Recent Updates / RICS News Flashcards
What was the Lendlease vs. AECOM case about?
- In relation to the design and construction (B&D) of a hospital in Leeds
- AECOM appointed as MEP consultant
- Remedial work needed in 2018
- LLC argued that AECOM should have advised on design post PC but due to the contract that was just to provide design, it was ruled they didn’t
- LL had to pay £2.9 million in remedial works
What is the current base rate?
5%
What does the base rate show?
The interest rate we pay to commercial banks that hold money with us
What does inflation show?
How much prices have increased from a year ago
What is predicted for the Autumn Budget on 30th October 2024?
Chancellor of the Exchequer - Rachel Reeves
The budget includes plans for raising or lowering taxes
UK economy grew in first 6 months of 2024 but it’s facing a £22bn black hole so it’s likely taxes will be raised
It will not raise VAT, income tax or NI
Likely to raise Capital Gains Tax, Inheritance Tax, Fuel Duty, Pension Tax Relief
Any updates to Valuation?
RICS reminded all members of mandatory requirements for members engaging in valuation to adhere to compliance requirements
Any legal / statutory updates?
King’s Speech (July 2024) - 39 new Bills (new laws)
- Planning and Infrastructure Bill to approve critical infrastructure
- Private Renters’ Rights Bill will ban no-fault eviction and extend building safety rules for social tenants to private renters (forced to rectify mould within 24 hours)
- Leasehold and Commonhold Reform Bill (ban forfeiture where leaseholders are threatened with losing their homes over small unpaid debts like ground rent)
Any updates on L&T?
Consultation on L&T Act has still not been published
What are the updates to the Red Book Global (2021)?
- Will be published in late 2024 and take effect in early 2025
- RICS Valuation Review recommendations - new content on modelling, methods and risk
- Changes for technology, including automated valuation models (AVMs) and new standards covering automation and AI
- Integration of new IVS that were published in January 2024, includes focus on ESG, data and valuation modelling
What are the VS changes in terms of numbering?
VPS1 - remains Terms of Engagement
VPS2 - becomes VPS 4 Inspections, investigations and records
VPS3 becomes VPS 6 Valuation reports
VPS 4 becomes VPS 2 Bases of Value, assumptions and special assumptions
VPS 5 splits into VPS 3 Valuation approaches and methods and VPS 5 Valuation models
Be aware as come as into effect in Jan 2025 but not in effect yet
Are there any planning updates?
NPPF Reforms:
- Return of Mandatory Housing Targets for LPAs (370,000 new homes per year)
- Brownfield first approach (brownfield, then grey belt, then green belt)
- Will require new legislation in a Planning and Infrastructure Bill
Any updates to the RICS?
Updates to PII Regulation document:
- Updates to requirements for surveyors engaged in work relating to asbestos and external wall surveys / fire risk appraisal of external walls and general insurance work
What are the updates to fire safety coverage?
RICS requires insurers to provide PII cover for fire safety claims for services carried out in respect of building 5 storeys+ on the following basis:
- Negligent act, error or omission
- Insurers will not assume liability for historic work before 1st July 2024
- Cover can be in the aggregate with defence costs included in the limit of indemnity and with the uninsured excess applicable to defence costs
What are the updates to EWS and FRAEW?
RICS listed insurers must provide cover for EWS, EWS1 Forms and FRAEW for buildings up to 18m on the basis of:
- Negligent act, error or omission
- Work completed after 1st July 2024 so insurers are not picking up historic liability, except where they have already provided cover
- Cover can be in the aggregate with defence costs included in the limit of indemnity and with the uninsured excess applicable to defence costs
