Fiona Togher, Partner at Hamilton Darcey looks at how and why you should be planning your future expenditure.
As I write this article at the start of the year, attempting to predict what will happen with the UK economy and in particular the property market for 2019, seems an impossible task for anyone. The Royal Institution of Chartered Surveyors have however stated their thoughts for house price growth to be at a “standstill by mid-2019” but the supply of stock should prevent an outright fall in property values. There are also a variety of predictions from mortgage lenders, which vary between 0-4% house price growth.
At Hamilton Darcey we recommend, in these times of economic turbulence, you should plan carefully for future expenditure to your property. This can be done in a number of ways including a Planned Maintenance Programme and a Reinstatement Cost Assessment report.
Seeking specialist advice from a Chartered Surveyor can provide a long-term maintenance and capital expenditure programme, allowing budgets to be allocated and adjusted to make provision for any future works.
Planned Maintenance Programme
A Planned Maintenance Programme (PMP) is a key tool for Property Managers to set their capital expenditure. It enables landlords to comply with their lease obligations and maintain the high standard of their building. For lessees, it prevents unexpected costs and allows them to budget up to 10 years ahead. The PMP should cover everything from cyclical redecoration works to structural repairs and statutory upgrade works. The cost of a PMP is nominal in comparison to the cost of failure of elements of the building.
Reinstatement Cost Assessments
A Reinstatement Cost Assessments (RCA) is produced for Building Insurance purposes and is required to ensure the insurance premium reflects an accurate reinstatement cost of the building. It is calculated in accordance with Building Cost Information Service and requires an accurate measurement of the building. An up-to–date assessment will make sure the building is not over or under insured.
Despite the economic uncertainty, the high number of scaffolds and cranes you see on a daily basis are a good indicator of the industry as whole. At Hamilton Darcey we have a healthy number of projects ready to commence in 2019, which demonstrates that people understand the value of maintaining their property. Many projects for this year include Fire Upgrade works which continue to be a priority for internal communal areas in particular.
Make planning ahead and maintaining your property a New Years resolution for 2019!