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Built Environment ConDem-ed??
Date Posted: 08/06/2011
Following the Comprehensive Spending Review at the end of 2010 the overall Budget focused on the promotion of sustained growth and jobs. Now the dust has settled what does it really mean for Built Environment professionals? Here are our thoughts at Foundation Recruitment:
· Business: There was a major focus on SMEs with £350m worth of regulation on businesses being removed and small business rate relief holiday extended by one year to October 2012. This support will encourage those within large organisations to set up themselves and help protect fledging businesses; ultimately stimulating the property job market which is good news for property professionals’ sector-wide.
· Housing: The RICS’ lobbying of the treasury to reform stamp duty and Real Estate Investment Trusts (REITs) as well as a greater availability of public land should boost house-building, bringing in fresh money from institutional investors such as pension funds. In addition, a £250m investment in a shared equity scheme for first-time buyers buying new homes will shore up the house-building sector and provide support for property jobs in this sector.
- Infrastructure and other sectors: The government is committed to a long-term investment programme (£200m of new funding for railways, £100m in new science facilities funded from bank levy etc.) as well as simplifying the planning system and consistency in procurement. Within this is an opportunity for property professionals to rise to the challenge of the target to reduce construction costs by 20%, which will require Project and Design teams to work with one another collaboratively to avoid wastage. At Foundation Recruitment we feel that these property professionals with those communication and diplomacy skills as well as creative lateral thinking will be increasingly employable in the future job market.
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Planning: Planning bodies will prioritise growth, with the default answer to development being "Yes". This is an attempt to attract private developers back to the UK by reducing risk
- Use-Classes: The Government will consult on relaxation of use-classes to make it easier to convert commercial premises to residential. This has the potential to create a great deal of jobs nationwide and several of Foundation Recruitments’ clients are currently asking for building surveyors with the relevant re-use, re-configure skillset. Enterprise Zones: These 31 zones will encourage investment through reduced planning risk. At Foundation Recruitment we have seen several of our clients, both in consultancy and client-side, asking us to keep a watch on briefs for Project Managers and Building Surveyors with ‘Big project’ experience in anticipation of being involved in these zones.
- Green Bank: £2bn will be invested by the Government and £15bn from business in their set-up. This will stimulate and galvanize the green economy by financing and driving sustainable initiatives. The potential for sustainability professionals as well as traditional RICS, RIBA, APM professionals with green skills cannot be underestimated.
The elephant in the room within the Budget is the insistence on concentration on new build rather than refurbishment. The lack of addressing VAT for retrofitting is contrary to the Green agenda in terms of the embodied energy in re-use of existing stock and is a missed opportunity to stimulate an area of the Built Environment which could employ a great many diverse construction professionals.
There is definitely an acceptance of the pivotal role the Built Environment has in stimulating and ultimately sustaining long-term economic growth within the Budget and it is generally positive for all Built Environment professionals. The changes to planning, the Green Bank, stimulation of the housing market and infrastructure investment are all opportunities for new jobs. The lack of incentive for retrofitting may be a strategic one to initially kick-start new build and also a quick method of stimulating the sector later in the Government’s term. Either way, retrofitting and refurbishment skills are and will be increasingly relevant to employers.
Since the Budget and moving into Q2 at Foundation Recruitment, we have noticed a distinct optimism across the market from our property clients, with a focus on client facing skills with the ability to both bring in external business and cross-sell within organisations. The cycle has certainly started again and the question is how long it will take to gather momentum.
At Foundation Recruitment we are ideally placed to assist.