APC Series: Hot topics to cover over winter

Being aware of hot topics – whether they relate to market issues, RICS guidance or legislation – is essential to provide the highest standard of professional advice to clients. It also demonstrates your competence across your chosen APC competencies, while adding to your CPD through private study, for example. This article does not provide a definitive list, so make sure you check out the further reading and resources below for other topical issues. Fire safety standards RICS has adopted the International Fire Safety Standards Common Principles (IFSS-CP). The IFSS was established in late 2017 in response to the Grenfell Tower fire. It is now supported by a wide global coalition, including RICS, the Chartered Institute of Architectural Technologists, Chartered Institution of Building Services Engineers, Chartered Institute of Building, Local Authority Building Control, Royal Institute of British Architects, Royal Town Planning Institute, United Nations and World Bank, among many other bodies and organisations. The IFSS-CP aim to create consistent and common global understanding of and best practice for fire safety in building design, construction, occupation, engineering and management. They provide a performance-based framework which can be applied to the entire lifecycle of a building. The five key principles are: prevention, detection and communication, occupant protection, containment, and extinguishment. Draft Building Safety Bill Further relating to fire safety and the Hackitt Review, the government published a draft Building Safety Bill in July 2020. The aim of the bill is to “fundamentally improve building safety and deliver real change that will keep people safer in their homes”, applying to the entire lifecycle of a building. The bill focuses specifically on provisions for higher-risk buildings (HRBs), defined as being multi-occupied residential buildings above 18m in height or more than six storeys, although this is subject to change. Some of the key proposals include introducing: a Building Safety Regulator to improve building safety standards and ensure the safety of people in and around buildings, with powers to enforce compliance new and existing legislation, eg the Building Act 1984; a new regulatory regime for HRBs; a system to provide building safety information; new duty holders and gateways relating to safety and Building Regulations compliance during design and construction, aligning with the Construction (Design & Management) Regulations 2015; the concept of the “golden threat”, ensuring that “the right people have the right information at the right time to ensure buildings are safe and building safety risks are managed throughout the building’s lifecycle”; mandatory occurrence reporting; the role of the accountable person and the building safety manager; and amendments to the Building Act 1984 to “create a unified professional and regulatory structure for building control”. Changes have also already been made to Approved Document B (fire safety) Volume 1: Dwellings, applying from 26 November 2020. These apply to new-build, changes of use, material alterations and extensions. The changes include new requirements for blocks of flats over 11m, including sprinkler systems and wayfinding signage. Code of practice for Covid-19 The Code of Practice for commercial property relationships during the Covid-19 pandemic was published in June 2020 and provides best practice for landlords and tenants in relation to rent and service charge payments and arrears. It applies to all commercial property sectors in the UK until 24 June 2021. It is endorsed by the British Chamber of Commerce, British Property Federation and British Retail Consortium, but remains of voluntary application. The key requirements are: Tenants who can pay in full should. Those who cannot pay in full should engage with their landlord to pay what they can. They should consider providing evidence to justify requests. Landlords and tenants should work collaboratively and reasonably to renegotiate rent or other mutually acceptable solutions, with proposals suggested in the guidance. Service charges should be reduced, if possible, where use and associated costs for a property have decreased during lockdown. Minimum space standards As of September, all office-to-residential conversions undertaken under permitted development rights now have to meet the nationally described space standard. This equates to 37 sq m for a new one-bedroom flat with a shower room or 39 sq m with a bathroom, and 61 sq m for a two-bedroom flat. Hart v Large Hart and another v Large and others [2020] EWHC 985 (TCC); [2020] PLSCS 105 related to a HomeBuyer report provided by Richard Large, a surveyor, for a redeveloped Devon dwelling. The property was valued for the proposed purchaser at £1.2m, with a number of defects identified relating to drainage, pipes and gutters. The client purchased the house and later identified significant water ingress and damp issues, requiring substantial remedial works. These were not identified in the original report, so the client brought a negligence claim against Large. As a result of this case, surveyors should ensure that the appropriate level of survey is advised for the type and nature of property in question, eg a Building Survey (level 3) rather than a HomeBuyer Report (level 2). Surveyors should also be mindful to recommend a professional consultant’s certificate if appropriate and to record any limitations on inspection in writing. Changes to planning use classes The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 make major changes to the Town and Country Planning (Use Classes) Order 1987 from 1 September 2020. The aim is to support the revival of the high street through flexibility of use without the need for planning consent. Three new use classes have been introduced: Class E: commercial, business and service – essentially incorporating former use classes A1, A2, A3 and B1; Class F1: learning and non-residential institutions; and Class F2: local community. Electrical safety standards in the private rented sector The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into force on 1 June 2020. The aim is to ensure the safety of tenants living in private rented homes and provide clarification regarding landlords’ responsibilities for electrical safety. This applies to residential properties located above commercial premises and to houses in multiple occupation. The regulations require landlords in England to have their electrical installations inspected by a competent person every five years. This covers fixed wiring but does not extend to portable appliance testing. An Electrical Installation Condition Report must be issued to new tenants before the start of their tenancy and to existing tenants within 28 days of the inspection. The changes apply to all new tenancies (including statutory periodic continuations) from 1 July 2020, and to existing tenancies from 1 April 2021. Professional ethical standards and rules of conduct RICS is consulting to introduce new guidance to replace the Global and Professional Ethical Standards and Rules of Conduct for Firms and for Members, which were published originally in 2007 and 2009 respectively. The objectives of the consultation are to provide clarity, effectiveness and brevity in new Rules of Conduct to replace all of the above current guidance. The new Rules of Conduct are proposed to apply from June 2021. If you would like to comment on the consultation, you can do so until 7 December 2020. Further reading and resources Respond to the RICS Rules of Conduct consultation  Read the full draft Building Safety Bill Read about further planning reform in the Planning White Paper Code of Practice for commercial property relationships during the pandemic  The quick quiz 1. When does the current moratorium on forfeiture of commercial leases for non-payment of rent continue until? (a) 31 December 2020 (b) 24 June 2021 (c) When the Covid-19 pandemic is over 2. What has the VAT rate for the hospitality industry currently been reduced to? (a) 0% (b) 5% (c) 17.5% 3. Are there any business rates relief schemes available for retail properties in relation to Covid-19? (a) No (b) Yes Answers: 1. (a)  2 (b)  3. (b) Jen Lemen FRICS is a co-founder of Property Elite, a chartered surveyor, a registered valuer and an APC assessor Picture © Pexels/ Skitterphoto