News
FCA Reforms Leasehold Building Requirements
In September the Financial Conduct Authority (FCA) issued a press release confirming leasehold buildings insurance reforms. Regular readers of The Property Institute monthly newsletters will conclude there are no real surprises here, the proposals being well trailed.
From 31st December 2023, insurance firms will be forced to act in leaseholders’ best interests, treat leaseholders as customers when designing products and will be banned from recommending an insurance policy based on commission or remuneration levels.
The FCA’s action follows its review of the multi-occupancy buildings insurance market and its subsequent aim to ensure better outcomes for leaseholders in the multi-occupancy building insurance market, and other policy stakeholders in a similar position to leaseholders. The new rules will do this by:
- Increasing transparency for leaseholders. This will make it easier for them to identify and challenge poor practices and incentivise firms to deliver better outcomes.
- Requiring firms to ensure their products are consistent with the needs and interests of leaseholders and other policy stakeholders, are priced in a way that provides fair value and that remuneration practices do not lead to poor outcomes.
Insurers will also be required to ensure that their insurance policies provide fair value to leaseholders and provide important information about their policy and its pricing, including the detail of any commission paid for leaseholders. Read the full statement which includes a summary of feedback and responses to its recent consultations here.
The policy was reinforced by Government in October when the DLUHC announced that five insurance brokers had signed a pledge to stop the sharing of commissions with parties who place or arrange buildings insurance for blocks with identified fire safety issues that are over 11 metres (or four storeys). The pledge also introduces a cap of 15% on the premium that brokers take to compensate for their work in arranging the insurance. A recent FCA report on broker remuneration found that this amount can be as high as 60% of the cost of the premium paid by leaseholders. The number of brokers who had signed the pledge had increased to twelve by December. The brokers who have signed up to the pledge have also confirmed their commitment under new FCA rules, from 31 December 2023, to share information about the buildings insurance policy with leaseholders if requested.
The brokers that have individually taken the voluntary decision to sign up to the pledge are:
- Affinity Select Insurance Services Limited
- Bridge Insurance Brokers
- Brown & Brown Insurance Brokers (UK) Limited
- Brownhill Insurance Group Ltd
- Clarke Williams Ltd
- Langton London Insurance Brokers Ltd
- Lockton LLP
- Peter Hattersley & Partners Ltd t/as PHP Insurance
- PIB Group Insurance Brokers/St Giles
- Residentsline Ltd
- Willis Limited (WTW)
- Williams Blackmore Insurance Brokers Limited
Waking Watch Replacement Fund Deadline Extended
On 23 November 2023, DLUHC announced that the deadline for applications to the Waking Watch Replacement Fund has been extended to midnight 31 March 2024.
The purpose of the fund is to help leaseholders by covering the cost of installing a common alarm system in accordance with the recommendations of BS 5839-1 for a Category L5 system, on a building of any size, where a waking watch is in place.
This fund was designed to build on the original £35M Waking Watch Relief Fund (WWRF) that was brought into place for high rise buildings above 17.7m in height, due to unsafe cladding.
Read more about the Waking Watch Replacement Fund here.
Updated Guidance for Accountable and Principle Accountable Persons
HSE has updated its guidance for accountable persons and the principal accountable person who manage the fire and structural safety risks of a high rise residential building.
This updated guidance will help APs and PAPs to understand these roles and their legal duties as set out in the Building Safety Act 2022. The legal duties and additional duties for PAPs sections have been updated to include links to new guidance on building safety cases, safety case reports and resident engagement strategy.
The new guidance covers:
- Accountable person
- Principal accountable person
- Clarity about who is accountable
- Legal duties
- Additional duties for the principal accountable person
- Breach of duties
Building Safety Case Solutions from 4site Consulting
A new and market-competitive solution for in-scope properties to help fulfil safety case requirements under the Building Safety Act 2022.
4site Consulting is pleased to announce the launch of its new building safety case service and supporting software solution. 4site is now assisting block managers and freeholders with the compilation, maintenance, and sharing of their building safety case reports for high-rise residential buildings. As an accountable person overseeing the building, it is mandatory, as per the Building Safety Act, to create and maintain a safety case report for any buildings in scope (over 18m or 7 storeys). The cost-effective service is supported by in-house building safety experts and utilises a bespoke software system to make the process as easy as possible for property managers and their clients to meet their safety case requirements.
For a bespoke proposal on your building or any further information on the service, contact 4site Consulting:
T: 01376 572936
Building Safety Regulator Sets Out Strategic Plan to Drive Positive Change for Building Safety in England
It has been announced that the temporary Director of the Building Safety Regulator (BSR), Philip White, will continue his role on a permanent basis. He has held the role since April 2023, after taking over the role from Peter Baker. Philip White will now lead the BSR as it becomes fully operational in the new year.
In addition:
- The Building Safety Regulator has published its first three-year strategic plan
- The strategy is a significant step forward, underlining BSR’s overarching direction and vision to galvanise positive culture change
- Collaboration is key to driving up safety and standards
BSR is leading a critical change in culture and behaviours across industry and the whole built environment. The strategic plan establishes a vision to create a built environment where everyone is competent and takes responsibility to ensure buildings are of high quality and are safe. This represents the most significant change to regulation of building safety for a generation and means residents and other building users can be confident that industry is working together to make sure the tragedies of the past will never be repeated.
The Building Safety Regulator will:
- improve the safety and standards of all buildings
- make sure residents of higher-risk buildings are safe and feel safe in their homes
- help restore trust in the built environment sector
The BSR will do this by:
- delivering consistent standards within the building control profession
- overseeing and driving improvements across the whole built environment
- regulating the planning, design, and construction of new higher-risk buildings
- ensuring those who are responsible for occupied higher-risk buildings manage risk so that residents are safe
- working in partnership with co-regulators
Commenting in the foreword to the strategic plan, Secretary of State for Levelling Up, Housing and Communities, Michael Gove, said: “The system that regulates our buildings must be practical and comprehensible. The Regulator must lead the sector in creating a built environment fit for the future. This first three-year strategic plan is a significant moment in this mission. It looks forward and lays out a solid foundation on which the Regulator can build its ambition in future years.”
Read more on the Hub here.
Oxford Weekender is Back!
Tickets for the return of a renowned property management residential conference have been released.
The Oxford Weekender is organised by Property Management Legal Services in partnership with the Institute of Residential Property Management.
It will take place next from March 22-24, 2024, and is one of the most popular events in the property management calendar.
More than 40 key-note addresses, workshops and updates from industry experts will be included at the conference based in historic St Hugh’s College, Oxford.
The overall theme of the convention will be ‘Property Managers: Keep Calm and Keep Managing.’
Award-winning solicitor and leasehold specialist Cassandra Zanelli, the founder of PMLS, said: “Our Oxford weekender is always an unmissable highlight of the year.
“I am thrilled to confirm the dates and theme for 2024’s residential conference.
“Next year’s event has been designed to let property managers fill any gaps in their knowledge and develop their skills in new areas which now impact our sector.”
At the conference, the Institute of Residential Property Management will again be offering delegates the opportunity to take the IRPM level 3 and level 4 exams in leasehold management over the weekend.
Delegates will also have the chance to sample student life at St Hugh’s, which is one of the largest Oxford colleges, and was founded in 1886.
En-suite accommodation and dining in the college’s impressive dining hall is included in the ticket price.
Places at the conference are strictly limited.
For more information or queries about the conference call Property Management Legal Services on 0330 390 6800.
Further details of the programme and exams will be released shortly via pmslevents.co.uk
Online resources
Property Management Legal Services events: https://pmlsevents.co.uk