By Jeremy Blackburn, RICS UK Head of Policy

Last week RICS attended EcoBuild held at the Excel Centre, London.  RICS was a lead supporter of Ecobuild 2012 alongside BRE, CIOB, RIBA, and UK-Green Building Council.  Read about all RICS' activity at EcoBuild 2012. 

I stood gazing around me with Jerry Percy MRICS, the RICS South East chairman, at the vast extent of EcoBuild. Its amazing when you consider that the event started as a much smaller entity, hay bales much in evidence, and back then ‘sustainable’ or ‘green’ would have been considered anything but mainstream. Now this is mainstream business, not a preserve of the few, but reality of where the market has moved and will move further before the end of this Parliament. Now everything seems linked to carbon, whether it’s measured, embodied or emitted.

Ecobuild is the world’s biggest event for sustainable design, construction and the built environment and the UK’s largest construction event of any kind. In addition to being lead sponsor, this year RICS sponsored the ‘Buildings in use’ seminar stream. That enabled us to field speakers and influence seminar programme. Most importantly we launched the exposure draft of our information paper on how to measure Embodied Carbon – an action of ours from BIS’s low carbon construction action plan!

Our theme for the event was “The business case for sustainable buildings”. It’s a dawning realisation that as always it will be a mixture, of government, market and best practice that will drive change. Sustainability in the built environment is high on the government agenda. Paul Morrell’s ‘Low Carbon Construction IGT’ report outlines the government’s twin objective of ‘less carbon, lower cost’, driving 20% savings across public sector procurement and requiring the construction industry to reduce its carbon emissions to enable the UK to meet the Climate Change Act 2008 commitment of reducing emissions 26% by 2020 and by no less that 80% by 2050.

Although sustainability in the built environment is clearly a hot topic for both government and industry (and certainly in the coffee shops at Eco-Build), this hasn’t, as of yet, filtered down into ground level delivery. With the core skills of RICS’ members being around both measurement and valuation, RICS is ideally placed to measure and count the cost of carbon pre-build, advise on best practice for energy performance retrofit projects and provide guidance on how sustainability can affect the current and future value of property, thus driving demand.

Our own discussions looked at drivers for improving energy efficiency from a fiscal and business perspective for commercial property through our ‘Buildings in use’ seminar programme. We considered sustainable retrofit of the UK existing commercial building stock through the Ska rating accreditation. Low carbon retrofit of the UK housing stock and how surveyors can take up the opportunities that the Green Deal provides – will this offer a lifeline to our construction SMEs across England?

Perhaps most crucially we explored the links between valuation and sustainability. RICS launched the research ‘Supply, Demand and the Value of Green Buildings’.  Where government regulates there is always the potential to add cost and lower the uptake of best practice; where government can point to the market valuing sustainable buildings (whether because of using less water, producing its own energy through renewables, or having flood defences), then change will happen because it functions commercially and leaders in the market place will champion best practice.

With so much to deliver on (eg Green Deal) between now and March 2013, as well as continuing austerity in public spending and various predictions about the national economy, it remains to be seen if the next Eco-Build will be as positive. What we can say over the next twelve months, is that government as a client will be procuring less, procuring it in a low carbon and standardised format, and looking to allow regional SMEs to access those contracts. Green building strategy needs to start turning into green shoots of recovery (not to mention green jobs) across England, and soon.

By Richard Moxon, Chair RICS UK World Regional Board

End of the final day for RICS at MIPIM.  5.30pm Thursday evening and my last formal appointment is finished.  My time has been action packed and it seemed to fly by.  Final night is awards night then Team RICS all head home.

I’ve finally had an opportunity to look round the exhibition and the range of companies, developers, local authorities amongst many more that are here.  It is fantastic and shows there are still levels of activity still taking place even against the current economic difficulties.

A highlight today was the presentation of eminent membership to three new Russian members highlighting the growth of the RICS into the BRIC’s countries. Fascinating to hear that Russian real estate market is only 20 years old and so vast.  There are huge opportunities for RICS.

So what of MIPIM overall?

Generally I think it’s quieter than last year, fewer attendees and not quite the buzz of last year. That said we’ve been able to meet senior members of the profession and others, holding detailed discussions and meetings.  We have examined what we can do to help current members, what we need to do to encourage growth in new members and learnt how RICS can assist in a range of areas to maintain it’s relevance now and in the future.

There is a huge amount of enthusiasm for RICS which is greatly encouraging and we are embedded within many firms and companies who still regarded RICS as the pre-eminent professional body around the world in land, property and construction.  Long may that continue.  Now the hard work begins in turning all the information gathered here at MIPIM into tangible results and actions.

All the RICS staff and members who have been here I can assure you have work very hard and tirelessly to help promote our professional body. I wish to say a hearty well done to one and all for a job well done.

Now off to rest sore ankles, knees and back from standing up for 3 days but have to leave you all with one final business tip of the day:

Keep the faith - using your professionalism and standards and there will be an upturn.  When I don’t know but from what I have seen and heard it will come.

By Richard Moxon, Chair RICS UK World Regional Board

Day two at MIPIM.

Having survived a good and productive first day of meetings I was straight in at 9am with a major contractor.  Our discussions related to aligning training across the construction profession and the implications of the introduction of BIM.

A major residential player was up next.  This was another very pro RICS organisation.  The discussion reflected the feeling of the majority of the conversations I have had while here at MIPIM and I find it really encouraging. Bringing our standards to the residential market place is a very “big ask” but can also be a big differentiator for firms in that sector.

Agency is a domain where many chartered surveyors, especially SME’s, have been transformed into a brokerage service – we can and must make a difference here for our members involved in this sector.

First thing this afternoon I met with English Heritage.  What terrific work they do and a dedicated group of surveyors working on our behalf on some outstanding buildings. We need to update our involvement and work in this sector, working towards a revised version of Heritage Works is essential for developers and development surveyors.

Meetings ended early today as we prepare for the major event of the session.  RICS is hosting a large number of key players at our reception tonight.  It is a chance to chat with the key players more informally and a chance to bend some ears and get our ears bent on the issues of the day.

Business tip of the day: BIM is the coming revolution in development and it is not going away.  Embrace or die is the message from the sector.    

Check back tomorrow for updates on today’s events.

By Richard Moxon, Chair RICS UK World Regional Board

Arrived for my first day of MIPIM 2012 and went straight from the airport to the hotel and then on to the main exhibition centre in Cannes.  First appointment of the day was with the director of a major construction company to discuss how RICS can assist them with training needs and how they see the development of the profession in the next few years. A very good start.

From this meeting it was off to the London Borough of Newham stand, the host of RICS, and the launch of the special edition of Modus to celebrate the role of chartered surveyors in the Olympics.  Sir Edward Lister, Deputy Mayor of London and Ralph Luck OBE, Director of Property for the Olympic Delivery Authority, enthralled the gathering with a glowing testimony to the role chartered surveyors have played in the planning, building and development of the site in Newham. 

Chartered surveyors have been involved in delivering the project on time and to budget together with securing the legacy and regeneration aims following the conclusion of the games.  See the video we played demonstrating these achievements. 

Both speakers reiterated the key role played by RICS members in London 2012.  Sir Edward and Ralph also observed that many of those members are now using their expertise to assist future host cities.  London 2012 is seen as “the right way” to plan & deliver “The Games”.

The day concludes with the official opening party and a dinner with a major housing group.

Business tip of the day – Infrastructure is the way forward. 

Check back tomorrow morning to read about today’s events.

By Tim Wainwright, Parliamentary Affairs Officer

Mike Newey FRICS, RICS Vice President opened the 2012 RICS Housing Conference held on Thursday 19^th January and introduced the keynote speaker Jack Dromey MP, Shadow Housing Minister.  Mr Newey said RICS, in the public interest, has a role to agree, challenge and partner with parliamentarians to develop policy which has a real impact on the housing market.  RICS looks forward to informing the work of the Labour Party who continue to welcome expert advice from RICS members.  RICS held a productive roundtable discussion with Dromey’s predecessor Alison Seabeck MP at the Labour Party Conference last October.  In advance of Dromey’s speech Mr Newey had taken a look at his tweets.  Twitter is quickly becoming a good gauge of a politician’s key focus!  (Parphrased) Tweet 1: Let’s build Britain out of recession.  Tweet 2: Collapse of housing not due to old people not downsizing but lack of housing.  This was a reasonable prediction of what was to come.

Dromey opened stating that decent homes for everyone is a basis of the Labour Party.  Central to his speech was that he felt that housing hasn’t been a high enough priority for more than 25 years through both Labour and Conservative administrations.  He was looking forward to working with RICS, feeling there was a need to be optimistic despite the current problems, and hoped a partnership could be formed to move housing up the agenda.  He paid tribute to RICS’ contribution to land, property and construction. 

Dromey highlighted the current crisis has seen a decrease in housing starts and growing gap between need and the number of homes built.  Currently first time buyers are unable to access homes, access mortgage finance and are forced to confront soaring rents in the PRS.  There is a general consensus that there needs to be 240,000 new homes built each year however demand, equivalent to the size of Birmingham, is set to outstrip supply by 2015.  The gap on home supply and demand could potentially reach 750,000.

As we have often heard the Labour Party believes that the current policy of cuts by the coalition government is too far and too fast and is choking the economy.  Whilst welcoming some aspects of the Housing Strategy, Dromey did not welcome the overall direction of travel from DCLG and sees the strategy as over ambitious.  He pointed towards an Inside Housing study into the ineffectiveness of the New Homes Bonus (NHB).   Dromey felt the strategy is a one Parliament policy because DCLG didn’t make the case for long term housing need during the spending review period.  Furthermore he felt there is currently a lazy housing consensus from government. 

In contrast the Labour Party plan is to place housing further up the agenda not just in Parliament but amongst wider society.  Labour is to put housing in its wider context and form coalitions of interest to make the case for better housing.  They will link housing and its effects to education, crime, health and the broader economy.  On the wider economy, Dromey highlighted the statistic that for every £1 spent in the construction industry it creates a wealth to the economy of around £3.50 and would be a huge boost to the growth agenda.  On health, he discussed the evidence that poorly insulated houses result in more cases of flu and hypothermia with overcrowding spreading disease.  On educational attainment, Jack posed the question where does a child do their homework when they are forced to share a room and their parents use the lounge as a bedroom?

The Labour Party is set to create a national movement on the housing crisis through a coalition of actors.  In a few weeks time the Labour Party are set to release research into the multiplier effect of £1 billion worth of public investment and the benefits it would give to the housing market and the construction sector.  Labour is continuing to call for a temporary reduction in VAT of refurbishment to 5% plans to kick start the economy and something RICS supports.  RICS will work with Dromey to examine the opportunities for long term capital investment in homes. 

In conclusion the current direction of travel is wrong.  Labour has a two stage process; 2012-2013: developing dynamic partnerships, working with industry and local authorities and looking at innovations for new build and the PRS; 2014-2015: shaping policy for a Labour government in 2015.  Above all the Labour Party is going to put housing centre stage.  RICS will be there to provide independent advice to aid their policy development. 

By Tim Wainwright, RICS Parliamentary Affairs Officer

RICS continues to build its engagement with Parliamentary Private Secretaries, who are the eyes and ears of Ministers, both among backbenchers in the House of Commons and amongst the public at large.  This time RICS attended an intimate discussion with five Conservative PPS’s.  Those at the table included Nick Boles MP (PPS to Minister of State for Schools); Nicky Morgan MP (PPS to Minister of State for Universities and Science); David Rutley MP (PPS to Minister for Immigration); Andrew Selous MP (PPS to Secretary of State for Work and Pensions) and Ben Wallace MP (PPS to Justice Secretary).  Given the diverse set of ministerial departments present, topics were wide and varying.  For the audience however, a group of business and industry representatives, high on the agenda was the Government’s plans for growth. 

Focusing on SMEs it was felt that there are great opportunities abroad, especially in China and it is time for the Government to do more for SMEs through organisations such as UKTI.  The panel were fully behind the Government’s plan for infrastructure and that they really shouldn’t hold back from driving the policy forward.  Infrastructure investment will create huge numbers of opportunities for business and spin off opportunities for new start-ups.  Concerns were raised from the floor that infrastructure is a long terms solution and what policies are there for the short to medium term?  Again the panel felt that it was about the international picture and that businesses need to look abroad.  Speakers felt the red tape challenge and the removal of out dated regulations were in fact short term measures as they could happen now, without delay but free up the ability for businesses to grow and expand.   The panel believe that the Government is right to be looking long term as these are the policies for a sustainable future for UK PLC.

On the forthcoming budget on the 24^th March 2012, it was felt that there would be nothing particularly new.  Further announcements on investments in infrastructure could be a possibility.  The Chancellor may look to a one off, specific surge in spending or a one-off tax cut.  However, both would have to be repaid at a later date and would be likely to damage confidence in the deficit reduction plans.  Pension fund investment in infrastructure was an important consideration for Mr Osborne. 

The panel of PPS’s called on two things from the assembled business community.  The first was an increased pressure for deregulation and ideas for the red tape challenge.  Deregulation is possible however pressure from business is required.  Deregulation costs nothing and is a short term plan, can significantly influence growth in different sectors, yet MPs are not feeling the pressure nor the demand from businesses.  Secondly, MPs and PPS’s wanted honesty from businesses.  There is no point saying a company is moving its manufacturing from one country to another and say it had nothing to do with current government policy.  If there were genuine reasons why the business was moving that could be mitigated by changes in government policy then be honest and open.  Tell government, why businesses are investing, moving or expanding and what the skills shortage is across the country.    

The issue of Scotland’s independence was the final topic of discussion.  Panellists felt business needed to ramp up their campaign and make an economic argument on the negatives of Scottish independence.  A very personal issue for a number of MPs but it was no coincidence that the Chair left the concluding remarks to Mr Ben Wallace MP!   

Through these events RICS continues to build relationships with key parliamentarians and build recognition of RICS as leading the land, property and construction sector. 

By Tim Wainwright, RICS Parliamentary Affairs Officer

RICS led the construction industry during an evidence session to the All Party Parliamentary Group on Excellence in the Built Environment.  Alan Muse, Director of RICS Construction and QS Professional Group provided practical examples of a new procurement model for future construction projects. The APPG has formed a commission comprising of MPs and leading figures from the industry to head an inquiry into best practice in construction procurement.

The commission comprises of Tony Baldry MP in the Chair with Nick Raynsford and Alison Seabeck two of the other notable MPs.  Industry members included Gordon Masterton CBE, Chair of the Construction Industry Council; Alan Crane  CBE, Chair of the Chartered Institute of Building; Sir John Armitt CBE and Lord John Lytton.  Following presentations the session took the form of a true Select Committee Inquiry with MPs and the leading industry representatives asking questions of three experts.  Giving evidence alongside RICS were RIBA and the Landscape Institute.

RICS gave a practical example of an alternative procurement model know as Performance Related Partnering (PRP).  The advice Alan provided on a real life project gave something for the commission to get their teeth into.  It was a model which has already been employed in a public sector project and the commission was able to follow through how the project has worked in practice.  As a result Alan had to fend off a barrage of questions however the commission welcomed the expert insight RICS had brought to the table. 

The Landscape Institute focused primarily on the role for SMEs in public procurement and the role they offer.  They believe there needs to be a better contract for procurement which benefits SMEs allowing greater collaboration, sharing of risk and greater access to projects.  The views of the Landscape Institute were that currently a penalty was being paid for the exclusion of SMEs.  Furthermore the Government needs to go from dumb to smart clients. 

RIBA’s overall view was that sensible procurement is hard to find.  They focused on the need for a reduced bureaucracy.  Procurement was expensive in time, money and lost opportunities.  RIBA believe there is too much red tape which results in many being unable to bid for procurement projects.  The red tape needed to be more proportionate to the scale of the project. 

In a tour of the table each commissioner asked two or three questions.  A number focused on the outcome assessments as a result of the PRP model.  Sir John Armitt asked a pertinent question on how the role of the professions had to change in order to allow the buyer to understand what professions can add.  As Alan remarked, RICS is leading that change as the organisation with the greatest appreciation of the whole life cycle costs.  Furthermore Alan highlighted the work RICS is doing in the BIM revolution which will radically change the relationship between professionals, clients and contractors.  These changes will save cost and result in greater interdisciplinary working. 

The findings of the APPG will be presented to the Minister for the Cabinet Office, Francis Maude MP. 

By Geoff White, RICS Policy Manager (North)

North East businesses were urged to ‘think big’ when the next round of bids begins for the Government’s Regional Growth Fund (RGF). Sir Ian Wrigglesworth, deputy chairman of the independent panel which recommends applications for support from the RGF, said the money is available to fund large scale schemes in the region.

Speaking at the Royal Institution of Chartered Surveyor’s (RICS) Annual Summit in Newcastle on Friday (20 January), Sir Ian said the job of the fund is to create sustainable private sector jobs in areas where there is over reliance on the public sector.

“The region more dependent on public sector jobs than any other in the UK is the North East. It’s not that the public sector is too big but that the private sector is too small,” he said.

The RGF was originally a £1.4 billion fund boosted by another £1 billion announced in the Chancellor’s Autumn Statement. In the first two bidding rounds there were 956 applications for funding, over 65% of them for sums of between £1m and £5m.

Stressing that there had been an initial focus on applications from small and medium sized enterprises, Sir Ian said: “I want to encourage firms in the region to start putting their bids together now for the round of bidding that will be coming down the track soon. As there is a fairly substantial amount of money available, I would encourage large bids from firms in this region.”

A formal announcement about bidding and criteria for RGF Round 3 is expected in the next few weeks from the Department of Business, Innovation and Skills.

Sir Ian, who is chairman of the Port of Tyne, the founding chairman of UK Land Estates and a former Teesside MP, said: “It is a very large sum of money but it is also leveraging in substantial private sector investment. From the allocations that have been made in round 1 and 2, it is expected to result in some £10 billion-worth of private investment into regions like the North East.”

During his speech to some 80 attendees at the RICS Summit, Sir Ian called on the region and in particular the North Eastern Local Enterprise Partnership (LEP) to ‘get their act together’.

In his role with the Regional Growth Fund, he travels across the country meeting with LEPs and believes the North East to be ‘way behind the curve’. He said this was badly letting down the region.

The summit was a timely update of the challenges the North East faces in the creation of jobs. The clear message was that while property will not lead the recovery in the region, it has a vital role to play, particularly infrastructure and construction which will create much needed jobs for the region.

Lord Shipley, Liberal Democrat Peer, Newcastle City Councillor and advisor to Greg Clark MP, Cities Minister, is a great supporter of the region and emphasised the opportunities under the government’s policy for Newcastle to take a greater role in the region’s economic development. 

He explained that UK regional cities under perform compared to other European cities and that growth cannot be controlled out of London. The government has a number of initiatives focussed on city growth, such as ‘Unlocking Growth in Cities’ with the Local Enterprise Partnerships, and ‘Get Britain Building Again’.  But he emphasised the need for the regions to do more ‘themselves’ to attract income and the need to operate as a whole region, not disparate parts.

In her presentation, Chi Onwurah, Labour MP for Newcastle Central and Shadow Junior Minister Business, Innovation and Skills, agreed that the activity to create growth was not just for central government to carry out. She was concerned that Britain was losing out through not offering comprehensive support for businesses at national, regional and local levels.

She said that companies like Shell and Pfizer had recently moved research facilities to Germany due to this. The MP emphasised the need for a regional voice and structure.  She called for a better approach to achieve growth, better quality skilled jobs, finance, investment in targeted infrastructure and greater power for development of regional and sectoral skill development, which the government was not taking seriously.

Speakers from both the public and private sectors were well represented at the summit. They included Paul Woolston, Chair of the North Eastern Local Enterprise Partnership; Stephen Catchpole, Managing Director of Tees Valley Unlimited; Dermot Roddy, the Science City Professor of Energy at Newcastle University; Lucy Winskell, Pro Vice-Chancellor, Region, Engagement & Partnerships, Northumbria University; Hugh Morgan Williams, Chairman of North East Access to Finance; Craig McNaughton, Area Director for Commercial Banking Lloyds TSB Commercial; John Early, Founding Partner, Genr8 Developments; and Geoff Hunton, Director of Merchant Place Developments.

By Jeremy Blackburn, RICS UK Policy Manager

RICS met with Lord John Shipley, Greg Clark’s Cities Advisor, just ahead of the Deputy Prime Minister’s ‘city deals’ announcement in Leeds. Lord Shipley has a strong interest in the RICS’ work and has had a good relationship with staff and members, particularly in RICS North through his involvement with Newcastle City Council and the former ONE North East.

His role in advising CLG Ministers is of course national, and the discussion covered the central role of Local Enterprise Partnerships and Enterprise Zones in delivering economic growth.  It was highlighted how RICS members can provide LEPs with property, land and construction expertise (in the public interest) as well as relevant RICS research and policy papers that can help their thinking.  We also discussed the Autumn Statement and the Regional Growth Fund commitments it would make.  Lord Shipley was keen to discuss infrastructure, major strategic projects and the implementation of the Growing Places Fund which aims to get local infrastructure projects moving that might otherwise stymie development. The role of business rates and their localisation, as well as the role of TIFs got a mention then attention focused on the topic of Empty Property Rates (relating these proposals in the Local Government Resource Review to what powers LEPs had in EZs).

He expressed strong interest in further work RICS has planned on TIFs, Empty Property Rates, Vision for Cities and would welcome recommendations to government on regional growth strategies. Lord Shipley is speaking at the RICS North Summit on January 20^th, and for those who can attend, his speech will be a valuable opportunity to hear how both our cities and LEPs are being viewed by the Minister’s advisor.

By Tim Wainwright, RICS UK Parliamentary Affairs Officer

The Thursday before Parliament breaks for Christmas and on the eve of the Parliamentary Carol Service, the big three from the Department for Communities and Local Government (DCLG) appeared before the CLG Select Committee to be questioned on their performance over the year and on the future direction of travel. Present were the Rt Hon Eric Pickles MP as Secretary of State, Rt Hon Grant Shapps MP as Minister for Housing and Rt Hon Greg Clark MP as Minister for Decentralisation and now also as Minister for Cities.  Alongside them were of course the usual array of officials and special advisors as well as Jake Berry MP the Parliamentary Private Secretary to Grant Shapps.

There was undoubtedly a strong respect between the Ministers and the members of the Select Committee.  The Secretary of State refers to the Chair as Mr Betts and Mr Betts to the Secretary of State in manner which recognises they both hold each other in high esteem.  Select Committees are becoming increasingly important in their role of holding departments to account and Committee Chairs have increasingly gained in stature with their recommendations becoming more high profile.  Andrew Tyrie MP has made excellent use of his role as Chair of the Treasury Select Committee to discuss bank reform in the media. 

A little tongue in cheek no doubt Pickles began by saying he couldn’t conceive a better way to kick off the festive season than to sit and be scrutinised by the finest of Select Committees!  Much of the early proceedings covered the more technical workings of DCLG including structures, staffing, resources and managements roles.  Performance indicators, transparency, reviews and business plans all came up.  There was a lot of discussion around the Permanent Secretary Sir Bob Kerslake who is soon to be one third of GOD – he will become the Head of the Civil Service which is one of the roles of Sir Gus O’Donnell, Permanent Secretary to the Cabinet Office and the Civil Service’s right hand man to the Prime Minister.  Pickles saw how Sir Bob reformed DCLG and is a very much a details man therefore recommend him for the new role.  He will remain as CLG Perm Sec whilst also being the Head of the Civil Service.  It will be a hard job to juggle but it reflects this government’s commitment to localism which Sir Bob will be able to drive through all departments in his joint role.

Ministers were questioned on the interaction between the centre and local government and how they will impose the decentralisation agenda when it is the role for local authorities to define localism?  Pickles felt that localism means local determination and therefore allowing changes to happen on the ground.  He admitted at times they may not follow the same path that as has been outlined by the department but that is self determination which is at the heart of localism.  Greg Clark was questioned on whether central government was stuck in a vortex of centralisation.  As has been pointed this is a major culture shift not just for the Government but for local authorities, the civil service and the public.  Minister’s felt localism is working and they are beginning to reverse years of centralisation.  Pickles pointed out that it had to be a central government priority to decentralise as the force of power from the centre was required to encourage decentralisation.  Clark remarked that this was indeed a challenge for the Sir Humphries across Whitehall but one he was sure they were equipped to achieve. 

Amongst the strategies, performance and business review elements of the session the committee were keen to learn about the policy changes and the hearing did give those present an excellent 5 min overview of Shapps’ starter for 10 on housing.  Committee member George Hollingberry MP had the task of drawing out the key elements of the new Housing Strategy.  Mr Hollingbery effectively ensured Shapps had to admit that his estimate of building 450,000 new homes every year was fundamentally incorrect however we did get the following lowdown from Shapps on his Housing Strategy:

• We need a lot more homes that is given.
• His target is 200,000 plus per year and that is the commonly agreed figure
• CLG are not in the business of setting targets - it is for local authorities to decide on the number of homes they require.
• 170,000 affordable homes to be built by 2015.
• Right to Buy will deliver 100,000 homes through the one for one scheme.
• Consultation on the mechanism to deliver new homes through right to buy will be forthcoming from DCLG.  (This consultation will address whether the 1:1 replacement scheme will be on a regional or national basis.)
• Another 100,000 homes will become available through the release of public land.  He has met with all departments and now intends to go through all the Arms Length Bodies to see what land they have. (Organisations such as Royal Mail and Network Rail are likely to have stock on the books.)
• £500 million Growing Places Fund – Infrastructure Projects.
• £420 (an increase of £20m) Get Britain Building Fund for shovel ready projects.
• Build Now Pay Later.
• New Homes Bonus.

That was about it. 

DCLG Minister’s will be heading into the New Year with a plan.  RICS will help them to tweak it along the way and add practical independent advice on the implications but at least DCLG has a plan to work with.  A busy 2012 for DCLG but one that RICS Public Affairs will relish working alongside.

By Tim Wainwright, RICS UK Parliamentary Affairs Officer 

RICS hosted and participated in a roundtable discussion on the role of SMEs in delivering the Green Deal.  On Monday, Martin Russell-Croucher, RICS Director of Sustainability, heard directly from the Minister for Energy and Climate Change, Greg Barker MP about the opportunities presented by the Green Deal.  Following an introduction and Q&A session from the Minister, the gathered SME associations and business representatives discussed the practical implications and implementation of Green Deal policies.  The event was convened by DODs on behalf of the Department for Energy and Climate Change (DECC).  

RICS has been working with DECC throughout the development of the Green Deal and is strategically positioned at many levels, not least in a recent discussion with the Head of Green Deal Demand.  RICS welcomes comments from members on the current Green Deal consultation - click here for more information and how to contribute.

RICS members will play a valuable role in acting as a link between consumers and providers and driving demand for the Green Deal with members offering contact points at all stages of the buying and letting cycle.  Many Chartered Surveyors are themselves small and medium sized enterprises therefore our presence at this roundtable ensured member views were heard.  Crucially, RICS will provide advice to DECC on the codes of practice and standards required to ensure the successful implementation of Green Deal measures and the consideration of all aspects of the condition of a property.

Greg Barker continues to focus the Green Deal towards the “aspirational ambitions of the British people” and a way of people having nicer, warmer homes.  He likened it to the Conservative policies of “buy your own council house” from the 1980’s.  As expected he highlighted the SME possibilities recognising they were vital to delivery but also their role as exemplars to others; becoming part of what he envisaged as a huge “show and tell” by businesses and within neighbourhoods.  He said "SMEs are going to be key at putting the flesh on the bones of the Green Deal proposition."

The Minister suggested that there might be a financing provider available specifically for SMEs and hinted that the Energy Company Obligation money will not be directly controlled by the Big 6.  In an analogy for the financing model he stated that storecards are often branded with the stores name but of course managed by an external finance house. It remains to be seen whether this will work in practice. 

Throughout his remarks the Minister emphasised that much of the Green Deal is based on market led models.  Therefore demand cannot be forced through Government regulation but it has to be built up through consumer demand.  RICS members in those markets will be vital in assessing the impact of these Green Deal proposals. 

Greg Barker asked for suggestions about how best to use the additional £200M Green Deal announced in the Autumn Statement. Suggestions already in were for a council tax rebate for early adopters or a reduction in stamp duty.  Questions from those round the table included how commercial property, namely small businesses rather than major corporations with large portfolios, would be dealt with in the Green Deal. The Minister felt commercial property would play a big role and there must be incentives for take up that directly impact on owners and landlords. 

The Government still seems open to options and ideas and in the words of the Minister “the time to be creative is now.”  RICS will continue to provide independent advice to DECC on its Green Deal policies.  Members who wish to contribute should email publicaffairs@rics.org

As part of RICS’ ongoing work with the Department for Energy and Climate Change to ensure the Green Deal is workable in practice and delivers the uplift in energy efficient homes required, a number of members and RICS staff met with the Department’s Head of Green Deal Demand, David Thomas. As his job title suggests, David is in charge of driving demand for the Green Deal and, as RICS members are in contact with the consumer throughout the home buying and letting process, he is keen to hear from our members about how they currently see energy efficiency measures, what clients say about them and what the potential is for an energy efficient home to be a valuable home.

RICS would also welcome comments from members on the current Green Deal consultation - click here for more information and how to contribute.

RICS staff and members emphasised to David that members are already commenting on the condition of buildings and that this ability to address the fundamentals of a property must be a fundamental skill for the proposed Green Deal Advisor. RICS members also offer the independence and trust that an Advisor will require. All members were concerned that the big firms won’t have this knowledge or offer this kind of independent advice.

All recognised that the great unknown is take up of the Green Deal and this will determine whether members will decide to become Advisors. The current Green Deal consultation also suggests that PII will be required for the lifetime of any measures – this is unrealistic and RICS will raise this in the consultation response.

The feedback from the market was that small businesses, RSL’s and local authorities are generally gearing up for the Green Deal but residential property is, of course, the great unknown. Access to customers is vital and trust is key – all areas where RICS members can help deliver the initiative. Members fed back to David that the message to consumers must be clear and easy to understand, focusing on the need to ‘future proof’ properties and for the consumer to clearly understand the measures involved.

Estate and Lettings Agents will be at the forefront of delivering the Green Deal and a clear opportunity to drive demand through the Home Survey Report was identified. Surveyors need to promote this service to the customer which will not only deliver a more energy efficient property but also business for our members.

Finally, David asked what the Government needs to do to help surveyors drive demand for energy efficiency measures. Members asked for the ability for independent surveyors to have a flexible relationship with the Green Deal providers to ensure that panels do not monopolise the work and to ensure that the focus is not just on the Green Deal but on all energy efficiency measures that are available to improve the condition of a property in the long term.

RICS will be meeting with David again in the New Year and would welcome any further comments from members on the Green Deal and Government initiatives to deliver more energy efficient stock.

RICS would also welcome comments from members on the current Green Deal consultation - click here for more information and how to contribute.

By Tim Wainwright, RICS Parliamentary Affairs Officer on behalf of Alan Muse, RICS Director

Last Thursday RICS met with Geoffrey Spence, Chief Executive of Infrastructure UK during an Enterprise Forum roundtable hosted by the ICE. Alan Muse (RICS Director of QS & Construction and Project Management Professional Groups) discussed the future of infrastructure for the UK.

After an introductory session, questions were put to Mr Spence on a number of topics including communication infrastructure and digital rollout, South-east airport capacity and new models for financing infrastructure projects.  Following the Chancellor’s Autumn Statement and publication of the National Infrastructure Plan (read RICS' response) there were a number of questions centred on how private investment in infrastructure is to be leveraged, investment models and how PPP/PFI is to be reformed.     

A number of recurring themes and messages emerged from the question and answer session.  LEPs are likely to become more important and their role likely to increase.  On aviation, and particularly in relation to the constraints on south-east capacity, all options were on the table with the choices more likely to be driven by political considerations than technical and economic considerations.  In terms of procurement models IUK is embracing lessons learnt from the building sector. 

On the crucial issue of infrastructure investment it was felt that the UK has a broken finance model for infrastructure. All solutions are to be considered including taking back risk and tapping into corporate balance sheets where appropriate (e.g. water companies/energy). Toll roads and concessions are examples of new models. 

RICS believes that if there is to be a long-term shift to institutional investment in infrastructure and infrastructure-led development, the planning system needs to support this and recognise the needs of these investors as well as the national interest. The draft NPPF and recent Government Housing Strategy did not clearly address these issues in detail.

RICS is establishing an Investment Infrastructure Task Force to devise new models and delivery vehicles for financing infrastructure and to recommend improvements to planning practice which encourages greater private sector infrastructure investment.  Government needs to ensure that new infrastructure projects drive a long term increase in economic activity as well as delivering immediate benefits for jobs and local economies. RICS has previously highlighted these issues in its Vision For Cities project and will be developing ideas of how growth is delivered by infrastructure investment in 2012.

By Geoff White, Head of Public Policy and Communications, RICS North

Deputy Prime Minister Nick Clegg announced that major cities would be given new powers and the funding they need to kick-start economic growth in a speech in Leeds this morning.

Opening a conference organised by IPPR North, the Sheffield Hallam MP said cities will receive money from a single pot specifically for capital projects rather than having to bid for it from Government departments.

He also said the bulk of business rates will be put back in local hands by April 2013 as well as making tax increment financing (TIF) powers – borrowing against business rate growth – available to all areas and allowing local authorities to offer business rate incentives.

Mr Clegg described the Government's new ‘city deals’ as an ‘unprecedented transfer of power’ that will help correct ‘dangerous’ imbalances in the economy.

He said the Labour Government had enslaved cities to the political and financial centre where all important decisions were made and where handouts were negotiated. Over two thirds of city funding is controlled by central government and cities only control 5 per cent of tax through the council tax. Labour had also pursued a strategy driven by Square Mile tax receipts, with profits then redistributed around the country in subsidies. So instead of cities being self sufficient they were made dependent on London’s financial services sector.

Through the series of new City Deals, the Coalition aimed to ‘unleash the power of the cities’ and enable them to become economically self sufficient and diverse, able to realise their full potential as drivers of national wealth.

Starting with England’s eight core cities (Newcastle, Leeds, Sheffield, Manchester, Birmingham, Nottingham, Liverpool and Bristol) they are negotiating a series of city deals to transfer powers traditionally held by Government to cities and their communities. Crucially, he said, deals will be tailored for each cities individual needs because experience shows the one size fits all approach does not work.

Mr Clegg’s speech referred to a ‘menu of powers’ for cities which has been published today. But he stressed it is for cities to set their own agenda and go to government with ambitious proposals for powers that they want to take back. He paid tribute to the work of Cities Minister Greg Clark and Lord John Shipley of the Cities Policy Unit for their work in developing an openness never before seen in Whitehall.

Mr Clegg said they were turning a page on the culture which has seen distrust and suspicion between Whitehall and the regions. The aim is to have the first city deals agreed and announced by the Budget on 21^st March next year before launching a second round with a different group of cities.

They new levers that will be available for cities are in three broad categories.

Greater freedom to invest in growth – Extra funding will be provided for cities and there ‘will be no more going on bended knees from Whitehall department to Whitehall department to bid for funding from capital pots’. Instead cities will get one consolidated capital pot to spend as they see fit. They will also be able to raise money from business rates growth and tax incremental finance. The government will enable some larger TIF schemes across the country which, like Enterprise Zones, will have longer term revenue streams.

Power over infrastructure – On transport projects, cities will only have to show that a scheme is feasible, that it shows value for money, is transparent and accountable and contributes to growth. The other ‘hoops’ that cause years of delay will be removed. Mr Clegg suggested that the Transport for London model could be used in other cities. On housing, decisions that used to be with RDAs and were transferred to the Homes and Communities Agency will be handed back to local authorities. On broadband, £100m seed funding is being made available for cities to work with providers, looking for creative approaches such as seen in Philadelphia which has free wi-fi that has attracted hi-tech firms in droves.

The power to boost skills and jobs – Mr Clegg said many companies are saying they cannot fill vacancies because they can’t find people with the right skills, this cannot be right especially when so many talented young people are looking for work. Suggesting that the national approach is not working, he said the city deals would provide new ways for councils, colleges, schools and local businesses to bridge the gap. This would help match young people to jobs and use local knowledge to tackle skills gaps. The government will fund new research that will allow local councils to identify exactly where the skills gaps are.

During a question from the audience about ‘cross departmental alignment’ and culture change at the top, Mr Clegg said ‘these city deals will not be seen as successful unless people are really feeling uncomfortable in Whitehall departments.’

The speech got a general thumbs up from the audience and the Twitter feeds were overwhelmingly positive, although there were some which warned that, as ever, the devil would be in the detail.

By Jeremy Blackburn, RICS UK Policy Manager

RICS attended the formal launch on 23 November of the independent Eco-system Services Market Taskforce, which supported by a DEFRA secretariat, will report to the Green Economy Council and Caroline Spelman, Secretary of State. Its job is to review the opportunities for UK business from expanding green goods, services, products to investment vehicles and markets which value and protect nature’s services.

Chaired by Ian Cheshire from Kingfisher, the Taskforce was a commitment in the Natural Environment White Paper, and will look at the potential for the financial sector to invest in natural capital and eco-systems services. RICS has been working across several strands of the NEWP and considers the valuation of eco-system services, and the potential creation of a market in them, to be a high priority.

At the launch RICS took the opportunity to remind taskforce members and officials that there is a great difference between defining an eco-system’s economic worth (particularly where it’s a raw material component of a product) versus a valuation for it to become a tradable asset in a market.

It is entirely likely that surveyors will be approached by clients to undertake these valuations, if the government constructs a market for eco-system services, and moves away from paying land managers directly for their management through agri-environment.  RICS Land Professional Group and UK Policy, will be initiating a valuation of eco-system services project to address this for members and to influence government thinking.