Demand for EV chargepoints means smart charging essential for construction industry

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Demand for EV chargepoints rises in the UK

As the UK continues to phase out petrol vehicles and encourage the mass uptake of electric vehicles, considerations have to be taken on new build homes and offices for EV charge point installers. Speaking in Parliament on 9 September, transport minister Rachel Maclean said the government will publish its response to a two-year-old consultation on mandating EV charge points later this year.

Expected to be included in the response is legislation requiring all new residential and non-residential buildings to have an EV charging station, news that will surely be welcomed by the hundreds of thousands of EV owners in the UK.

If passed, this legislation would make the UK the first country to mandate chargepoints in all new-build developments, and would be the latest in a string of indications that Westminster sees the future of personal transport as electric.

With the government recently confirming it will legislate to require all new-build homes and offices with parking spaces to have electric vehicle (EV) chargepoints, Shakespeare Martineau’s Neil Gosling, partner and head of residential development, and Isaac Murdy, trainee solicitor in the energy team, discuss the possible risks and available solutions.

As retrofitting charging stations is a lot more expensive than implementing the infrastructure during the construction stage of a new development (on average, £2,040 compared to £976 per space), it is positive to see the government looking to introduce legislation to combat one of the major barriers to drivers switching to electric.

However, while this would be a game changer in the shift to net zero transportation, the chargepoints pose huge potential challenges to the electricity distribution networks that will bring power to the points.

There are risks associated with multiple chargepoints being used at once, such as overloading their connections, and currently, the nominal load attributed to a development does not take EV charging stations into account.

With this in mind, it is vital the construction industry – whether developers or builders subcontracting the installation of a chargepoint – is aware of the potential hazards and the solutions currently available to avoid compromising its reputation.

The future of EV charging stations in the UK

The RAC estimates that, as of April 2021, there are around 239,000 zero-emission battery EVs on UK roads – with more than 100,000 registered in 2020 alone – along with 259,000 plug-in hybrids and 629,000 conventional hybrids.

With a plan to phase out petrol and diesel cars by 2030, the National Grid projects an EV stock of more than 11 million in Britain by that point and 30 million a decade later.

While this will help to meet decarbonisation commitments, new ways of thinking are needed to decrease the load demand created by EVs on an energy system that could face a 30% rise in peak electricity consumption in 10 years’ time.

Demand spikes for EV chargepoint installations

Chargepoints on all homes with a parking space would give the most utility to residents. However, it also places the greatest burden on the cables and wires distributing power to the estate – especially if EVs become as common as petrol and diesel vehicles, as they are projected to.

An analogy of why this would be a problem would be to compare the electricity to water. If we think about water pipes and all residents on a housing estate turn on their taps and flush their toilets at the same time, there will be a massive draw of water and either the taps will trickle or the pipes may even implode.

The same issue goes for electricity. Chargepoints can draw a lot of power from the grid and without control, there is the potential for huge spikes in demand, which could lead to brownouts (as insufficient electricity is shared around) or potentially the failure of distribution equipment that cannot handle the currents running through them.

Currently, many distribution network operators (DNOs) discount the possibility that everyone will be charging their cars while running the tumble dryer and boiling the kettle as too unlikely. This means that when calculating the additional reinforcement their networks will need when an estate is connecting in, they do not require any additional capacity to account for EV chargepoints.

This allows the network operator to give a more competitive price, but creates a problem for developers and drivers alike in the long run. We hope that as EVs become more ubiquitous, the real burden on the networks will be realised, and the Distribution Code that guides DNOs’ activities will be updated.

Smart charging shares data via the cloud

The solution is clear – smart charging and good communication with networks, and the government has acknowledged the importance of the former.

Smart charging refers to a system where an EV charging station can share its usage data via the cloud. This should help connect EV charging into the wider energy system, and could allow peak demand to be reduced, which would help prevent them becoming a burden on the power grid.

This is like the smart meter in your house being able to turn down the thermostat though, and will surely require commercial agreements to compensate people who will not get their vehicles charged as fast as they wanted.

We have started to see these put in place between high-profile housebuilders and installers to ensure the chargepoint will be controlled and what technology is needed to be put in place.

These early adopters are already showing how spikes can be smoothed by shutting down chargers when power is at a premium and turning them back on when demand is lessened. This can reduce the need for expensive reinforcement of the electricity network.

The solution is clear – smart charging and good communication with networks, and the government has acknowledged the importance of the former.

Smart charging refers to a system where an EV charging station can share its usage data via the cloud. This should help connect EV charging into the wider energy system, and could allow peak demand to be reduced, which would help prevent them becoming a burden on the power grid.

This is like the smart meter in your house being able to turn down the thermostat though, and will surely require commercial agreements to compensate people who will not get their vehicles charged as fast as they wanted.

We have started to see these put in place between high-profile housebuilders and installers to ensure the chargepoint will be controlled and what technology is needed to be put in place.

These early adopters are already showing how spikes can be smoothed by shutting down chargers when power is at a premium and turning them back on when demand is lessened. This can reduce the need for expensive reinforcement of the electricity network.

Looking ahead

To reach the UK’s ambitious target of becoming net zero by 2050, it is clear that renewables must become an integral part of housebuilding efforts.

And given that tens of millions of EVs could one day be on the UK’s roads as they replace petrol and diesel vehicles in a long-term strategy to decarbonise personal transport, domestic charging could soon become the norm.

To support this ambition, it is vital there is minimal impact on the grid and to deliver this, smart charging, delivered by commercial agreements, should be a priority.

To ensure they do not fall foul of the laws regulating electricity supply, generation and distribution, it is important developers take advice.

So, when specifying chargepoints to be installed on a new housing estate, taking a preventative approach by investing in the right technology and ensuring suitable agreements are in place will bear many benefits for residents and nearby locals, electricity suppliers and our planet in the long-term.

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Neil builds long standing working relationships with our clients by becoming an extension of their business. He is forward thinking and progressive in his approach.

As head of our residential development team, Neil has acted for the majority of the country’s top 10 national housebuilders as well as for significant institutional landowners, private builders and developers.

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The Modern Method of Auction - A New Trend?

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Modern Method of Auction

Selling or buying a property in a traditional property auction can be a hair raising affair sometimes with nerves of steel involved. It is not for the faint hearted. But the auction arena is changing and another method of buying property and land is becoming increasingly popular - the Modern Method of Auction or the Conditional Auction and there are definite advantages for both the buyer and the seller.

How does a traditional property / land auction work?

Many different types of properties and land are bought and sold by a traditional auction method – often properties such as repossessed properties, uninhabitable properties, unmortgageable properties and land for development,

Under the traditional method the buyer is committed to the purchase and a completion date regardless of any potential issues they may then subsequently discover on the property. A 10% non refundable deposit is required and contracts are exchanged on the same day. Due to the immediate timescales buyers need to have their finances in place prior to attending the auction.

Completion must happen within 28 days.

How does the modern method of auction work?

Modern auctions take place on line.

With the modern method of auction the buyer pays a non-refundable reservation fee or reservation deposit within 48 hours of the auction ending which does not form part payment of the final selling price. The buyer is required to formally exchange and complete within 56 days of their solicitor receiving the draft contract from the seller’s solicitor. This is the reservation period.

After securing the property at the modern method of auction the buyer will need to carry out the usual searches, check the title and the information pack.

The auctioneer prepares the buyer’s information pack under the modern method of auction in the same way as they would have done under the traditional method.

The buyer’s information pack includes the title register and plan, property information questionnaire, water and drainage search and the local search.

The modern method of auction allows buyers time to check the property and to raise funds but the deposit will be lost if the sale does not proceed. It is definitely advisable to ensure the funding is in place and the title is checked prior to making the bid at the auction and entering into the reservation agreement.

The seller or buyer cannot terminate the reservation during the exclusivity period of 56 days which gives some buyers a grace period and limits the possibility of being gazumped. The reservation can be terminated at the discretion of the auctioneer.

The seller can also terminate if the buyer is in breach of its conditions.

The seller can reoffer the property for sale at the end of the reservation period should formal exchange and completion of contracts not have taken place.

What are the advantages and disadvantages of the modern auction?

There is more time for buyers - 56 days over 28 days in the traditional auction, giving some flexibility around raising finances, carry out searches etc.

Buyers are not committed to buying, although they will lose a hefty deposit, usually 10% of the purchase price, if the sale does not complete.

From a sellers perspective, this is probably not the route to take if attempting to sell difficult to sell properties or land, as the buyer is not committed to buy.

What are the advantages and disadvantages of a traditional auction?

Once the hammer is down, the 10% deposit paid and contracts exchanged, the buyer has entered into a legal commitment to buy and cannot pull out, which gives security to the seller.

For sellers, this is the best route to dispose of difficult to sell properties/land and often attracts cash buyers. This also means that sales are achieved much more quickly.

For buyers willing to take a calculated risk, there are good deals to be had.

The modern method of auction is one of the fastest-growing sectors in property, but there are distinct advantages and disadvantages and it remains to be seen whether this will trend will continue. As a buyer or a seller it’s important to investigate the detail of both options carefully.

For further information on using either of these routes to buying or selling, contact Caroline Irvine in our property team or Tom Ansell in the residential conveyancing team.

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Caroline advises clients on landlord and tenant work and supports companies when they are buying and selling properties.

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On the brink of collapse: insolvencies in the construction industry

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Insolvency in the construction sector

The pandemic has placed the construction industry under considerable pressure, with it accounting for 17% of all UK corporate insolvencies in May 2021. Now that restrictions have lifted, it’s hoped that many companies will be able to survive moving forward. However, sector leaders should ensure they understand the insolvency process – whichever side they’re on.

The challenge ahead

Even before the pandemic, the construction industry was facing a number of challenges, including wafer thin profit margins and materials and labour shortages. This left many businesses in vulnerable positions, particularly in the wake of the May 2020 construction boom.

The complexity of construction supply chains often means that one problem can have widespread repercussions, so it’s important to be aware of warning signs that things may be going wrong

Understanding the signs

There are often distinct warning signs that indicate that a project is headed for trouble, these include:

  • Problems contacting subcontractors, employers or site teams
  • Unexpected changes in management
  • Subcontractors suddenly removing plant and equipment from the site
  • Unexplained reductions in productivity or resources

In the event these tell-tale signs appear, it’s time to take action.

Next steps

The first course of action should be to review your contracts and documentation, which will help you to understand the risk and who carries it. A plan can then be formulated.

If the financial position is worsening, it’s important to maintain lines of communication with key stakeholders, including the team ‘on the ground’. Staying close to site activity will provide a greater insight into any future problems.

If the financial problems evolve into something more serious, there are things that can be done to manage the risk. Communication is vital, so take advice and engage with major stakeholders and funders as soon as possible. Getting key suppliers on board at an early stage may also help in the long run.

Law of Property Act (LPA) receiverships

Administrations and liquidations, where a business is placed under the control of insolvency practitioners, are still common. However, not all insolvency situations are equal and there is a growing number of distressed projects being placed into LPA receiverships. Here, a receiver  is instructed by a lender to take charge of discreet assets (usually a property) and sell them to recover the debt.

This option is particularly beneficial for construction projects as it is quicker, cheaper, and often means the project will be seen through to completion.

The director’s role

Directors and owners must be aware of their responsibilities and personal risk during an insolvency. Although it may be tempting to walk away from a struggling business, assisting administrators or LPA receivers could result in a better outcome.

Legal provisions such as The Corporate Insolvency and Governance Act 2020 are also in place to provide directors with time to consider all of their options.

As the pressure facing the construction industry increases, insolvencies will inevitably happen. Ensuring directors and senior leaders know how to spot the danger signs, could prevent further problems down the line.

Get in touch to find out how our  restructuring and insolvency team can help.

As development sites begin to re-open, significant challenges are rising to the surface causing further disruption to house builders.

In this webinar, we discuss the position with contracts and supply chains, employment contracts and workforces, and a practical look at how you can get your site back up and running with minimum delay.

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Frank is recognised as an expert in restructuring and insolvency law, and one who provides decisive practical solutions.

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Shakespeare Martineau advises on purchase on Britain's 'most expensive street'

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Luxury residential real estate purchase deal

London and Monaco real estate company REDD has purchased One Palace Green in Kensington Palace Gardens, London, to convert into a £100m luxury residential scheme, with the support of law firm Shakespeare Martineau.

The grade II*-listed 17,000 sq ft mansion, which backs onto Kensington Palace and dates back to 1870, will be sensitively restored and converted into a number of luxury homes following significant investment.

The deal saw REDD purchase the property via a complex multi-jurisdictional deal.

Simon Robinson, partner at Shakespeare Martineau advised REDD on the transaction, he said: “It is rare that high value investment and development real estate deals are simple, even when they look so initially. We always knew there would be complexities in this multi-jurisdictional matter but over the course of the year that we sat alongside REDD and the Marzocco family office we worked through a plethora of technical, legal and commercial challenges that were embedded this real estate purchase. 

Working under considerable pressure throughout the stages of the deal the importance of working as a connected team across our specialist departments - almost entirely virtual - was vital. From a personal perspective, the communication within the Shakespeare Martineau team enhanced our project management role and allowed me to interact regularly and as clearly as possible with the client and their wider team. This was highlighted as we worked with Counsel in across four separate offshore jurisdictions, dealing with a prestigious and sensitive listed property which is part of the Crown Estate.

Working closely with the Royal Borough of Kensington & Chelsea, The Crown Estate, local stakeholders and heritage groups to design the restoration, it’s anticipated REDD will submit a planning application later this year with construction planned for summer 2022. Completion is scheduled for 2024.

Russell Smithers, managing director of REDD, said: “One Palace Green is a landmark acquisition for REDD and will create one of the top-tier luxury residential developments in London. We will utilise our in-house development management expertise, with our team of extremely experienced individuals in the fields of heritage restoration and luxury design, to deliver the finest new residences on Kensington Palace Gardens. We are currently working on initial ideas and look forward to speaking to the local community shortly.

Shakespeare Martineau assisted with all legal aspects of the purchase including real estate, corporate, finance and tax. Working alongside Simon Robinson was Danielle Cooper, Lucy Saddington, Catherine Moss, Georgia Keogh, Christopher von StrandmannJoshua Hartle, Paul Wakefield and Jayne Meakin.

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Shakespeare Martineau boosts legal planning team with double hire

We have welcomed two new property specialists to our Midlands teams; legal planning partner Anna Cartledge and legal planning legal director Julie Russell.

Operating from the Birmingham hub, Anna Cartledge has more than 15 years’ experience in legal planning, compulsory purchase and highways law, acting for a variety of public and private sector clients throughout her career including landowners, promoters, developers, local authorities, central government agencies, regional development agencies, and various NHS Trusts.

Anna has a particular interest in heritage issues and has advised a number of local authorities and private sector developers on various listed building consents. Anna is also highly experienced in negotiating planning obligations with complex cascade, review and clawback mechanisms, and she frequently advises on the best way to structure large scale sites so as to allow them to come forward on a phased basis.

Legal director Julie Russell join’s the firm’s Leicester hub with more than 14 years’ experience, working on all aspects of legal planning, development and infrastructure work. Julie has particular experience in dealing with Nationally Significant Infrastructure Projects and negotiating complex S106 agreements and infrastructure and highways agreements as well as providing strategic planning advice to housebuilders, commercial developers, landowners and local planning authorities.

She also regularly deals with planning enforcement, public rights of ways issues, planning appeals, planning due diligence on site acquisitions and challenges to planning permissions.

Anna said: “I am very much looking forward to being part of such a highly regarded and market leading planning team, full of supportive people who want to work together to flourish and grow the business. There is a real energy and sense of dynamism across the firm as a whole.

Alex Smith, managing director of the infrastructure and specialist markets business unit said: “We have a great reputation in real estate and work closely with our planning consultancy Marrons Planning to provide a holistic service to clients. From small listed buildings to large development projects, planning is a complex area law and it requires specialist knowledge, both Anna and Julie have great expertise and are well-placed to advise clients across the Midlands and nationally.

Anna and Julie’s appointment follow a raft of announcements including 13 internal promotions, six appointments in Milton Keynes and a further two in the East Midlands.

 

Getting to know Anna Cartledge, Legal Planning Partner…

What attracted you to Shakespeare Martineau? 

I was drawn to the culture and values of the firm, and the value that it places on empowering and recognising the efforts of everyone. Shakespeare Martineau has a very clear direction and a real “can-do” attitude and, since joining, I have been hugely impressed and enthused by the energy at all levels.

The planning team has a market leading reputation and I was very much drawn to joining a business that has both legal and town planning capability under one roof, which is a real USP in the planning sphere.

Tell us more about what you find exciting about your area of expertise.

As an area of law, planning is ever-evolving, fast-paced and diverse - no two days are the same! When we are faced with 'knotty issues' there are often shades of grey, rather than a definitive “yes or no” answer. The queries we face are often like exam questions, dealing with everything from strategic land allocations and heritage issues, to footpaths and common land queries.

Our role in navigating the planning world for our clients often becomes more of tactical and strategic advisor, with planning advice dovetailing other considerations and agreements.

For example., there can be frustration around the length of time it takes for a scheme to navigate its way through the planning system. While increased efficiencies within the system should be welcomed, this should be balanced against recognition of the importance of the planning system in terms of delivering meaningful and sustainable development, and in developing functional and attractive places to live and work. We need to empower new communities to be able to thrive.

What do you hope to achieve while working with us?

Having been a mentor for a number of years now, I firmly believe in the benefits mentoring can bring - both for those being mentored and those with mentees. I am hugely passionate about developing and nurturing future talent and want to work with those starting their careers at the firm, whether that's in the legal profession or not!

I am also keen to capitalise on all of the exciting opportunities coming forward in and around the Midlands – from the start on site of HS2 at Curzon Street, to proposed strategic infrastructure improvements on key highways networks and the delivery of meaningful housing numbers, there's certainly a lot of exciting things in the pipeline for the region!

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This stage of the development will see a considerable housing boost for the local area and is due to be finalised in six years’ time with an estimated worth of in excess of £100 million.

As well as providing 375 new homes, the project will deliver vital infrastructure improvements, educational and retail facilities, and a stadium sited between Leamington Spa and the M40.

A further 735 homes will be created in the area as part of a wider scheme, north of Gallows Hill. The construction of a spine road by Galliford Try Partnerships will link this development to Europa Way itself and will also carry all utilities to the development.

Caroline Irvine, head of commercial property in the Stratford office of Shakespeare Martineau, said: “We have collaborated with Galliford Try Partnerships on several pieces of work over the last few years. Europa Way is the latest project we have been involved in with the company and it is a great local scheme to be part of.

“There have been a few obstacles to overcome, but through working with Galliford Try Partnerships, the local authority and other third parties, the project is ready to begin. It will provide a significant boost to housing and infrastructure, benefitting the local area greatly. Over the next few months, we’ll be watching the scheme unfold, and are sure it will be an important addition to Warwick and Leamington Spa.”

Darren Bale, regional director, West Midlands, at Galliford Try Partnerships, said: “Working with Shakespeare Martineau again has been a pleasure. This is a high-quality project and a huge development opportunity for us in Leamington Spa. It will contribute significantly to the new build housing market in the local area, bringing about much-needed housing.”

For more information, please contact Caroline Irvine, or another member of the commercial property team.