Get your paperwork in order . 18 th May 2017 Trevor Rushton FRICS FCABE ACI Arb John Blomeley BSc MRICS
Agenda . Get your paperwork in order • Asbestos • EPCs and MEES • Fire Safety • Accessibility • M&E services • Dilapidations • Summary • Questions
Introduction . Get Your Paperwork In Order • Avoid problems • Save time • Save money Typically linked to: • Statutory Requirements - Potential legal and cost consequences, reputation damage • Good Estate Management - financial forward planning
Asbestos . • Carcinogenic - Mesothelioma & other respiratory diseases • Could be in any pre 2000 building • Frequently used in a variety of building materials/components - floor & ceiling tiles; boards of various densities; fire protection materials; textured and spray coatings, wrapped insulation on pipes, within boilers and other services • Frequently found whole or as debris left behind layers of shop fitting Control of Asbestos Regulations 2012 - all non-domestic buildings Penalties • Enforced by HSE and Local Authorities • Fines limited to maximum of £20k in Magistrates Court but in Crown Court unlimited and prison sentences are an option. • Recent court guidance for fine to be based on a proportion of the annual turnover of a company or of an individual’s net earnings.
Asbestos . Duty Holder Owner of the premises or the person or organisation with clear responsibility for the maintenance or repair of premises e.g. via tenancy agreement or contract – so typically the occupier • In multi-occupancy premises - The tenant or tenants but Landlord often retains responsibility for structure and common parts and services • The managing agent - acts on behalf of the owner but does not assume the owner’s duties in law. The ultimate responsibility remains with the owner and/or occupier • Unoccupied – the person in control of the premises • Insolvency or Bankruptcy – liquidator or receiver.
Asbestos . Required Documents - Management Plan • Up-to-date record of the location and condition of ACMs or presumed ACMs • Assessment of the risk (Material and Condition) • Detail how the risk is going to be managed • Reviewing and monitoring the plan • Arrangements (and programme) for putting it in place • System for providing information to others • Asbestos Report - Management or Refurbishment Survey according to intended purpose • Asbestos Register • Other Documents
MEES . Minimum Energy Efficiency Standards - a potential minefield? • From EU directives via the Energy Act 2011 but the minimum level was not specified • Regulations will apply to all new lettings from 1 st April 2018 only where the building/demise has an EPC • Compliance required no later than 6 months after granting of tenancy • The regulations will apply to the non-domestic private rented sector in England and Wales • The regulations will exclude from this definition any property which is let on a tenancy granted for a term of 6 months or less and any property let on a tenancy for 99 years or more. Conclusion – There are very few properties that won’t have to comply
MEES . Which buildings will require upgrading to comply? From 1 st April 2018 all new lettings with an • EPC lower than an E From 1 st April 2023 all buildings / demises with • an EPC lower than an E even if they have existing leases or are vacant Guidance published in February 2017: • Dispels the myth that all Listed buildings are exempt from the MEES Regulations • Confirms that permitting occupation of a sub- standard property by licence or under an agreement for a lease is unlikely to trigger MEES compliance • Make it clear that a landlord is expected to do the energy efficiency improvement works that satisfy the ''7 year payback'' test even if the landlord has no funds to do the works and cannot borrow sufficient money to pay for them
MEES . Current market This is already affecting the sale of property with F or G ratings Some EPCs miss an E rating due to poor data collection when the EPC was compiled but re-doing the EPC properly could produce a worse rating due to the new EPC being based on newer Part L standards We are often asked what an owner needs to do to change and F or G rating to an E In our experience, having produced over 1,000 EPCs in a period of nearly 10 years, this is not a simple question to answer…
MEES . Obstacles to improving poor EPC ratings • The original calculation file is not readily available to be examined • Energy Assessors can download a file from the non-domestic EPC registry, but the software to read this file has yet to be properly developed and it works less than half of the time • Even if the original Energy Assessor can be persuaded to hand over the software file, there are 11 different software packages that could have been used to generate an EPC • Changes to the way the calculation software and input requirements have evolved results in some data for newer software not being available in older calculation files. Once this is put in the result may be worse
MEES . The way forward Sell now or enter into long leases so the issue becomes someone else’s problem Renew leases now so the requirement is pushed back to 2023 Commission a Level 5 EPC. Almost any building can be remodelled as a level 5 building and achieve an improvement in rating due to the calculation engine being much more accurate and making no assumptions about how the building is occupied and used. Warning; level 5 EPCs can be expensive Commission a new EPC by a reputable company and for a reasonable fee; don’t buy cheap as the model probably won’t be accurate and may point to a requirement for more work than is really necessary Once you have your new EPC, ask the Assessor what changes are needed in order to achieve an E rating Review what changes may be required anyway such as a new roof, new glazing, new lighting, new boilers and ask the Energy Assessor to model each change and see which ones make the required difference Once you have your shopping list, undertake financial calculations to establish whether each item satisfies the 7 year payback rule. If it doesn’t, you don’t have to do the work Buildings with an F or G rating can be let from April 2018 if it is not economic to improve them
Fire Safety . Regulatory Reform (Fire Safety) Order 2005 As an occupier and an employer you are responsible for fire safety in business; you are the ‘responsible person’ You must appoint one or more ‘competent persons’ - someone with enough training and experience or knowledge to implement these measures properly The competent person must carry out a fire risk assessment of the premises and it must be reviewed regularly; you must keep a written record of your fire risk assessment. You must tell your staff about the risks that have been identified, put in place and maintain appropriate fire safety measures. You must also plan for emergency and provide staff with information, fire safety instruction and training
Fire Safety . Penalties and enforcement You could be fined or go to prison if you don’t follow fire safety regulations Minor penalties = up to £5,000, major penalties = unlimited fine and up to 2 years in prison Local fire and rescue authorities can inspect premises and issue fire safety notices telling you about changes you need to make An alterations notice can be issued if your premises has a high safety risk An enforcement notice is issued if the authority finds a serious risk that is not being managed and will stipulate what improvements are needed and by when A prohibition notice takes effect immediately if the authority thinks the fire risk is so great that the premises needs to be prohibited or restricted
Fire Safety . To carry out a fire risk assessment you must: Identify the fire hazards Identify the people at risk including people with disabilities Evaluate, remove or reduce the risks Record your findings, prepare an emergency plan and provide training Review and update the fire risk assessment regularly If you don’t have the expertise or the time to do the fire risk assessment in-house you can appoint a ‘competent person’ to undertake the assessment for you
Access Audits . The Equality Act 2010 and the DDA 1995 (still applicable in Northern Ireland) • First “reasonable step” in recognising possible obstacles and devising solutions • Tool to establish how well a building performs in relation to access and ease of use by a wide range of potential users, including people with physical mobility, cognitive and sensory impairments • Consider spending power of previously excluded users
Access Audits . Majority of impairments are not visible and only around 2% of disabled people use wheelchairs Accessibility is about more than wheelchair access – eg • Other mobility issues • Visual impairment • Hearing difficulties • Touch sensitivity
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