Autumn 2015

NEWS AND VIEWS FROM THE UTB PROPERTY TEAM

What is the real

Top notch and housing crisis?
Property expert Kate Faulkner gives her view.

timber framed
Why a development of luxury homes near Rights of light
Maldon are starting life in Ireland. Leading law firm Fladgate LLP illuminates
the subject.

A landmark year for

development finance?
Noel Meredith reflects on a record
12 months.

Sunbury Homes development, Langford, Essex – see page 5

Development Finance
A landmark year for
Development Finance
Noel Meredith, Executive Director, United Trust Bank
Although we are still a good few weeks from
the end of the year, I am feeling quietly
confident that the Development Finance
division is going to post record breaking
lending figures for 2015. We have already
surpassed our 2014 total and with a strong
pipeline to see us through the last quarter, I
don’t think I’m being too bullish with my
predictions. This should round off an
excellent year for the team which also saw
us win the ‘Development Lender of the Year’
category at the Bridging and Commercial
Awards 2015.
As a team we’ve never been busier and the
level of new proposals coming into the Bank
are a good indication of the confidence
developers have in the UK property market
continuing its steady recovery. House price
growth in London and the South East
undoubtedly skews the national picture, but
according to the Nationwide’s most recent
House Price Index, most areas of the UK saw
annual house price gains in Q3, with the
exception of Scotland and the North West.
When looking at England in isolation, the
annual percentage change to house prices in
Q3 was a 6% increase year on year. Although
house price inflation is outstripping wage
inflation in most areas, and there are signs
that interest rates could be moving up some
time next year, I’m comfortable that, for the
time being at least, the economic
environment remains largely benevolent for
house building.
There are pockets of strong demand for
new homes all around the country and we
see considerable potential to increase our
activities in the North of England. Although
we have previously funded projects in this
area, we believe that having people on the
ground and based in the region will open
up further opportunities both in
development finance and bridging. Our aim
will be to make UTB a significant lender
supporting individuals and SME developers
across the North. We’re still looking for the
right people with suitable property finance
experience, but I hope we’ll have news on
that front soon.
It appears that, at last, the government
has made some decisions to back up several
of the Conservative party’s pre-election
property related pledges. When talking to
developers, it often seems that by far their
biggest challenges are presented by the
Noel
Meredith
UK’s frustratingly dysfunctional planning
system, be they mystifying decisions or just
delays due to unnecessary red tape or
insufficient and inexperienced local
authority planning staff.
I am very pleased therefore, that Housing
Minister, Brandon Lewis MP, has at last
announced in connection with the Housing
and Planning Bill, a decision regarding the
future of permitted development rights. The
simplification of planning requirements for
office to residential conversion was well
received by many developers and has been
one of the most successful initiatives of the
last government. United Trust Bank has and
are still funding several such schemes where
developers have successfully transformed
disused office buildings in prime town and
city centre locations into attractive, high
demand apartments. The trouble is, that
uncertainty around what happens when the
temporary order expires next year, is
preventing larger schemes from getting
underway, a full eight months before the
order expires. Developers and lenders needed
assurance that schemes do not risk being in
breach of planning requirements if any new
dwellings have not begun their new use by
the 31st of May deadline.
Therefore we do need government to
follow up the announcement with the
appropriate legislation. Until they do so, we
remain in limbo.
The proposal to make the temporary rights
permanent, and increase the range of
buildings which can now fall within the
order, has sparked something of a political
row and the Bill has yet to pass into
legislation. But it does give developers more
assurance that the government does not
intend to pull the wool from under their feet
come next May and many will now start to
progress schemes which they had
mothballed pending a decision.
One of the government’s biggest
challenges over the next five years will be
tackling the shortage of housing. This
decision, and other proposals which include
a commitment to deliver 200,000 discounted
affordable starter homes and the extension
of ‘Right to Buy’ to housing association
tenants, should send a clear message to
developers that the government intends to
stand by its pledge to get 1 million new
homes built by 2020.
Permitted development
expertise unlocks
further opportunities
Following the successful conversion
of offices to form nine apartments
under permitted development
rights, UTB was asked by our
borrower if we would consider a
further scheme involving a joint
venture with their contractor. The
project will create 26 units, also
under permitted development
rights, in a south London suburb.
Following a visit to the site and due
diligence on the contractor, we
were able to agree a facility of
£3.7m to assist with the purchase
of the site at 65% of its purchase
price plus 100% of the build costs,
interest and fees which equated to
60% of the GDV.
The borrower’s contractor then
asked if we would fund them
directly for a 30 unit permitted
development rights scheme in a
good Kent town. Within a couple of
days we were able to offer them a
facility of £2.9m to assist with the
purchase of the site at 55% of its
purchase price plus 100% of the
build costs, interest and fees which
equate to 60% of the gross
development value.
The total connected exposure is
£6.6m secured across 2 sites with
a total GDV of £11.1m and an
LTV of 60%.
 Guest article
Rights of light
Daniel Polden (Partner), left,and Roy Perrott (Professional Support Lawyer), right, of Fladgate LLP.
Rights of light can be a significant barrier to development, especially in built-up areas.
What exactly is a “right of light” and what steps can be taken to deal with them?
What is a right of light?
Our legal system has long recognised the
concept of a “right of light”. It is a type of
easement that protects the passage of a
reasonable amount of light, through the
windows of a building, from across a
neighbour’s land. It is a right to stop the
neighbour from obstructing that light. If
the neighbour decides to redevelop and
the new building causes a substantial
reduction in the amount of light enjoyed,
the objector may be able to stop the
development or, alternatively, hold out for
significant damages.
How do they come about?
Establishing whether a right of light exists
is not straightforward. Rights of light are
rarely created intentionally. They normally
come about as a result of the building with
the benefit of the right simply having been
there for at least 20 years and enjoyed
access to light throughout that period. If
the indications are that a right of light may
exist, a right of light expert will need to be
employed to assess the degree of light that
is likely to be lost once the development
has been carried out, and whether this is
significant enough to amount to an
infringement. This is not easy and involves
a degree of subjectivity. Experts may
disagree profoundly on whether there will
be an actionable breach.
Injunction
What happens if the development is likely
to infringe the landowner’s right of light?
There is an inevitable tension between the
(understandable) wish of a landowner not
to live in darkness and the interest of a
developer in developing its land. Until
recently, where an objector’s right of light
had been infringed, the objector would
almost always have to accept damages. An
injunction preventing the development was
perceived to be an excessive response to
the infringement of a right of light and was
rarely granted. That position was reversed
in a series of cases within the last few
years. This has made life very difficult for
developers. Schemes have been delayed
and costs have escalated. Aware that they
had the power to block development,
objectors began to hold out for very large
sums in compensation.
Damages
To an extent, the balance of power has now
shifted back in favour of developers
following a Supreme Court decision in
February 2014 (Coventry v Lawrence). An
injunction will not now be granted where
the public interest favours development.
However, where damages are awarded
instead, they are often a significant
proportion of the developer’s profit. The
“public interest” test is, moreover, a very
uncertain test. Developers should,
therefore, seek to settle any potential light
claims at the earliest opportunity. The later
the negotiations begin, the more leverage
the objector will have. Ideally, no
development should begin until all light
issues have been dealt with or disposed of.
Insurance
Before launching into negotiations with the
neighbours, however, the developer needs ➤
 Guest article
If the objector manages
to stop the development,
only the developer’s out
of pocket costs are likely
to be covered.
➤ to consider whether insurance is an
option. This is an alternative to seeking a
settlement with the objector. Insurance
needs to be considered at the outset.
Understandably, most insurers will not be
willing to provide cover if the developer has
already alerted the neighbour to the
existence of a possible right of light and
offered to pay him compensation.
Right of light insurance is not the
panacea that it may first seem. It doesn’t
make the problem go away and it may not
allow the development to go ahead. A claim
under the policy will need to be referred to
the insurers and this will inevitably lead to
delay, and delay usually leads to more costs.
Right of light insurance is a specialist
product that comes with a hefty premium.
The underwriter will need a significant
amount of information to accurately assess
the risk. The policy needs to be studied very
carefully so that the developer knows what
is and is not covered and, just as
importantly, what action might void the
policy. The policy may cover all or just some
of the potential objections. “Pre-planning”
cover is more expensive than post-planning
cover because of the risk that the planning
process will bring objectors out of the
woodwork. Policies will not usually provide
cover for loss of profit so, if the objector
manages to stop the development, only the
developer’s out of pocket costs are likely to
be covered.
Insurance may, in spite of its high price
tag, ultimately be cheaper than negotiating
a settlement with the objectors but the
work involved in devising an insurance
policy that meets the developer’s needs
must not be underestimated.
Reform
There have been loud calls for reform in this
area. Last year, the Law Commission issued
a report setting out its proposals for
reforming the law. Most of their proposals
are sensible and were welcomed by
developers.
The main recommendation is for a new
statutory test that would favour the award
of damages where the grant of an
injunction would be “disproportionate”.
Factors such as the objector’s conduct and
the extent of the loss of amenity would
govern whether damages would be a
suitable remedy. An injunction could still be
granted in special cases but it would no
longer be the default position. Another
recommendation is the introduction of a
new statutory notice procedure. Put simply,
the developer would serve notice on the
objector, who would then have eight
months to decide whether it wished to
apply for an injunction or settle for
damages. The idea is to compel the objector
to “put up or shut up”. The Law Commission
have also recommended that if the right of
light has not been used for at least five
years, it should be treated as having been
abandoned.
Unfortunately, UK governments have a
poor record in implementing the Law
Commission’s proposals. An earlier report
in 2010 is still awaiting attention and
those proposals need to be implemented
first. Rights of light are therefore set to
play a major role in development for some
time to come ■
 Case Study
Top notch and
timber framed
Situated in the quiet Essex village of Langford a few miles from Maldon and the
Blackwater estuary, Sunbury Homes are building 11 luxury, detached homes with
a difference.
For as well as being beautifully light and
spacious, with high ceilings and a very high
quality finish, these homes, or a large part
of them at least, are actually being
constructed in Ireland.
Sunbury Homes are using an advanced,
closed panel timber frame construction
system which has been developed by TTFC
Ltd (The Timber Frame Company) and is
fabricated in Wexford. Ian Jeffrey, the co-
founder of the developers, Sunbury Homes,
had invited me to Langford to see for
myself how modern timber frame
construction was benefitting their
customers and their business.
Ian is a career housebuilder with 30
years’ experience in the construction
industry. He began his career with Barratt
East London in the mid 1980’s and having
started in technical roles, moved into land
acquisition and development. Prior to
founding Sunbury Homes with business
partner Angus Bates in 2011, Ian had spent
five years as the MD of the Essex divisions
of Bellway Homes and most recently,
Persimmon Homes. In just four years
Sunbury Homes have completed 30 new
homes and together with schemes in the
pipeline, will have achieved a projected
turnover in excess of £30m GDV. In
addition, Ian and Angus recently welcomed
Terry Brunning to the team as a partner of
Sunbury Homes.
As Ian shows me around what will soon
be the show home, he explains why
developing his own projects has been more
satisfying than running a major
housebuilding company.
“I’d enjoyed my time at Barratt, Bellway
and Persimmon but I felt the time had
come for me to start building homes I
could take a real personal rather than
corporate pride in. I wanted to build homes
I would be happy to live in myself, and that
generally means doing things differently to
a volume builder.”
In addition to taking the more unusual
decision of building with a closed panel
timber frame construction system, Sunbury
also took a different route when clearing the
4 acre site. Instead of digging up and carting
away several hundred tonnes of soil only to
buy in aggregate and shingle later on, they
hired equipment to screen and grade the soil
onsite. The process saved hundreds of lorry
miles and as well as being better for the
environment and the neighbours, Sunbury
believe they ended up with better quality
aggregates and topsoil too.
“I am certain that in addition to the
environmental benefits that this exercise
will have saved us money” he says. “But
even if it were cost neutral I feel good
about it. Sometimes there are different and
better ways of doing things if you think
about them rather than just jumping in and
doing things the same way because that’s
how they’ve always been done.”
With floorplans ranging from around
2800 ft2 to 3200 ft2, plus one special
house with the potential for a huge roof-
space den, cinema or man-cave, these
attractive houses were never going to be
small. However, instead of putting in extra
bedrooms to boost the saleability of the
circa £900k homes, Sunbury wanted the
emphasis to be on the roomy rather than
the room count.
 Case Study
“Four bedrooms and three to four
reception rooms is enough for most
families,” says Ian “and at that price ➤
➤ point they’re going to offer great value
for money in this location. We decided to
have generous room sizes, high ceilings,
wide corridors and an impressive hallway
and landing area to give the house that
luxury feel rather than just trying to
squeeze in extra rooms.”
The house is light too, with big windows
and plenty of them. Ian continues; “One of
the benefits of the TTFC closed panel timber
frame system we’re using is the
tremendous insulation qualities. The homes
are virtually airtight and because the u-
values are so good we can have more glass
and more light but still produce a really
warm and energy efficient home.”
If it wasn’t pointed out that there was
only one layer of brick or blockwork on this
house there’s very little to give the game
away that this is a timber frame structure.
One tell-tale though is the external walls,
which comprise structurally insulated
panels (SIPs) plus your choice of exterior
layer (in this case brick but it could be a
range of finishes from rendered blockwork
to timber or metal cladding). The walls to
this house seem thicker than usual and
they actually make it seem more substantial
and solid than a traditional build. I can’t
resist the urge to tap the walls with my
knuckles to see if I get that disappointing
hollow sound. I needn’t have worried. The
interior “plasterboard” is made from a high
density fibreboard produced by British
Gypsum called Rigidur which has been
developed for off-site construction
methods. It has excellent acoustic and fire
resistant properties and is so strong you
can screw heavy loads like kitchen cabinets
straight onto it without any special fixings.
You can Ebay your hammer drill. You aren’t
going to need it any more.
The benefits of timber framed
construction to the homeowner are just
one side of the equation. The other side are
the benefits to the developer. From
Sunbury’s point of view one of the key
advantages is the speed at which the factory in Ireland, an experienced crew
weathertight ‘shell’ can be erected enabling from TTFC work quickly to crane in the
work inside to commence straight away. Ian panels and fix them all together. Once the
explains; design is signed off it takes a month for the
“It takes around a week to get from a panels for a house of this size to be
screeded floor slab, with underfloor heating manufactured and shipped to the site. The
already installed, to a wind and water-tight panels are pre-insulated and the windows
structure with all windows and doors fitted and doors are usually already installed at
and the roof felted and battened. The day the factory. Holes for power sockets and
the bricklayers can start work on the outer light switches are pre-cut with conduit
skin is the same day the electricians, fixed behind the Rigidur panels ready to
plumbers can get started on the first fix drop the cables down. It’s an electrician’s
internally. Enabling these critical path dream.
activities to progress simultaneously rather Timber frame construction has come a
than sequentially saves time and reduces long way since the method fell out of
the chances of any delays to the build being favour with major housebuilders in the
caused by bad weather or labour issues on mid-1980s when a notable World in Action
the brick or blockwork. As a developer, that TV documentary about Barratt’s timber
framed houses caused so much controversy
that attitudes towards the construction
technique are still coloured by it over 30
years later.
The investigation at that time revealed
1
2 that some of Barratt’s homes had been
3 constructed so badly that there could be
serious issues with condensation leading to
4
5 wood rot and that inadequate fire stopping
in the cavities increased the risk of a serious
6 fire. The fall-out saw Barratt and other
7 major housebuilders largely turn their backs
on timber framed building. However, the
8 technology, and quality control has moved
9 on a great deal since then.
Leigh Porter has been the Sales and
The illustration indicates a timber frame structure: Marketing Manager of TTFC since they
1. Inner lining of plasterboard
2. Structural timber frame
started operating in the UK five years ago.
3. Stainless steel wall tie However, the company has been at the
4. Vapour check forefront of timber frame construction
5. Thick insulating quilt - CFC free since 1995 and in the last 20 years has
6. Sheathing board provided the frames for thousands of
7. Waterproof breather membrane
8. Brick or block outer cladding
residential houses, offices, hotels and
9. Clear wall cavity nursing homes, to name but a few of the
uses for which TTFC frames have been
employed. To say Leigh is passionate about
gives me greater certainty about project TTFC’s closed panel system would be an
timescales, something which is also understatement, and it’s clear she takes a
appreciated by the bank.” personal pride every time a new project
It does look strange seeing a full size gets underway.
scaffold erected around a bare ground floor “Timber frame construction is eminently
slab, but once the panels arrive from TTFC’s suitable for a climate like ours” she says,
“and the further North you go the more
timber frame houses you find. The
Scandinavians and Canadians have
embraced the benefits of building warm
homes quickly in places where the weather
can be wet and wild. Our panels are very
weather resistant and can be erected in rain
and cold without a problem. As long as it’s
not blowing a gale and the crane can
operate, the build goes on.”
The image and reputation of timber
frame construction has improved with
 There’s no doubt that interest in timber frame
construction is growing and working with quality
housebuilders like Sunbury Homes can only help to
push the message out there further.
companies like Huf Haus making self-build
chic and programmes like ‘Grand Designs’
showing that there can be more to
housebuilding than bricks and mortar.
Leigh is delighted that timber frames are
making a comeback in this country. “There’s
no doubt that interest in timber frame
construction is growing and working with
quality housebuilders like Sunbury Homes
can only help to push the message out
there further. Ian is making full use of the
benefits of the closed panel system and
creating desirable, energy efficient homes
for discerning buyers.”
But does timber framed construction
present any challenges for securing
development finance? I asked Noel
Meredith, Executive Director of United
Trust Bank, Sunbury Homes’ development
finance provider.
“Some development finance lenders
aren’t keen on timber frame.” He explains.
“Firstly because some lenders don’t like to
look at anything out of the ordinary but
also because the funding requirements
for a timber frame project are slightly
different to a traditional build.”
Noel continues; “In most cases the
timber frame supplier, in this instance
TTFC, needs a significant part of the build
cost much earlier in the project cycle than
with a traditional build. There’s a 10%
deposit at the planning stage, then a 40%
payment at the manufacture stage and
the balance of their invoice required
about a month after the on-site
construction of the frame. When a project
is progressing quickly that could mean
the developer has incurred around 50%
to 60% of their construction costs within
two months of starting the build. The
lender needs to be comfortable with and
prepared for that outlay.”
United Trust Bank are no strangers to
funding more unusual projects using
cutting edge construction methods.
Recent developments have included a
London apartment block where entire
apartment units were constructed in
Latvia complete with kitchens and
bathrooms and then shipped by lorry to
the Battersea site where they were
dropped into place like giant Lego bricks.
Noel and Ian were first introduced when
Ian and business partner Angus had found
it difficult to get funding for the first
Sunbury Homes project in Upminster,
Essex.
“We were a new development company
and this was our first project and although
banks like to deal with developers with a
good track record, Noel recognised that
the experience Angus and I had gained in
our careers to date made us a good bet.”
Explains Ian. “Within a few minutes of
meeting Noel I felt that he understood
what we were about and recognised the
opportunity we presented. We seek out
sites which may not be as straightforward
as some developers prefer. But with our
combined experience we can overcome
issues and potentially add even greater
value through revisiting the planning and
redesign. Some lenders don’t like tricky
sites but UTB look at proposals in the
round. We’ve found them to be a very
knowledgeable and supportive finance
partner who understand the development
process and ensure that the money for
suppliers and contractors is always there
ready when we need it.”
It has been a beautiful, sunny September
day. There’s not a cloud in the sky and it’s
warm enough for shirtsleeves. But
following hard on the heels of the wettest
August on record, many developers will be
turning their thoughts to winter and
hoping that heavy rain and snow will stay
away. However, in this particular patch of
Essex it doesn’t really matter what the
forecast is. Come rain or come shine, these
luxury homes will be finished exactly when
Sunbury Homes wants them to be ■
Guest article

What is the real housing crisis in the UK?

Kate Faulkner is one of the UK’s top property experts and founder of designsonproperty.co.uk

Rarely a day goes by when someone, somewhere isn’t talking about our housing
crisis. The problem is that we don’t tend to go into much detail about either
what this ‘housing crisis’ consists of or who it’s affecting. As a result, it’s no
surprise that, even after 30 years, we’re a long way from solving it.
So what is the real picture of housing regional basis. up to the last election. Rents are often
across the UK? Well, we have a population For example, according to the English quoted as ‘extortionate’ but, in the main,
of just over 64.8 million people currently Housing Survey, there are around 14.3 the reverse is almost true. For example, in
housed in around 26.4 million homes. By million owner occupied homes in England my own report on the Private Rented
2020, our population is expected to rise to alone. Of these, more are now owned Sector in February of this year,
67.2 million, and it’s estimated we need outright than with a mortgage and, affordability was shown to be reasonable
around 29 million homes to house this thanks to the current historically low in all areas bar Greater London and the
growth. Unfortunately, based on Mr interest rates, those borrowing to own a South West. In some areas, according to
Brandon Lewis’s recent forecasts, we’ll be home are paying some of the lowest rates the Belvoir Rental Index, there are still 12
lucky to have a million new homes by then. ever. The repossession rate is currently “at counties where rents are actually below
Assuming we define a housing crisis as a its lowest since records began” and the height achieved in 2008, seven years
shortage in supply, there’s no question we continuing to fall, according to the ago. And, although rents have shown
have one in the UK and that it’s going to Council of Mortgage Lenders, with the rises since Q4 2014 across most indices,
continue – based on ‘average’ figures. number of people struggling to pay just this is because they generally move in line
However, if there’s one thing I’ve learned 100,000 out of approximately seven with earnings, which were lower than the
about property, it’s that averages can be million mortgage holders. rate of inflation up to this time. This is
extremely misleading. For the vast majority of those who backed by data from the Office of
A better way to identify what this already own a home, therefore, a housing National Statistics’ new Index of Private
housing crisis really is, is to look at the crisis doesn’t really exist. Housing Rental Prices, which shows that
property market in a different way: from The next form of tenure is the Private over the last ten years, on average, rents
the consumer’s perspective and on a Rented Sector, much critiqued in the run have risen each year by just 2%.
 Their latest index (April to June 2015)
shows rents have risen by 2.5% in Great
Britain in the 12 months to June 2015,
breaking down into a 2.5% rise in England,
a 2.1% rise in Scotland and a 0.8% rise in
Wales. Even in London, they only increased
‘catch-22’. In parts of London it’s virtually
impossible for many people to find a
property they can afford to rent, let alone
buy, and that comes right back to the
stock issue. We just aren’t building
enough homes, in the right areas, at
housing crisis. In much of the private
sector, in areas that are affordable, the
job is already being done. The issue is not
necessarily the amount of stock, but the
type of stock that’s in short supply - and
the places where it’s needed most are

Our housing stock today has to stretch to house four

by 3.8% and that’s hardly spiralling out of
control. In comparison, property prices have
risen by twice as much in England and
Wales - up 4.6% year on year, with those in
London rising by 8.3%.
So, if those that own a home and those
that rent aren’t suffering a housing crisis,
who is?
Well, just because people can afford to
rent, it doesn’t necessarily mean they are
getting access to decent homes. So the
first group of people suffering a housing
crisis are those renting in an unregulated
sector, living in sub-standard properties.
These include rented homes where there
are issues with damp and mould,
inadequate heating or dangerous gas and
electrics. We know these properties exist
and the English Housing Survey estimates
that they may represent up to 30% of
PRS stock. What we don’t know is where
they are and, due to little enforcement at
a local authority level and tenants’ fears
of what might happen if they report
problems, there is undoubtedly a crisis for
those living in poor conditions with
nowhere else to go.
The second set of people who are
suffering are those who are in a genuine
generations, not three as it has in the past.
prices people can afford on the wages often the areas that are fundamentally
they earn. difficult to build in.
There is some good news on the Our housing stock today has to stretch
horizon, though. For those who do want to house four generations, not three as it
to buy, more properties are being made has in the past. That means we need to
available through the likes of Help to Buy, build different types of accommodation
discounted homes and shared ownership. and, with low wage inflation and high
For renters, there are many specific build- property price inflation, address the
to-rent schemes being brought in, which increasing demand for social homes.
give a much greater security of tenure Housing association grants have been
than renting from individual landlords. slashed and statistics show properties
Unfortunately, these aren’t currently being that have been transferred out of the
built at the rate required in most areas. sector through ‘Right to Buy’ haven’t
However, even these issues don’t exist been replaced at anywhere near the rate
in every area across the UK. I report on that they have been sold. Policies that
property prices for 22 towns up and down were supposed to help people acquire
the country throughout the year and, of homes have, in fact, created an even
these, nine areas have average property bigger shortage of the type of homes that
prices of less than £150,000. In my home are most needed.
town of Nottingham, for example, two- Although councils and housing
bed terraces and apartments are available associations are building new social
for under £100,000. And, even though homes stock, with a backlog that
prices are rising, 15 of these 22 towns still stretches over 30 years and low levels of
show average property values as less than funding and government support, it just
they were before the crash. won’t be enough to solve our real housing
So there genuinely isn’t a housing crisis crisis: a worrying lack of social and
for most current homeowners, private affordable homes to rent and buy in
renters or those who can be flexible about expensive locations ■
their exact location. But in areas where
there are either not enough properties to
rent or buy or those that are available
can’t be afforded on the average, let alone
the minimum wage, the housing crisis will
be very real for people who are forced to
either stay at home with parents or rent
rooms in a shared house when they’d
prefer to be alone.
That brings us to the last group: people
who need access to social housing. These
people are suffering a housing crisis
everywhere and it’s the biggest problem
we have in the market.
In 2000, there were just over one
million people on council waiting lists in
England. According to Shelter’s Housing
Databank, this hit nearly hit two million in
2011 and, although it’s dropped down, the
list was still nearly 1.4 million in 2014.
Breaking the market down from a
consumer perspective in this way explains
the real causes (and solutions) to our
 UTB News
UTB’s annual clay shooting day at Bisley
The United Trust Bank Development Finance
team played host to 30 guests from the
property development community at their
annual clay pigeon shooting day at world
famous Bisley shooting ground in Surrey.
Split into teams of six guns, the morning
started with a coaching session from the
excellent instructors starting in the beautiful
Bisley clubhouse set in 3000 acres of heath
and woodland. The roaring log fire and the
best bacon rolls in town kept spirits high,
despite the wind and occasional rain outside.
Following two hours of expert coaching
over a variety of stands, it was time to put all
the guests had been taught to good use in a
24 bird ‘top gun’ competition, culminating in
an exhilarating 100 bird team flush finale.
The morning’s lesson had clearly worked
with some excellent individual scores being
achieved. The winner of the highly prized
engraved hip flask hit an impressive 23 out
of 24 clays. Even the ‘clay conservation’
winner hit a respectable 11 out of 24 and
was very pleased to be awarded their
vegetarian cookbook! No one went away
empty handed however, with all the guests
having been given a stylish UTB shooting
Tracy Blackwell
completes epic City
abseil challenge
Tracy Blackwell, non-executive director of
United Trust Bank and newly appointed
CEO of Pension Insurance Corporation
(PIC), was one of a band of brave
fundraisers to abseil down three of
London’s iconic skyscrapers as part of the
City Three Peaks.
cap to keep the sun, but mostly rain, out of
their eyes.
When the shooting was over everyone
retired to the clubhouse and recollected
highlights of the morning’s competition over
a superb lunch. Although the weather was
typically autumnal, it was clear it had not
taken any of the shine off of an excellent
morning’s sport.
Jonathan Nail, Property Development
Director at United Trust Bank said: “The UTB
shooting day has become one of our most
highly anticipated events of the year. It’s a
great opportunity to meet up with many of
our developer clients and to spend an
enjoyable day exchanging views on the
property market and getting to know each
other better, away from the Bank and the
building sites.”
On the 7th of September, Tracy
descended a total of 1916 feet down The
Gherkin, The Cheesegrater and The
Walkie-Talkie, making it the longest
civilian abseil in history. By completing
the challenge, Tracy raised over £100,000
for four deserving charities, The Outward
Bound Trust, The Royal Navy and Royal
Marines Charity and PIC’s corporate
charities, The Royal Voluntary Service and
Happy Days. Event organisers expect to
raise a total of over £4m.
These funds will be used to create new,
life-changing opportunities for young
people across the UK to develop their
attitudes, skills and behaviours for life, as
well as funding projects and support
services that give a helping hand to older
people and our nation's veterans and
Service families.
Well done Tracy!
Rob Sherr appointed as
Chief Credit Officer
Rob Sherr has joined United Trust Bank
as Chief Credit Officer. Rob’s career in
banking spans nearly 40 years, most
recently at Bank Leumi where he was
the Head of Credit Risk Management.
Previously Rob worked at Coutts & Co
where he developed their film, music
and video games finance capability as
a founding manager in the Media
Banking Office.
Rob takes over the role of head of
credit from United Trust Bank
shareholder and Managing Director
Roger Tidyman, who after a long and
successful career is moving to a new
challenge within UTB in a mentoring
and product development role.
Graham Davin, Chief Executive
Officer of United Trust Bank, said:
“I am delighted that Rob has joined
United Trust Bank in this key role. He
brings considerable experience gained
over a successful and varied banking
career and this will be very beneficial
to the Bank as we continue to grow
our business with new products in new
sectors.
“I would also like to thank Roger
Tidyman, on behalf of the UTB team,
for his contribution to the success of
the Bank to date. Roger has been
instrumental in developing United
Trust Bank ever since he, Harley and I
completed the MBO of the Bank in
2003. Since then he has laid the firm
foundations for our Credit operation
on which Rob can now build. I am also
very happy that although Roger is keen
to spend more time with his family, he
has agreed to continue working with
the Bank so as to mentor some of our
staff and assist in new product
development. As such we will continue
to benefit from Roger’s considerable
knowledge, skills and experience.”
Market information

At United Trust Bank we look closely at a range of different charts,
statistics and predictions to help us understand an ever-changing
economic environment. Included within these are the excellent
market reports from Savills from which our first chart is taken, and
the latest house price data from the Land Registry and Nationwide.
Additionally, gross lending figures from the Council of Mortgage
Lenders provide a clear picture of activity in the mortgage market.
It is by looking at these different statistics and others that enable
us to understand and appreciate the conditions within which our
customers operate.

Savills Residential
Prime Markets Five-year forecast values
Property Focus
These forecasts apply to
Residential Markets, five year average prices in the second
forecast values, 2016-2020. hand market. New build values
may not move at the same rate

Maintaining balance
The relationship
between affordability
and accessibility is
key to the prospects for http://pdf.euro.savills.co.uk/uk/residential-property-focus-uk/residential-property-focus-issue-3.pdf
the housing market?
Residential Property Focus, Issue 2, 2015 “Over the next five years the economic recovery should spread geographically. This is
likely to result in much less London-centric price growth than we have become
accustomed to, even if our crystal ball indicates that it will be tempered by the twin
constraints of mortgage affordability and accessibility.”
Source is Savills Research– Lucian Cook, head of residential research, Savills October 2015
November 2015

Land Registry Slight pickup in house price CML gross mortgage lending
House Price Index growth in October LENDING
YEAR MONTH
Average annual price change (£ms)

2014 September 17,812

October 18,369

November 16,116

December 16,225

2015 January 14,757

February 13,520

• House prices increased by 0.6% March 16,330

in October
April 16,017
• Annual house price growth ticked up May 16,079
The September data for London shows a to 3.9%
monthly increase of 1.8 per cent. At 9.6 June 20,131
Source: Nationwide – November 2015
per cent, the annual change for London July 21,724
is considerably higher than most other
regions. August 19,662

The average price of property in the September est. 20,000

capital is £499,997 in comparison with
the average for England and Wales of Source: CML – October 2015

£186,553.

Source: Land Registry – October 2015

Development finance
with clearer vision

Call us today 020 7190 5555

www.utbank.co.uk