Case Study – E&J Estates https://eandjestates.co.uk Just another WordPress site Thu, 11 Apr 2024 08:22:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 One year on, has the Building Safety Act really worked? https://eandjestates.co.uk/case-study/one-year-on-has-the-building-safety-act-really-worked/ Thu, 11 Apr 2024 08:19:21 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=5932

The RFA’s director Mick Platt points out some shortcomings and consequent delays in remediating building with fire safety defects.

Mick Platt, of the Residential Freehold Association, has his doubts, and argues more must be done to create a suitable building safety regime

It is now one year since the Building Safety Act 2022 came into force, intended to be the most substantial legislative response to the nationwide building safety crisis that ensued after the Grenfell Tower fire in 2017.

While the primary objective of the legislation was to make buildings safe, the actual impact was to shift the narrative away from those responsible for the crisis – the government itself through its botched approach to regulation, as well as developers and product manufacturers – by apportioning liability for remediation works onto leaseholders and building owners, most of whom played no role in the creation of the crisis.

The primary legislation is widely regarded as being poorly drafted and there remains a patchwork of secondary legislation, government funding and building safety schemes, which industry must now reckon with, alongside the liabilities set out in the primary legislation.

The latest government data shows a total of 797 high-rise buildings have been completely remediated out of the 3,839 that have been identified with unsafe cladding. This is in addition to the estimated 8,890 further medium-rise buildings that also require ‘life-critical’ safety work, not to mention an unknown number of low-rise buildings not protected by the Act that also face the prospect of having to have defects remediated.

These statistics alone show there is a clear need for an improved approach to address the building safety crisis, while holding those responsible to account. The scope of the crisis goes beyond external cladding systems as there is increasing evidence that corners have been cut internally, and that some buildings may have been signed off despite not being built in accordance with the approved plans.

For the sake of leaseholders’ safety, if the pace of resolution is to quicken, it will require not just acknowledgement of the plethora of genuine issues, but also solutions from government.

An inconsistent regulatory and funding regime

Following last-minute amendments at the final legislative hurdle of the Building Safety Act 2022 passing through the House of Lords, a ‘waterfall’ payment model was introduced by the government.

The ‘waterfall’ promoted the apportioning of liability over providing a consistent means of accessing funding to fix unsafe buildings quickly. This has led to delays in arranging funds and getting remediation works on site.

Although the government has, after some persuasion, made funding available for the remediation of external cladding systems, the funding regimes only seek to make buildings ‘half safe’ as none of them cover internal fire safety defects such as missing compartmentation or fire stopping.

With obligations often falling on freehold investors, who were not responsible for the building safety crisis, and who may not have the funds to match the newly imposed liabilities, the government has created a regime that focuses on lengthy negotiation and litigation, rather than the need to remediate promptly and provide certainty to leaseholders.

Ongoing issues with the Developer Pledge

Instead of holding developers to account via legislation, the government asked developers to sign up voluntarily to a “pledge”.

The ongoing rollout of this pledge has further slowed the progression of remediation projects as the terms of the pledge were agreed between government and developers, without reference to building owners.

Building owners have, as a result, been forced to commence lengthy negotiations with all the developers to put in place legal agreements relating the terms of remediation projects. Given the Pledge is still gaining signatories two years after its introduction, the government’s unpredictable approach to securing developer commitments continues to prolong the risk of leaseholders living in unsafe buildings.

Significant inconsistencies surrounding developer liability under the Building Safety Act 2022 and the Self Remediation Terms (SRT) make the process even more difficult to navigate, leading to increasing pushback from developers who treat their liabilities as being defined only by the SRT rather than the legislation.

Leaseholders and building owners have been made liable for a crisis caused by weak regulation and negligent construction practice, and while remediation is progressing, the issues outlined above mean prolonged delays will persist.

Given that little has been done to improve standards via the regulatory regime, and the less-than-optimal progress shown by official data, a future government will have to seriously consider an alternative approach to the current building safety regime.

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Insurers Warn of Fire Risks Posed by E-Scooters and E-Bikes https://eandjestates.co.uk/case-study/insurers-warn-of-fire-risks-posed-by-e-scooters-and-e-bikes/ Mon, 10 Jul 2023 13:16:32 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=4634

Insurers Warn of Fire Risks Posed by
E-Scooters and E-Bikes

Advances in technology have seen the increasing popularity of battery-powered personal transport such as e-scooters and electric bikes, which can be stored and charged in the home.

Charging the batteries however presents a potential fire risk to surrounding property. Our insurers, Ecclesiastical, have provided a handy guide to best practice when charging.

Click here to read the guide

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The RFA comments on Gove’s Leasehold Proposals https://eandjestates.co.uk/case-study/the-rfa-comments-on-goves-leasehold-proposals/ Tue, 07 Mar 2023 10:15:11 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=3974

The Residential Freeholders’ Association has responded to Michael Gove’s recent attacks on the leasehold tenure system. Below is its vision of how to fix the building safety crisis.

How Michael Gove can really fix the building safety crisis

In his recent Sunday Times interview, Michael Gove became the first Minister to admit that “faulty and ambiguous” Government guidance allowed the Grenfell Tower fire to happen.

The admission, and accompanying apology was welcome, if five years too late, given these failings were identified in the Hackitt Review’s Interim Report of December 2017. This is something that the Residential Freehold Association (RFA) – a representative organisation for the UK’s largest professional freeholders – has long been calling on Government to acknowledge.

Mr Gove is also absolutely right when he says that it is “completely wrong that people who had not done anything wrong [were] suddenly landed with these huge bills”, when it came to paying to fix dangerous cladding.

The problem is that whilst Mr Gove was no doubt referring to leaseholders, his remarks apply equally to freeholders. Neither group played any part in the creation of the building safety crisis. Instead, developers, cladding manufacturers and (as Mr Gove now admits) the Government’s own regulatory oversight failed. And yet, despite the failings of Government and the construction industry, it’s still freeholders and the institutional pension funds many of them represent (and therefore, ultimately, pensioners), who find themselves on the hook.

It is even more bizarre that Mr Gove has chosen this opportunity to say that he wants to completely abolish the leasehold system, which governs a fifth of the homes in England and Wales.
Demonising leasehold also completely ignores the role professional freeholders and properly regulated managing agents play in maintaining apartment buildings, and disregards the burden that would be imposed on residents if the role of a freeholder operating in a leasehold structure were removed.

It was not the leasehold system that created the building safety crisis. In fact, leasehold is the tried and tested tenure with effective mechanisms for managing both the delivery and communal funding for management, repair and safety of buildings.
You only have to look to Scotland to see this borne out.

That’s because one of the main alternatives that has been proposed to replace leasehold is a commonhold system – where, in effect, residents manage their buildings. The property tenure in Scotland is very close to this – and it has been a resounding, and frankly dangerous, failure.

While commonhold may be appropriate for smaller apartment buildings where residents can more easily assume management of a building, it is irresponsible to advocate for such a system in larger, more complex buildings. Especially when you have a new building safety regime that would see residents becoming criminally liable for the safety of their blocks, and where the cost of managing building safety has significantly increased as a result of the Government’s legislation.

For example, in Scotland, if the roof of a large apartment building needs repairing due to leaking, the residents will need to raise money from others in the building to carry out repairs. But of course some of the leaseholders on the lower floors may not feel the same sense of urgency for fixing the roof. There is an inherent, and often very problematic, conflict of interest. In other cases, some residents may disagree with what parts of the buildings are a ‘communal responsibility’ and therefore require communal funding.
The resulting delays and difficulties resolving what would otherwise be straightforward issues for an independent freeholder often mean the necessary repairs are not carried out.

In fact, recent studies, including a BBC2 documentary, suggest that 50 per cent of all residential properties in Scotland are in “critical disrepair” because there is no legally enforced maintenance system for buildings. Seen through the lens of Grenfell and the new building safety regime, this ceases to be a maintenance issue and becomes one of human safety.

This is the fate that awaits apartment blocks in England in 10-20 years’ time if leasehold is abolished. What’s more, removing leasehold could mean flat owners end up paying more to fill the obligations and responsibilities for a building’s upkeep themselves, than if they left such matters to a freeholder and paid ground rent. An issue we may be able to understand better had the Government substantiated this policy with an impact assessment or evidence review.

However, perhaps there is some hope. Mr Gove has already shown courage in acknowledging the role of Government in creating the building safety crisis.

If he can recognise that leasehold and freeholders are not the problem – and instead focus on delivering real solutions through funding, including holding the developers and cladding manufacturers responsible – then he might genuinely go down in history as the man who can fix the building safety crisis.

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Electric Vehicle Charging https://eandjestates.co.uk/case-study/electric-vehicle-charging/ Wed, 13 Apr 2022 10:30:54 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=2083

Electronic Vehicle Charging and Solar Car Parks – Zurich Insurance Company’s Guide to Hazards and Good Practice

In 2030, it will no longer be possible in the UK to buy a conventional, fossil fuelled car. So the future is electric, and most drivers have either bought a hybrid or fully electric car, or are considering it when they next change.

But new technology brings new risks. EV chargers, lithium batteries and solar car parks all present potentially enhanced fire risk unless planned and managed carefully.

There are particular challenges in blocks of flats, especially if the chargers are fitted in a covered and/or underground area.

Zurich Insurance Company has produced a useful guide, which can be accessed via the link below, outlining the risks and how these can be mitigated by good practice through the lifetime of an installation.

So if your Man Co or RA is considering options for your own block, we hope this guideline will help your planning process, before engaging with your landlord.

The Guide can be viewed here

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E&J Estates outlines improvements to services and communications in response to homeowner feedback https://eandjestates.co.uk/case-study/ej-estates-outlines-improvements-to-services-and-communications-in-response-to-homeowner-feedback/ Tue, 01 Mar 2022 11:10:01 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=1802

E&J Estates outlines improvements to services and communications in response to homeowner feedback

Earlier this year we were pleased to launch our new website. We did this primarily to help our homeowners to better understand what E&J Estates does as a company and improve our communication with homeowners. We also wanted to make it easier to access helpful contacts and answers to common queries on topics such as insurance renewals, payments and lease variations.

As part of this commitment to improving the openness and transparency of our communications, we also conducted a survey on how homeowners interact with us and their views on the experience of that communication.

We were pleased that over a thousand people took part in the survey, providing us with a wealth of useful feedback. A large majority (78%) of those who responded told us they found our answers to their queries either fairly helpful or very helpful. 77% of respondents told us their issue was resolved after contacting us. When asked to describe the response they received, the most commonly selected options were ‘friendly’, ‘polite’ and ‘professional’.

It’s great to receive positive feedback, but we know there is a lot we can still do to improve our service and how we communicate with homeowners. After reviewing the feedback received from the survey, we are keen to make changes where possible to address some of the most common issues raised.

One of the most frequently raised subjects was response times for enquiries. We fully appreciate that our existing service standard of a 10 day response time, whilst in-line with industry standards, can prove frustrating for people who have tight deadlines, for example when selling their property. In reality, in most cases we do better than the service standard. We will therefore reflect this by reducing our target to a maximum of 7 days and will task our teams to achieve this. We hope to reduce the target further in future.

Similarly, several respondents highlighted improvements that could be made to the tone and helpfulness of communications with E&J staff, particularly when a homeowner has problems or may be in financial difficulty. We will continue our practice of encouraging our teams to recognise the importance of empathy and a helpful approach, and will ensure that this remains central in our staff training

Finally, looking at the website itself and how customers interact with it, a number of people suggested that we could improve self-service options to allow access to statements, confirmation of payment status and other useful information. We are currently assessing options in these areas.

We also hope the refreshed website will answer many common queries, promote better access to our specialist teams and provide a platform to keep homeowners up to date with our work to support them.
Going forward, we will continue to evaluate our service regularly, to ensure we are continually providing a professional and helpful response, and that dealing with us is as simple as possible.

Thank you to all of you who took part in the survey and we welcome any further feedback or comments, which can be made by emailing enquiries@eandjestates.co.uk

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Landlords and HomeownersWorking Together https://eandjestates.co.uk/case-study/landlords-and-homeownersworking-together/ Tue, 09 Nov 2021 19:45:34 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=154

Landlords and Homeowners Working Together

There are many issues where landlord and homeowner interests are fundamentally aligned. As often in life, good communication between the parties is key to understanding respective positions, and finding a way forward to address issues of common interest.

Insurance premiums have risen sharply. Homeowners are concerned at the cost of fire safety remediation and why government funding does not cover all problems uncovered at some buildings.

Many homeowners are worried by suggestions of loan schemes rather than government funding for lower rise buildings, and whether indeed some of the work specified by surveyors and others is actually proportionate to the risk.

E&J recently joined a forum led by ARMA, at which some of the leading landlords discussed key concerns with their homeowner/cladding group counterparts. It rapidly became clear that while we do not agree on everything, both sides found a surprising amount of agreement and common ground.

The fact that this was a surprise led us all to commit to improving landlord/homeowner communications in future. We also resolved to work together to influence government policy and speak with a common voice.

We were all agreed that homeowners should not have to pay for fire safety defects caused by years of weak building control and poor construction standards. We all need a quicker process from government to get the funding that is available paid more quickly.

Homeowners want a risk based approach to addressing fire safety defects in lower rise buildings, where enhanced fire alarms for instance may be a proportionate response. They certainly do not want to be saddled with long term government loans as an alternative to funding.

Both parties want to see the government pressurise the insurance industry to make cover available at reasonably affordable prices.

We have all committed to work together as a united front to educate government on the key issues. There is some suggestion that the messages are starting to get through. Government has recently introduced a funding scheme for fire alarms and waking watch costs in higher risk buildings.

It has also proposed a far more risk based and proportionate approach to dealing with fire safety issues in lower rise blocks, reducing costs and potentially unlocking some of the problems with EWS1 forms, mortgage-ability and saleability.

Recent government statements give cautious optimism that the government “gets” some of these points, and Michael Gove, as the responsible cabinet minister, has been charged with “sorting out” the cladding issue. We await his response.

E&J Estates is committed to continue to work for our homeowners on these and other problems as they arise


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Fighting for Fair Insurance https://eandjestates.co.uk/case-study/fighting-for-fair-insurance/ Tue, 09 Nov 2021 19:40:11 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=151

Fighting for Fair Insurance

Since Grenfell, there has been a focus on the risks presented by high rise buildings with flammable cladding and other fire safety defects.

This problem has arisen through years of inadequate building control and poor construction practices. Understandably, the main concern has been on personal safety, but insurance companies covering these buildings are also concerned about the potential cost of major fires.

While most affected buildings have been made safe for occupation and are undergoing remediation, insurers still face increased fire risk until remediation projects are completed. The result has been insurers withdrawing or reducing exposure to residential blocks, and some major premium increases.

It is currently near impossible to find alternative insurers prepared to offer more lenient terms for larger buildings with fire safety problems and even buildings with lower fire risk have faced some level of premium increase.

E&J Estates is extremely concerned to see some of our homeowners facing such costs.

E&J Estates believes that the ability to source insurance at reasonably affordable rates is crucial to our homeowners. We have joined in industry calls for insurers and government to work together to resolve the current market difficulties.

Last renewal, we offered interest free payment plans to homeowners to try and minimise the disruption. Additionally, we have commenced the 2022 renewal process early, to leave no stone unturned in the effort to identify a more acceptable solution.

A 5-month renewal exercise before the March 2021 renewal involved 2 major brokers, which approached 16 insurers with our property portfolio. Despite this, people in higher risk buildings received some substantial premium increases.


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Supporting homeowners with fire safety remediation. Fresh Apartments, Manchester https://eandjestates.co.uk/case-study/supporting-homeowners-with-fire-safety-remediation-fresh-apartments-manchester/ Sun, 31 Oct 2021 16:37:28 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=74

Supporting homeowners with
fire safety remediation. Fresh Apartments, Manchester

At E&J Estates, we are committed to working with homeowners to help solve problems.

People in large blocks of flats face substantial bills to remediate fire safety defects, often hindering their ability to raise mortgages or sell their properties.

This causes significant stress to many. Unfortunately, government funding for some cladding defects does not extend to other expensive fire safety faults identified, such as poor fire compartmentation.

We believe that homeowners should not have to pay for fire safety defects, which they did not cause. We are supporting calls for extended government funding to deal with this as saddling homeowners with government backed loans for example is simply not a solution that E&J Estates sees as acceptable.

The E&J Estates Management team is working flat out to support homeowners in this position. We are commissioning surveys on buildings, securing government funding, pursuing other forms of recovery such as building warranties and guiding our managing agents through the remediation process.

We do all of this without any charge to our homeowners. For example, Fresh Apartments, in Manchester, was identified as having multiple defects, including two different types of flammable cladding. Worried homeowners faced life changing bills.

E&J Estates secured government funding to meet the costs of replacing both types of cladding. It also put sustained pressure on a reluctant warranty provider to pick up its part of the bill, including the significant cost of the waking watch required by the Fire Service.

As a result, contractors are now on site and well into the remediation process. Residents have not had to pay for any of the work and live in the comfort of a safe and saleable home.

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Supporting homeowners during the Covid-19 pandemic https://eandjestates.co.uk/case-study/supporting-homeowners-during-the-covid-19-pandemic/ Sun, 31 Oct 2021 14:07:54 +0000 https://eandjestates.co.uk/?post_type=casestudy&p=69

Supporting Homeowners during the Covid-19 pandemic

As the pandemic unfolded in early 2020, E&J Estates put in place a plan to limit disruption and alleviate the stress of homeowners where possible.

We invited people to share with us any difficulty they were having settling ground rent and insurance bills, without demanding intrusive detail.

We were able to agree extended payment plans and allow homeowners to pay in a time frame achievable for them. Indeed, we suspended our standard late payment charges and other credit control measures.

In addition, on insurance, your landlord settled the premiums itself in line with the strict terms of credit imposed by insurers, despite offering extended payment plans to homeowners, which meant that it had not collected matching funds.

“The pandemic has been very challenging for everybody, including our homeowners. At E&J Estates, we are always conscious that we are dealing with people’s homes and do what we can to assist. It is right to respect that everyone’s circumstances are different, and we have acted accordingly.”

Tim Wilson
E&J Estates Managing Director
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