RICS Modus, Global edition — April 2012

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#RICSModus, April 2012 — the MONEY issue.

Text of RICS Modus, Global edition — April 2012



    NEW HORIZON The future for an altered lending landscape p14BRIGHT IDEAS Innovative examples of project cost saving p26RIP PFI Is it time for a new private sector investment model? p36


    US 04.12 // R

    ICS.ORG /M


    THE M



    04.12 //

    MODUS_April_P01_Cover.v1.indd 1 22/03/2012 16:43

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  • Regulars04_FEEDBACKYour views on Modus and the profession, and the latest poll

    06_INTELLIGENCEGlobal news, plus opinions, reviews and reactions

    35_LAW ADVICEProposed changes to real estate investment trusts

    41_BUSINESS ADVICEHow to go about applying for business lending

    Features14_THE MONEY MACHINEA look at the ever-shifting landscape of mortgage lending in the UK 20_SELF BUILDOpportunities for surveyors in the custom-homes sector

    24_TOP TIERThe worlds leading locations for commercial property investment

    26_10 MONEY-SAVING IDEASInspiring examples from the built environment of how to improve the bottom line

    32_10 MINUTES WITHChris Brown FRICS, CEO of Igloo Regeneration

    36_PRIVATE FINANCEHave the current PPP and PFI models had their day?

    In formation43_RICS NEWSNews and updates, plus a message from the President

    51_EVENTSTraining and conference dates for your diary

    55_RECRUITMENTThe latest job opportunities from across the industry

    58_THE MEASUREHouse prices and ownership worldwide

    Contents NO 1604.12 //THE MONEY ISSUEThey say necessity is the mother of invention, and the economic challenges of the

    past few years have forced us all to innovate and improve effi ciency. This month,

    we round up 10 inspiring examples of projects that have made substantial cost

    savings (page 26), and look at the opportunities offered by the burgeoning self-

    build sector (page 20). The fi nancial landscape of buying and selling houses has

    shifted signifi cantly since the credit crisis this issues lead feature (page 14)

    considers the positive consequence of a more stable, considered mortgage market.

    Elsewhere, we question the future of PFI as a viable procurement method (page 36),

    meet a chartered surveyor involved in a sustainable regeneration fund (page 32) and

    explore the worlds top locations for commercial real estate investment (page 24).



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    MODUS_April_p03-5_Content & Letters_v2.indd 3 19/03/2012 14:24

  • FOR SUNDAYEditor Victoria Brookes // Art Director Christie Ferdinando

    // Contributing Editor Brendon Hooper // Sub Editor

    Samantha Whitaker // Creative Director Matt Beaven //

    Account Director Stephanie Hill // Commercial Director

    Karen Jenner // Commercial Manager Lucie Inns // Senior

    Sales Executive Faith Ellis // Recruitment Sales Managers

    Grace Healy and Dorlisa Purkiss // Managing Director Toby

    Smeeton // Repro F1 Colour // Printers Woodford Litho

    and Ancient House Press // Cover Stuart Daly

    Published by Sunday, 207 Union Street, London SE1 0LN


    FOR RICSEditorial board Ian Fussey and Jaclyn Dunstan

    RICS, Parliament Square, London SW1P 3AD


    04 r ics.org

    The MODUS team//


    :EMAIL YOUR FEEDBACK TO editor@ricsmodus.com

    Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

    92,028 average net circulation 1st July 2010 20th June 2011


    Visit rics.org/modus now to vote in our next poll: Where should governments be focusing investment in transport infrastructure?

    Due to the volume of correspondence we receive, we regret that we are unable to print all letters or respond to every one individually.

    specifi c sustainability criteria such as the Code for Sustainable Homes and BREEAM, will invariably be detrimental to the natural environment, and so to aggregated sustainability criteria, through habitat loss, embodied energy, energy in use, transport etc, and that environmental impacts per person are signifi cantly reduced by living in larger households, as much less heating energy per person is needed, for example. The perceived housing crisis may well be a political/economic issue rather than one of housing numbers. Meanwhile, for economic activity, there are more than 20m homes that probably need maintaining, upgrading and retrofi tting.Dr Brian Pilkington MRICS, University of Plymouth

    MEASURED RESPONSETo comment on Sally Anne Longdens thoughts [in the Feedback section of the March issue] about the metric system, I must take you back to 1950 when, as a pupil

    quantity surveyor, I spent my working day struggling with duodecimals. Without any type of calculators, we all became excellent at mental arithmetic. To illustrate my thoughts, I off er you a little challenge: how many square feet is the result of three feet two inches multiplied by eight feet fi ve inches? Please note you are not allowed to cheat as you have only a pencil and paper, and reducing inches to a decimal of a foot is not allowed. Maybe you have begun to change your mind?

    In 1950 the world was a very different place, with all sorts of archaic imperial measurements still being used. Pounds, shillings and pence were not metricated (and that included hapennies and farthings), steelwork was measured in tonnes and hundredweights, we still had bulk structural timber in super feet (timber reduced to one-inch thickness regardless of its scantling), and let us not forget squares, acres and rods. If you really want a return to imperial measurement, be careful what you wish for.Richard Burton Jacob FRICS, Australia

    A TRUE CRISIS?In response to Andrew Heywoods Social imbalance article in the March issue of Modus, can we be certain there is a housing crisis in terms of housing numbers, as is so often assumed since Kate Barkers housing review? It should probably be borne in mind that the Barker report was commissioned by and for the Treasury, rather than to seek housing solutions per se. Andrew flags up the number of housing completions between 1980 and 2010 as being only 5m, a lower rate than the post-war period. National Statistics show that the population (rather than households) increased by 5.4m over the same period, so 5m might seem quite reasonable. There are currently around 800,000 empty homes; there may be anywhere between 500,000 and 1.5m second and holiday homes; possible floorspace for 1.5m homes in existing redundant or empty commercial property; and the results of a DETR [Department of the Environment, Transport and the Regions] survey towards the end of the 20th century identifi ed 400km2 of derelict land.

    It may be that we dont need any new estates on greenfi eld land and we dont need as many houses as often claimed, unless for their contribution towards economic activity. It may be possible that housing demand could be reduced signifi cantly (ie housing crisis averted) and social cohesion increased by offering fiscal and cultural incentives to encourage larger households, such as extended family living. We know that new houses and loss of greenfield and natural land, even when complying to


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    MODUS_April_p03-5_Content & Letters_v2.indd 4 19/03/2012 14:23

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