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Quoinstone Outlook

Winter 2023

www.quoinstone.group

QuoinStone Business Rates starts to scale

Our last newsletter only went out in October last year and it feels like we’ve taken a huge leap over the last few months.

Activity in our investment management team has reached new heights as we manage ever evolving situations with our tenants as they respond to market changes that affect them. We’re in almost constant dialogue as we provide options, support and information to allow them to maximise their potential in the buildings we manage.

Our Business Rates Team are also assisting tenants to minimise their business rates costs in an effort to bring down occupational costs overall. And it’s good for landlords too - more on that below.

The growth of our business rates activity has taken no one by surprise given the impending Rates Revaluation on 1st April and we’re busy helping our landlord clients to budget for void costs in their cashflows over the next 3 years.

I hate to say it, but it’s exciting to be so busy and maybe the property market is just getting interesting again.

Business Rates Savings Calculator

The annual Business Rates bill is issued for the upcoming financial year towards the end March, arriving just before the start of the fiscal year, giving you first sight of the liability you have to pay. The timing of the arrival leaves little time for budgeting for the period ahead, often just a couple of weeks notice. A problem exacerbated at a revaluation which going forward from 2023 occurs triennially.

The Chancellor in his Autumn budget announced that the business rate multipliers will be frozen for the 2023/24 financial year at 49.9 pence for the small multiplier and 51.2 pence for the standard multiplier. Given the recent record levels of inflation this will have truly offered a life line for some struggling rate payers.

In November the VOA released the draft list, the first insight into the changes that are going to be seen in the new 2023 rating list. For those who have seen their rateable value fall between the 2017 and 2023 list, they will benefit from the reduction straight away as downwards transition has been removed and Government will be funding upwards transition, the phased increases for those whose rateable values increase between the lists.

2017RV list, 2023RV list, correct multiplier, transitional calculations, relevant supplements and reliefs are all required to produce the business rates bills making this an often lengthy and complex calculation. We have built a liability calculator to help rate payers budget for the full 2023 revaluation, making the process as straightforward and simple as possible saving you time and money.

Why it is more important than ever for landlords to focus on their tenant’s business rates liabilities as well as their own?

When it comes to business rates, a landlord’s focus is often only on mitigating rates once a tenant vacates. However, Landlords should be taking a view across all business rates, including their current tenants, and here’s why.

The cost-of-living crisis is not only affecting individual households but is also having a considerable impact on businesses, leaving many finding it increasingly hard to survive. Tenants are being hit twofold by increasing utility bills and by rising service charges. They are looking for new ways to reduce their overheads in order to stay afloat. One liability that is often overlooked is business rates.

Considering overall increased financial pressure on tenants, Landlords should be taking a broader view in their approach to business rates. Tenants often go years unaware they are overpaying business rates, so the opportunity to make savings can be substantial. Landlords can assist tenants to find savings in business rates by instructing specialist rates surveyors to investigate rates liabilities and to find savings wherever possible. This will help the Landlord to retain tenants but will also mean that when vacancies do arise, and the rates liability reverts to the Landlord, Landlords themselves will not be overpaying. Therefore, encouraging a shift in mentality from Landlords is important because in the longer term this will help to keep costs as low as possible for both Tenants and Landlords alike.

If you require business rates advice or would like us to undertake a full business rates audit of your portfolio, please get in touch here

Timber office buildings.
Sustainable yes, but are they viable?

Cross laminated timber (CLT) has been a hotly discussed topic in the design of office buildings for some years now. CLT is a high performance, renewable, recyclable and durable material. It is made by gluing layers of solid-sawn lumber boards together in a crosswise configuration. This creates a panel that is strong, stiff, and dimensionally stable, making it well-suited for use in large-scale construction projects such as multi-story buildings.

The CLT method is being used by The Office Group in their construction of The Black and White Building in Shoreditch and they claim that they will produce 37% less carbon during construction than a typical concrete, steel and cement building.

Clearly all developers and investors are (or should be) aiming to be as sustainable as possible in the construction and operation of buildings but can timber construction be viable when compared to the cost of traditional building methods?

With greater advancements in timber engineering and building techniques it should be possible to compete with traditional costs whilst still providing exciting and sustainable buildings. However, the actual cost comparison is not straightforward and will depend on multiple factors – type of wood, complexity of design and the location of the project. Also, the volatility of energy pricing today is making cost estimating practically impossible.

Exciting times ahead for office development and we’re looking forward to seeing The Black and White Building progress and welcoming them as our neighbours to Telephone House in Shoreditch!

Looking After Me
Looking after your team’s Health and Wellbeing

As we emerge from our Covid bubbles, many of us are recognising, on both a personal and professional level, how dramatically the pandemic and subsequent lockdowns have impacted on the health and wellbeing of so many.

It is with this in mind that we sought to connect with our new partner, Looking After Me, who provide a bespoke health and wellbeing programme for businesses.

Despite Covid, the workplace has often been a place which can be overwhelming, leaving staff feeling alone and needing to reach out for help. With over 25 years in education and people management, Ruth Tuthill and Claire Cooper firmly believe that all employers have a responsibility to look after the health and wellbeing of their employees.

Looking After Me provides employers and employees with direct access to private medical, counselling and lifestyle management support with a bespoke online confidential portal which allows members to monitor and take responsibility for their health and wellbeing.

Would you like to:

Empower your team to look after their own health and wellbeing – and in turn, improve staff retention?

Provide a swift solution to a medical concern – and in turn, decrease staff absenteeism?
Promote a positive, caring management team – and in turn, improve your staff engagement, enabling them to become mentally stronger and more productive?
Feel supported in providing your staff with tools to improve their health and wellbeing, so that they feel valued?

This is what a couple of their current clients think:

David Embley, VP of UK Operations, Singer Vehicle Design
Ruth and her team are very well informed with an impeccable work ethic. In the current climate of cost containment, Looking After Me provides a very cost effective and bespoke alternative to the more generalist insurance policies offered to many.

Anita Powell, Managing Director, Small World Marketing
The team has provided us with outstanding support. What they provide is great at covering all areas of health and wellbeing and they always go the extra mile. They even organised a personalised fitness plan for me.

If you would like further information about Looking After Me, please get in contact at www.lookingafterme.co.uk or LinkedIn

Our Business Rates Team are hiring. We’re building a team of the best advisors in the business and if you or someone you know fits the description – please point them in our direction!

Tim Struth MRICS
Owner & CEO
Tim is co-owner responsible for management, operations and business strategy.

Steve Howling MRICS
Owner & Client Relations
Steve is co-owner responsible for client networks & business growth. He leads on market intelligence.

Billy Struth
Senior Surveyor
Billy is responsible for client networks and business growth. He leads on delivery of professional services.

Katy Ellis

Owner & Head of Business Rates
Katy is co-owner responsible for product & leads the Business Rates Team.