Property News

NEWS

The Construction (Design and Management) Regulations (CDM 2015)

On 6 April 2015, a new version of the Construction (Design and Management) Regulations (CDM 2015) was introduced.

This update was partly prompted by the HSE which felt that instances of unacceptable standards were persisting, particularly on smaller sites. CDM 2015 therefore increases attention on smaller projects placing new obligations on clients and managers which have an impact on works being arranged by property management companies, leaseholders and freeholders in blocks of flats.

Important changes introduced can be summarised including :-

Removal of the CDM Co-ordinator
Principal Designer is introduced
Principal Designer and Principal Contractor appointments are required on “notifiable projects” or on schemes employing two or more contractors on site. It should be noted that this is likely to include an increased number of smaller projects.
The notifiable project notification threshold is revised.
CDM scope now includes domestic clients

The Client’s Role

Following the removal of the CDM Co-ordinator rolemg any building client must now make suitable arrangements for managing a project under the new regulations.
Freeholders and property management companies are affected as building Clients’ whose key responsibilities include:

To notify the HSE of project details confirming that the project team are aware of their duties
To ensure all duty holders comply with their duties
To provide pre-construction information including asbestos surveys, existing health and safety files and structural drawings.
To ensure that minimum health and safety standards are maintained on site
To ensure that the construction phase health and safety plan is drawn up by the principal contractor
To ensure that a health and safety file is produced by the principal designer.
To appoint a principal designer and principal contractor when mandatory “as soon as practicable”

Where these key appointments are not made, their duties transfer automatically to the property management company, freeholder or client.

For further information please get in touch with one of the property management team at VFM.

The Court of Appeal has this morning, 31 October 2014, handed down their judgment
in the long-awaited Phillips v Francis appeal.

It appears that common sense has prevailed in delivering a judgement that is good news for
property management companies, block managers, managing agents and all professionalsinvolved in freehold and leasehold property.The Court of Appeal has now ruled that the earlier decision of the High Court, which favoured the “aggregating approach”, was “not a sensible approach”, clarifying that it gave “rise to serious practical problems”.

The Court found in favour of a “sets” approach to qualifying works, this being the approach adopted until the recent High Court Phillips v Francis decision. It was also agreed that the incorporation of an annual limit was incorrect.Property managing agents and freeholders can now go about their business with some certainty and clarity.
COURT OF APPEAL OVERTURNS PHILIPS V FRANCIS DECISION ON MAJOR
WORKS

31ST OCTOBER 2014|POSTED BY: ADMIN
ARMA welcomes the decision of the Court of Appeal to allow the appeal in the controversial case of Phillips & Goddard v Francis & Francis. Today’s judgement overturns the 2012 decision, which held that the cost of qualifying works was to be aggregated over a service charge year, with consultation to be carried out if the aggregated contribution exceeded £250 for any one leaseholder during that year.In allowing the appeal, the Court of Appeal has reinstated the previ…Read More

ARMA RESPONDS TO CMA PLANS FOR LEASEHOLD SECTOR AFTER CONSULTING MEMBERS
25TH SEPTEMBER 2014|POSTED BY: ADMIN
Managing agents’ trade body, ARMA, has welcomed proposals to tighten up the leasehold property sector. Responding to proposals from the Competition and Markets Authority (CMA),
ARMA Chairman, Ben Jordan said:“We fully support the attempts being made to raise standards in property management. Action to encourage best practice in the sector is welcome and we will continue to promote the highest standards in property management through our self-regulatory regime, ARMA-Q. But, …Read More

LATEST NEWS
ARMA WELCOMES CMA PROPOSALS TO IMPROVE THE LEASEHOLD RESIDENTIAL MARKET
1ST AUGUST 2014|POSTED BY: ADMIN

Friday 1 August 2014 ARMA welcomes CMA proposals to improve the leasehold residential market
Today’s proposals by the Competition and Markets Authority (CMA) to address problems in the
workings of the residential leasehold property management market have been broadly welcomed by the industry’s trade body, ARMA.Ben Jordan, ARMA’s Chairman, said:“This is a welcome initiative by the CMA that could improve the sit…Read More

SHARE THIS ARTICLE:
ARMA READ MORE
ERR ACT: ARMA MEMBERS WILL BE COMPLIANT
16TH APRIL 2014|POSTED BY: ADMIN

5
All residential leasehold managing agents will have to sign up to a government approved
redress scheme under the Enterprise & Regulatory Reform (ERR) Act.This is expected to
commence in October this year.The Act has been seen as an important boost to consumer rights as unlike estate agents, managing agents are currently unregulated.Under the terms of their membership, ARMA agents can join either the Property Ombudsman or
Omb…Read More

FLOOD RE LATEST: SMALL LEASEHOLD BLOCKS TO BE INCLUDED BUT STILL
NO LIFELINE TO LARGER BUILDINGS

18TH MARCH 2014|POSTED BY: ADMIN

thumbs_south-east-property-management

A recent amendment to the Government’s Flood Re proposals means that small blocks of leasehold flats will now be included in the new scheme.Earlier this week DEFRA confirmed that properties with three flats or fewer will be able to secure affordable flood insurance under Flood Re. But there are conditions. Those buildings will only be covered if the freeholder lives in one of the units, or if the insurance is purchased by a leaseholder
who has a share of the freehold.
ARMA shares the…Read More