The practice\u2019s<\/a> two former directors are speaking with liquidators at RCM Advisory to see whether they can continue to help existing clients on ongoing jobs.<\/p>\nJon Brent, one of the company\u2019s co-directors and a former associate at AHMM, told the AJ the liquidation was necessary due to rising costs and falling workloads.\u00a0<\/p>\n
\u2018It\u2019s a case of regional economic factors, if not national economic factors, which have been very much not in our favour probably for the last year,\u2019 he said.\u00a0<\/p>\n
\u2018We have seen a reduction in the amount of inquiries and confirmed commissions, [and] getting through the planning system has been a problem.\u00a0<\/p>\n
\u2018We have got the issue of nutrient neutrality in Norfolk, and effectively we have had applications in the system for three years without being determined, and the technical work beyond planning is potentially 60 per cent of our fee income.\u00a0<\/p>\n
\u2018There is an economic issue in terms of developers \u2014 sites are not viable with cost of construction and getting consents and GDV values, coupled with the increased cost of putting together an application.<\/p>\n
\u2018We\u2019ve had to take a hit on increased National Insurance\u2019<\/p>\n
He added: \u2018The cost of our resource \u2013 staff \u2013 has become quite challenging. We have had to take a hit on increased National Insurance.\u00a0<\/p>\n
\u2018We also took on an apprentice on the basis that it was an affordable investment, but then Labour decided to hike up the minimum wage for apprentice wages over a certain time, which effectively doubled how much we\u2019d have to pay her.\u2019<\/p>\n
Brent concluded: \u2018I\u2019d like to think that we went about growing our company in a very sensible, organic way. It wasn\u2019t a huge growth spurt on the back of one job, but political factors and economic factors can sometimes take the rug from under your feet.\u00a0<\/p>\n
\u2018I don\u2019t think the incumbent government are really that bothered about small to medium businesses.\u2019<\/p>\n
\u2018However bad the Conservative government could be perceived, they did support, in an economic way, people trying to make a living and being employers. I don\u2019t think that Labour has that same ethos.\u2019\u00a0<\/p>\n
The RIBA\u2019s most recent Future Trends survey suggested architects were still broadly positive about the workload pipeline, especially in the commercial sector. But the industry bellwether for July suggested there \u2018may be challenges ahead\u2019 for those working in housing and across London.<\/p>\n
RIBA head of economic research and analysis Adrian Malleson said: \u2018The housing sector, crucial to smaller practices especially, has seen a marked decline in workload expectations over the past two months.<\/p>\n
\u2018London, the largest market for architects\u2019 services, has seen a significant drop in confidence during June and July. Much of the commentary received this month focuses on the domestic sector.<\/p>\n
\u2018Practices report it being subdued, due to weak consumer confidence, increased construction costs, planning delays, and technicians winning smaller projects. A weaker overall housing market is reported to be contributing to the slowdown.\u2019<\/p>\n
Malleson reported that practices had also noticed \u2018increased competition, downward fee pressure, persistent planning delays and slow project progress\u2019.<\/p>\n
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