Buy-to-Let is 25: By Nic Rotton, Sterling Commercial Finance
Nic Rotton, Commercial Mortgage Consultant at Sterling Commercial Finance, reflects on Buy-to-Let mortgages as they turn 25 years old.
Last week, I found out that Buy-to-Let (BTL) mortgages were 25 years old in September, having been created back in 1996.
That’s right, before Buy-to-Let had even existed, we had actually sung “Three Lions” for the very first time at the Euros, Blur had “beaten” Oasis in the Battle of BritPop and Google was still 2 years from becoming the monster it is today!
The BTL story began when ARLA (the Association of Residential Letting Agents) met Paragon and Natwest to discuss a better way of financing residential investments. At the time, no financial product specifically catered for residential landlords and the only way they could finance a property portfolio was through commercial mortgage terms which tended to be at higher rates and low loan-to-values. The conversation resulted in an overhaul of the products and processes involved in lending to Landlords and the term ‘Buy-to-Let’ was born.
The new product allowed and encouraged new investment into the Private Rented Sector (PRS). The PRS had been in decline for years but was seeing change through Government deregulation which allowed landlords to determine rent levels, introduced Assured Shorthold Tenancies and added other protections which gave landlords confidence to invest in property.
Nowadays PRS is the UK’s second largest housing tenure accounting for 19% of households, up from 10% in 2001. Renting is no longer seen as a last resort or student dominated. It offers greater flexibility to people for all ages and better suits the lifestyles of many.
We have seen huge Government policy changes, both in regulative and legislative terms with the aim to improve safety and standards in the sector. These also include regulatory changes on Lenders to expand the underwriting criteria with the hope of controlling the level of debt available to fund the growth.
Buy to let is now a hugely competitive market with significantly more funders looking to support landlords than those first two back in 1996. We now see lenders adapting to include HMOs, holiday lets, MUFBs and serviced accommodation.
Sterling Commercial Finance works with landlords to arrange the right funding for their property purchase or refinance. With innovative products and sensible criteria at our disposal, we are supporting more clients than ever before in realising their property ambitions.
99 affordable homes set for Leicestershire village as land sold
Acting on behalf of a private vendor, heb has sold land at Garden Farm, Barlestone, Leicestershire.
Following the recent grant of planning consent, Owl Homes will deliver 99 affordable dwellings in a semi-rural setting at the fringe of the village.
Owl Homes are working in conjunction with Midland Heart Housing Association to provide 50 affordable rent homes and 49 shared ownership.
“The scheme as designed looks fantastic,” said Robert Maxey at selling agents heb. “I can’t wait to see the development take shape as Owl progress matters on-site. The fact that the whole development is providing much needed affordable units should be welcome news to the local community.”
Rob Blaney at Owl Homes said: “We are delighted to have completed this development on behalf of our valued client Midland Heart and the support from our consultants has been invaluable throughout this transaction. We now look forward to progressing matters on site and commencing work to deliver these much-needed affordable homes for the Leicestershire community.“
Chris Miller, director of development at Midland Heart, said: “The Midlands needs more quality affordable homes so it’s great news that this development at Garden Farm is able to progress. We’re looking forward to working closely with Owl Homes and welcoming new families into our homes once complete.”
The site was identified for Owl Homes by Gareth Staff at Nottingham-based Inside Land.
Wendy Shaw at Nottingham’s Ashton Bond Gigg Solicitors acted for the seller, with Kevin Nagle at Squire Patton Boggs Birmingham acting on behalf of Owl Homes.
“It was really pleasing how all parties on both sides of the transaction pulled together throughout the process to ensure satisfactory delivery of the development,” said Robert Maxey. “This is the latest in a run of land deals for us, showing the need for homes and resulting demand for land.”
Plans emerging for future of rejuvenated Glossop Halls
With work on the first phase of the transformation of Glossop Halls almost complete and plans for the future operations of the market taking shape, High Peak Borough Council continues to support traders in the busy build-up to Christmas.
High Peak Borough Council is leading the regeneration project to bring the Town Hall, Market Hall and Municipal Buildings up to modern standards – creating jobs and new spaces for community use, entrepreneurs and micro-businesses alongside the introduction of energy saving technologies and fibre broadband.
The £7m scheme is being funded by the Council including a £2m grant contribution from the D2N2 Local Enterprise Partnership via their Getting Building Fund.
The first phase of the project, which has included replacing the Market Hall roof and the removal of the floor as well as internal plaster repairs in the Municipal Buildings, is now drawing to a close and listed buildings consent for the next stages has been submitted.
Alongside this, the Council is also progressing with its search for a commercial partner to manage and operate the re-developed complex once building work is complete.
Council Leader, Councillor Anthony Mckeown, said: “This project we’re undertaking will see significant sums invested in regenerating and restoring these essential heritage buildings for the future.
“This next stage of the works will transform the Glossop Halls complex into a modern, vibrant hub for the town. It’s a once-in-a-generation chance to deliver the business opportunities and community amenities we need to maximise recovery post-Covid.
“It’s an exciting project to be part of which reflects our ambitions for Glossop and, as we move into the next phase of the project, I look forward to getting on with making it a reality.”
The ground floor plans for the Market Hall include seven food and drink retail units and space for pop-ups and events whilst the new mezzanine level will have eleven units for non-food retail and creative and start-up businesses. The refurbished Town Hall will offer modern, flexible office accommodation in a key heritage space.
And following the recent call out for expressions of interest for potential future operators for the complex, the Council was encouraged by the positive response from the market sector and will now be progressing to the next stage of the competitive tender process.
Deputy Leader and Executive Councillor for Regeneration, Tourism and Leisure, Damien Greenhalgh, said: “The Halls really are at the centre of the town and the community and this transformation will safeguard their future as the lively, beating heart of Glossop for decades to come.”
Garment workers in Leicester needed for study into experiences in factories
Academics are seeking garment workers in Leicester to take part in a study to understand what can be done to improve their lives and working conditions.
The researchers, led by the Rights Lab at the University of Nottingham, are also looking to speak to professionals who work in the sector to inform the study.
Garment workers can take part in the study through a 30-minute anonymous questionnaire, available from Shama Women’s Centre or Hope for Justice early next week. Some participants can choose to take part in an interview-style question and answer session, which will take an hour. All participants will receive a supermarket voucher for taking part.
Participants will be asked about their experiences working in the garment sector – good and bad – and if they have ideas around how people’s working lives can be improved.
The researchers wish to gather insight from community leaders, charities and others working in the sector and region.
The Rights Lab experts are working with De Montfort University, Shama Women’s Centre and Hope for Justice to form an understanding of the current situation for garment workers in Leicester.
They aim to use this information to make recommendations to the new Leicester Garment and Textile Workers Trust, which has commissioned the research to uncover some of the immediate and future needs of workers within the local garment industry. The study will also examine other actions businesses, government agencies, NGOs and communities can undertake to improve the lives of garment workers.
Dr Alison Gardner, Rights Lab Associate Director (Communities and Society Programme) and Nottingham Research Fellow in Slavery-Free Communities, is leading the project. She said: “This study will provide a holistic overview of the current situation in Leicester with an emphasis on workers’ perspectives. We are pooling all of the insights and experiences from across the community to identify realistic, evidence-based solutions that local partners can work on together.
“It’s vital that garment workers can trust in us and it’s important for them to know that we are committed to finding solutions that can be implemented immediately and in the long term.”
Co-researcher, Dr Dave Walsh, Professor in Criminal Investigation at De Montfort University, said: “It is vital that the community are involved in helping provide solutions to the problem of labour exploitation in the garment industry in Leicester so that the rights of workers are respected where, for example, they receive a fair wage for the work they do.”
Khudeja Amer-Sharif, CEO of Shama Women’s Centre, said: “Shama has a 35-year history of empowering thousands of women in Leicester, many of whom have gained machinist skills in our purpose-built industrial unit; helping them gain work in the garment industry.
“More importantly we are committed to ensuring that women seeking work in the garment industry are armed with the knowledge of their employment rights and the confidence to seek help when needed. I believe this research will be key in identifying the barriers that many of these women face and inform workable solutions to address some of the ethical issues facing the garment industry.
“Our reputation as a trusted grass roots organisation will be key in encouraging women to take part in this vital research helping provide in depth insight to help improve the lives of garment workers in Leicester. We are delighted to take part in this important study.”
Paul McAnulty, UK & Europe Programme Director at the charity Hope for Justice, which has a Community Engagement Hub in the East Midlands, said: “We want to do everything possible to understand the journeys of those with lived experience of exploitation, and to appreciate their individual preferred futures.
“Only by doing this can we devise and deliver interventions that will yield positive outcomes, create pathways out of exploitation and generate viable alternatives to situations that perpetuate inequity and mistreatment.
“Hope for Justice is proud of the work we have done to develop independent bridges of trust into communities that are potentially vulnerable to being exploited. We have been helping people to empower themselves and others to freedom, and we are proud to be working alongside the partners on this project. Together, we want to ensure that the true nature of exploitation in Leicester’s textile industry is understood.”
Green refuelling forecourt to be developed at MIRA Technology Park
Octopus Hydrogen, Octopus Renewables and MIRA Technology Park have revealed plans to develop a green refuelling forecourt providing hydrogen and EV charging on site at MIRA Technology Park to support the needs of the growing cluster of automotive and mobility technology businesses that are powering the mobility revolution.
Octopus’ solution brings together the group’s hydrogen business focused on providing green hydrogen-as-a-service to accelerate adoption alongside Octopus Renewables, who will supply power from a purpose-built 7MW ground-mounted solar array located alongside the forecourt at MTP.
MTP is home to 40 global titans of the zero-carbon mobility revolution, with a growing number focused on fuel cell technology, and many others seeking to incorporate a green hydrogen solution into their array of different motive power options.
On-site green hydrogen supply will catalyse the momentum of the cluster that has recently seen new tenancies announced from companies including REE and Viritech – with the latter exclusively focused on the development of hydrogen technologies.
Octopus’ new on-site generation will supply MIRA Technology Park’s businesses with sufficient green hydrogen to support the equivalent of 60 cars’ worth of fuel per day. On the forecourt, a number of high-power EV chargers delivering up to 300kW will also be installed to build on the existing network of over 70 charging points already onsite at MIRA Technology Park.
William Rowe, founder and CEO of Octopus Hydrogen, said: “Transport is responsible for a third of all man-made carbon emissions in the UK, and while we are making headway in electrifying cars, we need hydrogen to clean up those sectors that cannot be decarbonised through batteries alone. “MIRA Technology Park’s customers are at the forefront of this revolution in sustainable transport and we are delighted to be bringing Octopus Energy Groups capabilities together to deliver both onsite solar electricity and green hydrogen production and refuelling.“The integrated green hydrogen and EV charging station is the best representation of the complementary nature of these technologies. This is the first deliverable in our future plans with MIRA Technology Park that includes the ambition to bring liquid hydrogen refuelling on stream in the future.”
Jack Bartlett, head of commercial & partnerships at MIRA Technology Park, said: “The infrastructure that Octopus is bringing to MTP will be another great enabler for our customers and the engineers at HORIBA MIRA to accelerate the development and adoption of clean, green hydrogen technologies to power the way society will move. “This new capability meshes neatly into our wider post-carbon energy and electrification competencies and will add yet more momentum to the calibre of mobility technology companies that are electing to make MIRA Technology Park their home.”Royal Mail commits to 71,000 sq ft Notts warehouse
Clearbell UK Strategic Trust (CST), a fund advised by Clearbell Capital, has agreed a lease with Royal Mail on a 71,612 sq ft warehouse on the Manton Wood Business Park in North Nottinghamshire.
The letting was facilitated by property consultants Commercial Property Partners (CPP).
Royal Mail has agreed a five-year lease at Manton Wood, which has recently undergone a programme of refurbishment and improvement works.
The Manton Wood Business Park is located in Worksop, North Nottinghamshire, situated adjacent to the A1 with good road connections to both the north and south of the UK.
Other occupiers in the vicinity include DHL, B&Q and Wilko’s national distribution centres, as well as national food manufacturing operators Cargill, Greencore and Samworth Brothers.
The deal will bring employment to the area as Royal Mail prepares for the organisation’s peak period in the build up to Christmas. The unit will continue to support the company’s Sheffield Mail Centre all year round, which serves customers across South Yorkshire and Lincolnshire.
Adam James, asset management director at Clearbell Capital, said: “The demand for logistics space in well-located central areas continues to soar. We are experiencing strong levels of interest in assets such as Manton Wood as companies like Royal Mail aim to shore up their distribution networks in the run up to Christmas.”
Stuart Waite, director at CPP, said: “We are delighted to have secured a tenant within six months of acquiring the building for our client, who’s decision to immediately refurbish and improve the building has paid off.
“There continues to be significant demand for well-located logistics space across the region and we are delighted to have secured a commitment from Royal Mail on behalf of our client.”
Leading PLC bank takes 7,000 sq ft office near East Midlands Airport
OMEETO, set up last year by commercial property agent Chris Wright, has secured its largest deal so far with the off-market letting of a 7,000 sq ft office near East Midlands Airport to a leading PLC bank.
The deal was on behalf of Futures Housing Group which has moved its head office operations from Ripley to a new 20,000 sq ft freehold office on Pegasus Business Park, Castle Donington.
Working closely with Futures’ acquisition agent, Jody Lauder of LPS Commercial, regarding the intention to let the first floor of the new HQ building, Chris Wright introduced a requirement circulated by global commercial real estate services firm Avison Young.
He was subsequently retained by Futures to broker the deal with Avison Young who were acting on behalf of a leading PLC bank.
Chris Wright of OMEETO explained: “Having established a good working relationship with Jody and Futures, I was able to match the surplus accommodation in the new headquarters building with the requirements of Avison Young’s client before it was officially advertised.
“This is a fantastic way of celebrating our first year in business and puts OMEETO firmly on the region’s commercial property map – proving that taking a proactive and customer-focused approach reaps rewards for all concerned.”
Futures Housing Group operates more than 10,000 affordable homes extending from Derbyshire down to the Daventry area and beyond and has ambitious plans to build more homes across the region by 2023.
The organisation also helps customers through a range of services designed to help them live well and independently. This includes offering money and employment advice and providing extra support to older customers and those with special needs.
Head of people services, Halinka Hepworth, explained: “Having established a positive working environment and culture for our organisation at these new premises, we are delighted that OMEETO have secured the lease of the first floor to such a prestigious company.
“Both organisations will now benefit from this premium central location with unrivalled communications links and high quality facilities.”
Ideagen appoints first chief people officer
Ideagen Plc, the supplier of software solutions to companies operating in highly regulated industries, has appointed its first chief people officer, Louise Tommasi.
Louise is an experienced chief people officer and has worked with large, complex companies, including Speedo and Incora.
CEO of Ideagen, Ben Dorks, said: “Ideagen has grown rapidly in the last few years, and we intend to keep growing the business and expanding our workforce in the years to come.
“It is important to us that we approach the recruitment, retention, and development of our fantastic team of people in the best way possible and so we felt the time was right to appoint a Chief People Officer to help us on our journey.
“Louise is a fantastic person with a wealth of knowledge in this field. I am really delighted that she has joined us and I look forward to her contribution to making Ideagen the number one employer in Nottingham and a sought after place to work worldwide.”
Louise said: “I am very excited to be joining a company that genuinely puts people at the top of its agenda. To deliver on Ideagen’s growth plans we need to be able to attract and retain the best people possible and that is where I will be focusing my efforts initially.
“In the post-pandemic world of work, people are making different choices and for different reasons. We need to be as innovative in our working practices as we are in our product development to attract the best talent and I am looking forward to driving change and making a real impact on the future success of this very exciting business.”
Louise will be based primarily in the Nottingham HQ, but will be spending time at Ideagen’s other centres around the globe. She is married with two children and a dog and spends her free time keeping fit and being a ‘spectator and taxi mum’.
BDO Midlands strengthens audit team with former Holland & Barrett CFO
Accountancy and business advisory firm BDO LLP has appointed former Holland & Barrett’s Chief Financial Officer (CFO), Greg Watts, as audit partner.
Greg, who will be based in the Midlands, previously spent 30 years at KPMG, working across audit, transaction services and internal audit, latterly leading the Markets team in the Midlands. He has considerable experience working alongside FTSE and private equity businesses in the region, with particular expertise in retail/consumer and automotive sectors.
At BDO, he will utilise that experience and expertise by supporting large, corporate, and listed businesses on a national and regional basis.
Richard Rose, partner at BDO and Head of the Midlands, said: “We’re delighted to welcome Greg to the BDO team. He brings considerable experience in the audit field, having worked alongside a large number of listed and private businesses across multiple industries and geographies.
“With significant expertise in supporting and advising some of the region’s most prominent businesses, he is perfectly positioned to help strengthen our proposition across our audit team.”
Greg’s appointment follows the promotion of more than 100 people across its team in the region, including one promotion to partner. Last month, the firm also welcomed Michelle Wilson to the Midlands team as tax partner. She will be responsible for leading the firm’s tax accounting and tax audit offering in the UK.
In his spare time, Greg is Chairman of his former rugby club, Dixonians RFC, and coaches the under-9s team. He said: “Having spent 15 months as CFO, helping to lead the successful turnaround of Holland & Barrett through a business-wide transformation project, I’m delighted to be back in practice, joining a dynamic and talented audit team.
“I’m eager to harness my experience working alongside senior international executive groups and boards of directors, as BDO increasingly looks to work with large UK corporates across the audit spectrum.”
Building starts on first phase of £100m residential development in Clipstone
Construction work has started on the first phase of a new housing development in Clipstone, Mansfield, by developer Sherwood Oak Homes.
The Oaks will bring 313 properties to the market in 2022.
On Clipstone Road East, the first phase of the development will consist of 30 new homes; 10 three-bedroom and 19 four-bedroom properties and a single five-bedroom home.
Local contractor Henry Boot Construction has been chosen to deliver the project and selling agent Pygott & Crone to market the properties.
The development has been designed to encourage and attract wildlife and for its residents to enjoy the outdoors. Across the site, there will be a number of green spaces and children’s playgrounds, and bird and bat boxes will be installed.
In keeping with the Oak tree playing a major part in neighbouring Sherwood Forest and the name of the development, Oak trees are being planted throughout the site.
The s106 agreement for the development outlines plans to make improvements to local Rights of Way to encourage walking and cycling as well as investments in Spa Ponds and Vicars Water – two nature reserves local to The Oaks.
Peter Roope, development director at Sherwood Oak Homes, said: “We’re very pleased to be able to start construction on this new community of high-quality homes in such a fantastic area.
“The development is ideally located in a well-connected part of Nottinghamshire where residents will be able to enjoy the space and countryside around them whilst being just a short distance away from both Mansfield and Nottingham.
“To deliver the very best new homes, we are working with impressive local businesses Henry Boot Construction – who will bring their wealth of knowledge of the surrounding area to the project – and Pygott and Crone estate agents.
“What’s important to myself and the team at Sherwood Oak Homes is to create homes that provide the space and quality that homeowners demand and deserve and to create peaceful new communities with access to nature. It’s very exciting to be moving forward with The Oaks.”
Gary Holmes, senior contracts manager at Henry Boot Construction, said: “We are delighted to get underway on this exciting housing development by Sherwood Oak Homes. Our team have significant experience building high-quality residential schemes and we are now looking forward to delivering these modern homes for the local community.”
