Wednesday 22 May 2013

Has the Dilapidations Protocol changed the way surveyors interact?


From our experience - yes. With the introduction of a tenant’s surveyors’ endorsement in connection with the response – parties seem to be closer than ever in agreeing what is reasonable in terms of quantum. However, we have seen an increase in tenant’s exercising their break clauses, shorter lease terms often backed by a Schedule of Condition and as a result significant time expended on the legal interpretations of the repair and yielding up covenants.

Some exciting case law has recently further defined the definitions with regard to Section 18 valuations, the costs of the works and the landlords intentions. We intend to hold a seminar in the near future to discuss these matters in further detail.

Nicola O’Connor, Operations Director at Nick Bevan Consulting says “we are pleased to see that over the last 12 months the level of reality has increased over the real value of claims and that parties are much more pragmatic about the state of the market and veracity of their claim”

For more details and honest advice from the real experts in this field please contact us through our web site www.nickbevan.co.uk

Wednesday 15 May 2013

The Jackson reforms


New obligations for experts

New reforms of the justice system came into effect on the 1st April 2013. Lord Justice Jackson was tasked with reviewing the current way in which costs of civil litigation are managed in an attempt to introduce “proportionality” to the costs of going to court. The new rules will also curtail “no win no fee” arrangements and referral fees will be banned.

How does this all affect the expert witness?

Prior to this change the costs of a claim grew through the case and were largely uncontrolled. Post reform costs must be proportionate and also have been reasonably incurred both in terms of relevance and also the claim size. The court will only allow costs that are proportionate and where they relate to the matters of the case.

On this basis, costs related to fees will be assessed by the court and if the total figure for costs is not regarded as proportionate the court will make an appropriate reduction, experts need to beware! It is essential that experts properly prepare fair, reasonable and “proportionate” fee estimates for their instructing solicitors to ensure that professional fees are not reduced at the end of the case, taking into account that they should be reporting on the key issues and not addressing matters that are of little relevance to the synthesis of the case.

Other Jackson reforms affecting the expert witness

Additionally Jackson formalised the concept of concurrent expert evidence, “hot-tubbing” in an effort to reduce time and cost. This process involves the experts giving evidence concurrently and should enable the courts to focus on the synthesis of the case and get at the relevant facts.

Comment

Nick Bevan, Chartered Building Surveyor and experienced expert witness says “I have experienced hot-tubbing first hand and found the process to be highly beneficial in the desire to achieve speed and justice. It gave the experts the opportunity to be jointly cross examined by both the Judge and Counsel and I’m sure significantly reduced the time spent in Court. As for fee estimates, my view is that some experts fear compression of professional fees but I’m firmly of the view that most experts are already providing good value for money and are providing detailed estimates for their services, so the reality is going to be no different post 1st April than was the position prior to the reforms. The expert’s duty is to the Court so providing a good service for proportionate fees is merely part of that process”

Monday 13 May 2013

Aviva plans to enter the rented housing sector analysed


The FT’s Ed Hammond says that Aviva’s plan to enter the UK’s rented housing sector highlights a structural shift in the country's letting market at a time of acute housing shortage. He notes that people close to the plan have said that Aviva may do a deal with A2Dominion to take control of thousands of homes in London and the south-east of England. The deal would involve the groups launching a special purpose vehicle that would build a mix of social and open-market rented houses. Under the plans being discussed, Aviva would take control of a portion of the homes to provide seed funding for a private rented portfolio. Mr Hammond believes that such a deal would be welcomed by the government, as it has been keen to encourage institutions to become landlords as an alternative to buy-to-let investors. He also notes that until the late 1940’s insurers and pension funds were amongst the largest owners of residential property in the UK.