% of all listed buildings.

Grade I are buildings of exceptional interest and may also have been judged to be of significant national importance.

Grade 1 listing is usually reserved for much older and historically important buildings, such as cathedrals, castles, towers and town halls. Buckingham Palace is among one of England’s Grade I listed buildings.

Grade II*: These are particularly important buildings of more than special interest - they warrant every effort to preserve them.

Grade II: These listed buildings are subject to regulations which protect their historical and architectural significance.

These buildings are of special interest, Manchester City Library, an example of a Grade II* listed building.

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The Royal Crescent in Bath, an example of a Grade I listed building

meaning alterations and building work can’t be carried out without written consent from the relevant authorities. Buildings listed on the register are legally protected from being demolished, extended or significantly altered without special permission from the local planning authority.

Grade 3: Local authorities keep a list of non-statutory buildings of local interest. This is sometimes referred to as Grade 3, but they are not listed buildings. Grading reflects the relative importance of the buildings but is of no legal significance.

I often get asked if a listed building can be delisted and the simple answer is occasionally. It all depends on the listing itself, but this process is not an easy undertaking.

Typically, only around 50% of applications are approved at Grade II level and involves a lengthy consultation and review process. To support your case, you will need to provide evidence that proves the building does not meet the criteria for listed buildings.

The criteria for listing include architectural interest, historic interest and close historical associations with significant people or events. Buildings not individually noteworthy may still be listed if they form part of a group that is—for example, all the 092 – Qandor – Issue No. 6

buildings in a square or courtyard.

These historic buildings are often brought below market value but it’s important to remember they come with far more “red tape” than your average purchase and will require a lot more money and expertise to deliver the project. Q. Many buildings with preserved original features retain Grade II listed status

QANDOR SUCCESS STORY

10 CHANGES THAT SAVED MY BUSINESS DURING THE PANDEMIC. Joe M hl Managing Director of Contracts and Commercial Projects Ocean Bathrooms www.oceanbathrooms.com

To ensure that the business continued to work effectively, I created a “from home design service”. Now the client measures the room, takes pictures of it (including boiler, sloping ceilings, etc.), and sends it to one of 094 – Qandor – Issue No. 6

our designers, who designs the bathroom.

The client either participates in a virtual screen share of the bathroom with rendered images or have an AR link sent to them, enabling them to stand in their own virtual reality bathroom and to see it as it could be. This has worked surprisingly well, and we will now continue to use this in all showrooms as first point of contact before site visits.

Tailored brochures have proven to be indispensable. Ocean Bathrooms have both retail and commercial businesses as clients, and I’ve found that the Commercial clients do not want to browse through hundreds of options when looking for a product. I thought it would be a good idea to launch a set of brochures specially designed to

give the client four clear budgets with the possibility of upgrading.

The Gold, Silver & Bronze brochures feature quality brands and commercial prices with 3-4 choice options and upgrades, making things easier to choose and saving time. The PDF works in a way that once the client has ticked the chosen items, they fill in a registration form and simply click “Submit” - the PDF then compresses and sends the choices to Ocean Bathrooms directly, enabling the client to register their choice quickly and efficiently.

Opening a new showroom was essential. After speaking to a friend and colleague, an opportunity arose to open a new showroom in Poole, Dorset, located close to the illustrious Sandbanks area. This is a great opportunity for all our clients who

currently work in this area and allows us to network with other potential clients.

I asked our key suppliers to sign NDA’s and explained what I was hoping to achieve. All suppliers thought the new showroom idea was brilliant and were happy to see some positivity coming through these very unsettling times we currently find ourselves in.

All we now needed was the right installation service to offer to our clients.

Previously, I had mooted the idea to the owner of a fitting team working in the highend property market. He agreed to come on board with Ocean and run our in-house installation service. We are now able to offer this bespoke service throughout our three showrooms.

The showroom opens October 2020 and should have a fantastic new look and Issue No. 6 – Qandor – 095

feel. It has been deliberately designed to a very trendy “London Clerkenwell style”, with wine cooler, fresh coffee, working water features and a comfortable seating area.

The showroom will be a sensory experience as you walk around: the air will be scented by essential oil humidifiers; modern metal finishes will attract the eye and a designer cedar clad wall will showcase all pottery and sanitary ware. The client restroom features Washer Toilets for both male and female use, and together with the special finish brassware, it’s designed to wow the user.

Collaboration is something I have always believed in. I’ve been lucky enough to have the opportunity to work with an interior designer who focuses on wellbeing, sustainably and eco design. We have got together and have now launched a new service, making it easier for potential bathroom customers to source where all the products originate, how they are made and what they are made from.

This complements Ocean Bathrooms very well, as we have always sourced brands with eco sustainability together with wellmade products we can trust. I have also

096 – Qandor – Issue No. 6

managed to interest a soft furnishings specialist to advise on the Poole and also Bridport showroom renovation.

The Bridport showroom is extremely large and, because of the layout, the area and the size, it is no longer possible, due to this pandemic, to enjoy large volumes of people looking at and touching the displays. After re-designing the front space of the showroom as a presentation area, the client can now book a private appointment and enjoy quality time on their own in the showroom, sit comfortably in the presentation area and enjoy their new bathroom in 3D on a large screen TV. New signage for customers now states that we are only giving private appointments and full COVID procedures are in place for the comfort and health of all.

Test any idea, no matter how brilliant, with your customer. We trialled the new showroom with our customers and they have appreciated the new way of shopping for a bathroom. The new wellness restroom,

complete with washer toilet and essential oil scented humidifiers, and the kitchen facilities, together with fresh coffee, is the new sensory experience the client will be receiving.

We are trying to be cautious too: all of our out goings so far are to attract a new clientele. We are unsure what the future will have in store for us, but I feel we must grab every opportunity we can whilst we can, while trying to make as many savings as we can and, to this end, we have consolidated our warehouse and storage area. This will service Bridport, London & now Poole with ease but at a significant lower cost.

Apply for competitions! Earlier in the year I entered a competition promoting Sky Ads and, after filling in the form to explain the advantages of advertising for Ocean Bathrooms, I forgot about it. After a month, I had a lovely surprise in an email, saying that Ocean had been selected to win.

Luckily, I had another contact who was able to create a very good advert which went live on the 11th August and is a completely different but a very interesting avenue of advertising for Ocean Bathrooms.

Try new tangents. Finance for clients was a service I thought about offering and I have managed to source a great company.

It took around a month to sort, but we are now FCA approved, able to offer clients up to £50,000 and up to 7 years to repay.

I have spoken to a few selected interior designers around the area and offered Ocean as a “pop-up showroom” – I was just testing the waters to see if the area would work for anyone and now we will have our first opening in November and December, something which is very exciting and innovative.

My final advice? Don’t stop and wait to see what happens: speak to your contacts and find new offerings for people. If you can think of 10 ideas and half don’t work, there’s half that will and if some ideas don’t come to fruition, at least you will have explored the opportunity. If it does work, you will be extremely gratified. My endeavour took from March to August to plan and put in practice... It took lots of late nights and hundreds of zoom calls. But I can already see that there are many opportunities arising from it. Q.

Issue No. 6 – Qandor – 097

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