Featured Articles

Ten years ago (April 2007) tenancy deposit schemes were first introduced in England and Wales. You need to go a little further back to understand why they were brought in, though. Rewind to June 1998 and the National Association of Citizens Advice Bureaux (NACAB) published a damning report based on CAB clients’ experience of getting their deposits back from landlords. NACAB researcher Liz Phelps reported that as many as half of all private tenants who paid a rental deposit “may have experienced their depo

QUESTION Can you provide some information regarding sinking funds?  Can they automatically be instituted by a head lease or must provisions be provided in the sublease?   ANSWER Many thanks for your question. It is common for leases to allow the landlord to collect sums of money from leaseholders to create a sinking fund. This allows sums of money to be built up, which will then be used to cover the costs of irregular and expensive works.  The process avoids the “spikes” that would otherwise occur when th

QUESTION I am an owner in a block of flats with a 900 year lease. All owners are also shareholders in the resident management company. One of the flats in the block is rented out and since the present tenants moved in some months ago we have been plagued with "fumes" in the common parts and entering our apartment during the early hours of the morning. Some residents are suffering from noise from this flat in the same early hours. The weekends are the worst and the effects of the fumes are quite serious. W

You can now view the digital edition of Issue 89 online. This issue features articles such as:  Leasehold could be outlawed after next election  Report warns landlords over new energy regulation rules Getting collective freehold claims right  Clearing up the issues of the leasehold sector  This issue also contains a special Insurance Feature written by independent industry practitioners. To read the digital edition of Issue 89 please click here.

This Insurance feature to the key concepts is written by independent industry practitioners and covers the following articles:  Acquiring the freehold of your building Special knowledge: How blocks of flats differ from other residential policies  Speeding up claims: A new law aims to see claims settled faster Taking away stress: Make sure you have access to a claims manager The reasonableness of premiums: The cost of insurance and the rights of leaseholders  Budget for increases:  Insurance

The average annual salary of employees who work in the leasehold sector rose in the past 12 months to £47,693. But fewer block managers believe they will see an increase in economic activity over the next year when compared to those quizzed in 2016.   The Institute of Residential Property Managers (IRPM), News on the Block and property recruitment agency Macdonald & Company worked together to produce the salary survey.   And while there was an increase in the average salary, this could have been affected

Insurance Regulation for general insurance was on a voluntary basis until the European Insurance Mediation Directive was passed by the European Parliament. The then Financial Services Authority (now known as The Financial Conduct Authority, or FCA) was designated by the UK Government to regulate General Insurance from 14 January 2005.  But who is covered by this regulation, what is covered, how is it regulated and why?   WHO Regulation covers insurance companies and brokers plus other professions who g

The bombing of the Baltic Exchange buildings in the City of London in April 1993, estimated to have cost the insurance industry over £250 million, led the insurance market, without support from their reinsurers, to withdraw cover for property damage by terrorism. The insurance industry found a solution however and the Pool Re Insurance Company was established with the backing of the UK Government. Since 1993 Pool Re has been the main provider for terrorism cover for the vast majority of commercially insur

In June we see the rate of Insurance Premium Tax (IPT) increase to 12% from the current rate of 10%. But remember, not so long ago it had gone up to 9.5% from a previous rate of 6% and that was only 18 months ago. A treasury spokesperson stated that this was a tax on insurers and should not be passed onto customers. After all insurers can afford it, or can they? Last year saw the introduction of “Solvency 2” which required insurers to have larger solvency margins. This was designed to protect customers fr

When Ralph Pearson, Claims Manager at property specialist Resident’s Insurance Services got the call from a managing agent client for support in a large fire claim, he quickly stepped in to help resolve the issues. Insurance claims under a certain value, usually £5,000, are normally dealt with easily and quickly on a desktop basis by the insurer’s in house claims team. Insurance claims over £5,000 generally become more complex due to the increase in cost and parties involved.  Firstly insurers will look t

Our story began in  1989 when Deacon Insurance Brokers first opened its doors for business. iPads, tablets, smart phones and even Facebook hadn’t been invented. However did we manage?   Fast forward almost three decades and it’s not just the world around us that has changed… a lot! Based in Bournemouth since 1990, Deacon is one of the country’s longest established property brokers specialising  in buildings insurance for flats and apartments, often referred to as ‘block’ insurance. We offer a range of all

If you are acquiring - or considering acquiring - the freehold of your building, you will know that the process requires a great deal of planning and that there are many legal and technical issues to consider. Once formed, your new freehold company will have full responsibility for the management of your building and this includes insurance. It’s something which many people overlook. Directors of residents associations have, broadly speaking, two options when considering how to insure the property they