Our Block & Estate property managers are members or working towards membership with The Institute of Residential Property Management (IRPM), the leading professional body for property management professionals. On the 9th March 2022, the IRPM merged with The Association of Residential Managing Agents (ARMA) bringing the two bodies and membership together, under ‘The Property lnstitute‘ (TPI). Both bodies have been actively involved in the cladding crisis and various stages of the Building Safety Act.
On the 6th July 2022 the TPI published a statement for Leaseholders to help guide them through the mire of the act and Leaseholder Protection Provisions. You can read the full statement on the IRPM website here and you might also find the Government’s factsheet and FAQ useful sources of information. The IRPM has also provided the following update to their members: –
BUILDING SAFETY ACT UPDATE – NEW REGULATIONS ON LANDLORDS’ NET WORTH PUBLISHED
“Before a landlord can charge a leaseholder historic non-cladding costs, they will need to fulfil a series of transparency and financial reporting requirements. If they do not, the law requires them to pay all building safety costs in full, with no charges at all for leaseholders.
As part of these financial reporting requirements, landlords must provide their total net worth. On Wednesday 29th June, regulations which include how the calculation of landlords’ net worth will work were published, and these will come into force on Wednesday 20th July. You can find the newly published regulations here.
Where the relevant landlord is a private or public limited company the net worth is calculated according to the following formula: Net Worth = Total Assets – Total Liabilities – Intangible Assets
Further information on when leaseholders are exempt from paying building safety charges can be found here.”
The Building Safety Act is a new complex piece of legislation and for those Directors and Leaseholders affected we advise you to seek independent advice and to check the IRPM and Government’s websites regularly for updates. This blog was posted on 11th July 2022, and if you are reading this in the future you should check whether there have been any further blogs and industry updates to bring you up to speed. As with all our blogs, they are intended as a useful guide only and are not exhaustive.
