This month we take a look at our inaugural Real Estate Sentiment Index; find out more about Savannah Pinchen, 21, and her career journey and talk to Richard Meller, our Corporate Tax Director.

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Saffery Champness publishes inaugural Real Estate Sentiment Index

The Real Estate Sentiment Index is a survey of more than 100 business leaders, investors and professional advisers in the real estate sector, spread across every region of the UK.

In addition, we interviewed leading individuals from four key areas of the real estate market – housebuilding, commercial development, investment management and overseas inward investment – to get their thoughts on the recovery of the market, plus the potential opportunities and barriers to growth in the year to come.

It is fair to say that the real estate sector in the UK, as a whole, remains buoyant in the first few months of 2022.

Housebuilding continues to be a key priority for the government as it tackles the long-term shortfall, while changing demographic and social trends – some of which have been triggered and/or accelerated by Covid-19 – have required new models and products to be developed, creating new investment opportunities in the market.

At the same time, the commercial sector continues to rebalance, with high streets and retail destinations evolving in line with consumer shopping habits (again, partly driven by the impact of the pandemic) while the future of office-based work is altering what occupiers need from their real estate and what therefore investors and developers will need to offer.

Key in this respect is digital and smart technology, as well as a recognition of the role that real estate plays, or can play, in meeting environmental, social and governance (ESG) goals – not least the global drive towards net zero.

However, there is a note of caution in respect of inflationary pressure, a lack of available resources in the labour market and continued supply chain shortages and prices rises.

Our survey was conducted before the Russian invasion of Ukraine and so it is likely that some of the optimism shown by participants may have since tempered – including as a result of further increases to energy prices.

The UK remains an attractive destination for investment and development activity, not least given its stability, rule of law and, in many ways, favourable tax environment.

Key findings are:

• Confidence in the market is high, reflecting rising investment levels after the Covid-19 downturn.
• Increasing profitability (63%) tops the priorities list for 2022, with real estate businesses focused on shoring up their financial position as challenges loom on the horizon.
• 65% of participants are concerned about supply chain disruption, with general cost of doing business, labour availability, economic/political environment and securing planning making up the top five challenges facing real estate in 2022.
• Residential is expected to drive the majority of activity in 2022, with build-to-rent (BTR), in particular, emerging as dynamic, high growth asset class (60% of participants are expecting heightened activity in their primary regions).
• Industrial tops commercial sectors for projected activity (53% expecting more activity in their regions). Meanwhile, among participants undertaking activity in alternatives in 2022, 27% expect to complete deals or deliver projects in logistics (the highest single alternatives asset class).
• The industry is beginning to adopt technological solutions, with a primary focus on off-site (57% already using or planning to) and modular construction (50% already using or planning to). But awareness of technological solutions does remain limited in some cases, amid uncertainty over potential benefits.
• Energy efficiency and carbon footprint reduction is seen by more than a third of participants to be the greatest benefit of the use of technology in development (35%), amid rising industry consciousness of ESG criteria and net zero targets.
• Meanwhile, 76% of participants say the industry is not yet doing enough on climate change.
• Participants acknowledge the existence of a green premium on buildings with better ESG credentials (70% say such buildings command higher values/rents in their regions), but perceived cost remains the number one challenge to the industry taking action on or prioritising climate change and ESG (noted by 31% of participants).
• More than a third (35%) of participants are currently unaware of the availability of financial incentives such as tax reliefs and allowances to support investments in carbon footprint mitigation and other sustainability or climate change projects.

We hope you find this report an interesting read.

Please do get in touch if you would like to discuss any of the findings in more detail.

Jamie.lane@saffery.com Tel: 01202 204744

Download the full Real Estate Sentiment Index

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Career journeys at Saffery Champness

This month we meet 21-year-old Saffery staff member Savannah Pinchen to learn about her journey within the business.    

Savannah Pinchen

Tell us a little about yourself and how and when you joined Saffery Champness

I’m 21 years old.  I previously went to sixth form at Parkstone Grammar School. I was in the year below my colleague Chantelle who’s also included in this article, albeit I didn’t know her at school.

I always knew that I didn’t want to go to university as there wasn’t a particular subject that I wanted to study. I didn’t want to carry on studying just for the sake of it. The A-levels that I studied were Mathematics, Economics and German.

I took a gap year after leaving school, but unfortunately it was cut short because of Covid-19. As a result, I was looking for apprenticeship and school leaver programmes. I knew that I wanted to work in finance and a lot of the routes that are out there require a university degree first. However, I was fortunate to discover the Saffery opportunity and thought it was a good match as I applied for a specific opportunity, which was Corporate Tax, and made good use of my mathematical background.

I joined Safferys in September 2020, although I didn’t start studying until the December of 2020. As soon as I started work I was thrown in to real life case studies because of the nature of the work that I was doing. This hands-on experience gave more relevance to the studying that I was doing and provided great insight in to what I was doing in the day job. I think that if I had studied first and then gone into my role, I would have been a bit more weary and lacking in confidence. But, because Saffery let me go straight in to a role and gave me a fair bit of responsibility right from the start, it was quite empowering and a positive experience.

What’s it like studying and working at the same time?

I felt massively trusted to get on with my role and deal with my clients’ accounts. There was a lot to do but it was good to be trusted. Obviously, my work was reviewed and I was well supported by my managers but it was great to get stuck in so early. I think when you join it’s natural to feel nervous, worried about making mistakes but they know you will make mistakes, it’s accepted that it’s part of the learning process and you don’t get shamed for those mistakes, that’s so good. Support is key at Saffery.

We get given time off for studying. There’s the option to attend classes virtually, or travel to an in-person class, it’s good to have the flexibility and choice. I went for the in-person opportunity and it’s excellent to be able to meet other accountants. It makes me appreciate how well I’m treated at Safferys and the experience that I’m having. Saffery cover all my studying costs and travel and give me time off, I’ve learnt that this isn’t standard across all firms.

What’s the team like?

I was really surprised when I joined the business at the diversity of staff – there’s a stereotypical image that accountants have and it’s typically that they’re boring and staid, but when I first started at Safferys I was immediately struck by the very young atmosphere and vibe. Even the more senior staff are really lovely, very relatable, easy to approach and chat to. A lot of the partners have been trainees within the business and remember the journey and are always very accessible.

What do you bring to the team?

Apparently, I can’t stop smiling, I’ve been told! I think I bring a lot of enthusiasm and passion. I’ve just had my half yearly review and my commitment and willingness to go the extra mile was recognised, not just in my own department but other departments have commented too, that felt really nice to have that acknowledged. I feel that we have the incentive to be committed as we’re really close as a team and help each other out when we can. We all just have one goal, which is to do the best we can as a team.

Tell us about the social aspect outside of the workplace

We do lots of stuff socially. The Bournemouth office of Safferys has a really good social committee.  We have three events each month; one of them each month is a drinks social for a pat on the back, the other two events can vary, month on month. This month there’s a Sunday roast meet up with a walk around Swanage. We’re also doing a litter pick meet up this month. These events encourage us to spend time together, including with other departments that you wouldn’t always necessarily be spending time with. It’s fun to bond over common interests with my colleagues.

What words would you use to describe yourself

Enthusiastic, resilient and always willing to help

I’m excited to have been invited back to Parkstone Grammar School to talk to the students and teachers about the opportunities that they might not have known otherwise, sharing our experiences and honest truths.

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Getting to know our team at Saffery Champness

Name: Richard Meller 

Role: Corporate Tax Director

Time at Safferys : 3.5 years

What’s the best bit about your job?

Working with clients and learning about their businesses. Research and development tax claims are very interesting as you often get to see cutting edge developments that are taking place within local businesses. Helping a client sell their business tax efficiently is always really rewarding too, especially when you have worked with the company since it was a start up.

The culture of Saffery Champness is really important to the business and the people within it – what do you think you bring to the team and what do you contribute?

Collegiality is a big part of the Saffery culture and makes it a great place to work. I always try to make sure I am approachable and have the time to help colleagues out.

If you weren’t doing this role, what might you be doing?

I would have loved to be a pilot.

What do you enjoy doing outside of work?

Taking our husky out for long walks, watching the Formula 1 and home brewing.

Tell us something about yourself that we don’t know

I have flown an aeroplane upside down.

Who or what inspires you?

I’m on a diet at the moment, so seeing people who have lost a life changing amount of weight is something I find particularly inspiring right now.

What’s your favourite place in Dorset?

Anywhere the sun is shining.

Give us 3 words to describe yourself

Friendly, experimental & technical.