Search results

Adopting a welfare stance, this paper considers whether the neoliberalist approach which has been adopted by successive UK and Scottish governments will achieve optimal societal outcomes or lead to the under provision of senior housing.

Data collection centred on informed multi-stakeholder groups that have significant experience working in the retirement and senior housing sector. Core techniques included desk-based study of secondary academic, consultancy and policy documents. Primary data collection techniques involved primary participation of three Scottish taskforce meetings and interviews with key stakeholders from across the sector.

The paper concludes that without direct government intervention in the market, the welfare ambition to provide adequate housing for an ageing population will not materialise with significant shortfalls in appropriate stock predicted. To prevent this scenario developing, increased public and private sector interaction is essential.

The research follows the growing concern to provide research that has “real world” relevance. The paper conducts a detailed analysis of the Scottish government's housing strategy and reports on the findings of interviewees with key stakeholders. The paper makes recommendations for greater public/private partnerships.

The covenant strength of flexible workspace (FW) providers as tenants is debatable. There is the argument that providers are risky mainly due to the very nature of their business which consists of volatile revenue streams obtained from subletting the space in membership format, paying little attention to covenants. On the other hand, there is also the argument that the presence of a provider can add vibrancy and diversity to a building whilst also offering an additional amenity to existing tenants through overflow space, making FW providers desirable. This paper aims to explore this ambiguity by comparing rents paid by FW providers and other tenants within the same building in London over the period 2011 to 2021.

Using a dataset of 1,042 leases in London over the period of 2011–2021 which was extracted from CoStar, the rent conditions of FW providers and their peers within the same building were analysed employing a hedonic pricing model.

The results of the analysis suggest that FW providers have a negative and statistically significant effect on the effective rent in comparison to other tenants within the same building over the analysed period.

This analysis has the potential to identify how FW providers are perceived in the market and offers both academics and practitioners valuable insights.

The relationship between landlords and FW providers as tenants does not have a major coverage in the literature.

This paper assesses the lending risks associated with the level of total household indebtedness at the local authority level across the UK.

Using GIS-based Exploratory Data Analysis and mapping, the paper identifies local concentrations of household borrowing, both secured and unsecured, which is referenced against regional Gross Added Value.

Significant local differences are revealed which are tracked over the period 2013–2019. Total debt relative to the size of economy is larger in London and local authorities around London. A positive correlation was revealed between areas of multiple deprivation in England and those local authorities with proportionally high unsecured lending, confirming that the less well-off require access to debt facilities and in the absence of availability of secured loans, resort to unsecured borrowing.

Understanding where the additional lending risks are located across the UK is relevant when evaluating the robustness of the economy to recession, with its uneven effects on different sectors and households and the impact of monetary policy changes, particularly sharp rises in interest rates. The mapping of these risks is illuminating and aids understanding.

Homeownership has been the main focus of housing policies in most countries. Typical means that households use to achieve homeownership is to take out a loan and supplement this with accumulated wealth for a downpayment. This paper aims to analyze the mortgage demand behavior of households in the UK, Australia and Japan.

Using three panel data sets, HILDA for Australia, KHPS for Japan and USS for the UK, the paper estimates three equations using ordinary least squares: mortgage demand function, housing demand function and initial loan to value ratio function.

Though homeownership is a preferred tenure and the mortgages are “recourse” loans, housing markets in these three countries operate in different mortgage market institutional structures. Results indicate that income elasticity of mortgage demand differ despite income elasticity of housing demand being similar. Different mortgage institutions in countries that pose constraints for borrowers also determine mortgage demand. Other factors such as demography and economic conditions have also played an important role in determining mortgage and housing demand.

The paper is first, to the authors’ knowledge, that explores the role of institutions in mortgage demand in a comparative framework for the UK, Japan and Australia.

This article aims to understand the housing needs of older people and to ascertain the level of demand and supply of age-related housing in Scotland. It also explores interest in different types of retirement accommodation and tenure options.

A review of existing literature is undertaken on senior housing preferences and residential satisfaction. Primary data is collected from an online survey of people over 55 in Scotland to ascertain demand side requirements with secondary data on current supply obtained from the Elderly Accommodation Counsel and data on future pipeline collated from market reports.

The results from the survey confirm earlier research that seniors when looking for accommodation in their retirement years particularly focus on the local area, access to shops, social relations with neighbours and the design of the home interior. Current analysis of the level of supply at a county level reveals that there is significant undersupply with some particularly striking regional differences. Along with a desire for owner occupation there is interest, particularly among the 75 plus age group, to lease their accommodation, perhaps a consequence of volatile property markets, insufficient pension provision or a desire to pass wealth to their family prior to death. This shortfall in supply highlights development opportunities and raises the possibility of introducing a build-to-rent senior housing offering, which may be of interest to institutional investors.

The Scottish Government is currently reviewing its strategy for Scotland's older people. The results are of practical benefit as they expose the gaps in supply of age-related stock at county level. This may require the government to introduce policy measures to encourage a mix of housing types suited for the ageing demographics of the population. This research highlights opportunities for developers and investors to fill that gap and explains why advancements in technology should be incorporated in the design process.

This paper brings together supply side data of senior housing in Scotland and provides insights into the housing preferences of seniors. It will be of direct value and interest to developers and institutional investors.

Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security that this ownership carries. This often induces dissatisfaction among affected landowners over the: loss of “property rights”; loss of commodity, or property; and loss of future opportunities associated with the property. Though there have been attempts in various land acquisition laws and a practice to compensate acquirees for their loss, the dissatisfaction of acquirees has persisted. The persisting resistance of landowners compels deeper insight into the process of compulsory purchase and the compensation mechanism to understand underlying causes for resistance. The purpose of this paper is to investigate the extent of involvement of these different stakeholders, at various stages in the compulsory purchase process, using stakeholder interaction analysis. Results obtained from this research will be helpful in identifying the gaps in the process of compulsory purchase of land for public projects in Australia.

A survey of ten different stakeholder groups has been conducted to inquire the level of interaction of different stakeholders at various stages of compulsory purchase process. A comparative study was then performed to identify the gaps between the advocated process (suggested in the literature) and the process adopted by stakeholders.

The results illustrate that: affected landowners seek involvement at the initial stage when the project plan is under preparation and compulsory purchase declaration are not finalised; objectors (from the public) seek opportunities to convey, to the public agency, their views even though the accountability of public agencies towards this stakeholder is nil; and strong interactions are established during negotiation over the compensation amount thus signifying the urge of acquirer and acquirees to avoid monetary losses and time delays.

This research will be useful in identification of pain points in the compulsory purchase process for public projects. This shall help in evolution of fairer mechanism of land acquisition.

Recent years have witnessed significant increases in the number of undergraduate students entering UK higher education. This increase is a result of the removal of the sector-wide cap on student numbers in England and Wales, along with a growth in overseas students attracted by the reputation of UK universities and the weakening of the value of Sterling. Adopting a corporate real estate perspective, the aim of this paper is to understand how the UK student residence market is structured and financed, and to identify the motivations that are driving the strategies adopted by the universities, private sector providers and investors in this market. In doing so, this research seeks to test the appropriateness of the Gibler and Lindholm (2012) model of corporate real estate strategy in the UK higher education sector.

Data was gathered from a survey of UK university secretaries, combined with interviews of private sector providers, bank lenders and the analysis of secondary data on investment flows into purpose built residential accommodation (PBSA).

UK university real estate strategy is mainly one of outsourcing student accommodation to reduce costs as well as employing modern purpose-built student housing as a marketing tool and brand enhancer. This strategy is also used as a risk mitigatory tool enabling universities to adjust to changing student demands. Revisions to the Gibler and Lindholm (2012) model are proposed to reflect the reality of the real estate strategy adopted by the universities. Private sector providers view the sector favourably and are set to be the main providers of new supply over the next decade, entering into strong partnerships with the universities. While there is evidence of some oversupply of bed spaces in certain cities, well-located developments are viewed as an attractive lending opportunity. Since 2013 there has been significant growth in institutional investment into UK student accommodation, albeit sentiment is currently tempered by political uncertainty.

The role of PBSA designed to meet modern student requirements is playing a critical role not only in attracting, recruiting and retaining students but also enhancing the overall higher education experience promoting student welfare and well-being.

The corporate real estate strategy adopted by the UK higher education sector is an under researched area. This paper focuses on the strategy surrounding student accommodation provision and reports on the findings of an extensive survey of the key players in this sector. The results are of value to all stakeholders including government and regulators, at a time when higher education is facing substantial challenges. The evidence of a growing partnership between universities and the private sector is viewed as a logical solution, both for the present and the foreseeable future.

In the UK over the last 20 years there has been a proliferation in the statutory provisions for wayleaves. The utilities requiring wayleaves such as the water, gas and electricity companies have now been joined by cable TV and a host of telecommunications providers. All have access to compulsory powers. However, there are variations between these powers and between the compensation arrangements. The main objective of this article is to examine whether the compensation arrangements are now appropriate, following the privatisation of the gas, electricity, water and telecommunication companies. The article considers the results of a six‐month study of wayleaves funded by the RICS, which was completed in 2000, and recommends that, in order to strike a fair balance between the interests of the utilities and the landowners, legislative change is required. Claimants should not merely be entitled to the financial equivalent of their loss, but instead a consideration should be paid reflecting, in effect, a rental for the wayleave.

This paper has two aims: to consider the negotiating strength of landlords and tenants in lease negotiations; and to calculate the level of deposit which is necessary to mitigate income risk.

The paper reviews the existing literature on the negotiation strength between landlords and tenants in different stages of the property cycle; investigates the well established deposit system in South Korea for lessons that might be applied in the UK; estimates the appropriate level of deposit using simulation methodology, given different states of the market; and places the contractual arrangement in a legal framework.

Evidence from the Seoul office market suggests that deposits can be very effective in protecting income return. In the UK during the down phase of the cycle, when supply of space exceeds demand and business conditions are uncertain, tenants are unwilling to pay deposits and landlords are more inclined to offer incentives in a bid to get the property let, even though the down phase is exactly the time when a deposit system is needed most. Landlords should be looking through the cycle and insisting that deposits are paid at the height of the market when their bargaining strength is stronger. The deposit should be sufficient to cover the probability of income loss in the down phase of the cycle. Based on market evidence in 2009, the amount of the deposit should be equal to at least 15 months rent.

The stability of the income return is one of the key features of real estate both as an investment and as security. The use of rental deposits is a practical and straightforward way of hedging the risk. The paper estimates the amount of deposit required and provides guidance on the key heads of terms, which should be included in a deposit agreement.

The estimation of rental deposits has very little coverage in the literature. At a time when income return is under pressure landlords need to be fully aware of the benefits of the deposit system and the key factors that need to be considered when estimating the amount of deposit necessary to offset tenant default risk.

Guidance Note 1 of the Red Book states that the valuation of an operational entity includes four components: the land and buildings; the trade fixtures and fittings; the trading potential, excluding personal goodwill; and the benefit of any transferable licenses and consents. Accounting changes in recent years have increasingly recognised the importance of intangible assets such as intellectual capital and goodwill. Similarly, recent tax changes demonstrate the government's acceptance of the importance of such items in achieving and maintaining business competitiveness. This paper has two key objectives: first, to analyse the application of the Red Book to trade‐related valuations, paying particular attention to the treatment of goodwill and second, to critically evaluate the accounting treatment of goodwill and in particular the application of Financial Reporting Standard 10. In order to understand the workings of the market, the corporate hotel sector was used as a case study. The key findings of the research are that valuers expressed considerable unease with the apportioning of market value between tangible assets and goodwill, there was no consensus on how (or if) goodwill could be measured reliably. Second, that the valuation methods adopted are, to a degree, naïve. While explicit changes are made to the cash‐flow projections, there is insufficient appreciation of the changing risk profile that might lead to an adjustment to the earnings multiplier. The accounting difficulties and inconsistencies concerning goodwill arise largely because of inadequate valuation methods. Recent tax changes also point to the need for a robust and defendable valuation methodology. Application of one such theoretically sound approach to valuing goodwill (the bridge model) is illustrated in this paper. While the research focused on the corporate hotel sector, the findings have wider implications for other sectors of the market where operational entities are valued with regard to their trading potential.