Investment in Real Estate
- Select a blog category
The NHS is transforming how it delivers its services, but one key aspect to enabling this is the need for significant investment in its Estate. According to Sir Robert Naylor’s report last year, the NHS Estate ranges from world class to poorly utilised and not fit for purpose.1 Moreover, Sir Robert estimated that capital requirements could amount to around £10bn. This investment cannot be delivered through public sector funding alone. However, the Chancellor’s announcement in Budget 2018 that there will be no more Private Finance Initiative (PFI)/Private Finance 2 (PF2) Projects, this cuts off a historically well used option for enabling capital investment in the NHS.2 So what next? There are a myriad of potential solutions, and it will require a combination of traditional and innovative approaches to ensure Estates play their part in the transformation of the NHS.
Sadiq Khan has published the final version of his affordable housing and viability supplementary planning guidance (SPG). This was consulted on earlier in the year. The final document has remained very similar to the draft but with a number of subtle differences. It sets out the Mayor’s approach to strategic applications that are referred to him, noting that Local Planning Authorities (LPAs) are encouraged to follow the same approach for all schemes providing 10 or more homes.
A brief introduction to the loan portfolio market today
The international loan portfolio market has seen significant growth and continued innovation in recent years, as lenders bundle up and offload risk from their balance sheets. Large scale portfolio transactions are often key to stabilising the positions of ‘problem’ lenders; as we write, details are emerging on recently rescued Spanish lender Banco Popular’s €30bn non-performing loan portfolio.
Yet again transport investment and real estate value forms a key discussion topic at this year’s MIPIM with representation from all of the major transport investment projects. The projects aren’t new, so what has changed since last year?
I have been reflecting on whether the Government’s latest housing proposals will achieve Sajid Javid’s ambitions for “radical, lasting reform” and create a “new, positive, mindset to house building”.
The Housing White Paper ‘Fixing our broken housing market’, published on 7 February 2017, identifies that compulsory purchase law gives local authorities extensive powers to assemble land for development and that recent and proposed legislation (the Housing & Planning Act 2016 and Neighbourly Planning Bill) is reforming CPO process to make it clearer, fairer and faster. As a result, planning authorities are encouraged to use these powers, particularly in areas of high housing need.
As we enter the second half of this decade of austerity, the UK’s public sector leaders have an opportunity to decide how to innovatively deliver the savings demanded of them whilst also ensuring their services remain relevant in the digital age.
With housing firmly established as a political chess piece, its prominence in yesterday’s joint Spending Review and Autumn Statement comes as no surprise. The Chancellor of the Exchequer announced a £6.9bn housebuilding programme comprising:
Since 2010, we have witnessed a growth of capital from Asia into European real estate. A total of €50bn has been invested over the last five years. In the recently published Deloitte EMEA magazine, REflexions, we examined this trend and identified 7 key, but not exclusive, reasons why we think movements of capital from Asia into European real estate will increase over the medium term and here they are:
The latest edition of our UK Property Handbook has just been sent out, containing the usual wealth of easy-to-digest detail on the domestic market. Here’s a quick look at a few of the top-level themes…