Built Environment Professions – Part 1 – An uncertain future?

In the vast majority of cases school children have very little knowledge of careers or opportunities that are available within the built environment and in most cases have never heard let alone understand professions such as Building Surveyors, Architectural Technologist, Construction Managers, Building Services Engineers and the like

Source: http://www.accessaudits.com.au/

Working as a professional within the built environment provides an exciting, diverse and challenging career that in most cases leads to good career prospects and a good salary.  Evolving technologies, innovation and ever changing regulations require the modern construction professional to be knowledgeable, adaptable, and objective to meet the challenges of the future.  All in all working as a built environment professional offers so much diversity that there is a career available for almost anybody who wants one.  Despite all of these positive attributes, recent statistics from the Higher Education Statistics Agency (HESA) show that student enrolment in undergraduate Architecture, Building and Planning courses are in decline:

The table above shows the relatively small number of enrolments onto Architecture, Building and Planning courses compared to the vast majority of other subject areas. These statistics relate to full time undergraduate enrolment only.  The issue of part time undergraduate and post graduate enrolment are articles in their own right and something I will discuss in later postings.  For the purposes of this article I therefore want to focus on full time undergraduate enrolment.  The decline in entrants onto building related disciplines is even more evident if we isolate these from Architecture and Planning disciplines.  The table below shows a 24% reduction in entrants onto building related courses in the five years between 2007/08 and 2011/12, which is particularly worrying.

The HESA statistics above highlight two primary questions: 1. Why are Architecture, Building & Planning courses deemed to be a less attractive option compared to other subject areas; and; 2. Why are numbers of student enrolments on Building related courses in decline? I will attempt to answer these questions in a moment, however, to compound the issue it is also worth noting that UCAS have indicated that the 18 year old cohort is set to fall by circa 10% by 2020.  So not only are numbers currently declining for Architecture, Building and Planning courses but there will be a steady decline in 18 year olds applying for courses generally over the next five years, resulting in further pressure on recruitment for these courses.

18 year old cohort set to fall 10% or so by 2020

1. Why are Architecture, Building & Planning courses deemed to be a less attractive option compared to other subject areas;

As part of my role at Coventry University I am Admissions Tutor as well as lead for recruitment and outreach activities in my department.  Over the last few years I have had the opportunity to visit a number of local Schools and Colleges, where I provide careers advice and generally try to raise awareness of built environment professions.  Sadly, in the vast majority of cases school children have very little knowledge of careers or opportunities that are available within the built environment and in most cases have never heard let alone understand professions such as Building Surveyors, Architectural Technologists, Construction Managers, Building Services Engineers and the like. Quantity Surveying and Civil Engineering professions are often recognized, but not fully understood.  The only built environment career that is generally recognized is the role of the Architect. 

During my outreach visits I also take the opportunity to speak to careers advisors and worryingly in most cases the vast majority have as much knowledge of built environment careers as the school students themselves!  Careers advice in schools tends to focus on traditional career paths in computing, legal professions, medical professions, sciences etc, depending on the focus of the school.  When I speak to school students about the built environment they often think purely in terms of the practical trades such as bricklaying, carpentry, plumbing etc, and have no concept of professional roles.  I explain to them that there is absolutely nothing wrong with choosing a construction trade as a career, however, the opportunities for them are much wider and I then go onto explain the difference between a trade career and a professional career.  The situation is not so bad in Higher Education Colleges, however this is due to the fact that most of the Colleges I visit offer specific Built Environment courses.

Clearly, lack of awareness of built environment professions, particularly in schools, is a real issue because how can we expect someone to select a professional built environment career if they have never heard of them in the first place?  My visits to Schools and Colleges really just scratch the surface, but highlights what I think is a significant contributing factor to why Building & Planning courses in particular are deemed to be a less attractive option compared to other subject areas.

Also, I suspect the recent recession and all of the negative publicity, particularly around the construction industry that ensued, would not have given a great deal of confidence for those looking at a career in the industry. Historically the construction industry has always mirrored the UK economy and has been subject to peaks and troughs as the economy has dipped into recession and eventually recovered. When the economy bounces back the construction industry bounces back strongly and this in turn creates opportunity.  Even in times of recession there were still opportunities for built environment professionals and when the recovery starts to gather pace there will undoubtedly be a shortage of built environment professionals, due to high demand.

2. Why are numbers of student enrolments on Building related courses in decline?

Much of the answer to this question lies in the answer to the first question above in respect of the general lack of awareness of many built environment professions, as well as the impact of the economic downturn.  There are however other factors that could explain the reduction in student enrolments on Building related courses.

Most people will be aware of the significant changes to University funding over the last few years and in particular the significant increase in the amount a student is required to pay if they want to go to University.  In reality the cost of most undergraduate courses has not changed, what has changed is that the government no longer subsidise a large percentage of the fee (for the student) which they used too.  The outcome is that students are now faced with tuition fees of around £9,000 per year (fees vary between universities), resulting in an investment of between £24,000 and £27,000 for a three year course without even thinking about living costs and other expenses. Although a low interest loan can be sought to cover tuition fees, in addition to their degree, most graduating students will leave University with a large debt.  All of this has resulted in students thinking very carefully about the type of courses they will undertake or whether they will go to university at all.  Nowadays, apprenticeships and other vocational qualifications may be considered as an alternative to going to University to gain a career in the construction industry due to the high costs involved, although in most cases these routes will initially lead to trade careers as opposed to professional careers.

The UK construction industry is an extremely important sector within the UK economy, making a significant contribution to GDP.  For the future, we must ensure that we have a regular supply of knowledgeable, well educated and motivated people entering the construction industry at all levels and avoid the inevitable skills shortages that we often see when productivity progressively increases.  It is clear from the statistics above that less and less people are choosing to enter the industry, particularly in building related professions, which will inevitably impact on the progress of the construction industry and the wider economy as a whole. So what do we do about it? – This is something I will look at in my next post, where I will make a number of suggestions in respect of raising awareness/publicity of built environment professional careers, lobbying the government to support ‘at risk’ professions, encouraging a higher percentage of females into built environment careers, alternative modes of study and how Higher Education can influence the future of built environment professions.

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Property Investment - 5 Tips to Maximise Your Buy to Let Investment

It is still possible to make a good return on buy to let investment however this is not always as easy as portrayed in the media.  An investor will need to carefully plan their investment, ..... to have any chance of achieving a good return

Source: http://www.dailymail.co.uk/

With property prices starting rise in many parts of the UK and with the Bank of England making noises about when (not if) interest rates will start to rise, anyone with property or considering buying property will be watching closely to see what happens.  The property market in the UK has proved difficult for many over recent years due to the global economic downturn, a consequence of which is property prices consistently falling in the vast majority of areas within the UK. Many have found themselves in negative equity (this is where the value of the property reduces to a point where it is worth less that the amount that is outstanding on a mortgage loan), and are faced with the dilemma of being ‘cocooned’ within the property market and waiting for things to improve or making a financial loss (sometimes significant), in order to be able to move.  In fact BBC News Online recently reported ‘Negative Equity currently afflicts over half a million households in the UK.(Link)

Despite the difficulties discussed above, property in still portrayed as a ‘safe investment’ within a number of popular TV programmes and has no doubt contributed to the rise in private property investors. These programmes have helped to paint a picture that anyone can invest in property and that anyone can maximise an investment and make large sums of money.  Whilst this is partially true, this message is also misleading as to maximise a property investment takes knowledge, skill and money.   Property can be a sound investment, which can provide exceptionally good returns, but only if you know what you are doing!  Like myself I am sure you have read/heard of many examples of those who have listened to this message and decided to ‘dip their toe in the water’, without any real knowledge or experience and have ended up losing large sums of money, which in some cases has sadly led to repossession and even bankruptcy. Below I offer a few tips for consideration for those who are thinking about entering the buy to let market for the first time.  I appreciate that some will consider buying property, refurbishing it and then selling it on (something referred to as ‘flipping’), however for the purposes of this article I want to focus on the buy to let investor.

1. Undertake an Investment Appraisal  

Source:  http://encorepropertysolutions.co.uk/

Careful consideration should be given to your objectives with a focus on what you are trying to achieve.  Ultimately, this should be to maximise your return.  New buy to let investors may often not understand the importance of this basic objective and that they are now in the World of business and are therefore trying to make a profit.  Before taking the plunge to invest, careful consideration should be given to weighing up or calculating what the likely costs (outlay) will be, balanced against the likely return.  Failure to undertake this initial assessment or be tempted to ‘take a chance’ is extremely unwise and can result in significant losses being made.  For more information on investment appraisals see my previous article ‘Property Investment – Why an Investment Appraisal is crucial for Buy to Let Investors’ (Link)

2. Research the Market

It is important to understand the property market in the area that you are planning to invest.  Nowadays there is a vast amount of information at your fingertips, just by undertaking simple internet searches.  Gather information on local property values and rental incomes to give you an idea of the type of investment that you might want to make.  Websites such as Righmove and Zoopla are good initial sources of information for property prices, as well as websites for local Estate Agents and Letting Agents to provide more local information.  The information you find during your research will help you to establish the likely investment value and give you an assessment of the likely rental returns, which you can feed into your investment appraisal. If you decide to buy at auction, this research will be crucial in deciding what your maximum bid limit will be.

3. Condition of the Property

The condition of an investment property can have a significant impact on any likely return and therefore needs to be carefully considered.  There are bargains to be found, however, in general terms you normally get what you pay for.  Always undertake a thorough inspection of a property before committing to purchase to establish its condition, particularly auction properties.  This is because buildings have a habit of concealing a variety of nasty surprises, which you want to find out about before you purchase, not after!  Rectifying problems within a building that you were not aware of and not budgeted for have the ability to completely wipe out any profit and in some case can result in a loss. Surveyors should pick up any significant issues during the conveyance process however this is something to be particularly cautious of when buying at auction, where sufficient inspection may not have been undertaken.

4. Keep Control of Repair/Refurbishment Costs

It is worth continually reminding yourself that you are planning to let the property and therefore you must ensure that you spend money appropriately/efficiently.  The specification for any repair or refurbishment works should reflect the area, type of property and tenants that you likely to attract.  You must expect tenanted properties to accommodate some wear and tear so durability should be considered along with how the building will look. If you are investing in an area where rental incomes may be on the low side, then spending money on expensive fixtures, fittings and finishes will not be cost effective.  On the flip side you may be required to provide a high specification in certain locations to attract high rent paying tenants.  The point here is to know your market based upon doing your research above and control repair and refurbishment costs appropriately in order to try to maximise your return. Do not be tempted to do a high specification finish, to your own tastes, where this is not warranted.  Remember, this is a business and wasting money unnecessarily just eats into your profit.

5. What Permissions/Approvals are required?

Something that is often overlooked by investors is the impact of obtaining various permissions/approvals and how this can increase costs.  In most cases issues arise due to a complete lack of awareness by members of the general public. Awareness of statutory approvals such as Planning Permission and Building Regulations approval seems to be improving, however, other types of approval such as Party Wall approvals are less understood.  The type and extent of works proposed will determine which permissions will apply, which can often run into may thousands of pounds especially when you factor in professional fees. 

With regards to Planning Permission, an investor may consider scaling down a proposed extension to utilise permitted development right.  This will reduce costs and save time by not going through the formal planning process.  It is always worth obtaining professional advice in respect of whether or which permissions/approvals apply.  This may generate a consultancy fee, however, this could save a lot of money further down the line and will therefore be money well spent.

In summary, it is still possible to make a good return on buy to let investment however this is not always as easy as portrayed in the media.  An investor will need to carefully plan their investment, taking into account some of the points discussed above to have any chance of achieving a good return.  Buying property and rushing into the property market on the assumption that you cannot lose is dangerous and completely incorrect.  I am sure that there are many who can bear testament to this fact, who have lost considerably more than money after investing in property. Successfully investing in property takes hard work, knowledge, money and often a good dose of luck! If you are thinking of investing in property in the near future please make sure that you take on board some of the suggestions above before taking the plunge.

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Air Tightness and Ventilation in UK Dwellings - A sensitive balance!

In the near future it will be interesting to see how our buildings are reacting to increased air tightness, together with ventilation.  In truth only time will tell if this is working when these buildings have been occupied and used for a number of years

Source: Source: http://www.brookvent.co.uk/

In order to tackle climate change the UK government have made commitments under the Climate Change Act 2008 to reducing greenhouse gas emissions by at least 80% (from the 1990 baseline) by 2050.  Buildings in particular have been identified as a means making significant reductions to meeting these targets: According to BBC News (2006), ‘Transport consistently grabs the headlines on climate change emissions but buildings pour out about half of the UK's CO2 - 30% from homes, 20% from commercial buildings’.  The Climate Change Risk Assessment (CCRA) completed an assessment of a variety of impacts of various sectors may need to prepare, which included the Built Environment: ‘The UK’s built environment includes: 27 million homes, commercial and industrial properties, hospitals, schools, other buildings and the wider urban environment. At the current replacement rate, around 70% of buildings that will be in use in the 2050s already exist.

Reduction of greenhouse gas emissions within buildings, particularly carbon dioxide, can be achieved in two broad categories, the first is the way in which we create energy and the second is the way in which we can conserve or limit waste of energy.  In an earlier article, why should we both with renewable technologies? (Link) I considered the former and emphasised the importance of installing and utilising renewable technologies within buildings, which will significantly reduce our dependency of burning fossil fuels and subsequently reduce carbon dioxide emissions.  For the purposes of this article however I want to briefly focus on conserving energy in buildings and in particular the important balance between air tightness and ventilation.

Source: Source: http://www.airtightbuilding.com/

In order to try to make buildings more energy efficient UK Building Regulation, particularly Approved Document L has evolved beyond all recognition of the last 15 to 20 years.  Those like myself who were in practice prior to this will remember a much shorter, single Approved Document (now there are four parts, L1A, L1B, L2A & L2B), where the most complex issue was how to navigate your way through a SAP calculation.   Nowadays the focus on external envelope is only part of the story and there is now a requirement to consider carbon dioxide emissions for example: under Approved Document L1A , all dwellings must be designed and built in a manner that their Dwelling Carbon Dioxide Emission Rate (DER) measured in kg of CO² produced annually per m² floor area is no worse than a defined Target Carbon Dioxide Emission Rate (TER), as well as air permeability (or air leakage).

Since 2006, Building Regulations in England & Wales and Northern Ireland have required mandatory air leakage testing of new homes. These regulations were further revised in England and Wales in October 2010. ‘Air leakage, air permeability and air tightness are all terms that refer to the uncontrolled loss of air from inside a building to the outside and the infiltration of air coming from outside to inside. This loss or gain of air through cracks, holes or gaps in the fabric of the building is often felt to us as draughts.

Achieving a good level of air tightness is important for the energy efficiency of the building. The benefits of improved insulation and more energy efficient heating systems are lost if warm air can leak out of the building and cold air can leak in. Poor air tightness can be responsible for up to 40% of heat loss from buildings’ Source: http://www.nhbc.co.uk/

The above statement makes a good point in relation to heat loss in those buildings with poor air tightness and that by ‘plugging the gaps’, so to speak, we can ensure that our buildings remain warmer for longer.  This in turn will mean that we will not need as much heating in our buildings and consequently reduce carbon dioxide emissions in the process.  The added other benefit should be a reduction in our energy bills.  Constructing or upgrading a building to meet these air tightness standards is all well and good but we must also consider a balance with ventilating a building.

Ventilation is an important consideration in buildings as it helps to control the internal environment in respect of health & comfort, control of condensation and humidity, discharge of emissions from fuel burning appliances and removal of any airborne pollutants.  Building Regulations Approved Document F provides requirements for ventilation rates in various rooms such as kitchens, bathrooms etc as well as rates for whole house ventilation. The Approved Document also provides examples of different forms of ventilation such as mechanical, background, passive stack etc.  Consideration of the Approved Documents will be crucial in firstly complying with Building Regulations and secondly ensuring that there is an adequate balance between air tightness and ventilation. It would be a mistake to consider each of these in isolation.  It is important to realise that the level of air tightness achieved within a building will have an important influence on the overall ventilation rates that will be achieved (higher levels of air tightness, lower ventilation rates) and the type of ventilation strategy that should be adopted.

In the near future it will be interesting to see how our buildings are reacting to increased air tightness together with ventilation.  In truth only time will tell if this is working when these buildings have been occupied and used for a number of years.  As an example; with the increased use of construction methods such as timber frame which is nicely concealed within a highly air tight environment it is easy to foresee problems in the future with timber decay and other common defects if the balance between air tightness, ventilation and indeed detailing is not adequately considered.  This is also the case for control of both surface and interstitial condensation (condensation that occurs within the fabric of a building), which are both influenced by air tightness and ventilation in conjunction with other factors. We will no doubt find out within the near future if we have got this balance right.

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The Importance of having a Written Contract for Household Building Work

Hindsight is a wonderful thing and it is usually only after a dispute has occurred that a householder will reflect on why they did not enter into a written contract in the first place. By this point however it is usually too late!

Source: http://www.thehomeguru.net/

In general terms we are very trusting folk here in the UK and we often rely on good will as well as blind hope, in the expectation that work being undertaken to our homes will be done to a high quality, within agreed costs and without any problems.  In an ideal World this would no doubt be the case, however the reality is very different.  TV shows such as Rogue Traders, Cowboy Builders and the like highlight some rather stark examples where the initial excitement of building works have quickly evaporated and been replaced with anger, stress and worry, as the relationship between a building contractor and householders turns soar. I published an article about this time last year (link), which provided some practical suggestions of how a householder can avoid this scenario happening to them.  One of the suggestions I made within the article was to ensure that everything was recorded in writing (I mainly focussed on costs), however for this article I want to consider a more formal arrangement, such as the use of a written contract.

If a householder requires work undertaking within their homes, a usual first port of call would be a telephone conversation with a building contractor, followed by a visit.  During the visit the householder will outline what works they propose and the building contractor will give an initial assessment and invariably the conversation will come around to costs.  Very rarely, particularly at this point will the issue of a written contract be considered and in fact it is likely that the vast majority of works carried out within UK households, are completed without any written contract at all. Even in the absence of a written contract, a householder can enter in to a legally binding verbal contact with a building contractor, however, as you would imagine, in the event of a dispute, it will be much more difficult for either party to prove that particular terms and conditions were discussed and agreed. 

Source: http://easyplanbuildingsolutions.co.uk/

It therefore seems to make sense for householders and building contractors to enter into a written contractual agreement, which will clearly set out the various terms and conditions that they agree, but crucially however provide written evidence of the agreement.  Through the UK doctrine of freedom of contract, both parties are free to enter into whatever terms and conditions they want, without interference from the courts.  These terms and conditions could be written in whatever detail and format both parties are comfortable with and can range in complexity from a single sheet of A4 paper to a standard form of contract such as a Homeowner Contract or a Minor Works Contract.  There are many other standard forms of contract available, however, the nature and complexity of the vast majority of householder’s works will not require anything more complex than those contract types indicated above. Standard forms of contract can be ordered on line and vary in costs depending upon the selected contract.  For example a householder can purchase a JCT Homeowners Contract at a cost of around £20 (link), which given the disputes and costs that can be avoided is money extremely well spend.  These types of contract are written in a very understandable way so you do not need to be an expert in order to use them.  Also, standard forms of contract allow for adding and deleting of clauses, sections and words as deemed necessary by each party, prior to signature.  Just remember to undertake amendments carefully, as once the contract is signed, both parties are legally bound by the terms.

In the event that a dispute arises during or even after the works have been completed both parties can refer to the written contract to help them to resolve the dispute.  All too often disputes occur and indeed escalate because there is a difference of opinion about ‘what was said’, or ‘what was agreed’.  A simple written contract can therefore set out terms for costs, payment dates (and amounts), timeframes. More detailed contracts will stipulate procedures for variations, dispute resolution, insurance provisions, procedures for termination etc. Without a written contract both parties are exposing themselves to unnecessary risk and uncertainty should a dispute arise. This is something that householders often choose to ignore when undertaking building works in their homes, possibly as a result of lack of awareness, possibly ignorance, possibly not wanting to be viewed as ‘unfriendly’ by the building contractor and even possibly just plain acceptance that there just will not be a written contract.  Hindsight is a wonderful thing and it is usually only after a dispute has occurred that a householder will reflect on why they did not enter into a written contract in the first place. By this point however it is too late!

The lesson here therefore has to be that once a householder discusses work (and costs) with a building contractor, they should ensure that they also make the building contractor aware that they plan to ask them to sign a written contract prior to the works commencing.  In order for this to happen the householder should be satisfied with the scope of work proposed, the timeframe suggested and of course the overall cost of the works, are what they expect and therefore what they are prepared to agree too.  This may require a number of weeks (possibly longer) of negotiation between both parties in order for them to arrive at mutually agreeable terms.  Once this happens both parties will understand what is expected of them and this will help to eliminate any uncertainty.  This in turn will reduce the possibility of disputes occurring and in any event, will provide a way of dealing with disputes should they arise.  If you are a householder planning an extension or a refurbishment or in fact any other building works to your home, in the immediate or near future it is worth taking the time to prepare and negotiate a written contract with your building contractor prior to works commencing for all of the reasons discussed above.

Please feel free to share this article and other articles on this site with friends, family and colleagues who you think would be interested

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Non-Traditional Housing – Securing a mortgage is not easy!

There is no reason why older houses of non-traditional construction cannot be repaired and refurbished to provide comfortable homes that can last for many years.  The issues however will come when an owner decides that they want to sell.  Lenders are very reluctant to borrow on such properties, which in itself is likely to make prospective purchasers nervous

Source: http://www.externalinsulation.co.uk/

Non-traditional housing generally relates to any property that is not built using traditional methods and materials. A traditionally built property would be of solid wall or cavity wall construction built with masonry (bricks/stone/blocks) and mortar. Non-traditional properties include those ‘designated defective’ under the Housing Act 1985 and those other types that have not been ‘designated’ but which are still not of a ‘traditional’ type (certain timber frame types for example). Certain non-traditional types are not mortgageable without significant amounts of work being undertaken to recognised standards.

Understandably, lenders often get very nervous about borrowing money to those who are planning to purchase a non-traditional house and although we may wonder why such a cautious approach is taken it is worth considering the risk to the lender.  In actual fact, the lender ‘owns’ a property until a loan has been paid back in full and have the right to re-possess in the event of a default in payments or a significant loss in value.  The lender needs to be satisfied that in the event of such a default that they can recoup the value of the loan at any point in time. Basically, lenders want to make sure that a property is readily saleable and isn't likely to have any serious defects in the construction.  In assessing whether to provide a mortgage a lender will consider the borrower’s ability to maintain mortgage repayments as well as establishing whether a property is considered to be an acceptable security in which to secure the mortgage loan.  It is the latter of these two criteria which comes under the spotlight when the property is classified as non-traditional.

Trying to secure a mortgage on a non-traditional property can prove to be problematic, with a limited number of lenders offering such a product.  Many lenders are not prepared to take the risk and avoid this market completely, however there are a number of lenders who are willing to provide mortgages on non-traditional properties, although this usually comes with a number of requirements that will need to met before a mortgage loan is offered.  A particular requirement may be for the property to have an Assessment in Accordance with Non Traditional Homes Appraisal Scheme (NTHAS). 

'The scheme takes a pragmatic and common sense approach to the structural assessment of these property types and does not automatically assume that at all forms of non traditional construction are defective. Very often it is sufficient to protect the underlying structure from further deterioration and exposure to the elements by the adoption of either a lightweight insulated render over cladding or brick cladding coupled with repairs and strengthening measures’ Source:http://www.mdyson.co.uk/ 

It is these types of measures that may provide the security necessary and give a lender sufficient confidence to provide a mortgage loan.

Source: http://www.greendealsolutions.net/

A number of years ago I was acting as Consultant for a medium sized Registered Social Landlord (RSL).  Five years earlier the RSL had taken ownership of approximately 1500 former Local Authority tenanted houses through stock transfer. Over the five year period the RSL had worked very hard to meet their ‘promises’ commitment, which required them to complete a comprehensive programme of refurbishment/upgrades and demolition and a new build programme.  For those who are not aware of the intricacies of stock transfer, part of the process requires consultation with tenants with a view to gaining their support and commitment so that they will vote in favour of the transfer.  During the consultation the proposed new RSL will detail improvements they will make and make a number of commitments or promises together with likely timescales should the tenants vote for the transfer.  The RSL I was acting for was now reaching the end of this initial programme and were now considering how to strategically proceed with a number of non-traditional houses they have inherited through the stock transfer.

As part of the appraisal we considered a number of options to maximise the assets, one of which was to consider selling properties on the open market.  In order for this to happen we had to ensure that the properties were mortgageable and not only that but also to establish which lenders would be able to offer mortgages on these properties, so that prospective purchasers could be directed to a selection of lenders.  After a number of months of consulting with lenders we established a list of just three who were willing to offer a mortgage. All three lenders stipulated that each of the properties must have a structural assessment and that a comprehensive programme of repairs/upgrade must be undertaken.  This included concrete repairs, where appropriate as well as the installation of an externally insulated render system and window replacements to the external envelope to improve the very poor thermal efficiency of most non-traditional housing.  As you would expect, these improvements and repairs were not cheap, so it was necessary to factor in these costs together with the cost of professional fees, warranties and the like and then weigh them up against the likely return based upon the open market value.  Even if these works were to be carried out, the properties would always be classified as non-traditional construction and the client felt that this would significantly impact on the number of prospective purchasers and in particular their restricted ability to obtain a competitive mortgage due to the limited number of lenders willing to provide one.  In the end the client felt that the most viable option we provided was to demolish their non-traditional over the next few years and replace them with new build.


In summary, there is no reason why older houses of non-traditional construction cannot be repaired and refurbished to provide comfortable homes that can last for many years.  The issues however will come when an owner decides that they want to sell.  As discussed above, lenders are very reluctant to borrow on such properties, which in itself is likely to make prospective purchasers nervous. With the amount of non-traditionally constructed houses in existence in the UK this is an issue that many are likely to encounter for a number of years to come.  Consequently, cash paying property investors may see non-traditionally constructed houses as an opportunity as some may be in a position where they do not need a mortgage loan. They are likely to be able to achieve good rental yields over many years, based on the fact that they may be able to pick up these types of properties relatively cheaply.

Please feel free to share this article and other articles on this site with friends, family and colleagues who you think would be interested

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.