The
full text of some of the major research reports produced by members of the
School is available below.
The reports
are downloadable in PDF format.
If you do not
have the necessary adobe acrobat reader you can download
it at no cost.
Housing Markets and
Independence in Old Age
Michael Ball with Robert Blanchette, Anupam Nanda and Peter Wyatt
A Research Report Sponsored by McCarthy& Stone Retirement
Lifestyles Ltd
This report outlines the findings of a
major piece of research on housing for older people who live in specialist
private retirement accommodation, called owner occupied retirement housing
(OORH). This type of housing is purchased, on a leasehold basis, and found in
specially designed blocks of apartments which have communal facilities, house
managers and other networks of support integrated within them. There are
currently around 105,000 OORH dwellings in the UK, about 2% of the total
number of homes for those aged 65 and over. The report highlights that far
more elderly people could benefit from this type of accommodation than live
in it now. However, due to supply side constraints created by restrictive
planning and housing policies, many older people are not being provided with the
opportunity to purchase OORH. Relatively simple policy changes could address
this without any cost to the public purse.
Monitoring the 2007 Code for
Leasing Business Premises
Neil Crosby and Cathy Hughes
A Research Report for Communities and Local Government
The 2007 Code for
Leasing Business Premises is the third in a series of voluntary codes
prepared by various stakeholders in the commercial landlord and tenant
relationship. This Code is perceived to be stronger in tone and of more
practical use than its predecessors. There has been a strong focus on
dissemination of the Code, particularly to small business tenants. In autumn
2008, Communities and Local Government commissioned the University of Reading
to undertake a project with the overall aim of establishing how well the 2007
code is being disseminated. The evidence suggests that awareness of the 2007
Code is no better than that found for the 2002 Code. In fact small
business tenants and small landlords appear to have a lower level of
awareness of the current Code than the previous one. Although some
professional advisors may be well informed about the 2007 Code, there is
evidence that many are not, despite the efforts of their professional
institutions to inform and disseminate.
Real
Estate in the Investment Portfolio
Martin Hoesli and Colin Lizieri
A
Research Report for the Investment Strategy Council of the Royal Ministry of
Finance, Norway
The report
examines the role of real estate (public and private) in mixed asset
portfolios and provides a framework for the Royal Ministry of
Finance to
consider whether the Government Pension Fund (Global) should include commercial
property as an asset class. The report
draws on
literature and empirical analyses of investment performance in Australia, the
UK and the USA to illustrate real estate's risk return
characteristics.
An Evaluation of Parish
Planning in West Berkshire: Final Report
Gavin Parker and Rachael Luck
A
Research Report Funded by the West Berkshire Partnership
The project
was completed in late November 2006 and funded through the West Berkshire
Partnership. The work involved assessing community planning in the district
focussing on the evaluation of completed parish plans and the associated
support arrangements. The is the first study of its
kind. The project had as its main aim to understand the process of
undertaking parish planning and the methods used in assembling the plans. The
research also involved parishes in West Berkshire who were not participating
in Parish Planinng, to uncover inertias and
preventative factors. The findings showed inter alia that a diversity of
parishes are involved with a wide population range
and different contexts and issues arose. More attention should be paid to
methods and inclusivity, that funding and timing could be reorganised and
that local citizesnhip and relations of governance
were stimulated positively.
An Evaluation of the Policy
Implications for the UK of the Approach to Small Business Tenant Legislation
in Australia - Main Report
An Evaluation of the Policy
Implications for the UK of the Approach to Small Business Tenant Legislation
in Australia - Appendices
Neil Crosby
A
Research Report Funded by the Education Trusts of the Royal Institution of
Chartered Surveyors & the Investment Property Forum
Commercial
lease reform is a major policy issue for the UK Government which has
encouraged a voluntary solution to perceived problems of lease inflexibility
and lack of choice of terms. Along with problems with subletting and upwards
only rent reviews, the Government have highlighted its concerns over the lack
of awareness of small business tenants. Based on previous research by a
University of Reading research team led by the author, the Government
believes that they do not understand the implications signing a lease.
This research addresses this issue in the light of similar problems faced by
Australia. They have adopted a different approach with mandatory codes
and small business tenant legislation aimed at mainly small retail
tenants. This research assesses their approach to the small business
tenant problem and discusses if any parts of that approach could be used in the
UK.
Private Property
Vehicles: the Valuation of Interests in Limited Partnerships
Nina Kutsch, Patrick McAllister and Graeme Newell
RICS
research paper series, Volume 6 Number 12
One of the
most significant changes in the property investment market over the last
decade has been the expansion of private indirect property vehicles. In the
UK, in particular, there has been a notable increase in the use of Limited
Partnership structures. Fuelled by life insurance companies and property
companies seeking to build asset management businesses, many of the major UK
investing institutions have been both creating and investing in these new
vehicles. A new breed of property professional is emerging and evolving who
is managing, operating, creating and advising on investment in interests in
these new property vehicles. This sector of the market has developed rapidly
and is continuing to mutate and innovate.
Dissatisfaction
with stock market performance has pushed investing institutions towards
investment in property assets. Investing institutions have been pulled
towards private property vehicles because of the ability to gain access to
the property sector in general and to trophy assets in particular without
substantial specific risk and major management overheads. Although the
product universe is diverse in terms of size of vehicle, legal structure,
number of investors, management quality and costs, gearing and, finally,
number, spread and types of assets; all structures have in common the
wrapping of the property assets in a multiinvestor
vehicle.
It is
concluded that there is scope for increased consistency and improvement in
the valuation of performance fees and debt but that, in the absence of sufficient
pricing sugnals, incorporating premiums or
discounts to net asset value (NAV) in the valuation is inherently complex.
Who Owns the City 2006 -
Office Ownership in the City of London
Colin Lizieri and Nina Kutsch
A
Report for Development Securities plc
Reseach into the ownership
of City of London offices shows that 45% of space - some 3 million square
metres - is owned by non-UK investors. Who Owns the City 2006 - the third in
a series of studies sponsored by Development Securities plc - also highlights
the increasing fragmentation of ownership, with many buildings owned jointly
or by collective investment vehicles and funds. The ownership patterns are an
indicator of the strengths and attractions of
the City market, but also create risks - of greater volatility and
vulnerability to external shocks.
Rethinking the Planning
Regulation of Land and Property Markets
Philip Allmendinger and Michael Ball
A
Research Report for the Office of the Deputy Prime Minister/Department for
Communities and Local Government
This research
explores the relationship between development control and property
development, including housebuilding and develops
possible alternatives to the current system of development control. Three
alternatives are discussed:
- co-regulation
whereby developers and planners agree an over-riding code of practice in
a designated locality
- a 'positive
planning' approach of combined planning and permission
- a greater use
of restrictive covenants in property titles, either for designated land
or built structures, limiting in perpetuity what can be built or
redeveloped.
The UK Pension Industry
Nina Kutsch and Colin Lizieri
A
Research Report for the Pension Real Estate Association
Part of a
wider international project sponsored by the US
Pension Real Estate Association the report examines developments in
the UK pension industry then reviews pension fund investment in real estate
over time - both in terms of the total amount invested and the changing
nature of the investment vehicles utilised. Data show the shift away from
direct private ownership of property toward indirect investment vehicles both
listed and private. Appendices provide a timeline of major events in the
industry and five short case studies of the role of real estate in pension
fund portfolios. The full international report, published by PREA, can be downloaded here.
Monitoring the 2002 Code
of Practice for Commercial Leases - Final Report
Neil Crosby, Cathy Hughes and Sandi Murdoch
A
report for The Office of the Deputy Prime Minister
This report
monitors the operation of the 2002 Code of Practice for Commercial Leases and
is the latest instalment in a long running policy debate concerning the
operation of the commercial property landlord and tenant relationship in the
UK. For more than 10 years successive governments have been concerned that
business tenants were not being offered sufficient flexibility and choice in
lease terms. A particular anxiety has been the use of upward only provision
in rent reviews. This report provides evidence to government that will help
inform their policy decisions in this area. It shows that while some
significant aspects of leases such as lease length, repairing covenants and
the operation and timing of tenants' break clauses have become more flexible,
other clauses such as assignment and subletting restrictions remain very much
as they have in the past. The research also found that the upward only form
of review still dominates the UK commercial leasing market. However, because
of the fall in lease lengths, it is found that the number of leases with no
reviews within them had increased and now stood at over half of all
leases.
Financial
Innovation in UK Property Markets: A Review of Trends and Prospects
Colin
Lizieri and Charles Ward
A
report funded by the Corporation of London
In a major
update to their 2001 research for the Corporation of London, Colin Lizieri
and Charles Ward review changes to investment and capital flows into UK
commercial real estate and consider the impact of the growth of new vehicles
and new regulatory structures. The report considers potential impacts of a
tax-neutral REIT-like vehicle on UK property. The authors argue that the
market is best served by the UK REIT being a simple investment vehicle
appropriate for retail investors and the general public.
The Status of Property
Valuations: Final Report
Neil
Crosby, John Murdoch, Cathy Hughes and Yvonne Mubanga
A
Report funded by the ESRC
The overall
aim of this report was to understand the process by which property valuations
are provided and the research has focused on valuations for secured lending.
The objective was to reduce the risk exposure of users and providers by
clarifying the legal status of different kinds of valuations, including those
based on reduced information. During the course of the research, the emphasis
moved from legal issues concerning reliance to valuation process issues of
transparency and objectivity. This followed a detailed analysis of 65
valuation negligence cases and information obtained from three discussion
groups of residential and commercial property lenders and valuers.
It also resulted from recent activity within the relevant professional body,
the Royal Institution of Chartered Surveyors (RICS). Based on information
from the literature review, analysis of the cases and discussion groups, four
questionnaire surveys of residential and commercial valuers
and lenders sought to clarify the valuation procurement process.
Promoting More Flexible
Investment in Property
Colin
Lizieri
Response
To HM Treasury / Inland Revenue Consultation Paper
This
report is a response to the Treasury's consultation paper on how a new Property
Investment Fund (PIF) might be developed for the UK. It is proposed that the
PIF will address concerns that barriers in the tax system may be contributing
to distortions in the market for property investment. This is resulting in
poor liquidity, barriers for smaller investors entering the market and high
debt financing levels, all of which may be hindering progress towards a more
stable and efficient market.
Monitoring the Operation
of the 2002 Code of Practice for Commercial Leases - Interim Report
Neil
Crosby, Cathy Hughes and Sandi Murdoch
A
report for The Office of the Deputy Prime Minister
Since 1995,
the Government has sponsored two industry Codes of Practice for Commercial
Leases with the aim of delivering voluntarily more flexibility and choice
within the commercial leasing market. A team from The University of Reading
has monitored their operation on behalf of the Office of the Deputy Prime
Minister. This interim report is the latest
instalment in a long running policy debate concerning the operation of the
commercial property landlord and tenant relationship in the UK. The
research team are currently working on the second stage of the research which
will monitor the second year of the Code from April 2003 to April 2004, and will produce their final report in
December.
From Rents to Revenues: Can
Property Become a Service Industry?
An
investigation of the valuation implications of the generation of non-rental
income streams by property owners
Patrick
McAllister
A
report for the Education Trust of the Royal Institution of Chartered
Surveyors
The last
decade has seen a fundamental shift in the ways that many occupiers and
investors regard property assets. Advisers, owners and occupiers are
increasingly financially aware and innovative. The growing trend for
occupiers to outsource property support services and seek flexibility in
occupation has been driven by the interrelated forces of new technology,
globalization and increased competition. In the UK, a number of major
landlords have argued that these structural shifts provide an opportunity to
transform the nature of their business relationships with tenants. Previous
experience of the valuation of over-rented properties, lease inducements and
abnormal rent review periods has illustrated how market shifts tend to be
followed by confusion surrounding and new developments in valuation
methodology. This report investigates the valuation implications of landlords
generating revenues from the provision of business support services.
Liquidity and Private
Property Vehicles: Where Next?
Andrew
Baum and Jane Fear
A
report by The University of Reading and Oxford Property Consultants,
commissioned and funded by Grosvenor, Invesco Real
Estate Advisers and the Investment Property Forum Educational Trust
Despite a
clear need for more information there is little available UK research
describing the views of investors, managers and advisors concerning the
market for private property vehicles, including limited partnerships,
property unit trusts and other unquoted collective investment schemes. This
is the first major study of its type. Commissioned and funded by Grosvenor, Invesco Real Estate Advisers and the Investment Property
Forum Educational Trust, the research was undertaken by the University of
Reading and Oxford Property Consultants between January and October 2001.
Who Owns the City 2001
Colin
Lizieri, Melanie Oughton
and Andrew Baum
A
report funded by Development Securities
In 1998, the
results of the Who Owns the City study suprised
many in revealing the extent of overseas ownership of office space in the
City of London. An update to that research, Who Owns the City 2001,
shows that non-UK ownership in the City now stands at 38%. New investment
vehicles have changed the nature of property ownership and have led to
increases in both liquidity and volatility in the market. The report provides detailed analyses of ownership and
occupation in the City and considers the implications of the changes
for the future of the London office market.
Innovations
In Property Finance in the UK Market
Colin
Lizieri, Charles Ward, Stephen Lee and Scarlett Palmer
A
report funded by the Corporation of London and the RICS Foundation
The last few
years have seen massive growth in new property investment vehicles, in
property backed securitisations and in innovative ways of procuring space.
Examples include the £1.5 billion securitisation of office rents from Broadgate, Sainsbury's bond funded sale and leaseback of
supermarkets, Abbey National's disposal of its entire corporate property
portfolio, the special purpose vehicles used to take property companies such
as Wates City of London private and the £338million
Monument Securities CMBS issue.
Great
claims are made about the benefits of such schemes. The research sounds a
note of caution - gains may be offset by hidden costs or constaints
on management. The report sets out a framework for asessing
the sources of added value and for judging whether any gains are ephemeral or
permanent.
Additional
related material can be found in a related Departmental Working Paper Financial Alchemy; or
a Zero Sum Game? Real Estate Finance, Securitisation and the UK Property
Market
The Time Series Performance
Of UK Real Estate Indices
Stephen
Lee, Colin Lizieri and Charles Ward
A
report funded by the Real Estate Research Institute as part of an enquiry
into property performance measures in the United States for the US Pensions
Real Estate Association
This report
forms part of a study funded by the Real Estate Research Institute examining
property performance measurement. Data on the performance of property
held by institutional investors is compared to
the public real estate market (in the form of property company shares)
and to other investment assets. In addition,
the behaviour of the “industry benchmark” real estate performance
measure – the Investment Property
Databank indices – will be compared
to the indices published by other providers. Using annual, quarterly
and monthly series basic time series statistics
are described and the inter-relationships between variables discussed.
Analysis looks for leading and lagging relationships,
evidence of price discovery and the impact of smoothing and
"stale" valuations. Finally, sector differences are highlighted, using monthly and quarterly
data.
Lease Structures, Terms and
Lengths: Does the UK lease meet Current Business Requirements? A Report on
the Attitudes of Occupiers in the UK
Neil
Crosby, Virginia Gibson and Melanie Oughton
For
the Royal Institution of Chartered Surveyors
As a result
of earlier research for the DETR, Crosby and Gibson were commissioned by the RICS
to undertake research into the attitude of corporate tenants to the leasing
process and to identify their particular concerns.
The research
found that issues of the length of occupation and the ability to terminate
leases dominated the list of concerns. International occupiers were
particularly concerned over the mismatch between lease term and business
planning horizons and the inclusion of breaks clauses were seen as an
important element of a modern lease. The mode and period of rent review
were not as important.
The Influence Of Valuers And Valuations On The Workings Of The Commercial
Property Investment Market
Andrew
Baum, Neil Crosby, Paul Gallimore, Patrick
McAllister, Adelaide Gray
Funded
by the Education Trusts of the Investment Property Forum, Jones Lang LaSalle
and
the
Royal Institution of Chartered Surveyors
Are valuers simply scorekeepers; or do they actively affect
prices, liquidity and turnover in the commercial property investment
market? New research sheds additional light on the real impact that valuers and valuations have on the market. The research
concentrated on the production and use by institutional clients of periodic
valuations for performance measurement purposes and shows that:
- valuations can
be distorted by the influence of clients
- fee levels have
severally restricted the number of firms able to carry out these
valuations profitably. .
- valuations can
alter significantly as a result of the appointment of new valuers or portfolio managers
This
research shows clearly that clients influence the periodic valuations of
commercial property. Because a small number of firms carry out short term
periodic valuations, the way in which individual firms interpret market
information and incorporate it into valuations could have an effect on the
volatility of indices.
Evaluating Office Space
Needs & Choices
Virginia
Gibson
In
association with Christopher Hedley, IPD Occupiers Property Databank
Andrew
Procter and Bill Fennell, Actium Consult
The property
market in the UK has changed significantly within the last decade. Both
the demand for and supply of office property have particularly been affected.
Occupiers’ requirements for ever-greater
flexibility and the landlords' continued search for sustainable returns have
resulted in a range of new property products. Shorter contracts, serviced
space and outsourcing have increased the diversity of property solutions
available to occupiers.
This
research sought to answer the question: Are occupiers able to assess these
new choices and make informed property decisions? In order to do this,
they must have adequate cost data and a framework for evaluation which
ensures that they are comparing equivalent situations. If a serviced office
is to be compared with a more traditional leasehold situation, the extra
costs of fitting-out and servicing the latter must be incorporated into the
process.
The results
indicate that there are some forces of resistance to the changing market
which come from occupiers. The lack of occupancy cost data and an inability
to explicitly separate the cost of the services from the cost of the risk
transfer for greater flexibility are inhibiting occupiers from evaluating the
new property products in a rational way. This in turn is acting as an
inertial force on the further development of the serviced space market and
other innovative property solutions.
Space Race: The
Contribution Of Property Markets To The Competitiveness Of London &
Frankfurt
Colin
Lizieri and Andrew Baum with Nick Williams and Melanie Oughton
Property markets
play a key role in the competition for ascendancy as
Europe's financial capital. Space Race is the final
report of a major research project funded by Development Securities plc and
develops the insights of Who Owns The City? which
was published in 1998. The report examines the contribution of property
markets to competitiveness and investigates supply and demand in London and
Frankfurt. Survey data from the two cities highlights market strengths and
weaknesses. The study concludes that London is likely to maintain a dominant
role within Europe, but cannot be complacent or ignore threats to its
competitive position.
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