Income Analytics today announces the launch of its tenant income risk indices and benchmarks – a new and unique set of indicators for quantifying tenant income risk using data on over 355 million global companies from leading global provider of business decisioning data and analytics, Dun & Bradstreet.

Income Analytics redefines how the global real estate industry can access, analyse and deploy company credit data on tenants, real estate assets and investment portfolios, enable real estate professionals, investors and lenders to receive ‘real time’ analysis of underlying tenants creditworthiness and, with confidence, appraise anticipated future performance and ultimately likelihood of default.

Income Analytics reports and dashboards incorporate new proprietary analytical tools and scoring (INCAN scores) alongside the existing credit report data including:

• 10-year tenant income risk forecast
• Global tenant scores
• Bond equivalent ratings
• Global corporate family tree

As a global institutional asset class (US$30.2trn¹), real estate requires the same analytical analysis as equities and bonds. As stated by Andrew Baum, Professor of Practice, Said Business School, University of Oxford: “The value of real estate investment is ultimately determined by the level, duration and quality of the rental income paid by your tenants.”

Income Analytics provides a range of tools comprising:

• Tenant credit reports – Identification checks, quality of covenant and probability of default along with the usual company financials;
• Asset level credit reports – Aggregated income stream analysis and assessment of probability of loss; and
• Portfolio Income Manager – A platform to view and monitor the financial health of existing tenant and portfolio income quality 24/7.

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Matthew Richardson, Co-founder and Chief Executive Officer of Income Analytics commented: “At Income Analytics, we have created a truly unique and much needed set of tools and analytics for the global commercial real estate industry. No industry specific product for investors and lenders to assess and monitor the changing quality of their tenant income over time currently exists. More worrying is that very little has changed since the sub-prime crisis of 2008 and the recent global crisis caused by Coronavirus makes the need to access accurate and current income data more important than ever before. Our aim is to provide the real estate industry with a critical tool in which to assist investment decisions and investor reporting.”

Maxwell James, Chairman of Income Analytics stated: “Income Analytics has created a new and world class set of indices and benchmarks for the commercial real estate market. The insight that these measures bring is already resulting in better informed investment decisions by our existing clients. The application of these analytical methods offers the potential for investors and lenders to greatly enhance transparency and risk appraisal of portfolios or loan books at this critical time.”

Edgar Randall, Commercial Director UK & Ireland, Dun & Bradstreet commented: “Dun and Bradstreet is delighted to be partnering with Income Analytics to provide commercial data and analytics that support innovation and digital transformation across the real estate industry. Our aim is to provide a comprehensive risk solution for commercial real estate teams by combining our data with Income Analytics’ expertise and new platform to deliver actionable insights to drive business performance.”

Income Analytics was founded by and is led by an award-winning management team with unique experience and a strong track record in data monetisation and analytics in the commercial real estate sector. Biographies can be viewed at the company's website.

In light of the current COVID-19 situation the formal launch event has had to be postponed but details will follow in due course.

This has especially rung true for the British high street in recent years, with retail centre footfall having fallen almost exclusively between January 2017 and March 2019.

Whilst the future prospects for high street retail may initially seem bleak, there is nonetheless good reason to believe that there is light at the end of the tunnel. In this article, Jason Wood, Head of Commercial Property and Rashid Ali, Partner at UK law firm Smith Partnership, take a closer look at the role of commercial property in the age of high street decline.

Is High Street Retail Really Nearing Death?

Headlines announcing 'the death of high street retail' have become commonplace in the public arena, and there is definitely significant evidence to suggest that the high street is at least feeling the pressure.

The number of people purchasing goods and services online is expected to increase from 1.66 billion in 2016 to around 2.14 billion in 2021. Overall, ecommerce sales already accounted for more than 14% of global retail sales in 2019, and forecasts are tipping it to grow further towards 22% in the next four years alone.

Although these figures do not necessarily mean that digital consumers are shifting their focus entirely towards the online sphere, the trend undoubtedly represents a threat to traditional retail businesses. That observation is backed by the numbers, with the closure of UK chain stores having led to a decline of 6537 stores in 2018.

It's not all bad news, however. Amidst this general downturn, takeaways, sports clubs, pet shops and specialist clothing stores are just some of the retailers that have posted a net gain in store numbers during the first half of 2019.

Retailers' Response

As online sales continue to grow, retail businesses have begun to adapt and diversify their approach. Aside from making their own move into the online market, retailers have found many new ways of safeguarding their commercial longevity. These could range from practical steps such as selling assets and large-scale reorganisations to focusing on the delivery of a more immersive brand experience.

Although the former approach may be seen as a necessary consequence of the changing retail environment, the latter steps may well be the ones that help reimagine high street retail in the 21st century. The presence of physical stores will always be the main distinction between online and offline shopping, and retailers are faced with the challenge of playing to those unique strengths in a future-oriented way.

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What About the Commercial Property Sector?

Retailers aren't the only ones having to adapt to this brave new world – the commercial property sector has its own role to play in shaping the direction of the UK high street.

Store closures affecting both small businesses and high-profile retailers have made it harder for property investors to make the most out of their brick and mortar assets. Instead, many of them are faced with vacant space and reduced rental yields.

Unsurprisingly, commercial landlords whose portfolio is heavily focused around retail space are being hit hardest by the struggling retail sector. Rental cuts and company voluntary arrangements (CVAs) are at the order of the day, forcing landlords to rethink their strategy.

Commercial landlords whose portfolio is heavily focused around retail space are being hit hardest by the struggling retail sector.

Much like retailers themselves, diversification is often at the centre of that new approach. In some cases, this calls for nothing more than the repurposing of one retail space into another – as more and more shopping goes digital, retail warehouses continue to retain their importance.

In other cases, commercial property investors are moving into an entirely new direction. Opportunities in residential property, build to rent, flexible office space and other areas mean that landlords still enjoy many avenues through which to pursue commercial success. If the decline of the high street has taught us anything, it's that adaptability is central to achieving that goal.

In order to ensure longevity, developments can no longer be based solely on office or residential use. A greater focus on multi-use, the environment and more flexible lease structures can go a long way in shaping spaces that occupiers wish to remain in, helping landlords guarantee income in the long term.

The commercial property sector is also responding to these changes through moving away from retail-led and transactional high streets. There is now a greater focus on experience and the blending of retail, leisure and culture into a single space. The future of city centres lies with being more than just a place to shop; they are set to become community hubs where visitors can shop, eat, visit and explore to their heart's content.

In the face of such developments, landlords themselves are also having to alter their approach. Commenting on the changing role of the commercial landlord, Smith Partnership's Wood and Ali said:

"Landlords focused on providing long leases at high rents are likely to struggle for survival in the long-term. In their place, landlords who take a more active role in the management and performance of their tenants are likely to become the new norm. As such, commercial landlords are steadily settling into a new role as the curators of the high street, considering which businesses will thrive in their space and supporting them in doing just that."

A New Horizon

With changing consumer behaviours continuing to have a significant impact on the UK high street, the time has never been better to carve out a new way forward.

Although retailers and commercial landlords will undoubtedly face further challenges in the years to come, there is also a wealth of new opportunity on the horizon. Those who are able to capitalise on it successfully are set to play an instrumental role in shaping the path ahead.

With the current average UK rent at £934 per month according to HomeLet, Bunk looked at what you can typically get for between £900-£1,000 and how it differs across the UK.

Studio flat, Brixton - £900 pm

Of course, £1,000 won’t get you much in London space-wise, but it will get you a studio flat in either South Kensington’s sought-after Gloucester Road, above Walthamstow’s famous Bell pub or in a gated Tudor style development in Brixton fit with a private pool.

One-bed terraced, Cambridge - £950 pm

In Oxford, you could secure a one-bedroom terraced house with scenic country views for £1,000 and in Cambridge you could also pick-up the same sized property for £50 less a month.

One-bed apartment, Granary Wharf, Leeds - £950pm

If you prefer apartment living, you can snap up a one-bedroom apartment in Gordondale House in Aberdeen, the Royal Parade in Bristol, the Mailbox in Birmingham, Granary Wharf in Leeds or the 32nd floor of the 47-storey Beetham Tower in Manchester.

Two-bed apartment, Mann Island, Liverpool - £950pm

If you’re looking to up your property potential and add another room, a budget of £1,000 can secure you a two-bed apartment in Liverpool’s waterfront Mann Island development, Nottingham’s historic Lace Market conversion, Sheffield's Victoria Quays, the unique Exchange building in the heart of Leicester, Clarence Parade in Portsmouth, a sea-front view in Bournemouth’s Honeycombe Chine, Cardiff’s old flour mill building Spillers and Bakers, Castle Chambers in Glasgow or Swansea’s Maritime Quarter.

Two-bed duplex, Oxford Street area, Southampton - £980pm 

Or, a similar budget would secure you a two-bed duplex in a grade-II listed building in Southampton’s trendy Oxford Street area, or a two-bed terraced with traditional features in Edinburgh’s Rosebank Cottages.

Four-bed terraced house, Lancaster Street, Edinburgh - £1,000 pm

Finally, for a budget of between £900-£1,000, you could rent a three-bed apartment in Compass House, Plymouth, fit with balcony and view of the marina, or a four-bed terraced house in Newcastle, close to Science City and the university.

Co-founder of Bunk, Tom Woolard, commented: “The UK rental market is home to a wide and wonderful variety of properties to suit all styles and it’s interesting to see just how the stock available differs when you take the same monthly budget and apply it to the various regional cities across the nation.

"Of course, you get a lot more property for your money when you look to the more affordable areas but that doesn’t mean you can’t find something with a bit of personality even in the likes of London, Oxford and Cambridge.  

"All too often, the speed at which property can let means that many tenants will settle for the first thing they find and are able to put a deposit on, but it can make a real difference to your life satisfaction in the rental market if you are able to find a property that you love to live in, rather than one you just choose to live in.” 

It is very likely to be the most significant purchase you ever make. Because of its long term ramifications, you want to take the process seriously. Below, the experts at Crawford Mulholland provide Finance Monthly with a simple guide to buying your first home.

1. Are You Ready?

First, you want to examine whether or not you are actually ready to purchase a home. Buying a home isn't something that you should jump into without proper preparation and knowledge. While owning your own home might sound appealing, it involves a lot of maintenance and ongoing work. When you own a home, you are responsible for paying all of the repairs and you are going to be responsible for paying for the respective taxes, insurance, and everything else. Because of this, you need to figure out if you are financially ready for such a leap.

2. Budget For Other Costs

You want to be sure that you are factoring in the costs that you might not necessarily be looking at initially. There are plenty of costs associated with buying your own home that you have to factor into your buying decision including but not limited to the removal costs, stamp duty, the initial furnishing, the survey costs, the solicitor's fees, and more. Make sure that you are factoring in everything when you are making a buying decision.

3. Shop For A Mortgage

Once you have decided that you want to go ahead and purchase a home, you want to shop around for a mortgage. This way, you will be able to minimise the interest rates that you are forced to pay on the mortgage. You will be able to search for some of the best mortgage rates online in order to find the best deal. You want to find the best deal because it will end up saving you a lot of money in the long run and you will need to look to see which type of mortgage would best suit your family.

4. Find The Right Property

When you are shopping around for your first home, you want to take the necessary steps in order to find the right one. Finding the right home is very important because you don't want to make such a large investment in something that you are going to regret later on. Take your time to figure out where you want to live and find a home that is suitable for you to live. You should be looking at the different properties in the surrounding areas that you would like to live to see whether or not you can find a place that you would love to call home. Don't rush the search process because it is going to dictate where you live for the foreseeable future. You want to factor various things in this process including how long the home has been on the market, why the property is being sold, and what is included in the sale.

5. Prepare To Negotiate

If you are going to be purchasing a home for the first time, you want to be prepared to negotiate. Without proper negotiating, you are not going to minimise the total price you end up having to pay for the property.

Overall, there are plenty of things that you can do to make the process much simpler. By following the tips above, you should be able to maximise your chances of finding a great home to purchase as a first time home buyer.

One of the top things that you need not skip is the "staging" process. This is the phase where your house will be readily available for potential buyers to see. Not only does this help you sell your property faster, but it even helps you add a few more pounds and value to your house for sale. Listed below are some tips on how you can prepare for your house's staging process.

1. Declutter

Go over your entire home and de-clutter your space. Whether it's a one-story home or a three-story house filled with lots of rooms and baths, you may want to go over your things declutter those that you're not using at all. Give it to charity, sell them, give it to a friend. If you've not used it for months, then it's probably best that it goes. While you may not be including furniture pieces at home along with the sale, this is still an important process because we want to make sure that potential buyers won't see the house in a "messy" and "cluttered" state.

2. Re-Paint

A fresh lick of paint will immediately transform an old-looking house and give it a fresh, new look. Make sure that when you're showing your property to potential buyers, given them a nice impression. Show them how beautiful the property is, and they can't appreciate it if the paints are all chipped, old, and dusty. Choose neutral colors for the paint and avoid personalizing the house too much. This way, buyers can see the true beauty of the home and they can do the personalization themselves.

3. Keep It Clean And Minimal Looking

If there are minor repairs that need to be done, do it. Do you have holes in the wall? Fix it? Are the door knobs broken? Replace it! We want to make sure that the house looks clean, refreshing, yet minimal looking. Do not over-decorate. It's hard to appreciate the entire house when it is filled with large furniture and overwhelming with home decor.

You may also want to do a general cleaning this time. If you can't do it, hire someone to professional help you with this. Get rid of the lime streaks if any, clean the windows, make sure that the floors are waxed - until every inch of the house is squeaky clean.

4. Upgrade Your Kitchen!

Did you know that the kitchen is one of the most precious and well-prized of your home? Many people's decisions make or break when it comes to the kitchen. Resurface your kitchen cabinets, replace the tiles or clean them if they're all filthy. You may also want to consider upgrading your kitchen countertop. It may be a little bit expensive, but it definitely adds a lot more value to your home and helps you sell it at the best price.

5. Keep It Light And Airy

Give your guests a welcoming feeling. Make sure that the house doesn't have furniture that is too squished or too close together. Making it look light and airy adds value to your house and can even help you sell it at a higher price.

6. Keep House Smelling Clean!

We don't want potential buyers stepping into your home while the house smells stinky! If there are drainage problems, it may cause odor and we don't want to just patch that with a band aid. Instead, to add value to your home and to make sure that it sells quickly at the best price, fix the source of the problem.

During a house visit, you may also want to bake some cookies or bread, as it helps them feel at home. Or, you can add some diffusers for a nice smelling home with therapeutic effects too!

8. Work With An Estate Agent

Lastly, to make sure that you won't be ripped off by potential buyers, make sure that you work with an experienced real estate agent. Find one that has extensive experience in this field and one that can help you further increase the value of your home. When giving potential buyers a tour to your home, let the agent do the talking. They're the ones trained and they know exactly what to say, to help you get the best price and even sell the home much quicker.

However, despite propaganda and horror stories surrounding the housing market in the UK, and the question of how Brexit will affect this, there are actually a lot of positives to buying in the UK at the present. It may well be the case, that now is in fact the perfect time to buy a house in the UK, and here’s why.

Population Levels

A recent census actually showed that the population has grown by a record of 7% in the last decade to just over 68 million people. That’s almost the equivalent of adding the entire city of Manchester to the UK every year. In the next twenty or so years, the number of UK houses needed is expected to reach the sum of at least 28 million, which is an increase of 250, 000 households per year. With rapidly growing numbers like this and the demand for houses growing, why wouldn’t you invest in a property? Not only this, but cities such as Birmingham, Manchester and Leeds are flourishing like never before. London no longer has the monopoly, as many places up North are regenerating. Birmingham alone has gone through a complete transformation, costing over £500 million in development.

Low Prices

Housing prices are at an all time low, meaning it can only go up from here, so why wouldn’t you buy them now in order to make money on them later? It’s a very rare combination: the

weak pound, low interest rates and falling property prices. Because of these elements, borrowing is cheaper than ever, and mortgage rates are at an all time low. This increases the amount of money landlords can charge for rent, thus making their monthly rental income higher than ever before. Therefore investing a buy to let property in the UK at present could make you a lot of money in the long run.

Other Positives

Of course there are further positives to investing in a UK property:

• Studies show that the UK is actually the top European city for property investment, despite political Imagine how much it will boom when Brexit is (finally!) concluded.
• For investors, thanks to the internet and a growth in the alternative methods of sale to the traditional, such as quick sale investors, for example here. This is a great option in case investors end up looking for a quick cash sale, or alternatively look to make a purchase of the
• If statistics are indeed correct, it’s set that at least 20% of the population will be looking to rent their home rather than buy them in the next five If this is the case, then now would be the perfect time to invest in a buy-to-let property. Imagine the money you could make in the future - not bad for the pension pot. Sometimes an investment now is worth the reward you’ll get in the future.
• In the world, out of the top universities, sixteen are actually in the
• In regards to the growth in population, mathematically there are actually too few houses for the amount of people in the country now, and by how much that’s set to grow. Because the demand outweighs the current supply, investors who have exposure to property as an asset are likely to be able to regenerate a return from
• The rise in employment levels in the country is also another reason for investors to buy. By the end of 2017, 75.3% of people in the UK were then employed, as opposed to the 5% the previous year. 2017 showed the joint highest number since records began in 1971. To make this more useful, in numbers it means that roughly 415,000 more people were employed since 2016.

In short, these are only a small amount of the reasons why it’s worth investing in the UK now, and why in fact it’s the perfect time to buy property in this country. Regardless of your purpose, whether you’re looking to become a landlord or wanting to buy your own home, looking at prices and statistics now is the ideal time. So what are you waiting for

More than three-quarters (80%) of bankers believe challenger banks are an increased threat to their business, while almost one-third (30%) believe they will be the single most disruptive threat in 2019. The survey, commissioned by fintech provider Fraedom, found that in response the challenger bank threat, bankers expect their organisations to invest heavily in updating legacy systems (44%) and new technology (26%) in 2019.

“With challenger banks setting themselves apart by offering innovative technology platforms, commercial banks are now realising they must invest in key areas in order to counter this threat. This was also echoed by our survey which found other disruptive influences in 2019 to be digitalisation (36%) and consumerisation of technology (36%)” said Kyle Ferguson, CEO, Fraedom.

This comes as almost half (46%) of respondents perceive legacy systems to be the biggest barriers to the growth of commercial banks, while 32% cite it’s the pressure to save money.

With investing in new technology high on the agenda for commercial banks, the survey found that over half (53%) of respondents believe AI and Machine Learning will be the technologies to have the biggest impact on commercial banking in 2019.

“It is clear to see that challenger banks are a disruptive force within the sector. Through the use of innovative technology, these banks have plugged a gap left by established retail banks,  and are acting as a stark warning to banks within the commercial space which remains open to similar disruption,” added Ferguson. “If commercial banks are to compete, they must become more agile and adopt new technology platforms suited to changing needs of businesses, or risk being left behind.”

(Source: Fraedom)

The company, which advises organisations of all sizes on their insurance requirements, and which has worked with a quarter companies in the FTSE 100, has recently launched a new Cyber Risk Consulting Practice. This helps clients to understand their exposure to cyber risks, and to source appropriate insurance cover for these. In a report, it has recently reviewed dozens of ‘off-the-shelf’ cyber insurance policies and identified seven significant common flaws:

1. Cover can be limited to events triggered by attacks or unauthorised activity – excluding cover for issues caused by accidental errors or omissions

2. Data breach costs can be limited – e.g. covering only costs that the business is strictly legally required to incur (as opposed to much greater costs which would be incurred in practice)

3. Systems interruption cover can be limited to only the brief period of actual network interruption, providing no cover for the more significant knock-on revenue impact in the period after IT systems are restored but the business is still disrupted

4. Cover for systems delivered by outsourced service providers (many businesses’ most significant exposure) varies significantly and is often limited or excluded

5. Exclusions for software in development or systems being rolled out are common and can be unclear or in the worst cases exclude events relating to any recently updated systems

6. Where contractors cause issues (e.g. a data breach) but the business is legally responsible, policies will sometimes not respond

7. Notification requirements are often complex and onerous

Bruce Hepburn, CEO of Mactavish said: “There are a number of new cyber insurance policies being launched, but despite a sharp increase in cyber incidents this market is very immature and in many respects untested. Perhaps some of these policies have been rushed to market by insurers eager to capitalise on the growing cyber risks facing organisations, and their desire to spend significant amounts of money to protect themselves against this.

“Very few claims have been made on these new cyber insurance policies, but my bet is that many will be disputed, or settlements will be much lower than clients expected. However, this can be avoided if organisations first understand the cyber risks they face, and then secure a bespoke policy to meet their needs.”

(Source: Mactavish)

As global business and cross-border transactions have proliferated, there are significant implications for commercial customers who rely on banks and payments providers to provide a flawless service faster than ever. So how do can the financial services sector put value back into the process? Below Abhijit Deb, Head of Banking & Financial Services, UK & Ireland, Cognizant, explains for Finance Monthly.

Consumers now expect easy and immediate payment services, no matter where they are or what they are buying, whatever the payment method. It may be symptomatic of the ‘age of instant gratification,’ but it also demonstrates how people value financial agility. This was highlighted by a recent system failure with the UK’s Faster Payments System that caused mass inconvenience and frustration among consumers. Whether paying a friend back for last night’s dinner or sending emergency funds to family travelling overseas, the offerings of digital banks such as Monzo and Starling are testament to the industry’s efforts to keep up with rapidly evolving consumer expectations. This trend has now also filtered into the business world.

The technological saturation of the financial services industry has been met with an increasing affinity for risk amongst business customers. Churn has never been easier. If one bank cannot meet their needs, customers can leave, and it has never been easier for them to switch financial providers in a congested market. In essence, the evolution of the payments ecosystem encompasses much more than innovation targeted at consumers.

Understanding the value of payment data

Of course, there are some interesting examples of innovation in consumer payments. Gemalto’s biometric bank card, for example, highlights that the area is steadily advancing, despite scepticism that there will be mass consumer acceptance.

However, the pace of change is accelerating rapidly in terms of offerings. For instance, blockchain is being harnessed by banks and technology vendors as a prime enabler of an instant B2B payments infrastructure. Industry players realise that the methods that can derive benefits today are largely based on a better understanding of the value of payment data.

While such data has mostly been used to create a hyper-personalised customer experience for consumers, it is increasingly being harnessed in services to businesses, even outside the financial services sector with companies such as Google recently purchasing Mastercard credit card information to track users’ spending to create an additional revenue stream.

This evolution of B2B product consumption is emerging as a key theme across the broader financial services market and is increasingly allowing businesses of all sizes to ‘window shop’ for the products and services they want the most. Providers are racing to commercialise the increasing amounts of account information, a trend that has increased in the wake of regulation such as PSD2 (the Second Payment Services Directive). By doing so, they can position themselves as the customer’s ‘digital front door’ to a wider range of services such as financial advice, merging the dimensions of ‘fast money’ (a consumer’s daily spending) and ‘slow money’ (future spending, saving and investment).

Adopting innovations such as automation, means that banks and card providers can help their commercial customers transform payments into a process that can add real value and allow the integration of additional services. By making financial reporting much easier, organisations can glean better insights into data showing purchasing trends among their customer base. The emergence of machine learning and self-learning systems will make this process much more efficient, even incorporating features like automated financial advice or fraud detection to become commonplace.

Consumption models are changing

Therefore, as payments processors and providers realise the opportunities in the business payments ecosystem, innovation accompanied by a commoditisation of payments services is on the increase, characterised by providers trying to add more value in the supply chain. Although currently most relevant to the SME market, companies of all sizes are being targeted with added value payments services such as reporting, to help them make better decisions. For example, retailers working with Barclays have access to add-ons and third party apps via the bank’s SmartBusiness Dashboard, including basic analytics to see what customers are spending their money on. This information can then inform marketing schemes that tailor product promotions to specific customers.

Ultimately, the more choice the customer has and the more informed they feel, the more likely they are to return to the same bank to take out a loan or use other services.

With so many contributors to the payments ecosystem, and an increasing number of organisations using the analysis of payment data as a key differentiator against competitors, it is crucial that banks, regulators and payments processors co-ordinate their efforts and use the best technology available to create an efficient system. And with the Faster Payments Service deal up for renewal, a system that underpins most of the UK’s banks and building societies, perhaps it is time for the government to consider how it can best support a payments infrastructure that works for all.

When it comes to buying a property, UK homebuyers may rely predominately on mortgages and cash payments, but their knowledge towards other financial products is limited, new research by Market Financial Solutions (MFS) has revealed.

The bridging lender commissioned an independent, nationally representative survey among more than 2,000 UK adults to uncover just how Brits have been financing their property purchases. Of those who have bought a property since 2007, 42% identified as cash buyers while a further 52% said they had used a mortgage or re-mortgage.

Taking into account the rise of the UK’s alternative finance industry – currently worth over £4.6 billion – the research also revealed a noticeable uptake in products outside of mainstream loans. Nearly one in five (19%) homeowners said they had used a form of alternative finance, ranging from crowdfunding to mezzanine finance and unregulated loans, with this figure rising to 29% among respondents aged between 18 and 34. Meanwhile, 13% of homebuyers said they had used a bridging loan – this number increased to 21% for those who were investing in a second home.

Deciding on how to finance a property purchase can seem overwhelming given the number of loans and products currently available in the UK. As a result, 37% of homebuyers have relied on a broker to help them find a financial product best suited to their needs.

However, MFS’s research also showed that the reliance on mortgages and cash payments was partly due to a lack of knowledge surrounding other available finance options. Reflecting the competitive nature of the country’s property market, nearly a quarter (24%) of buyers said they would have liked to have considered other financial products but feared they would lose out on their property purchase if they delayed their credit decision. Delving into awareness of specific alternative finance products, nearly half (49%) did not have a strong enough understanding of bridging loans or the situations in which they can be used.

Paresh Raja, CEO of MFS, commented on the findings: “Mortgages have long been the go-to method for financing a house purchase in the UK. But over the past decade, a range of new alternative finance products has arisen to give buyers different options that might be better suited to their needs. However, today’s research demonstrates that there remains a lack of understanding about what these options are and how to use them.

“From crowdfunding platforms to raise a deposit, through to bridging loans to buy a property at auction, there are many opportunities now accessible for those needing to access credit, and to remain reliant on the mortgage market could restrict an individual’s ability to get the funds they need. Indeed, in the UK’s competitive property market, it is essential that buyers are aware of the financial products they can choose from, in turn putting themselves in the best position to progress with a purchase quickly and efficiently.”

(Source: Market Financial Solutions)

Phil Sugden, Director at flexible workspace solutions provider, Portal Group, discusses below how the Managed Office Solutions concept has reduced the risk of capital expenditure for fast-growing companies when relocating offices.

In a rapidly evolving market place, businesses are often growing at an entirely unpredictable rate. While growth is one of the most highly valued characteristics of any successful organisation, it often causes logistical and financial challenges when relocating to a larger workspace under the traditional office lease and the serviced model.

Businesses that opt for the traditional lease model are highly restricted in terms of flexibility, fit out and capital expenditure, thus limiting future developments and changes. While the serviced model offers more flexibility, businesses still face limitations on how they can use the office environment to reflect their brand.

Selecting an integrated service offering, such as Managed Office Solutions (MOS), offers a ‘third way’ for businesses to relocate to larger premises. Using MOS, offices are tailored to the client’s exact needs with the added advantages of risk mitigation, the removal of capex requirements and contract terms to meet business planning horizons.

The typical challenge for a small business that has outgrown its existing premises is finding and setting up an alternative location with access to high-calibre talent in a short space of time. In addition, extensive lease lengths can restrict SMEs from finding a new workspace that is wholly suited to their growth strategy.

Historically, companies opting for the traditional lease model have committed to the security of lengthy 10, 15 or even 20 year leases. As business plans often change several times over lengthy lease terms, this certainty has come at a critical price of flexibility in an often volatile economic climate.

The contract lengths for MOS, however, typically range from 3-5 years and therefore enable companies that require a high number of workstations, to more closely align their accommodation requirements with their actual business needs, allowing them to expand or downsize as required.

When expanding under the traditional office lease, businesses are required to self-source and invest substantial capital expenditure in what would be a large, ‘from-scratch’ project. Outsourcing fit-out and facilities management providers when relocating offices can be a costly and time-consuming process.

In addition, the exit fees and dilapidation costs can present even the most well-established businesses with a weighty unnecessary expenditure at the end of a lease.

As a result, small to medium sized businesses are now viewing their office space requirements as a strategic component of their business plan, and thus opting for more flexible leasing options at a fixed price, with no additional costs.

Leases are rapidly becoming an outdated concept, and under more flexible workspace contracts such as Managed Office Solutions (MOS), agreements can be negotiated so they are based on inclusive managed contracts that are priced on a per workstation basis with no capital expenditure or risk.

By having a single cost for the property, facilities management, fit out and ongoing management, flexible methods like MOS remove what can be considerable associated upfront capital expenditure costs, while allowing business funds to be utilised more effectively on operational costs for the property itself.

Simply put, the new wave of shared offices options are allowing SMEs to not only access all the services they need at a cost-certain price, but to work within a flexible financial model that actively encourages their individual development and culture.

While the uncertain impact of volatile market conditions, and of course Brexit, remain to be seen, businesses of all sizes are having to adapt to become more flexible than ever before. Even the most well-established businesses with enough capital to sustain sudden expenses, are reviewing what were previously assured and predictable growth plans. Philip Sugden, Operations Director at Portal Group UK, explains more for Finance Monthly below.

A business’s property profile is one of the most costly financial investments to be made and over the years the associated fixed rental rates are amongst the standard steps taken in establishing a solid presence for your business.

That cost certainty however, came at a price of the flexibility that is now critical in the modern and reactionary market place.

New businesses are growing at an entirely unpredictable rate while some large established businesses are seeking the autonomy to customize a workspace to better respond to supply and demand. However, with office space at a premium, both large and SME businesses are finding it harder to find a premises that can fill their present and future without breaking the bank.

The possibility that you might need to expand, reduce, reallocate or relocate your workforce at the speed required, particularly for example in the contact centre environment, is extremely costly and entirely impractical under the traditional office lease.

Whether a business is expanding or simply relocating due to success or commercial needs, budgets can no longer be front-loaded into capital expenditure laden construction or leasing of properties.

When considering the growing need to balance financial flexibility with cost certainty in the UK, it’s also interesting to note that our leasing habits differ vastly from the norm abroad. For example, while companies here have traditionally committed to the surety of long 10, 15 or even 20 year leases, the average is closer to three years in the US or India.

While these short-term lets would be at odds with the business growth plans of most UK businesses, more and more businesses of all sizes are increasingly exploring more flexible yet capex-free models.

The likes of managed office solutions (MOS) financial packages, which combine property acquisition, workspace design, fit out, facilities management and supporting services, reflect the emphasis now being placed on financial flexibility and the more expansive use of fluid operating costs (opex).

With simple, streamlined systems and structured terms, business owners can invest their time, effort and money into their businesses, not bricks and mortar.

Simply put, the new wave of shared offices options are allowing start-ups and multinational businesses alike to not only access all the amenities they need at a cost-certain price, but to work within a flexible financial model that fosters their own unique growth and culture.