Case Study and SOE - Qs Flashcards
What did you consider during your conflict of interest check?
I have no personal or financial interest in the outcome of the valuation, I confirmed with the client I will undertake the valuation independently and objectively and it is not to be shared with any third parties.
I am not undertaking a duel role - I only have involvement with the valuation and not the development of the property.
What information was included within the deed of appointment?
- It outlined the date of appointment from the previous trustees to MCC.
- Reason - due to retirement of all trustees.
- Indemnifies previous trustees of liability, claims and costs and confirms MCC will be liable
- Signature of all trustees confirming to appointment
- Signature from MCC to authorise
How might no off-road parking impact the future use of the site?
Potentially could impact value as customers and staff may have preference to on site parking. Additionally, disability accessibility to the site and would need to be reviewed.
However, as the site is relevantly central there are multiple car parking sites within 5 minute walking distance. As well as bus routes and the Deansgate tram stop nearby.
How would you define what 2 star accommodation is?
2-star accommodation are usually lower tier buildings that offer a basic functional space.
They do not have additional amenities or high end finishes you would find in higher rated buildings. E.g. less desirable location, less modern finishing’s/HVAC systems, on site parking.
Did you consider zoning the property?
The property was not suitable for zoning as this would be considered as more of a restaurant/café/hospitality use, rather than the sale and display of goods.
What was the footfall like at the Castlefield Centre?
At time of inspection, it was relatively quiet as is was 10am on a weekday. Earlier in the morning (due to commuters) and later in the evening on weekends the area is busy with footfall and cars.
How did you determine 10% for the office yield?
This is based on comparable market data from recent office sales within the Manchester area. The data was obtained from co-star and knight franks yield guides at the time of the report.
How and why does this yield differ from Grade A office?
Within my research prime office yields displayed a yield of between 5.5%-7% - this is because 6% yield is usually displayed in more desirable locations, with stable tenants. While it’s a lower rate of return on investment, they are likely to have lower vacancy rates and are in a better condition so rent is more predictable.
Why is there such a difference between leisure and retail yields?
Retail and hospitality usually benefit from higher foot traffic/custom to leisure.
As leisure has a perceived higher risk due to being susceptible to fluctuation.
Did you consider the opinions of the local residents?
Not at this point as the plans for the property are yet to be decided, however, with this being a previous charitable trust for Castlefield, it is likely that community consultation process will take place prior to any changes or development.
What is included in Local government act 1972 (Section 123)?
- General Power to Dispose: Local authorities have the power to dispose of land in any manner they wish, including selling, leasing, or exchanging it.
- Best Consideration: Disposals must generally be for the best consideration reasonably obtainable, ensuring that the local authority gets a fair market value for the land.
- Exceptions: There are exceptions where land can be disposed of at less than best consideration, but this typically requires the consent of the Secretary of State.
- Public Open Space: If the land is public open space, the local authority must advertise the proposed disposal and consider any objections from the public before proceeding
Why is generating revenue preferred?
As this ensures income over a period of time / into the future and still allows MCC to retain an interest in the property.
What is the typical specification of Grade A office space and how does this differ to your property?
- Modern, high specification construction and finishings.
- Often designed with sustainability in mind
- On site amenities e.g. cafes, gyms, conference spaces
- Adaptable floor plans for various tenants
- High standard of professional management for maintenance and services
What is a conservation area?
A conservation area almost always applies to an area of special architectural or historic interest, the character of which is considered worthy of preservation or enhancement.
How did you apply two of these rules of conduct to your case study?
I believe I applied rules 2 and 3 to my case study - Upon receiving the instruction, I ensured I was competent to carry out the work - as this would be comparable method of valuation this falls within my expertise as this is work I carry out regularly in my role under the supervision of registered valuer.
Prior to undertaking the valuation, I met with the client to discuss the scope of work to clarify the work required and issued a briefing note outlining case to ensure I was providing good-quality service.
Describe to me what is included within the appendix of the RICS rules of conduct?
The appendix sets out the professional obligations that are mandatory for all RICS members and RICS regulated firms.
E.g. Members must comply with CPD requirements and cooperate with RICS. And you must promptly provide all information reasonably requested by the regulation board.
Firms: must publish a complaints handling procedure, must be covered by appropriate professional indemnity cover.
Describe to me the main professional obligations firms must adhere to?
MUST - publish a complaints handling procedure (including Alternative Dispute resolution provided approved by RICS and maintain a complaints log)
MUST - ensure all professional work is covered by appropriate professional indemnity insurance.
MUST - ensure that arrangements are made for the professional work to continue in the event of incapacity, absence, death or inability to work,
Describe to me how you would register a firm with the RICS?
- Contact the RICS for guidance and obtain a company start up pack
- Inform the RICS and register for regulation
- Appoint a contact officer for all RICS communication
- Prepare a complaints handling procedure
- Obtain Professional indemnity insurance
- Follow the rules of conduct for firms
- Include ‘regulated by RICS on all practice material
Describe to me the PII cover required by firms?
Minimum Cover based on Turnover of the firm:
£100k or less = £250k cover
£100k-£200k = £500k
£200k or more = £1m
To provide financial cover in the vent a client suffers a loss as a result of breach of professional duty (e.g. neglect, errors or omissions) - including past and present employees.
When might it be acceptable to take a gift?
Dependant on the companies policies, it is acceptable when the gift is proportionate to work undertaken - The gift must not of high value and it is apparent there is no alternative intent.
How much cash can you hold?
I don’t believe a set limit is outlined but firms must ensure that all client money is properly accounted for and safeguarded. Client money should be logged in a cash book.
How should you keep clients money safely?
All client money must be held in designated client account, separate from the firms money.
The account must be clearly identifiable with ‘client’ in the account name.
The accounting systems and data must be secure and client ledgers must be maintained.
Describe one of your KPIs to me?
For example with Landlord consent cases such as assignments, sublettings, alterations - once payment of professional fees has been made, or an undertaking received. The transaction must be reported to legal within 14 days.
Can you summarise the RICS Complaint Handling 1st Edition document?
It outlines:
1. The value of terms of engagement in reducing complaints
2. An effective CHP (Published, Complaint log, Training, Timely, ADR)
3. Requirements of Professional indemnity Insurance
4. Why clients may complain
5. Actions and responses
6. RICS help sheets and guidance
What is Jacobs / MCC complaints handling procedure?
- initial informal stage - the employee dealing with the case will do their best to resolve any issues. Will progress to a formal complaint if still unhappy with the result.
- Formal Stage One - complaint will be referred to a senior member of the team. If not happy it would be moved to stage two.
- Stage two - the complaint is referred to (Jacobs = HR / MCC = Manchester Feedback Complaints Team), independent of the department. They will investigate and respond.
Describe to me what is included within terms of engagement?
- Identifying Parties - firm, client, valuer etc.
- Identifying the asset / property
- Define scope of services being provided
- Dates work undertaken / Valuation dates
- Fees and Charges
- Any assumptions and limitations
- CPH
- Confidentiality and Distribution
Describe a presentation you have given to a client?
At Jacobs I assisted with the management of the National Highways property portfolio. When Handing back the accounts prior to transfer, I gave a presentation on the process of managing the rent roll and a live run through of the system in place used to oversee the accounts.
Describe to me the purpose of the health and safety at work act and your responsibility in this regard?
The purpose of the act is to ensure the health, safety and welfare of employees at work. It is in place to protect the public from risks and establish safety regulations.
It is my responsibility to ensure I take reasonable steps to care for my own health and safety and not put myself at risk by co-operating with employers guidelines and not misuse anything provided for h&s or welfare.
Describe to me what PPE you might take with you to a building site?
- Hard Hat
- High-vis vest
- Steel toe cap boots
- Depending on the site, may require safety goggles, mask, gloves
What is included in your risk assessment?
- Date, time, locations, staff attending.
- How I will be travelling to and from site - outlining any risks involved with this.
- Highlighting potential risks on site - general hazards, slips/trips, sharps sick or an accident. What measures should be taken prior or if they arise
- Weather conditions
- Point of contact to inform when arrived/leaving site
Describe to me the key differences between a profit and loss statement and a balance sheet?
Profit and Loss Account demonstrates the companies sales, costs and profits/loss over a set financial period (usually a year).
Balance Sheet shows the value of everything the company owns - all its assets and liabilities (inc. loans and stocks) at any given point in time.
What is the purpose of a cash flow statement?
Cash Flow Statement summarises the amount of cash or cash equivalents entering or leaving a company or project
Describe to me the role of an auditor.
An auditor will review and verify financial reporting, internal controls and risk management systems.
They ensure accuracy and compliance to standards and regulations in place and evaluate the effectiveness to help identify any errors, fraud or improvements that can be made.
They help maintain transparency, trust and accountability within organisation.
Describe to me the council’s key strategies.
- Economic growth - fostering jobs and attracting businesses/visitors
- Developing Housing and Infrastructure - to support the growing population
- Sustainability and working towards zero-carbon future
- Community safety
Describe to me the differences between an arbitrator and an independent expert.
An arbitrator is a neutral third party who listens to both parties sides of the dispute and makes a legally binding decision.
An independent expert is appointed to provide a determination based on their expertise in specific field. Can be binding or advisory dependent on the terms agreed by the parties.
Describe to me how PACT works.
- Both parties - Landlord and Tenant must agree to use PACT - this allows and independent third party to agree lease terms.
- An RICS appointed third party either a surveyor or solicitor is to act as an arbitrator or independent expert.
- They review the case and make a decision on the lease terms.
- The decision is then made by the third party and is legally binding on both parties.
Describe to me different types of work place conflicts you might need to be aware of when accepting an instruction.
Conflicts between parties - acting on two or more professional assignments with the same transaction.
Own interest conflicts - having a personal interest or relationship could influence professional judgement - e.g. valuing a property for a client and having a personal interest in the outcome
Describe to me the purpose of the Data Protection Act 2018.
- UK legislation in line with GDPR.
- It protects personal data and ensures that the data is used fairly, lawfully and transparently.
- It provides greater control over your personal data and includes rights to access, amend or remove.
- Sets out regulations on how data can be collected and stored and provides provisions for sensitive data.
Describe to me the amount of time you can keep data for.
No specific time limit and it is dependent on the type of data. But it should usually be retained only as long as it is needed to fulfil the purpose of which it was collected.
However, firms may need to respond to claims made against them so retention policies may be in place for this - usually in line with PII run over period.
* 6 years from when the service was provided
* 6 years from when loss was suffered,
* or up to 12-15 years dependant on the type of instruction or claim or if the claimant did not know a loss was suffered.
Describe an unconscious bias to me.
Automatic attitude or stereotype that affect our actions/decisions/behaviours without us being aware of them.
e.g. affinity bias - preferring people who are similar to ourselves
Gender bias - assumptions of abilities and interests based on gender
Halo/Horns effect - allowing one positive or negative trait influence overall perception
Describe to me some features that might be implemented to comply with the Equality Act?
Accessible facilities - ramps, lifts, accessible bathrooms, clear signage, designated parking, adjustable desks
Give me an example of an inclusive environment.
- Physical accessibility - disability access, prayer rooms, baby changing / feeding facilities.
- Inclusive programs / support groups
- Workplace that offers training
Describe to me the purpose of BREEAM/SKA.
Both are environmental assessment methods but have different focuses.
BREEAM = Global certification that assesses sustainability of the entire building from design to construction and operation. Aims to reduce negative effects of construction and promote sustainable practices.
SKA = Retail / Office / University fit-outs and focuses on its environmental performance. Aims to encourage continuous improvements and helps organisation reduce environmental impact and reach sustainability goals.
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
Describe to me what was included in your carbon action plan.
Within work: Prioritise the use of public transport (or walking if possible) rather than taxis or cars for site visits.
Individual: eat more seasonally / locally sourced fruit and veg
Describe to me some sustainable construction materials you might see.
Green Roofs, solar panel integrated into window panes (photovoltaic windows), rainwater harvesting systems, modular construction
Materials used in construction: cellulose insulation (newspaper), recycled steel, bamboo flooring
Describe to me how you might identify different types of dampness
- Rising damp - patches / tide marks on lower walls with peeling paint or external salt deposits.
- Water ingress - damp patches on walls, ceilings, mold growth (due to leaks)
- Condensation - water droplets/steamed up windows due to high humidity and poor ventilation
Describe to me how you would identify heave/subsidence.
- Diagonal or vertical cracks to walls and brick work
- Lifting of paths/pavement surrounding the property
- Sticking windows and doors
Describe to me how you might identify asbestos.
- Visual inspection in common locations such as floor tiles, ceilings, roof materials - look for materials that appear fibrous.
- however, it is difficult to identify just by visual inspection - if suspected, investigations would have to be carried out by specialists to identify its presence / send for testing if required.
Describe to me environmental factors you have identified on site.
Identified stains along external wall where water had been leaking from a gutter - identifiable on a dry day but may not have been noticeable if was damp/raising
Describe to me different scales of plans that you are aware of and when you might use them.
1:2500 site location plans - location of site in relation to its surroundings/roads/buildings
1:1250 site plans - provide a view of entire site including boundaries
1:100 floor plans - show layout of individual floors
How does a laser disto work?
By measuring the time it takes for the laser emitted to reach and return to the device from the target
How do ensure a disto is measuring accurately.
- Regular calibration - could test and compare against a tape measure, or send off for calibration.
- Keep the device steady when using and aim at flat solid surface
Describe to me what purpose you used a trundle wheel for.
It was a demonstration with one of the land surveyors, measuring outdoor, large, flat surface area - communal green space
Describe to me how you would have measured differently if NIA (instead of IPMS 3)?
NIA focuses strictly of usable space - internal walls and columns would have been excluded.
I would have also measured to an internal finished surface rather than the window glazing/IDF
How would you have measured differently if you had been instructed to measure using IPMS2 Office (instead of IPMS3).
I would have included areas for exclusive use and common areas such as reception areas, corridors and bathrooms.
Describe to me the different purposes you might use IPMS Office 1 - 2 - 3 for.
IPMS 1 - total area of the building on a floor by floor basis (internal and external areas), mostly used for building planning and development.
IPMS 2 - internal floor area including common areas, mostly used for space planning and management.
IPMS 3 - usable floor area for exclusive use, mostly used for valuation and marketing
Describe to me the depths you applied when zoning the property
I applied a depth of 6.1m (20ft)
Describe to me when you might use a DRC.
For specialised properties where they are rarely sold on the open market.
e.g. schools, hospitals, art galleries.
Talk me through how you would value using the profits method.
Gather the most recent trading data to calculate the gross turnover.
Deduct operating costs to get the net operating profit.
And capitalise at an appropriate rate.
What are the new updated to the Red Book 2025?
New update applies to valuations dated after 31st Jan 2025.
The VPS section has been re-arranged:
VPS Part 4 (Valuation and technical performance standards) have been re-arranged.
VPS 5 ‘Valuation Models’ has been added
VPGA Part 5 (Valuation Practice Guidance Applications) have been re-titled.
VPGA 11 ‘Relationship with auditors’ added
The has been changes and re-wording of the document but the meaning still remains the same.
Describe to me some of the contents of the red book.
Professional Standards
PS 1 = Compliance with standards where a written valuation is provided
PS 2 = Ethics, competency, objectivity and disclosures
Valuation technical performance standards
VPS 1 = Terms of engagement
VPS 2 = Bases of value, assumptions and special assumptions
VPS 3 = Valuation approaches and methods
VPS 4 = Inspections, investigations and records
VPS 6 = Valuation reports
Valuation practice guidance applications
VPGA 1 = Valuations for financial reporting
VPGA 2 = Valuations for secured lending
VPGA 9 = Valuing property portfolios and group assets
What percentages did you use for professional fees / contingency in your valuation for 798 Ashton New Road?
In my experience, professionals fees are set at around 10% of construction costs and Contingency at 5% of construction costs.
How did you account for borrowing?
Included a figure for finance at 7-8.5% on half costs for the duration of 12 months.
What sensitivity analysis did you complete for this instruction?
I carried out a sensitivity analysis on fluctuating build costs to present its impact on the final land value and profits.
Describe to me how you determine what adjustments you should make to comparable evidence?
Dependant on the characteristics, location and condition of the subject - I will make adjustments to the comparable evidence to bring the value in line with what is presented at the subject.
For example if the subject was in better condition, I would adjust the comparable figure with a percentage increase - or if the subject was worse make a percentage deduction to figure.
Talk me through how you zoned this unit?
I calculated the initial frontage by a depth of 6.1 - then then halved back for each remaining zone.
Describe to me the penalties if there were a data breach.
Firms must comply with GDPR, in which you can be fined data breaches.
The Information Commissioner’s Office (ICO) can issue penalties of up to £17.5 million or 4% of global turnover, whichever is higher, for serious data breaches.
What does GDPR stand for?
General Data Protection Regulations
Can you advise as to why you advised on a new electronic filing system alternative to the one in place?
This system I advised on aligned with the MCC internal CPAD system, as this in-house software is used to keep track of case work and is where the case serial numbers are generated.
Describe to me the differences between a lease and a licence.
Lease = exclusive possession for a fixed term that grants the tenant a legal interest in the property.
Licence = grants permission to use the property for a specific purpose but does not grant exclusive possession, these are usually for short flexible periods and do not create a legal interest in the property and are more easily revoked.
Talk me through a lease that you have completed outside the act.
How does this differ to a lease inside the act?
I completed a lease that was outside of the act at 41 southchurch parade - this was a 2 year lease to a charity and we agreed terms outside of the act due to the unit being based within a re-development area so as landlord we required the flexibility to break the lease at any given point with one months notice and regain possession more easily.
Whereas with a lease inside the act, the tenant has security of tenure and has the right to renew at the end of the term and the landlord must have valid grounds to regain posession. Additionally there is a more regulated renewal process for terminating/renewing a lease inside the act.
E.g. S25 notice served by the landlord
S26 served by the tenant
What is the purpose of S24 - 28
To provide security of tenure to business tenancies
What were the alteration and changes at Elizabeth House?
Alterations: Internal - installation of dividing walls with windows to create new office spaces and openings, installation of a trade counter and fit our of the show room. External - Installation of roller shutters on the windows and a new roller shutters for the collection point.
Change of use: Previously warehouse and showroom with ancillary offices - for the sole use for trade and distributions of electronic fancy goods.
Wanted to lift the restriction on the sole use, to just allow for Storage and distribution within B8 with ancillary offices, show room and trade counter.
Was there a change in the use class order at Elizabeth House?
Not necessarily as this was a similar use but just modernised the term to include the use class as per Town and Country planning use classes 1987 and removed the restriction.
At Southchurch Parade, What if any considerations did you make with the lease being to a charity?
The lease was granted on a peppercorn rent, surveyors feed were reduced and the legal fees agreed to be covered by the MCC work and skills team. As the charity is not for profit we opted to reduce the costs as must as reasonable possible.
What is included in a TAW?
- Occupancy dates / terms
- Termination agreement
- Rent
- User
- Maintenance and repairs
- Insurance
- Utility and services
Describe to me the process - know all four and when to use which method as being the most appropriate.
Formal Tender:
Invitation to tender - invite bidders to submit sealed bids by a deadline
Sealed bids are submitted and then opened simultaneously
The seller then reviews all bids and selects the most favourable
Used: often for high profile / high value properties to ensure best possible price.
Informal Tender:
Property is marketed with a guide price and potential buyers submit offers by a deadline
Offers are submitted in writing
The seller can then enter into negotiations with the bidders off the back of the offer
Used: often to bring a private treaty sale to a close by requesting best and final offers.
Private Treaty
Property is marketed and seller negotiates directly with potential buyers
Once agreed a suitable offer, terms are agreed and contract made.
Used: most common method of sale - mostly residential.
Auction
Property marketed and auction date set
Potential buyers bid against one another (in person or online)
Highest bid at the end of the auction wins and sale is usually completed quickly.
Used: mostly for unique properties or those in disrepair or if seller want to complete quickly.
Describe the mandatory standards within RICS Professional Statement UK Commercial Real Estate Agency to me.
- Must comply with the RICS Rules of Conduct (client care, conflicts of interest, bribes).
- Must not discriminate unfairly against any party (in the terms or refusing to sell/lease)
- Must comply with legal and regulatory requirements (Money laundering regulations, Unfair contract terms act, Estate agents act)
- If a property has not been inspected you must state this on correspondences and make applicants aware
- Must supply one or more free EPCs / Must request one before the property is marketed and stated in the marketing
- Statements of price or rent must be correct at the time the information is given
- Must not engage in misleading actions or omissions when dealing with consumers or advertising
- Must check the identity of the tenants
- Contracts must be signed by landlord or counterparts and all tenants/guarantors
What would you have done if they hadn’t agreed to accept the price you proposed for 7 Grangemill Walk?
I would have reviewed the comparable evidence and if an increase was suitable referred this back to the client to confirm if we should enter negotiations to potentially offer a higher value.
If the property was not suitable for an increase the this would be referred back to the client to confirm upon their approval we are not proceeding with the sale.
Did you consider demolition and new build as an option for the LAHF Old Vicarage?
This was discussed with the client as a potential option, however, due to the time restraints set on having to acquire the properties within - demolition/clearing the site and developing the properties within this time would not be possible.
Describe to me the professional standards set out in Property Agency and Management Principles.
- Must adhere to the rules of conduct
- Must ensure familiar with: Countering bribery and corruption, money laundering, terrorist financing, Conflicts of interest and conflict of interest UK commercial property.
- Must communicate accurately when working with clients - on fees, terms, commissions, rent
Anything the departs from this must be in writing with the reason and provided to the client - Members must manage their business and staff effectively - be ethical transparent, take reasonable steps in protecting client money
- Must protect confidential information, ensure staff are trained and keep clear full records
- Must have health and safety process in place
Can you highlight some of the guidance that you adhere to within ‘Service Charges in Commercial Property’ ?
In my experience with service charge, I made sure all the costs are set out so it is clear and transparent of what is included with the charge for all parties.
The service charge was apportioned fairly and management fee set at fixed amount.
What were the repairing and insurance terms of these units at Roundthorn?
Internal Repairs and insurance to the unit - the landlord was responsible for the up keep for the externals.
There were units on full repair and insurance terms, in which I made contact with the tenants to request they resolve the issue.
What did you identify these large shrubs as at Roundthorn?
Overgrown, standard box hedges/shrubs
What is the purpose of a sinking fund.
It is to set aside money for the replacements of assets/major items - heating/air-con, lifts, communal lighting, roofs.
It is set aside so it is available for significant repairs and spreads the costs fairly, over time for the owners/tenants.
What other approaches could you have taken to apportion the service charge for 70 Oxford Street?
Looked into weighted apportionment as the ground floor is proposed to have 2 retail units, which could potentially require more waste management than the other occupiers dependant on the business (food/café).
However, due to the size of the units it was decided that this would most likely be takeaway only and that apportionment by floor area would be the most fair approach.
Highlight some points made in RICS Professional Standard Financial Viability in Planning: Conduct and Reporting (2019).
Sets out mandatory requirements for conducting and reporting financial viability assessments in the planning context.
- Objectivity and Impartiality: Practitioners must ensure assessments are objective, impartial, and reasonable.
- Conflict of Interest: Practitioners must confirm the absence of conflicts of interest.
- Transparency: Information used in assessments must be transparent and justifiable.
- No Contingent Fees: Practitioners must not accept contingent fees that could influence the outcome (not accept a payment dependent on the result supporting an application).
- Benchmark Land Value: Clear evidence must support the benchmark land value used in assessments.
- Sensitivity Analysis: All reports must include sensitivity analysis to account for uncertainties.
- Non-Technical Summaries: Reports should include non-technical summaries for clarity.
- Sign-Off: Reports must be signed off by the author(s) to ensure accountability
Highlight some points made in RICS Professional Standard Valuation of Development Property (2019)
- Sets out the structure of reporting: Instruction/Client, Investigations/research, data handling and reporting the market value
- Valuation Process: The standard outlines a structured approach to the valuation process, including the basis of valuation (MV), the valuation approach (comparison or residual), and the necessary assumptions and special considerations (agree with client in advance, any risks assessed at date of valuation, all contracts and planning agreed)
- Market Analysis: It emphasizes the importance of market analysis and understanding the local property market conditions to provide accurate valuations
- Risk and Uncertainty: The standard highlights the need to consider risk and uncertainty in development valuations, including sensitivity analysis to account for potential variations in key assumptions
- Compliance with IVS: The guidance aligns with the International Valuation Standards
Appendix, site specific issues / inspection, formulas for Residual / DCF, standard assumptions (good title, compliance with covenants, not undertake site/grounds investigation, assume existing buildings vacant)
What other costs did you take into account for your appraisal of the former Apollo pub site
Legal / Professional fees, contingency at 5%, financing at 7% over 12 months, demolition, marketing 1%
Describe to me some of your observations from conducting sensitivity analysis on this scheme for the former Apollo Pub
Fluctuating build costs impact the overall land value - if costs rise say by 5% psm this reduced the land value by approx. £200k
How are rising build costs impacting schemes?
Rising build costs increase the project costs which can lead to a decrease in the land value, over-running budgets for developers, and lower profit margins.
In turn this delays development schemes and slows down things like housing supply and increasing the prices for buyers.
