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Contents
Page
Building
Energy performance
Design-and-build contracts
Watertight basements
Partnering
Retail regeneration
Rights of way
Finance
Lease accounting
Distressed loans
22
23
Law
25
26
Management
Energy management
28
30
32
33
Planning
37
38
41
43
44
Property
Overage payments
45
47
48
49
Residential
52
54
55
Rural
57
58
60
61
Valuation
Valuation standards
Valuation accuracy
63
65
Notices
Book review
New researcher
67
67
67
68
69
2
4
6
7
8
10
11
12
15
18
20
BUILDING
Building
will have an effect on the supermarkets when their energy
ratings are compared in public.
When designing with energy in mind, traditional
architectural CAD software is little help. It focuses on
EU member states must introduce a directive on the Energy
describing the dimensional, physical form of the building.
Performance of Buildings by the end of 2005 and the UK
Three-dimensional modelling software begins to go deeper,
government is committed to a major revision of the Building
but its calculations of light, reflection and radiance are
Regulations Part L. In future, buildings will be required to
output at a purely visual level. They can show, with a bit of
have energy ratings. Stephen Pacey describes powerful new
artistic licence, how a space might look, but they cant
software able to simulate the thermal performance of
reveal quantitative detail. Just how bright is the lighting
buildings that will enable architects to predict energy
level on the reception desk on a given day? What effect
performance with unprecedented accuracy and No more
would rotating the building by 5 have on the artificial
guessing games (RIBA Journal, May 2003).
lighting requirements? As for thermal performance,
overheating, underheating,
21 Sep 12 00
21 Sep 12 00
21 Sep 12 00
comfort levels and the cost of
running a building over 25
years, these are usually left until
after the basic design has been
formulated and then handed to
the M&E engineer to work out.
By this time, major design
changes
that solve
Base Case: 50% Glazing
Case 2: 80% Glazing
Case 1: 20% Glazing
environmental problems using
passive methods are usually out of the question.
This lack of an integrated approach to energy troubled
Buildings will soon be energy-rated like fridges and
Andy Roberts, an architectural director in the Newcastle
washing machines, and architects will be under increasing
office of architects Ryder. We are very committed to
pressure to design with long-term energy consumption in
promoting sustainable design, but we felt there was a big
mind. But help is at hand. <Virtual Environment>, a
problem bringing in services advice once a design was
powerful building simulation software, is now available as a
established, he says. We wanted to tackle fundamental
desktop integrated modelling package that will not only
building services aspects at the front end of the process.
visualise lighting and thermal performance, but analyse
Ryder started using <Virtual Environment> (<VE>) in
everything from alternative building forms and user comfort
September 2002 in an attempt to achieve this.
to life cycle costs, carbon rating and the behaviour of people
<VE> is a suite of analysis and simulation software
escaping a fire.
packages tightly integrated into a single, common model of
The EU Directive on the Energy Performance of
a building. It emerged from the University of Strathclyde
Buildings, which must be introduced by member states by
Department of Architectures ABACUS (Architecture and
the end of 2005, calls for all buildings to be given a
Building Aids Computer Unit, Strathclyde) programme
certificate based on how they match minimum standards of
which started looking at computer-based solutions for
energy consumption. The UK governments recent White
architectural problems in the late 1960s. This software
Paper, Our energy future creating a low carbon economy
brings intellectual rigour to areas that have for most
(www.dti.gov.uk/energy/whitepaper), commits it to a major
architects been a series of rules of thumb, and, at worst, pure
revision of the Building Regulations by 2005. Professor
guesswork sticking a finger in the air.
David Strong, managing director of the Building Research
For too long, basic software has just been giving people
Establishments Energy Division and chair of a working
a feel (for the energy performance of buildings), says
group helping the government implement the directive, is
Don McLean, the academic who now heads IES, the
conscious of the size of the task ahead.
company that has developed <VE>. But the original drive
The last revision to Part L of the Building Regulations
behind ABACUS was to use the power of computers to get
took seven years to come to fruition, and we are already
the kind of information that people really require in order to
10% into the three years we have to transpose the new
make informed decisions about design.
directive into law, he says. But he welcomes the
<VE>s modules include tools for solar, lighting and
opportunity to place a greater emphasis on the energy that
thermal analysis and simulations; mechanical and electrical
buildings use. With increasing levels of corporate social
elements for duct, pipe and cabling design, value
responsibility, energy will play an important role in the
engineering, capital and life cycle cost modules and an
commercial environment. Buildings used extensively by the
award winning building evacuation module. While only
public, like supermarkets, will have to display their
some may be of interest to architects, the concept is that all
certification in a prominent way. I dont suggest this will
disciplines can perform their own analyses using the
have a direct effect on shoppers purchasing decisions, but it
Energy performance
BUILDING
BUILDING
BUILDING
Cemicircular WebWatch
The RICS Foundation has funded and conducted research
on sustainability with the property and construction
sectors (www.rics-foundation.org). For more on the
FTSE4Good index go to www.ftse.com/ftse4good. Details
about the BREEAM rating system is available on the BRE
website (products.bre.co.uk/breeam).
BUILDING
BUILDING
Sun screen
Both the upper and middle sheets of the Kingsdale roof
are laid out in a chessboard pattern, with half the squares
on each screening out UV light.
With no air between the two sheets, the screening squares
are offset, giving maximum solar shading. But as the
upper airbag inflates, the screening squares overlap,
decreasing the shading.
Sensors automatically pump air from the lower to the
upper airbag to raise the temperature.
Future vision
How Kingsdale Schools potato-shaped auditorium and
library will look in the newly roofed quadrangle.
Cemicircular WebWatch
For more details about Texlon go to www.texlon.ch.
BUILDING
Cemicircular WebWatch
The governments consultation paper Protecting our
historic environment: making the system work better can
be downloaded from the DCMS website
(www.culture.gov.uk/global/consultations).
BUILDING
45O
45O
6m
6m
3m
3m
CONSTRUCTION
Construction
Design-and-build contracts
The widespread amendment of design-and-build contracts
transfers undefined risks to contractors and breeds disputes.
But soon all cards will have to be on the table, says Ann
Minogue, partner at solicitors Linklaters (Building,
27 June 2003).
10
CONSTRUCTION
Watertight basements
Creating a watertight basement can involve a lot of working
room, until now. Corus boffins have found a way of sealing
sheet piles to make an instantly watertight basement
involving far less disruption and lower costs. The system
can also be used for creating barriers around contaminated
sites. Kristina Smith finds that simple solutions are often the
best (Construction Manager, July-August 2003).
CONSTRUCTION
12
Partnering
Making changes in the way things are done is never that
easy, especially if you are bombarded with a lot of changes
all at once. Perhaps it is therefore not surprising that
partnering as an approach to managing building and
construction projects has taken rather longer to be
embraced in UK local government than in the private sector.
In two items from Construction Manager (June 2003)
Kristina Smith traces the transformation of Middlesbrough
into a Beancon council.
CONSTRUCTION
CONSTRUCTION
CONSTRUCTION
Cemicircular WebWatch
For details of the Beacon Council scheme, go to the ODPM
website for local government (www.localregional.odpm.gov.uk) and the Improvement and
Development Agencys website (www.idea.gov.uk/
beacons). Details about the European Foundation of
Quality Management are on their website
(www.efqm.org).
CONSTRUCTION
CONSTRUCTION
now been completed for this job and you can interrogate all
our records, says Long.
Long is aware that while the Stanhope way of working
has huge advantages, there are some areas where more work
could be done. This way of working makes it easier to
discuss new ideas. But we havent got to the point where
new ideas on, say, sustainability are coming through any
quicker. Its easy to say you could come up with an idea and
get it reviewed. We are not very good at finding new
products and new ideas to respond to a different agenda
such as energy, sustainability or waste management. It is
still quite an uphill struggle to change, even though weve
got the team working together. You have to convince
everyone that a new product might be better, and I dont feel
we do enough of that.
The elusive trust factor
The team holds lessons learned sessions and there is a
short report produced. Stanhope also holds quarterly
meetings to talk about whats happening in the marketplace.
Innovation, however, remains a sticking point for the whole
of construction: As an industry, there are a lot of suppliers
that say they have great ideas. How we apply them on our
jobs seems to fall short, comments Long.
But if this way of working is so successful, why isnt it
more common? Long says that the simple answer is that
17
H
C
M
R
EDEVELOPMENT
C A
E
S
E
Development
Retail regeneration
Shopping centres can play a vital role in regeneration, but
they must be integrated with other uses and existing retail to
be successful and to avoid squeezing district centres. Tim
Dixon, Director of Research at The College of Estate
Management, reports on findings from research published in
January 2003 on the role of UK retailing in urban
regeneration (Estates Gazette, 22 March 2003).
130
Total (UK)
Wholesale (GB)
120
110
200
100
90
79
81
83
85
87
89
91
93
95
97
99
00
High Street
Total
Out-of-town
150
100
50
90
91
92
93
94
95
96
97
98
99
00
DEVELOPMENT
DEVELOPMENT
Cemicircular WebWatch
20
Rights of way
When purchasing sites for development, attention should be
given to the question of who owns the access rights. This is
even more important following two recent Court of Appeal
cases. Alice Woodhouse, a property support lawyer at
Richards Butler, advises Keep track of your rights (Estates
Gazette, 5 April 2003).
DEVELOPMENT
Cemicircular WebWatch
For those interested in the implications of the Bakewell
Management case, lawyers Osborne Clarke have a good
commentary (www.osborneclarke.com/publications/text/
pm1g.htm). Of wider interest is an online supplement to
the book Neighbours and the Law by John Pugh-Smith,
Graham Sinclair and William Upton (www.ealaw.co.uk/
supplement). It includes sections on boundaries,
covenants, planning and building control and rights and
restrictions.
Finally, here are links to the cases and statute mentioned
in the article for those interested:
21
FINANCE
Finance
substantially all the risks and rewards of ownership and such
lessees should be denied the ability to account for their
ownership interest as an investment.
International Financial Reporting Standards will come into
IAS 40 had unfortunate consequences for the financial
force in the UK in 2005 and replace current UK standards
statements of Hongkong Land Holdings. As its Hong Kong
that have been in operation for the past 20 years. Philip
investment property portfolio was leasehold (all Hong Kong
Tew, real estate partner at PricewaterhouseCoopers,
property is leasehold), it was denied investment property
explains how the new standards have implications for
treatment. The group has had to prepare two sets of figures
property investors and corporate occupiers, but the status of
one to comply with IAS 40, and one for the investment
leasehold investments has still to be agreed (Estates
community.
Gazette, 3 May 2003).
Perhaps as a consequence of Hongkong Lands plight,
the IASB has now accepted that leasehold property can be
investment property. Under proposed
Potential impact
revisions to IAS 40, leasehold
investments can be accounted at fair
How IFRS may affect the investment property business
value if the entity uses the fair value
Earnings volatility
At first sight, the proposed changes to
Lease accounting
22
FINANCE
Cemicircular WebWatch
Details of accounting standards in force in the UK can be
found on the Accounting Standards Board website
(www.asb.org.uk). For international standards go to the
International Accounting Standards Board website
(www.iasb.org.uk). The PricewaterhouseCoopers report
Waking up to IFRS: Implications for the investment
property sector is available at www.pwcglobal.com/
images/gx/eng/fs/insu/031903ifrs.pdf.
For property valuation purposes also be aware of the
International Valuation Standards. These can now be
viewed, free of charge, online from the IVSC
(www.ivsc.org).
Distressed loans
Around the world, lending that would normally perform
badly is currently being supported by low interest rates.
Winners and losers emerge as banks look to clean up their
balance sheets, explains Juliana Ratner (Financial Times,
1 August 2003).
FINANCE
24
LAW
Law
Litigation and mediation
Litigation and mediation cannot be compared. Why?
Because they do different things. Tony Bingham, barrister
and arbitrator specialising in construction, explains that we
have mediation because we cant afford to find out what the
truth is (Building, 9 May 2003).
Its that time of the year again. The folk who will soon be
top dogs in the construction and civil engineering business,
in charge of sorting out its contractual demands and its
disputes, are asking for help with their university
dissertations. These are the youngsters who are up and
coming. They write to me for help with a thesis. Will I fill in
a questionnaire or three? But I tell you what is plain: these
bright young things have already been got at. They hardly
ever come with an open mind; they have a kit full of
preconceived ideas. Here is one such. It is a favourite
dissertation topic: the idea is to compare mediation with
litigation.
Dear Mr Bingham, how much cheaper is it to resolve a
dispute by mediation? Dear Mr Bingham, how much faster
is it to resolve a dispute by mediation than litigation? Dear
Mr Bingham, what proportion of disputes are resolved by
mediation compared with litigation? The questions are
loaded. The students have read up on litigation and its costs,
and mediation and its wizardry. The authors of many a good
textbook on mediation techniques have told us how bad
litigation is and how good mediation is. The students
questions almost always give the game away. Invariably the
question starts with a premise: mediation resolves disputes
faster, cheaper, sooner. So, tell me by how much is it better
at resolving disputes? Thats when I baulk. Who says
mediation resolves disputes? It damn well doesnt. It works
ever so well at getting rid of disputes, but dont you go
telling me it resolves them.
The student asks: Give an indication of the cost of
mediation in resolving construction disputes in comparison
with arbitration and litigation. I cant. Honest, I cant. Look,
let me give the game away. When I am the mediator I use
the cost of litigation as a part of my mediators weaponry.
Remember, I am here to coax the disputing parties to find a
different way of ending the dispute. I focus their minds on
CONTACT
You can write to Tony Bingham at 3 Paper Buildings,
Temple, London EC4 7EY, or email him on
info@tonybingham.co.uk.
25
LAW
26
LAW
Key to success
It is vital that the strategy and its component parts are
regularly reviewed. The commercial context can change.
Facts can come to light that significantly alter the prospects
of success, following which the best possible outcome may
have to be reassessed. Regular reviews of the ECA are
therefore essential.
But provided these are undertaken, the model will
provide a snapshot of all the relevant considerations that
drive the conduct of a dispute at any given moment.
Conclusion
ECA is relevant to any dispute, no matter how large or
small. For instance, in a service charge dispute involving
tricky legal issues disproportionate to the value of the claim,
the ECA model enables a client to identify which of the
disputed items really matter and which can be conceded. It
also places the dispute firmly within the context of the
landlord and tenant relationship.
The model has also been used to handle volume disputes
such as a series of actions to obtain possession of a shopping
centre and to recover arrears from the outgoing tenants. The
systematic approach towards individual cases achieves
consistency. It also gives a client an overview, enabling it to
understand the key issues and to prioritise cases.
The process promotes a clearer idea of the commercial
and legal sense of a dispute, providing proactive dispute
resolution rather than blind litigation, and addressing the
cost/benefit analysis of a claim at the start of the dispute
rather than at the court door. It enhances communication
between clients and their professional advisers because it
draws together all the key considerations in a single step-bystep analysis.
The result is a properly considered strategy that is in
touch with commercial considerations. Effective dispute
resolution constitutes a positive tool for a companys
business strategy, not a waste of management time and legal
costs.
The ECA model involves a six-stage process
A comprehensive means of resolving disputes
identifying the legal and factual issues in dispute: what
has happened and what is at stake;
27
MANAGEMENT
Management
Model lease clauses
The British Property Federation (BPF), together with the
British Council for Offices (BCO), has recently relaunched
its model clauses for commercial leases. Alan Riley,
property law consultant at Halliwell Landau, discusses the
key features of the clauses and explains that, while its all
very well having model lease clauses, their efficacy will
depend upon practitioners using them as a package (Estates
Gazette, 17 May 2003).
Key points
The BPF/BCO model lease clauses are intended to be
fair to both parties and to reduce protracted negotiations
MANAGEMENT
Subletting
Subletting the whole is achievable with the landlords prior
consent, as is the subletting of an occupiable unit (a
defined term) if this is contracted out of the Landlord and
Tenant Act 1954.
With regard to contracting-out, it might have been
advisable simply to require a lawful contracting-out
agreement, rather than an agreement authorised beforehand
by the court. Basically, once the 1954 Act reforms arrive,
contracting-out will probably be achieved by the service of a
notice, rather than by an order of the court.
No Homebase-type problems should arise in relation to
any subletting, since the rent to be paid under the sublease
needs only to be an open market rent.
Charging
Usefully, the code contains an express provision relating to
charging. This means that the tenant may create a fixed
charge with the landlords prior consent, and has general
freedom to create a floating charge created in the normal
course of the tenants business. The latter will start to
become redundant during the course of this year because the
Enterprise Act 2002 prevents the creation of new floating
charges.
Insurance
The BPF/BCO admit that much of the thinking in respect of
insurance took place before 11 September 2001. Thus, no
position is adopted on uninsured losses (except that the
insurance obligations of the landlord are subject to usual
excesses and limitations).
Oddly, there is an obligation upon the landlord to insure
against loss of Rents (a term whose definition directs you
to include service charge payments in multi-let cases). But
Recommendation 6
Alternatives to upwards-only rent reviews
Upwards only
Recommendation 8
Policy terms should be competitive
Recommendation 8
Opportunity to influence the choice of insurer
Recommendation 9
AGAs only where the assignee is of a lower financial standing
Recommendation 10
No removal of alterations unless this is reasonably required
(save to the extent reasonably required)
29
MANAGEMENT
30
Energy management
EU standards for energy consumption in buildings that
must be implemented in the UK no later than January
2006 will affect not only new buildings but also existing
buildings. Stringent requirements and the introduction of
mandatory certificates on energy performance mean that
the property industry will need to demonstrate a major
improvement in its energy management if it is to comply.
Tom Bainbridge, senior solicitor in the environment law
group at CMS Cameron McKenna, discusses the main
features of the new standards (Estates Gazette, 12 April
2003). See also article on Energy Performance in the
Building section of this issue.
MANAGEMENT
Like Part L, the Directive will require minimum energy performance standards to be set for virtually all new buildings. The
standards must also be achieved, as far as technically, functionally and economically feasible, by virtually all existing buildings
with a useful floor area greater than 1,000m2 and which undergo a major renovation. A major renovation involves work on
25% or more of the building skin or involves a cost equivalent to 25% or more of the value of the whole building (excluding the
cost of the land). This is higher than the material alteration threshold under Part L, although governments are free to apply the
lower threshold. National legislation may also require the energy performance of the whole building to be upgraded or simply
the renovated part or system (provided performance of the whole building is being upgraded in connection with a wider
renovation being carried out within a limited time frame). For owners and occupiers, therefore, there is a risk that renovations
planned in three or more years time may trigger an obligation to undertake upgrading works that are wider than the planned
renovation itself.
Unlike Part L, the Directive imposes an obligation to consider alternative energy sources in the design of new buildings that
have a useful floor area greater than 1,000m2. The technical, environmental and economic feasibility of incorporating alternative
energy sources must be considered before construction of such buildings starts. This will mean having to consider how
measures such as renewable energy technologies (for example, solar electric roof tiles or wall cladding), combined heat and
power plant (boilers that generate both heat and electricity), district heating schemes and heat pumps (for example, pumps
extracting heat from the ground) can be incorporated into the design of a building. Some of the measures are matters of detail
that could be implemented in the UK through the building regulations, others will almost certainly require consideration to be
given during the planning process. In either case, the developers case on alternative energy sources will be subjected to
review by relevant stakeholders. Therefore, the alternative energy obligation could mean having to justify, at the detailed
planning stage, a failure to include such measures in a buildings design. This could mean that a grant of full planning permission
would be open to challenge by judicial review if the feasibility of such measures is not taken into account. Either way, this will
have an impact on many development projects not planned to be built out for another three years.
While Part L requires new buildings to be issued with a certificate of energy performance (demonstrated during commissioning
only), the Directive extends this concept to the regular certification of virtually all new and existing buildings. Each certificate
will include an assessment of the energy performance of the building to which it relates, and a comparison with the performance
of an equivalent new building or one with similar benchmarks. The certificate will also include recommendations for costeffective measures to improve the energy performance of the building. Although, under the Directive, these recommendations
are not intended to be binding, in practice they could be forced on a building owner in at least two scenarios: (i) where a
prospective buyer or tenant has a strong negotiating position, either of them may insist upon energy performance improvements
to bring an existing building closer into line with then current legal standards or industry benchmarks; or, (ii) where a major
renovation is undertaken of a building with a useful floor area greater than 1,000m2, the obligation to upgrade the energy
performance of the building would be triggered.
To be valid, the certificate can be up to 10 years old but, in practice, the more alert prospective purchaser or tenant will want
to see a certificate that is recent, and evidence that recommended improvement works have been carried out.
31
MANAGEMENT
Cemicircular WebWatch
Further useful information is available from The Carbon
Trust (www.thecarbontrust.co.uk) and BRE
(www.bre.co.uk). Building Regulations, including Part L,
can be found on the ODPM website
(www.safety.odpm.gov.uk/bregs).
32
MANAGEMENT
Introduction
The outbreak of severe acute respiratory syndrome (SARS)
has not only reduced the number of tourists visiting Hong
Kong, but also weakened local consumer sentiment. Shop
tenants are requesting landlords to reduce their property
rentals.
The effects of SARS on the retail sector vary between
different trades and locations. Rental tenants find SARS is
creating a very uncertain future and are generally not willing
to lease new shops. The landlords, on the other hand, are
adopting a wait-and-see attitude and do not want to cut their
asking rentals substantially. New shop leasing activity is
therefore quiet at present.
For assessment of a shop rental as at todays value,
updated market comparisons may not be available, or the
transactions found may show contradicting figures. A study
of the retailers operating results by using the income
approach is an alternative to the traditional direct
comparison method.
Retail business before SARS
Before the SARS crisis, the Hong Kong economy was
already facing the problem of a high unemployment rate.
The retail market in some prime locations, however, was
previously well-supported by an increasing number of
visitors to Hong Kong. According to the Hong Kong
Tourism Board (HKTB), a total of 16.57 million people
visited Hong Kong in 2002, representing an increase of
20.7% over the level recorded in 2001. Arrivals from
mainland China increased remarkably by 53.4% year-onyear to 6.8 million, representing over 40% of all visitors to
the territory.
Nevertheless, the World Health Organisation has
classified Hong Kong as one of the SARS infected areas
and recommends people planning to travel to Hong Kong
to consider postponing all but essential travel. The Airport
Authority recorded a 68.9% drop in the number of
passengers using Chek Lap Kok International Airport in
April. Following the numerous infection cases in
Mainland China, Mainland tourist arrivals have also
fallen, to 75%80% below the peak of last year. The
impact of SARS on those traders specialising in retailing
to visitors is much greater than those shops targeting
mainly local citizens.
To illustrate the impact of SARS on retail market rentals,
a model has been established to reflect the situation of a
hypothetical shopping mall. It is assumed the mall
concerned is a regional shopping centre serving mainly local
Hong Kong customers.
33
MANAGEMENT
Jewellery/watch/accessories
Brand fashion
Gift shop
High street fashion
Childrens toys
Beauty shop
Furniture/home fittings
Electrical appliances
Music/books
Restaurant Speciality
Restaurant Fast food
Restaurant Chinese
Supermarket/chemist chain
Fitness centres
Karaoke parlour
Profit margin
(per turnover)
Monthly rental
(per lettable
area $/sf)
$200
$150
$100
$100
$60
$40
$40
$40
$40
$40
$30
$25
$28
$20
$20
20%
10%
15%
15%
10%
20%
10%
10%
10%
20%
10%
10%
8%
10%
10%
Rental as percentage
of turnover
20%
1015%
15%
1015%
15%
10%
10%
7%
7%
1015%
1015%
1015%
56%
15%
15%
Notes:
The profit margins and percentage of turnover for retail payment vary from company to company and are determined by the
companies polices and the operating results of individual firms.
The monthly rental rate represents the pattern of different traders in a typical regional shopping mall. The actual rents depend
on floor level, location, frontage, sizes, layout, etc. of the shop units concerned.
All the figures above are approximate, for illustration only. They reflect the relationship between rental values and sale turnover
of some trades in a typical regional shopping mall.
Source: CB Richard Ellis
TABLE 2: Current situation, with no rental concessions
Trades
Karaoke parlour
Restaurant Speciality
Restaurant Chinese
High street fashion
Brand fashion
Jewellery/watch/accessories
Restaurant Fast food
Fitness centres
Furniture/home fittings
Electrical appliances
Gift shop
Beauty shop
Childrens toys
Supermarket/chemist chain
Music/books
Estimated
change in
turnover
Change in
cost other
than rent
Revised profit/
(loss) margin
60% to 70%
50% to 60%
50%
30% to 50%
30% to 50%
30% to 50%
30% to 40%
20%
15% to 20%
10% to 20%
10% to 20%
5% to 10%
0% to +5%
+5%
+5% to 10%
20%
20%
20%
15%
25%
20%
15%
10%
8%
8%
5%
5%
+1%
+3%
+5%
(106%)
(42%)
(44%)
(20%)
(13%)
(7%)
(18%)
(1%)
0%
3%
5%
18%
11%
10%
12%
Required %
rental reduction
to break even
>(100%)
>(100%)
>(100%)
(98%)
(38%)
(20%)
(92%)
(7%)
(3%)
Note: Revised profit (loss) margins above are based on the new turnover after the spread of SARS on condition that the
passing rentals remain unchanged.
MANAGEMENT
TABLE 3: Assessment of market rental for the coming months by the income approach
Trades
Karaoke Parlour
Restaurant Specialty
Restaurant Chinese
High street fashion
Brand fashion
Jewellery/watch/accessories
Restaurant Fast food
Fitness centre
Furniture/home fittings
Electrical appliances
Gift shop
Beauty shop
Childrens toys
Supermarket/chemist chain
Music/books
Turnover
change
New profit
margin
required
Revised
turnover
Non-rental
cost
Required
margin
Residue
for
rents
Difference
from preSARS rent
65%
55%
50%
40%
40%
40%
35%
20%
18%
15%
15%
8%
+3%
+5%
+8%
25%
35%
25%
25%
20%
30%
20%
15%
15%
15%
20%
20%
10%
8%
10%
$ 47
$144
$112
$480
$450
$600
$156
$107
$330
$486
$567
$370
$410
$477
$614
$ 80
$173
$139
$493
$394
$480
$158
$ 90
$294
$436
$443
$266
$303
$405
$498
$ 12
$ 50
$ 28
$120
$ 90
$180
$ 31
$ 16
$ 50
$ 73
$113
$ 74
$ 41
$ 38
$ 61
Nil
Nil
Nil
Nil
Nil
Nil
Nil
$ 1
Nil
Nil
$10
$30
$66
$34
$55
100%
100%
100%
100%
100%
100%
100%
97%
100%
100%
90%
25%
+10%
+36%
+37%
Note: Figures in dollars represent amounts per sq. ft. in lettable area
35
MANAGEMENT
TABLE 4: Effect on market rentals when the expected recovery period is 6 months
Trades
Karaoke Parlour
Restaurant Specialty
Restaurant Chinese
High street fashion
Brand fashion
Jewellery/watch/accessories
Restaurant Fast food
Fitness centre
Furniture/home fittings
Electrical appliances
Gift shop
Beauty shop
Childrens toys
Supermarket/chemist chain
Music/books
1st
Month
2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Month
Rent
upon
recovery
Average
of 36
months
Change
from preSARS rent
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1
$10
$30
$66
$34
$55
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3
$19
$32
$65
$33
$52
$0
$0
$0
$0
$0
$30
$30
$0
$0
$5
$29
$33
$64
$31
$50
$0
$0
$0
$0
$0
$60
$51
$20
$21
$7
$69
$35
$63
$30
$47
$0
$0
$4
$0
$4
$90
$71
$27
$28
$15
$79
$37
$62
$28
$45
$4
$24
$69
$17
$22
$167
$127
$33
$34
$18
$90
$38
$61
$27
$42
$20
$40
$100
$25
$30
$200
$150
$40
$40
$20
$200
$40
$60
$28
$40
$17
$34
$85
$21
$26
$176
$133
$36
$36
$18
$92
$39
$61
$28
$41
16.1%
15.0%
14.6%
14.8%
14.3%
11.9%
11.5%
11.1%
10.9%
10.0%
8.4%
2.4%
+1.0%
+1.4%
+3.6%
Note: Figures in dollars represent amounts per sq. ft. in lettable area
Shop Sizes
36
Conclusion
Since 4 May 2003, the number of daily new infections has
been reduced to single digits. The spread of SARS seems to
be under control but its development is still uncertain due to
the easy transmission of the virus and the infection cases in
our neighbouring provinces/countries. The expected
recovery period is ever-changing. We have conducted a
sensitivity analysis on retail market rentals (of general
shops not located within tourist areas) against the expected
market recovery period. The conclusions are as follows:
Expected Recovery Period/
Change in Market Rent
Optimistic scenarios
(3 months)
Base scenarios
(6 months)
Pessimistic scenarios
(9 months)
8%
15%
24%
6%
10%
18%
PLANNING
Planning
Town centres and retail
development
In anticipation of the issue of a new government
consultation paper on town centres and retail developments
in the UK, Cliff Guy, Professor in the Department of City
and Regional Planning at Cardiff University, discusses the
pros and cons of retail malls and mixed use shopping streets
(Town and Country Planning, July 2003).
H
C
R
PLANNING
A
E
centre as a whole. Designers of the new shopping streets
need to find some way of retaining these features. Are the
streets to be left open to the elements, or covered, as in the
case of the Victoria Quarter in Leeds?
Secondly, mixed uses can be difficult to integrate into a
large-scale central scheme. In most cases leisure and
residential uses occupy adjacent sites, as at Southampton,
where phase III of West Quay, incorporating a 7,000-seat
arena and three 20-storey residential towers, is yet to be
built. Only the highest rent-paying cafes and bars can easily
be incorporated into a largely retail scheme. In some cities,
the local property market can support expensive singles
apartments, but no other type of residential use is likely to
be feasible commercially. It is no accident that those areas
which have pioneered mixed-use developments have been
on the fringes of the city centre, where land values are lower
and investors are more willing to countenance a degree of
innovation and experiment.10
The Bull Ring, when it opens later this year, will be
watched with great interest. Will it exemplify the new
orthodoxy of shopping streets and mixed uses, or will it just
seem a badly co-ordinated shopping mall? My feeling is that
institutional investors, retailers, and shoppers remain to be
convinced, and it is mainly in city centre fringes or smaller
infill developments that we are likely to see a return to
traditional shopping streets.
Notes:
1 See David Bennison and Ross Davies: The Impact of
town centre shopping schemes In Britain. Progress In
Planning, 1980, 14, pp.1-104.
2 Ben Walker: All the smiling fascias. Regeneration &
Renewal, 4 Apr. 2001, pp.22-23; Chris Oldershaw: From
rundown to boomtown. Planning, 4 Apr. 2001, p.14.
3 Town Centres: Approach to Renewal. Ministry of
Housing and Local Government. HMSO, London 1962.
4 Keith Scott: Shopping Centre Design. Van Nostrand
Reinhold, London, 1989.
5 http://www.bullring.co.uk/thevisions
6 Marino Donati: Expert advocates shopping streets.
Planning, 28 Mar. 2001, p.3; Anon: Traditional town
centre streets to succeed shopping mall era. New Urban
Futures, Issue 12 p.1.
7 Letter from Roger Evans in Planning, 2003, p.10.
8 PPG6: Town Centres and Retail Developments.
Department of the Environment. The Stationery Office,
London, 1996, para. 2.34.
9 Charles Bohl: Developing Town Centers, Main Streets
and Urban Villages. Urban Land Institute, Washington,
2002.
10 Simon Guy, John Henneberry and Steven Rowley:
Development cultures and urban regeneration. Urban
Studies, 2002, 39, pp.1181-1196.
Cemicircular WebWatch
At the time of writing this issue of Cemicircular, the
consultation on PPG6 had not been released. When it does
come out it will appear on the ODPM website at
www.planning.odpm.gov.uk. The existing version of PPG6
is on the same site (www.odpm.gov.uk/stellent/groups/
odpm_planning/documents/page/odpm_plan_606915.pdf).
38
There is a considerable body of recent governmentsupported research into rural and farm diversification and
the planning system,1 and last year the Countryside Agency
asked Land Use Consultants to draw on this work to
produce a position statement on planning for sustainable
rural economic development to inform future national and
local planning policy.
Rather than develop a set of model policies, the resulting
position statement, Planning for Sustainable Rural
Economic Development, instead lays out a clear approach
for the development of local policies which reflects the need
to understand the differences between different rural areas
and tailor policies to meet their particular needs. One size
fits all policy for rural diversification is not appropriate for
the contemporary countryside, and for significant areas of
England the notion of rural diversification itself may be an
unhelpful and misleading policy objective.
Post-modern rural economies?
It is a widespread policy assertion that rural economies
require diversification. The Rural White Paper is typical:
We want a diverse rural economy that attracts new
businesses which fit with their surroundings, and provide
new opportunities far all.2
Such policy is based on the view that rural economies
are too narrow, being overly dependent on agriculture,
forestry, and tourism. Yet in all but the remotest areas of
England rural economies have already diversified to such an
extent that, in terms of employees and firms,3 their
composition is now very similar to that of neighbouring
urban areas. Indeed, the economic differences between the
rural areas of Englands eight regions are more significant
than those shown by urban to rural comparisons. For
example, the rural areas of the South East are more similar
to the urban economies of England as a whole than they are
to Englands other rural areas.4
The Countryside Agency has recently published a
separate analysis of Englands rural economies5 which
identified five key characteristics:
PLANNING
self-employment;
the land base.
PLANNING
PLANNING
Cemicircular WebWatch
The Countryside Agency report Planning for Sustainable
Rural Economic Development can be downloaded from
the South East Regional Assembly website
(www.southeast-ra.gov.uk/regional_policies/planning/
advisory_groups/rural_issues.html).
PLANNING
42
Cemicircular WebWatch
The UK Energy White Paper is on the DTI website
(www.dti.gov.uk/energy/whitepaper). Details about the
London Mayors Energy Strategy is available at
www.london.gov.uk/mayor/strategies/energy.
PLANNING
Resurrecting planning
permission
In the UK if a planning permission lapsed because it was
not implemented or renewed on time then it was dead but
not any more, it seems. The Appeal Court appears to have
approved a piece of legal jiggery-pokery. Martin Edwards,
specialist planning barrister in 39 Essex Street Chambers,
and John Martin, solicitor and director of property law
research at Pinsents, assess the fallout for the planning
system (Estates Gazette, 2 August 2003).
Key points
43
PLANNING
IM
P
N OR
O
T TA
IC N
E T
1. The time limit for appeals against refusals of planning permission or non-determination must now be made
within three and not six months of the relevant decision date or expiry date. This applies to all applications made
after 5 September 2003.
2. Similar changes to the listed building regime are made by Regulations applicable to the procedure for considering applications
for listed buildings consent.
3. From 5 December 2003 local planning authorities must:
When granting planning permission give reasons and a summary of the relevant development plan policies.
When imposing conditions give full reasons for those conditions and give full details of all relevant development plan
policies.
Reasons for refusal must still be given but must now be accompanied by a statement of the relevant development plan
policies.
For applications made before 5 December 2003, this requirement will not apply if the application is determined within three
months of 5 December 2003.
The changes to the requirements for Local Planning Authorities (LPAs) to give reasons for approval are potentially significant
and may possibly open up new grounds for procedural challenge. The requirement applies to any decision to grant planning
permission or reserved matters approval. Any such decision must include a summary of the reasons for grant and the relevant
development plan policies. This is a significant extra burden for LPAs, especially for smaller reserved matters applications or
minor planning applications.
Reasons for imposing conditions are already required under the existing regime. The added requirement now is for LPAs to
identify all policies and proposals in the development plan which are relevant to the decision. The drafting of the Order
suggests that the decision is the decision to impose conditions rather than the decision to grant the permission itself.
The extra burden placed on LPAs may cause delay in the process. The change seems contrary to the Governments stated aim
of speeding up the planning process and stripping away unnecessary administrative stages.
The duty to give reasons for a refusal of planning permission already exists but has now been augmented by the requirement
to specify all policies and proposals relevant to the decision.
Other changes
The Order makes several changes to the consultation requirements under the General Development Procedure Order. These are:
Regional Development Agencies (RDAs) are made a statutory consultee in relation to infrastructure projects and policies of
strategic regional investment or employment policy within the RDAs strategy, provided in both cases the RDA has notified the
Council of the relevant project or policy.
A new exception for LPAs to consult on a statutory basis is also included in the Order. If a statutory consultee has given
standing advice, there is no need to consult on an individual application. This will not apply to EIA applications, nor will it apply
if standing advice is over two years old.
Conclusions
The reduction by half of the period for appeals makes the need for a tactical approach to planning applications even more
apparent. If the proposals for the abolition of twin tracking remain in the Planning and Compulsory Purchase Bill then this will
have a significant impact for the development industry.
LPAs now face an increased burden in relation to the issue of decision notices. Whilst there is some theoretical benefit to the
increased requirement, the effect could be that decision notices will be delayed and also become subject to even greater
scrutiny by disaffected third parties.
CONTACTS:
This information is provided courtesy of Law-Now, CMS
Cameron McKennas free online information service. LawNow provides updates on all areas of the law from
arbitration to water and acquisition finance to telecoms.
Using e-mail and our web site, Law-Now provides a
personalised information service on key legal
developments you choose what information you wish to
receive from a list of topic areas. See www.law-now.com
to find out more about Law-Now and to register.
For further information please contact Chris Williams in
our planning team on 020 7367 3571 or email on
chris.williams@cmck.com.
44
PROPERTY
Property
Stamp duty land tax
From 1 December 2003, the new stamp duty land tax (SDLT)
replaces stamp duty on UK property transactions. The main
features of the new tax are covered in this item from Law
Now (newsletter published by law firm Cameron McKenna,
26 June 2003). Avoidance techniques with particular
reference to partnerships and rent reviews are discussed in
the article that follows by Stephen Goldstraw, taxation
partner at Manches Solicitors (Property Week, 4 July 2003).
Transitional Rules
Sales
Broadly SDLT will apply to sales as follows:
Transitional rules
A contract completed before 1 December 2003 is outside
SDLT.
45
PROPERTY
What to do next
46
Options
Earlier statements made by the Government indicated that
contracts arising from the exercise of existing options would
fall outside the SDLT regime. The Finance Bill as it
currently stands does not do this, and therefore transactions
completed on or after 1 December following the exercise of
an option after Royal Assent will be within the SDLT regime
unless the Government has a further change of heart.
SDLT rules are subject to change
In relation to SDLT it is particularly important to take advice
before acting, not only because the rules are complex but
also because the rules as currently set out in the Finance Bill
may change before it is enacted. It should also be noted that
the Treasury will be given very wide powers to amend the
legislation before it becomes operative, and therefore
significant changes are possible before 1 December.
CONTACT
This information is provided courtesy of Law-Now, CMS
Cameron McKennas free online information service. LawNow provides updates on all areas of the law from
arbitration to water and acquisition finance to telecoms.
Using e-mail and our web site, Law-Now provides a
personalised information service on key legal
developments you choose what information you wish to
receive from a list of topic areas. See www.law-now.com
to find out more about Law-Now and to register.
If you would like further information, please contact Mark
Nichols (020 7367 2051, mbn@cmck.com), Richard Croker
(020 7367 2149, radc@cmck.com) or Mike Boutell
(020 7367 2218, mqb@cmck.com).
PROPERTY
Cemicircular WebWatch
Details about stamp duty and the new SDLT can be found
on the Inland Revenue website
(www.inlandrevenue.gov.uk/so).
47
PROPERTY
Overage payments
Rights of re-entry
In other words, if the buyer does not pay the overage, the
property reverts to the seller. That sounds like an effective
remedy for the seller. However, the inherent equitable
jurisdiction of the courts to grant relief against forfeiture
should not be forgotten: the seller might find that he has not
got quite the security he bargained for. And few buyers (let
alone their lenders) will agree to such a draconian remedy in
the first place.
Mortgage or charge
This is an effective form of security. But the problem, as
with the sellers lien, is that the buyers lender is unlikely to
accept anything less than a first charge over the property.
Should there be no lender, this represents probably the best
mechanism for each party.
It can be reasonably argued that a first mortgagee should
not fear a second charge to secure overage. After all, if the
overage becomes payable, that will be because the value of
the property has increased. An equitable charge that is
drafted so as to give the chargee sufficient remedies can be a
good compromise, and, since the liability to pay the overage
is contingent, an equitable charge is arguably more
appropriate.
Whatever the type of charge, a deed of priorities
regulating the amount that can be secured by the prior
charge will be required in order to preserve the benefit of the
second. If this is not done, the prior chargee could take all
the net sale proceeds. However, it can be difficult to agree
such documents with a prior chargees solicitor because they
limit the flexibility to amend the terms and security of the
prior charge.
Lease with an option to buy the reversion
Instead of receiving the freehold, a buyer can be granted a
lease. If betterment is achieved, the buyer becomes entitled
to call for the transfer of the freehold upon payment of the
overage sum. Again, the buyers lender may effectively
dictate what happens. For a leasehold property to be an
effective security for a lender, the lease term will need to be
substantial. The longer the lease, the less incentive there is
for the buyer to exercise the option and pay the overage,
unless, perhaps, the lease contains a user clause restricting
the lessees right to use the property for the purposes
permitted by the planning permission that created the
betterment.
Restriction
This (along with an equitable or legal charge) is probably
the most effective security, and one that remains acceptable
to the buyers lender. When the buyer registers the purchase,
a restriction is placed on the register of title, preventing the
resale of the property. Once betterment is achieved, and
overage paid, the seller has to co-operate in lifting the
restriction. But such a restriction does not of itself provide
any security for payment by an impecunious buyer, or
impose any duty upon a buyer who is content to retain the
property and resell it.
PROPERTY
PROPERTY
PROPERTY
51
RESIDENTIAL
Residential
Commonhold and Leasehold
Reform Act
Since the introduction in the UK of the Commonhold and
Leasehold Reform Act 2002, which enabled residential
lessees to extend their lease or collectively acquire the
freehold of their block of flats, only some of provisions of the
Act have come into force. Roland Cullum and Julian
Briant, both partners at Clutton Partners, look at the effect
of the Act so far and its expected impact later this year
(Estates Gazette, 26 April 2003).
condition is that the lessee must have owned the flat for at
least two years before the notice is served.
It might well have been expected that many lessees
would have taken advantage of the new ownership test,
particularly because it enabled investors to obtain lease
extensions. However, although the new rules came into
force in July 2002, as far as London is concerned the sales
market has stagnated since the autumn of 2002. Although
some of the London estates would have been expected to
experience a surge in applications, this has not in fact
proved to be the case.
Exceptions to this are flats where the unexpired term is
below 15 years. In these cases the automatic growth in the
freehold reversion coupled with the diminishing term are
prompting investors, companies and non-resident lessees
who did not previously qualify to take advantage of the new
rights.
Otherwise the lack of a surge of new applications might
be because lessees themselves do not have sufficient capital
liquidity to fund lease extensions, and it may not suit buyto-let investors to extend leases at present with faltering
rental values. Although these investors would hold a more
valuable capital asset, the yield from rentals would fall.
The single most important factor is the stagnant central
London residential market. There is a perception that the
market is falling, so potential claimants are holding back in
anticipation of a cheaper deal, particularly those with
medium and long-term leases which are not dramatically
affected by the diminishing term.
The new rules have changed the valuation date to the
date of claim so that claimants might wish to delay to feel
that they have taken advantage of a falling market.
In London, FPDSavills index of residential value
movement, which is published quarterly, has become an
important tool. There is anecdotal evidence of significant
numbers of potential claimants holding back until the
next index is published to see if this does reinforce the
falling market view. If it does, we may expect claims to
follow.
The new rules also gave personal representatives of a
deceased qualifying tenant the right to make a claim,
although in practice this is likely not to produce a large
volume of fresh activity.
In addition, there is no marriage value payable where the
lease has in excess of 80 years unexpired. That should in
itself produce a number of claims, as lessees appreciate the
savings that they will make if they serve the notice while
there are still more than 80 years to run.
Impact patchy, but generally more limited than had
been anticipated.
Houses
The changes that came into force are very similar to those
affecting individual flats, particularly the abolition of the
residency test and a new two-year ownership test. This is the
one area which has had some effect. A number of companies
have taken advantage of the change in the rules because they
RESIDENTIAL
Cemicircular WebWatch
The full-text of the Act can be found at
www.legislation.hmso.gov.uk/acts/acts2002/
20020015.htm. Further information about the Act is also
available from the Office of the Deputy Prime Minister
(www.odpm.gov.uk/stellent/groups/odpm_control/
documents/contentservertemplate/
odpm_index.hcst?n=1366&l=4).
53
RESIDENTIAL
54
RESIDENTIAL
Close your curtains at dusk to help stop heat escaping through the windows.
Dont fill up the kettle to the top; only boil the water you really need.
Make sure your thermostat is never set at more than 60C (140F).
When buying new appliances, look for the orange and blue Energy Efficiency Recommended logo.
Ensure your home is properly insulated. Install double-glazing, eliminate draughts and fully insulate your roof and cavity walls.
Buy energy-efficient light bulbs. They last up to 12 times longer than regular bulbs and cut energy waste by over 75 percent.
If your boiler is 15 years old or more, think about replacing it; this could reduce fuel bills by more than a fifth.
Install solar panels. Government initiatives pay for up to 50 percent of the cost of installation. For more details, go to
www.est.org.uk.
Source: Energy Saving Trust
55
RESIDENTIAL
Cemicircular WebWatch
Details about making homes more energy efficient is
available on the Energy Savings Trust website
(www.est.org.uk). Details on the Norwich and
Peterborough Green Mortgage is available at
www.npbs.co.uk/mortgages. Other sites: www.cooperativebank.co.uk; www.ecology.co.uk;
56
RURAL
Rural
Rural offices lettings market
The current state of the letting market for rural offices in the
English countryside is discussed by Julian Sayers, RICS
Rural Faculty chairman, and director of Adkin Rural &
Commercial, where he has responsibility for the
management of over 23,000m2 of rural commercial property
and is involved in the appraisal, planning, development,
marketing and letting for the conversion of a wide variety of
farm and estate buildings (Rural Professional, June/July
2003).
RURAL
Cemicircular WebWatch
FPDSavills have a good selection of market reports and
commentary on their website, all available to download.
Go to the research section at www.fpdsavills.co.uk/rural.
58
The Act introduces a new right of access on foot for open air
recreation to mapped open country, namely mountain, moor,
heath, down and registered common land. Improved and
semi-improved grassland is excluded from the definition.
There is provision for the definition to be extended to
include coastal land and for landowners to dedicate any land
for public access.
Access land does not include excepted land, nor land
over which there is an existing right of public access (eg
commons within section 193 of the Law of Property Act
1925 or land subject to access agreements or orders under
the National Parks and Access to the Countryside Act 1949).
However, the existing right of access will continue.
Challenging the mapping
The Countryside Agency and Countryside Council for Wales
are under a duty to prepare maps showing all registered
common land and open country. They have power to
exclude small areas on the map where they consider it
would serve no useful purpose. The countryside bodies also
have a discretion to take a physical feature as the boundary
of open country, even if the result is that some other land is
included or some open land is excluded.
There is a procedure for publishing draft and provisional
maps. Representations against the inclusion or exclusion of
land on draft maps may be made by anyone within
prescribed periods. There is a right of appeal by those with
an interest in the land against the inclusion of land in
provisional maps on limited grounds only. These are that the
land is not registered common land or open country, or that
the discretion to map to a boundary feature has been
wrongly exercised. Once the time has elapsed for bringing
appeals and either there were no appeals or all the appeals
have been withdrawn or determined, the appropriate
countryside body must issue the map in conclusive form.
Access maps are to be reviewed at least every 10 years.
There is an opportunity for surveyors on behalf of their
clients to make representations on draft maps and appeals on
provisional maps. The relevant regulations in England are
Access to the Countryside (Maps in Draft Form) (England)
Regulations 2000 SI 2001/3301; Access to the Countryside
(Provisional and Conclusive Maps) (England) Regulations
2002 SI 2002/1710; and, in Wales, Countryside (Draft
RURAL
Cemicircular WebWatch
Details of the mapping exercise are available at
www.countryside.gov.uk/access and www.ccw.gov.uk/
mapping
59
RURAL
RURAL
RURAL
62
VALUATION
Valuation
Valuation standards
Since 1 May 2003, RICS valuers worldwide must comply
with new valuation standards contained in the updated Red
Book, which ends use of the term open market value and
replaces it with market value and market rent. Duncan
Preston, chairman of the RICS Valuation Faculty and a
national director of Jones Lang LaSalle, outlines the main
features of the new regulations (Property Week, 9 May
2003). This is followed by observations from Robert Peto,
chairman of DTZ, about the need to harmonise valuation
standards across Europe and strike a balance between
business ethics and efficiency (Property Week, 13 June
2003).
VALUATION
Cemicircular WebWatch
More details on the recent changes to valuation standards
in on the RICS website (www.rics.org/val). The new Red
Book can be accessed online (www.hostref.com/rb) (you
need to purchase a login from RICS Books). The
International Valuation Standards can also be viewed
online from the IVSC (www.ivsc.org), but these are free of
charge.
VALUATION
Valuation accuracy
In the UK property market, standards of accuracy in
valuations are now higher than in the 1980s, but more than
a third of valuations still vary from the eventual selling price
by more than 10%. The debate about the permissible margin
of error and whether valuations lag the market therefore
continues, as reported by Mark Jansen (Property Week, 13
June 2003).
VALUATION
Valuation accuracy
Cemicircular WebWatch
The Variance in Valuation report from Drivers Jonas can
be downloaded from their website
(www.driversjonas.co.uk/showpage.aspx?doc=6112).
66
NOTICES
Notices
Book review
Construction and Engineering Law: A Guide for Project
Managers
New researcher
Judith Shephard joined the College Research Department in
August 2003. Following graduation from Reading
University in 1995 with a BSc(Hons) in Land Management,
Judith worked as a researcher at the University on projects
investigating mixed use development and the quality of
urban design. She has subsequently held positions at
FPDSavills, researching residential property markets, and
Property Market Analysis where she specialised in
undertaking bespoke consultancy projects for property
developers and investors. At CEM, Judith will be working
on the SUBR:IM project (Sustainable Urban Brownfields:
Integrated Management), part of a major new research
consortium funded by EPSRC (the Engineering and Physical
Sciences Research Council) investigating the role of the UK
development industry in brownfield regeneration.
More information about the SUBR:IM project can be
found at www.subrim.org.uk
CDM Regulations
Dilapidations: An Introduction
Lease Renewals
Rent Reviews
67
NOTICES
During the past 12 months CEM has had its most productive
period for research in terms of income and output. A number
of reports are in course of publication. Students of the
College can find copies of the full reports at the
Blackboard website and details will also be posted at
www.cem.ac.uk under Research, so its worth checking
these sites for the availability of new material.
The main reports to look out for over the next few
months include three reports for the RICS Project
Management Faculty:
68
NOTICES
Diploma in Construction
Diploma in Surveying
Postgraduate Diploma in Arbitration
Postgraduate Diploma in Facilities Management
RICS Postgraduate Diploma in Building Conservation
RICS Postgraduate Diploma in Project Investment
RICS Postgraduate Diploma in Project Management
69