RICS is delivering a proactive Government advocacy and engagement programme designed to support the profession and all our professionals through these unprecedented times.
We are in regular contact with Ministers and officials from both the UK and the devolved national Governments to share our insights and provide expert advice on policy and legislation proposals.
We have been working quickly, either directly to Government, in collaboration with sector stakeholders, or coalitions of organisations, to ensure that key messages and asks are being presented to, and heard by, Governments.
Thus far, we have successfully influenced Government on a raft of issues that affect our sectoral remit, and will continue to do so to ensure our professionals can operate where possible, and endure these incomparable market conditions.
RICS is delivering a proactive Government advocacy and engagement programme, across our sectoral remit, designed to support the profession and all our professionals through these unprecedented times.
Further information on our ongoing activity can be found here
In the wider construction context, RICS have communicated the following top line concerns arising from COVID-19 –
A letter from the Secretary of State for Business, Energy and Industrial Strategy, issued on the 31st March 2020, maintains the Governments position that construction activity can continue, providing it is done safely in line with PHE guidelines. See the published letter here.
Scottish Government have announced (7th April 2020) that all non-essential construction work should cease immediately due to COVID-19 concerns. Guidance published by the Scottish Government advises on construction sites and associated works that can continue under specific conditions, and that those that cannot meet the requirements stop operations.
Scottish Government guidance can be found here
’The NI Executive, Department for the Economy, has published guidance on making workplaces safer and a list of priority sectors which can be found here – it should be noted that the guidance is for advisory purposes only, with the decision on whether to proceed with any construction activities being left with individual companies
Specific construction Government measures include The Cabinet Office publishing model contract variations for JCT and NEC contracts. The new contract variations will support the Government’s procurement policy note 02/20: Supplier relief due to COVID-19, which is relevant until end June 2020, and sets out information and guidance for public bodies on payment of their suppliers to ensure service continuity during and after the current coronavirus outbreak.
As members of both the Construction Industry Council (CIC) and as representatives on the Construction Leadership Council (CLC) advisory group, RICS have fed into joint work strands across the issues of viability of site operating procedures, consultant site inspections and post COVID-19 stimulus. RICS supported a CLC letter issued to the UK Prime Minister which outlined the following sector recovery proposals -
The letter further specifies a number of recent CLC publications including -
The full letter can be found on the CLC website here.
Additional CLC guidance includes –
Published date: 01 April 2020
Published date: 01 April 2020
RICS fed into and supported a letter issued by the British Property Federation (BPF) to the Secretary of State at the Ministry for Housing, Communities and Local Government (MHCLG) asking for greater clarity on essential works, key facilities and safety critical services to buildings.
BEIS have since published updated Social distancing in the workplace during coronavirus (COVID-19): sector guidance - including sector specific advice to 'Tradespeople and working in people’s homes' and 'Construction'.
RICS, with CIOB and the national architecture bodies (RIAS and RSAW), have issued letters to the construction Ministers of Northern Ireland, Scotland and Wales calling for a gradual re-opening of construction sites, the establishment of a maintenance programme, and the introduction of a VAT rebate funding scheme.
Through weekly calls with BEIS, we are updated on government measures affecting construction and influence measures to be taken in terms of on-going guidance for the industry.
Construction recovery measures
Working with the CLC and the profession to present to government a list of construction stimulus measures and general thoughts on how construction can be used as a catalyst to aid the economic recovery post-virus.
Implementing procurement change
Working with CLC and MHCLG to develop new construction procurement tools and changes to construction chartered pathway competencies to implement the recommendations of the Hackitt report and bring in a wider ‘procure for value’ culture.
Construction cost implications
Working with CLC and the profession to assess the likely post-virus effects on tender prices and costs and the impact that this may have on the potential to normalise the economy post-virus.
In the wider residential context, RICS have communicated the following top line concerns arising from COVID-19 –
RICS has been working with Government on many different areas below are Government advice and announcements that RICS were involved in discussions with Government whether as part of a joined up industry push or as part of our role liaising with Government departments.
RICS has also updated our RICS Valuation (Global Standards red book) and Personal Indemnity Insurance to help our members adhere to Government advice, but not go against the standards they are regulated to. Further details are provided in the Profession and Practice section of this website.
Ongoing and Future Activity
There are still issues that RICS is aware of and are continuing our work in engaging with Government on including:
RICS in collaboration with RIBA and RTPI sent a letter to the Prime Minister around construction issues, but within the letter we also highlighted measures to help the planning sector during COVID-19 and asked the Government for:
• Additional short and medium term funding to cover staff absences or redeployment to maintain operating capacity within planning departments;
• A temporary relaxation of time limits for planning applications to allow local authorities to prioritise cases to reflect health and safety considerations and the nature of requests;
• Waivers to allow the deferral of requirements for information if planning officers judge a request to be of low or no impact;
• Greater flexibility around the operation and submission of evidence to planning committees.
We are also continuing to engage with Government and will be looking to engage and influence on the following issues:
• Housing delivery:
Cash flow issues
S106 and CIL payments: and
Measures that will help stimulate the market.
• Planning system:
Short term planning reforms to address the critical delivery situation without a loss in standards.
Longer term planning reforms to bring more certainty for communities and developers about what is to be delivered, without a loss in standards.
Accelerated use of technology to engage with communities, develoers and decision makers
Review of viability assessment in planning in the new context
RICS is in regular contact with MHLCG to raise a range of issues, some of which have been resolved. The most progress that has been made is on business rates and grants and getting them applied to estate and lettings agents, along with pressing to make sure that local authorities are consistent in the application of business rate relief. We have also had success on Right to Rent checks.
We are exploring estate agent commission and dividend-based salaries to be included as part of the furlough scheme, as well as a phasing out of the furlough scheme as opposed to an abrupt stop.
Key issues that have been raised:
We have been engaging with MHCLG on inspections and viewings and visits of private residential properties to seek clarity on current social distancing measures for home moving. In addition, we have been approached by MHCLG to share our views on post lockdown suggestions as they look to update guidance once stay-at-home measures are lifted.
In addition, we are working in collaboration with the residential property sector to:
There are a range of surveying activities considered under this category (e.g. residential survey, commercial, design and specification, contract admin, building control inspections), each affected differently by COVID-19 restrictions and some of which fall into the same stakeholder categories as above. For example, some survey elements of building surveying are subject to the same residential survey restrictions above. Notable differences are as follows:
Support and influence with collective industry bodies
We have engaged with the Construction Industry Council (CIC) and the Construction Industry Task Force to provide industry feedback and to quickly communicate key messages or information sources to our members through a range of social media. We have contributed to key collective documents as required for consideration at groups including the CLC. This has included both generalist and specialist advice (for example, in ongoing combustible cladding requirements).
Member engagement
We have liaised with key members / expert groups to understand how different specialisms have been affected and to identify potential gaps in government or other professional bodies. For example, sporadic and inconsistent advice by Local Authorities has been exposed, highlighting the need for clear and consistent information on building control matters. This has included engagement with members in different countries to understand international approach differences and difficulties.
Partner professional group engagement
We have been working collaboratively with bodies including RIBA, CIAT, LABC, and LABS to clarify information being provided to industry and considering how to provide consistent advice where members service lines may cross.
Devolved Nation Governmental support and influence
In addition to points noted above, we have engaged with both members and relevant Government departments in devolved nations to provide advice and support for consistency in approaches. This has included for example Scottish Building Standards, and MHCLG’s Building Safety Team on ongoing building control matters.
Identification and communication of COVID-19 secondary effects
Through member and partner body engagement, identify less obvious secondary effects to COVID-19 lockdown on built assets. For example, as buildings sit empty and are not afforded normal maintenance, this can cause health and safety issues in, for example, water systems (Legionnaires’ disease), vertical transportation through reduced servicing, and issues unique to vacant site inspections and the requisite additional pre and post-survey safety checklist. This has been passed on through CIC for wider communication and added to our forums as information is received.
In the wider construction context, RICS have communicated the following top line concerns arising from COVID-19 –
The Chancellor has introduced a range of temporary measures aimed at supporting high streets and commercial market participants businesses, including:
Scottish Government introduces new measures to protect business tenants
The Scottish Government's Minister for Public Finance, Ben Macpherson MSP, has written to the main business organisations in Scotland to promote new powers introduced in the Coronavirus (Scotland) Act; such as an extension to the notice period for commercial leases from 14 days to 14 weeks before a commercial lease can be terminated for non-payment of rent. RICS welcomed the Minister's advice to seek professional advice.
Published date: 09 April 2020
We have been actively engaged with MHCLG in relation to the Commercial Property sector to articulate the scale and impact of non-payment of rents on the wider UK economy and society. We have provided data on the size of the problem and suggested solutions in terms of government support for guaranteed rent payments to landlords.
We have spoken to government at length on the essential and critical nature of the services that our FM and Property Management firms provide to ensure safe and functional environments for front line services. We have asked that these services be recognised to ensure access to buildings is maintained.
As the policy landscape for the sector rapidly evolves, UK Government have made a number of relating key announcements to support businesses; these include:
RICS was very vocal in urging Government to support for the self-employed, and we are now calling for Government assistance for those whose salary is commission based.
Full details of the UK Government’s implementation of business support, including rates reliefs and grants, in response to the Covid-19 virus can be found here.
The devolved nations received additional funding (totalling £5.3bn) under the Barnett formula to support businesses. Further details of help available for companies in the devolved nations can be found here:
RICS published important guidance to help our members ensure they are able to deliver valuations that allow them to adhere to Government advice, but not go against the RICS Valuation – Global Standards red book to which they are regulated and so as to not undermine the strength of RICS standards.
This guidance was sent to MHCLG, BEIS, VOA, HMT, No 10 and the FCA, and has led to regular dialogue with MHCLG around valuation and inspections, developing an inspection protocol for immediate use when lockdown rules change.
We also have weekly update calls with Financial Conduct Authority (FCA) to talk through the market and RICS activity. The FCA have also issued instructions allowing fund managers to dispense with the requirement for physical inspections for now thereby allowing valuations to continue. FCA cited RICS in the announcement and our guidance as being the reason for the decision.
Further sectoral engagements have led to a protocol with UK Finance when valuing on restricted information; biweekly calls with Department of International Trade to update on market activity and advising on what the market needs to allow activity to return; and we hosted a regulator round table (Bank of England, MHCLG, FCA, Association of Real Estate Funds (AREF)) to discuss issues of material uncertainty and valuation.
RICS will be writing to Government to increase awareness of the challenges faced in procuring PII, the impact that this is having – and/or will have – on key surveying activities (that will be passed onto the functioning of the market), and to call on the Government to work with us on solutions.
We have already issued a press release which describes the actions we have taken thus far. You can read this here.
RICS has agreed with the Prime Minister to call out to our profession to offer access to buildings that could be used by the NHS and other keyworkers during the Covid19 pandemic. You can register an offer on the government’s portal.