About Us
Our Aspirations for your community
Orwell Quay Owners &:Residents is not and has no plans to become a formal Residents Association.
Our main aim is to inform all stakeholders at Orwell Quay of current issues which may influence their day to day environment.
We further wish to build a true community spirit by social events and encouraging everyone to be aware of and Foster friendships with their neighbours.
We publish a monthly digital magazine "The Orwellian "
We will not enter into discussion or dispute regarding individual rent or council tax and other legal issues concerning your tenancy or lease.
Our membership will be a balance between owners both resident and non resident, as well as their tenants.
Your Waterfront Community
Orwell Quay Owners & Residents has been created to give you all a voice in shaping the environment we all live.
Please suggest additional amenities you would like to see around our community to maintain and improve standards now and in the future. What do we need to do to meet the challenges in the coming years, ev charging points, energy saving ideas. It’s your forum.
Why getting to know your Neighbours is important
"Life was very different in my day we knew our neighbours, you could leave your door unlocked" that refrain is often heard from a more " mature" section of our community and has some truth, but a lot of rose tinted glasses.
We are facing a period of intense austerity, some of our successive governments making, much beyond the control of a government of any colour.
Apartment communities such as ours are by nature self contained cells and transient. We came together a year ago this month out of a sense of frustration and fear of the unknown. We have collectively broken down many internal and external barriers. We have achieved limited success.
The greatest success was getting people talking and interacting with each other. As we move forward through the remediation process we must build on that success.
We have achieved the return of our democratic right to question those charged with serving us at Annual General Meetings we must never lose that right again.
More importantly in the challenging times ahead we should build on the community spirit we have in gendered, talk to people in lifts , car parks and corridors, encourage making friendships its a great feeling and basically cost's you nothing.
Today say " l am going to be a better neighbour because its makes me feel good "
PROPOSED EGM - Agenda available contact admin@orwellquayresidents.co.uk
Those of you who were able to attend the last AGM will be aware the 2021/2022 accounts were not approved due to inconsistencies in the accounts that neither the Board of Directors or EWS management present could explain.
The members therefore voted not to adopt the accounts but have them sent to independent auditor. We thought it was agreed to hold an EGM in July to discuss the auditors report and if satisfactory then adopt the accounts.
We were advised a few weeks ago that although auditors report had been sent to all members of the company, the Board had decided to cancel the July EGM and hold this and all other outstanding matters over to the next AGM scheduled for March 2024.
We do not consider this ethical or in the best interests of leaseholders. We have therefore under the terms of the Companies Act under which our Articles of Association are written requested an emergency EGM to resolve all outstanding matters.
We need 5% of leaseholders to confirm they agree to this EGM . Under the terms of our articles this must be the first named leaseholder on your lease and only one name where apartment jointly held.
Please email admin@orwellquayresidents.co.uk with your confirmation and address or if you have any further questions or concerns.
Thank you.
August Remediation Update From R G Carters.
August Remediation Update From R G Carters.
August Remediation Update From R G Carters.
Orwell Quay Board Director Resigns.
August Remediation Update From R G Carters.
August Remediation Update From R G Carters.
Michell Claridge who was one of founder leaseholder members of Board of Directors of Orwel Quay (Ipswich ) MCL has resigned from the company on 8th June 2023.
We are sure you would all like to thank Michelle for her many years of service to the leaseholders at Orwell Quay.
Michelle also opened Aqua Pharmacy in Duke Street which has brought essential health services to the Orwell Quay area
Quay News
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
Tom Hunt MP used his weekly newspaper column to support the new guidance on remediation of buildings with fire safety and cladding issues.
https://www.facebook.com/groups/ipswichcladiators/permalink/1442299419952667/
Update February 2023
In terms of the cladding remediation, work has continued to speed up, on 7 Anchor Street and 51 Patteson Road. This is mainly due to the decision to "prop" the underground car park to support the Podium above in the continued absence of the detailed information required to calculate the weight bearing tolerance of the Podium slab.
David Pennington in his excellent Waterfront Blog has covered this in detail, and rather that just repeat it here, suggest you use this link to read and view, have however pinched one of his photos
https://waterfrontblog.co.uk/?p=5642
Looking further ahead, we understand that work on 1,3,5 Anchor Street has been awarded to Carters Subject to Persimmon approving final quotation, which will be going to their Quantity Surveyors next month for scrutiny, and if all ok approval to start work will be given March/April when Carters will commence procurement process with likely date to start in June.
Carters have proved already to be a great asset to the residents here at Capstan, with information and communication first class in content and speed of response.
Let's hope Persimmon allow them to continue with phases 2 & 3 , and take into account the warm relationship they have all built, rather than just an accountant in a darkened room in York just looking at bottom line figures. Very little consideration was shown to the residents prior to Carters appointment let's hope they think about us and our feelings for the first time.
It is hard to believe that is it over four years ago that these defects were first advised to EWS and our then Board of Directors by the first survey, after the tragic events of Grenfell, by Tenco in 2018.
FCA report on Buildings insurance & Minsters response
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
FCA Review of Buildings Insurance
Back on 28th January 2022, the former secretary of state, Michael Gove, asked the Financial Conduct Authority (FCA) to carry out a review of buildings insurance. The consequent FCA report on insurance for multi-occupancy buildings was published at the end of September, following a comprehensive review and an exploration of how to provide better value insurance cover for leaseholders in blocks of flats.
The review found there has been a reduction in the supply of blocks of flats insurance over the last five years. Some insurers have left the market completely and there is a reduced appetite to take on new business among others. Choice for leaseholders has reduced.
There is a package of potential remedies suggested by the FCA in its report. It seeks to give leaseholders greater protections and improved information about their insurance costs, as well as improving the affordability and availability of blocks of flats insurance.
Chief Executive of The Property Institute (which comprises ARMA and IRPM); Andrew Bulmer, commented: “The findings of the FCA’s review are of concern and we welcome the overall direction towards tighter regulation, fairness and transparency. We remain firm in our position that leaseholder distress caused by an increase in insurance premiums, a lack of transparency and information, and suspicions for the potential unmanaged conflicts of interest, highlighted by the FCA, must be resolved.”
The report confirms that many insurers have withdrawn from this market, and the remaining providers have increased prices dramatically, but the FCA has been unable to confirm whether the price increase in premiums is fair and appropriate.
Member firms of The Property Institute (ARMA members) are required to sign up to its Consumer Charter & Standards, which requires proportionate charges for managing building insurance work, including obtaining quotes, arranging renewals, collecting premiums and handling claims.
Andrew Bulmer added … “Where poor practices are discovered during audit, these are raised with the member firm. However, this underlines the need for the sector to be properly regulated, as recommended in Lord Best’s report. We look forward to supporting the FCA and other stakeholders in its further work to bring transparency and fairness to millions of leaseholders.”
The FCA will provide an update on progress towards potential remedies in the spring of 2023, and in the meantime, is seeking views on its proposed recommendations from stakeholders by 31st October 2022.
Secretary of State responds
Simon Clarke; the new Secretary of State for Levelling-Up, Housing and Communities, has responded to the FCA’s report on blocks of flats insurance. This is his letter to FCA Chief Executive; Nikhil Rathi said …
“Dear Nikhil,
Thank you for your report, dated 21 September 2022, detailing the findings of the FCA review into the building insurance market for multiple-occupancy residential buildings. The report responds to the request, from January, which was issued as result of serious concerns regarding the significant premium increases and limited coverage leaseholders have experienced, poor transparency of insurance costs and weak competition in the market.
The quality of data provided has improved the evidence base substantially but demonstrates the scale of the issues facing consumers which require urgent resolution. I share the concern expressed by my predecessors regarding the
Overalllack of data in the market and the information insurers are using to price premiums.
It is essential that this situation improves, and I support your request of the Association of British Insurers (ABI) and the British Insurance Brokers’ Association (BIBA) to create a common code for risk reporting. I ask you to press industry to improve the quality of data held by insurers and report on what action will be taken if this is not progressed satisfactorily.
You report that high commissions from insurance brokers, and a highly questionable practice of sharing commissions with freeholders and managing agents, are inflating the premiums paid by leaseholders. This feature of the market is plainly detrimental to residents, and I agree that you must review these practices as a priority. I look forward to the outcome of this investigation and your plan to tackle the questionable behaviour of commission sharing.
I am pleased to see your commitment to consult on increasing leaseholder protections. Increased regulatory action will help leaseholders to monitor and challenge the behaviour of FCA-regulated intermediaries acting on their behalf. I urge you to progress this work as quickly as possible and look forward to your update report. This should include the FCA’s decisions regarding regulatory changes.
I note your requests of industry, primarily through the ABI and the BIBA, to rapidly develop an industry-led insurance pooling solution. My department has been working with the ABI and BIBA on this proposition. I expect an update from the ABI and BIBA on their final proposal during September. Given the impact on leaseholders, I expect industry to accelerate timescales on this work to reflect the importance of pooling risk in your recommendations.
You noted several recommendations for Government to take forward. I am committed to taking action against abuses, including through legislation if necessary, and my officials will provide an update in the autumn on the available options and how we will address these recommendations.
The financial pressure currently placed on leaseholders continues to be unacceptable and I want to ensure that we rectify the issues outlined in the report as a matter of urgency. I urge industry to act rapidly on the recommendations of this report, which will help to implement a competitive and fair marketplace for buildings insurance in the UK.
If this engagement does not materialise, I support the FCA’s recommendation of more detailed market investigation on the competitive dynamics of the industry. I request that you update me through an interim report on industry and regulatory progress for all recommendations in three months. I look forward to working closely together with the FCA and CMA on progressing this work.
I am copying this letter to the Chief Executive of the CMA and the Financial Secretary to the Treasury.
Rt Hon Simon Clarke MP, Secretary of State for Levelling Up, Housing and Communities”
New Home of "Meet your Neighbours" Wednesday 6th September 7.30
Remediation - Tom Hunt supports new cladding remediation guidance - but should go further!
New Home of "Meet your Neighbours" Wednesday 6th September 7.30
BBC Radio Suffolk
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
New Home of "Meet your Neighbours" Wednesday 6th September 7.30
BBC Radio Suffolk ran a feature this morning about our cladding remediation, unfortunately the interview was somewhat edited and did not include the comments made regarding the excellent communication of R G Carters with the residents since they were appointed by Persimmon to effect the remediation on 51 Patteson Rd and 7 Anchor Street. Can only assume positive comments did not meet the editorial criteria.
Radio Suffolk were unable to provide a digital recording to upload here, for non members you will have to go to BBC Sounds - Radio Suffolk Luke Deal breakfast show today and scroll through to 8.03 to hear intro and interview.
Orwell Quay members will get a recording by our weekly newsletter.
You may find the comments by EWS at the end quite interesting.
Details of joining criteria and application form can be found on last section of this website.
Response from the Minster to Tom Hunts question
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
We sent a copy of this response to EWS on 12th October 16.05 hrs requesting information on how this relief effective from 1st October would be reflected in our current year service charge accounts. To date we not received an acknowledgement or answer.
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
Tom Hunt questioning Jacob Rees Mogg in House re communal electricity costs.
We have been rasing the point regarding the massive increase in our communal electricity cost',s and whether we qualify for any relief.
Tom Hunt, our local MP asked the Business Secretary this question on 22/9/2023. Answer very encouraging will await final details of level of relief
Managing Agents. Insurance Companies - Fact or Fiction.
EWS parent company Trinity Property Group sold to Swedish Group.
Managing Agents. Insurance Companies - Fact or Fiction.
My thanks to The Leasehold Knowledge Partnership for this article.
"Rendall & Rittner makes nearly £1 million a year in gas and electricity commissions
By Liam Spender
With energy prices sky-rocketing, Rendall & Rittner leaseholders will be concerned to learn that their managing agent receives £969,000 a year in commission on communal gas and electricity supplies.
According to a letter posted on Rendall & Rittner’s blog, the commissions are paid at the rate of 0.03 pence per unit (kilowatt hour) of electricity. Gas attracts a lower commission of 0.015 pence per unit.
According to the letter, Rendall & Rittner estimates it buys of 182 gigawatts of electricity and 282 gigawatts of gas each year. This gas and electricity is supplied to around 550 developments Rendall & Rittner manages.
The commission rates mean Rendall & Rittner collects £3,000 per gigawatt of electricity and £1,500 per gigawatt of gas. This works out at £546,000 in commission on the electricity and £423,000 in commission on the gas, a total of £969,000 a year.
A gigawatt of power is equivalent to 1 million units of gas or electricity. A gigawatt is enough power to boil around 330,000 kettles for an hour.
This gas and electricity is from the mains supply. These supplies heat and power communal spaces, run lifts, heat communal boilers and light communal paths and car parks.
According to its most recent accounts, in the year to 30 June 2020 Rendall & Rittner took in over £21 million in management fees. In the same year Rendall & Rittner also claimed over £660,000 under the government’s furlough scheme.
The gas and electricity regulator OFGEM deems gas and electricity supplies of this nature to be commercial supplies, meaning they are outside the government’s recently announced domestic price caps for gas and electricity. The new price caps are due to apply from 1 October 2022.
Commercial gas and electricity supplies are often arranged by brokers. The power companies pay commission, and sometimes introduction fees, to secure the business of these brokers. The cost is passed on as part of the unit price charged by the power supplier to end consumer.
The government has said that it will cap commercial electricity supplies to £211 per megawatt hour for electricity and £75 per megawatt hour for gas. This is equivalent to £211,000 per gigawatt hour of electricity and £75,000 per gigawatt hour of gas. The caps are to last at least six months between 1 October 2022 and 31 March 2023.
The capped commercial gas and electricity prices are roughly 4 times higher than they were in 2021. Prices have risen as a result of the Ukraine conflict. The recent slump in the value of the pound against the dollar is likely to further push up prices. Gas and oil are typically priced in US dollars, becoming more expensive as a result.
Wholesale electricity prices in the UK market are set by auction and at the cost of the most expensive supplier, usually gas. As gas prices have risen this has forced up the cost of electricity.
It is currently unclear how the governments proposed cap will be applied to communal gas and electricity supplies in leasehold blocks. The bills are paid by managing agents like Rendall & Rittner using service charge funds. Leaseholders often have to fight tooth-and-nail to be able to even see the invoices.
Rendall & Rittner claims this commission covers its costs of procuring the supply. At the average national salary of £38,000 (say £45,000 after employer national insurance and other costs), the commission would employ a full-time team of nearly 22 people.
Other managing agents operate communal heating and power systems in leasehold buildings. These are not connected to the mains supply. A recent press report by Martina Lees in The Sunday Times reports prices for some these systems increasing by 500%.
Communal heat and power systems are outside the price caps imposed by OFGEM on domestic supplies. The government promises that a fund will be set-up to help leaseholders benefit from the recently announced domestic price caps. It is unclear how that fund will work, or when it will start to operate.
The government is proposing to cap the cost of these communal systems in the same way as for mains-supplied domestic electricity. The new protections were expected to come in from 2024 as part of the Energy Bill.
The Energy Bill contained no equivalent proposal to cap the costs of mains communal gas and electricity supplies, potentially leaving consumers facing uncapped price rises and having to keep paying commissions.
Following the election of Liz Truss, press reports say that the government is abandoning the Energy Bill. It is currently unknown how, or when, the promised protection for communal systems will come in.
With prices rising and the government’s growing appetite to stamp out leasehold abuses in insurance, it remains to be seen whether the government will cap mains communal gas and electricity supplies, or whether they will act to ban commissions of this nature.
The electricity commissions are not the only commissions received by Rendall & Rittner. According to its accounts, between 2016 and 2020 Rendall & Rittner received £1.5 million in dividends from its captive insurance company."
The captive insurance Company is based in Guernsey, so taxation of the profits made by this company is difficult.
Information contained in this article has been sent to Financial Conduct Authority for comment and possible action .
Michael Gove
EWS parent company Trinity Property Group sold to Swedish Group.
Managing Agents. Insurance Companies - Fact or Fiction.
Michael Gove has returned to Cabinet under Rishi Sunak as Levelling Up Secretary just three months after being sacked by Boris Johnson.
Mr Gove was on the backbenches for the first time in some time after being removed from the position in the wake of political chaos under Mr Johnson.
EWS parent company Trinity Property Group sold to Swedish Group.
EWS parent company Trinity Property Group sold to Swedish Group.
EWS parent company Trinity Property Group sold to Swedish Group.
Odevo, a property management group that launched in the UK earlier this year, has acquired Trinity Property Group as it continues its growth trajectory.
Odevo was formed when UK managing agent Rendall & Rittner joined forces with Swedish based Nabo and SBC. UK-based Premier Estates and Finnish Companies MTR and STIO also became part of the group. Together they aim to challenge the industry and harness the power of technology and the highest standards of customer service to become the leading force in property management and residential services internationally.
Trinity Property Group manages in excess of 95,000 homes across England and Wales with an additional 55,000 committed to management, making it one of the UK’s largest residential property management companies. Its annual revenue of £20 million and 320 employees brings the Odevo group annual revenue to £134 million and 1,700 employees. Together the Odevo companies manage a portfolio of more than half a million homes.
Odevo was created to improve the experience of property management for residents through better technology and customer service. Putting technology at the heart of its business and investing heavily in developing a platform tailored for the UK management market.
Jonathan Smith, CEO of Trinity Property Group, comments: “We are delighted to become part of the growing Odevo group, which will allow us to continue to improve service delivery for our customers and clients. Changes in legislation and advancements in technology and communication have placed a great deal of pressure on managing agents.
“At Trinity, we continue to invest in ensuring we keep up with changes in compliance to protect our end users, as well as improving our IT systems to make communication more efficient and user friendly. By becoming part of Odevo, we look forward to enhancing the customer experience further.”
In the UK, founding partner Rendall & Rittner is already witnessing the boost that joining Odevo is bringing to its business. Reflecting its growing role in the Odevo group, the company has restructured its senior board with Duncan Rendall becoming Rendall & Rittner Group Chairman as well as Chairman of the Odevo UK board, and CFO Parimal Patel also becoming CFO for Odevo UK. Richard Daver becomes Rendall & Rittner Group CEO and a board member of Odevo UK, and Catherine Riva becomes CEO of Rendall & Rittner Ltd.
Duncan Rendall, Group Chairman of Rendall & Rittner and Odevo UK Chairman, commented: “We are delighted to welcome our new colleagues at Trinity Property Group to Odevo, another like-minded business that can see the far-reaching benefits of harnessing technology to improve standards of service. Like them, we are a people focused business, and our investments in technology will significantly improve the customer experience and our support to clients putting us at the forefront of the industry. And as the Odevo group continues to grow, we will collaborate and drive change to make this industry stronger together.”
Editors Comment
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
EWS parent company Trinity Property Group sold to Swedish Group.
This is a classic case of shutting the stable door after the horse has bolted.
"Government funding to support delivery of building safety reforms
On 9 March, The Department for Levelling up, Housing and Communities (DLUHC) announced a £42m funding package to support recruitment and training of Building Control Inspectors and Fire Inspectors working with the BSR.
The package consists of a £16.5m grant to Local Authority Building Control (LABC), the representative body for local authority building control in England and Wales, and £26m to support the Fire and Rescue Services in England and the National Fire Chiefs Council.
The grant funding will enable local regulators to recruit, train and employ new Building Control Inspectors and Fire Inspectors. These local partners will support the work of the new BSR in overseeing the safety and standards of the design, construction and management of higher-risk buildings, as well as strengthening the sector as a whole.
Peter Baker, HSE Chief Inspector of Buildings said:
"Local Authority and Fire and Rescue Services are vital to the delivery of the new safety regime for higher-risk residential buildings. I welcome the work to quickly increase capability and capacity so our regulatory partners can deliver their important roles. Our common goal is ensuring the success of the new regime in keeping residents safe in their homes, now and in the future."
Local building control has failed every leaseholder in St Francis Tower,Cardinal Lofts and Orwell Quay in Ipswich and countless others nationwide they will not take any form of responsibility and seem to be uncountable- a disgrace ! Shame on you
Tne Persimmon Promise
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
At the AGM held on 22nd November, much discussion centred on the process of Persimmon fulfilling the promise they made at thier own 2021 AGM to remediate all developments from fire safety problems at build preventing the granting of an EWS1 certification
We feel it is the right time to share an email fro the Special Projects Team in April 2021.
With this commitment it is hard to understand why Orwell Quay remains in the last 5% of Buildings over 18mts to be remediated and EWS 1 certification obtained. Figures from Michael Goves department September's. Statistical report.
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
ABP to close Marina after buying back lease Ipswich Maritime Trust release.
Dear Members
Most of you are aware that, subsequent to the purchase of Neptune Marina by ABP (which, incidentally, we understand had been in discussion for well over a year before the passing of the owner, Alan Swann), ABP have proposed a controversial reorganisation of the pontoons in the Wet Dock. Some of you may have attended the consultation they held about this, primarily for Neptune customers, on 5 July.
The purpose of this note is to update you on where things stand now and what your committee is doing about it.
In case you are not aware, the proposal is, in effect, to move all of the Neptune berths to the other side of the Wet Dock. This means there will be no boats on the Neptune side, and access and services for all boats will be from the Island side. The proposal requires planning permission, which ABP has not yet applied for.
Our main concerns about this are
- Maritime heritage depends on Ipswich's residents and visitors feeling closer to nautical matters. That's not helped if all the boats are moved to a more remote location, and the vitality of the waterfront is damaged.
- the plans could make it too hard for large traditional boats to tie up at the Common Quay by the Old Customs House, because they do not allow sufficient swing space, not only for SB Victor but also for any other visiting vessels.
- the plans include a very tight bend where the new channel turns from a northerly heading to westerly as it hugs the dock wall by the University of Suffolk building. This could also be a deterrent to potentially visiting skippers.
Their current plan results in an increase in overall berth numbers in the Wet Dock. However, the increase is quite small, we think about 5%. For this reason, although lock queues can already be a problem and this won't help, we do not think that constrained lock capacity is a strong argument against the plans.
So far, our response to this has been mainly in private, whilst we work out whether ABP can be persuaded to address our concerns without public confrontation. Last week we met with the ABP senior manager responsible, and explained our concerns, and have followed up with a formal letter. We have a further meeting with his boss this week. We are also in contact with relevant Ipswich councillors and the planning department. Our impression so far is that we can reasonably expect to see some level of compromise by ABP, but it is early days, and we will need to stay on top of it.
What you can do:
1. A group of waterfront residents and Neptune berth holders calling themselves "Save Ipswich Waterfront" have a facebook page. Googling "Save Ipswich Waterfront" gets you to a petition you can sign.
2. You can write to ABP at askbeaconmarina@abports.co.uk with whatever points you wish to make.
We will keep you posted as we learn more.
Social Events
“Meet Your Neighbours”
We are delighted to have found a new home at A Listers right here on Orwell Quay. Our first get together will be on Wednesday 6th September 7.30.
Hope to see many of you there.
More illegal firestopping to be corrected
Many of you will have attended of a meeting which took place on Monday 6th February for Owners and Residents of 1,3,5 Anchor Street. This concerns further works of the fire compartmentaliation work required in the internal parts of the Apartments now all comunal areas complete.
The work is required after a kitchen fire in a flat in 5 Anchor Street, where smoke appeared in the flat above. The Fire safety officer requested a investigation into how this had happened. Evolution Fire Protection were asked carry out detailed study and report back with findings and solutions.
It would appear the service ducts in the corner of your kitchen ,bathroom and where applicable en suites which house the waste water down pipes and incoming hot and cold water supply have not been compartmentalised at each level with a fire retardant membrane between to stop fire and smoke moving up these ducts. This is a requirement of the 2000 Building Regulations under which Orwell Quay was constructed.
The Fire Service ordered the work to bring our community up to the required standards must be undertaken as soon as possible.
Persimmon have therefore contracted Evolution to undertake this work as quickly as possible.Evolution have presented a methodology statement to local building control and Fire Service which they have approved - the work to be undertaken will satisfy the building regulations.
At the meeting Evolution gave a presentation on what will happen and how long this unfortunately highly intrusive work will take in each flat.
All parts of Orwell Quay will need this work completed, to help minimise the disruption, work on the Waterfront facing blocks will be pharsed so that hopefully work will not be undertaken on the outside and inside of your flat at the same time
A leaflet explaining the work was handed out and is reproduced here
A hard copy was placed in everyone's post box.
As you will see they have set up contact details in a similar fashion to Carters.
You or your Landlord will be contacted by John not David as mentioned on leaflet to arrange suitable date for work to be carried out on your flat.
Must stress at this time work will be only carried out on 1,3,5 Anchor Street when work is to commence on other blocks a similar joint meeting by EWS and Evolution will take place.
The work as you will see is scheduled to take 3 days a flat between 8.00am and 4 pm.
If you have specific medical reasons why you feel you should be rehoused during the work on your flat,we understand Persimmon will be reviewing this on a case by case basis, and you should contact initially Tom Bartlett at EWS to discuss your particular concerns.
All other matters should be referred directly to Evolution on the contacts as follows
07523305576 - John
Ipswich@evolutionsfireprotection.com
Michael Gove resonse to FCA insurance commisson findings !
Financial Conduct Authority Report on Insurance Commisons
FCA to clamp down on high insurance costs for leasehold flats
At last someone is listening
Article from Financial Times Friday 21st April 2023
"Regulator will protect against brokers who overcharge and hand large commissions to landlords Insurance for multi-occupancy buildings has become a key issue in a growing scandal over excessive service charges to clamp down on high insurance costs for leasehold flats on twitter
The UK’s top financial regulator said on Friday it would beef up protection for leaseholders in blocks of flats from paying excessive insurance costs as part of a clampdown on insurance brokers overcharging for the products and handing large commissions to landlords.
The investigation into brokers covering about a third of the market found firms had not produced enough evidence to justify a nearly 40 per cent rise between 2019 and 2022 in their fees from these insurance products, the Financial Conduct Authority said in an accompanying report. It found brokers included in its sample, passed on £80.7mn in commissions, or more than third of total commissions, to third parties over the review period. It said brokers were “often unable to articulate” what landlords were doing to justify these sums being passed on.
Insurance for multi-occupancy buildings, which covers residents against events such as water leaks, has become a key issue in a growing scandal over the excessive service charges landlords have levied on leaseholders. Tenants of flats must pay towards a group buildings insurance policy they have no control over selecting nor transparency over the contract and any commissions paid.
These policies have become far more expensive in recent years, especially for residents of cladded buildings after the 2017 Grenfell Tower tragedy. Recent legal victories brought by individual leaseholders have thrown light on structures where freeholders and managing agents have taken substantial commissions on insurance products. The FCA said brokers had shown “significant shortcomings” in applying fair-value rules to what they charge for their own role in securing insurance and what they pay to others. The report said the rise in brokers’ fees had outpaced the rise in costs over the period.
The FCA identified “deficiencies in [brokers’] product value assessment work, shortcomings in their recording and analysis of their own costs and insufficient scrutiny of the commissions they pay to others”. It was “likely” that brokers would need to reduce their percentage-based commission rates if they could not demonstrate a sufficient benefit to customers, the regulator said. Under the proposed regulation, brokers found to be taking too much from leaseholders could face enforcement action leading to fines and bans.
But the FCA stopped short of announcing a cap on commissions, citing “practical concerns” given the varying split of responsibilities between brokers and landlords. The latter do not fall within the regulator’s remit. The FCA said it would consult on the proposed changes with a view to introducing the measures later this year.
The government, which pledged in January to ban the commissions and replace them with a flat fee, welcomed the clampdown as a “first step”, but said it did not go far enough to protect leaseholders. It urged the regulator “to take immediate enforcement action on the unreasonable practices highlighted in [its] report”.
Martin Boyd, chair of the Leasehold Knowledge Partnership, a residents’ campaign group, said he was pleased the regulator had “accepted something that we have argued for 10 years [was] a problem.” Mick Platt, director of the Residential Freehold Association, which represents landlords, said it welcomed the move “to improve the transparency of the multi-occupancy leasehold buildings insurance market.”
The regulatory changes are part of a broader push to overhaul the leasehold system. Housing secretary Michael Gove has said the “outdated feudal system” should be scrapped and indicated he wants to bring in legislation later this year."
Major Managing Agent Blows a Fuse updated - the result !
Public interest request to advance the dispute to Upper Tribunal as other sites may also have similar budget omissions was declined
The First Tier Tribunal was asked yesterday why subsidies from the Energy Bill Relief Scheme were not included in the annual energy budget set by FirstPort at the prime site St David’s Square in London’s Docklands.
The government’s Energy Bill Relief Scheme delivers the same level of financial benefit to commercial gas and electricity users as the Energy Price Guarantee delivers to domestic gas and electricity users.
Mains gas and electricity supplies to common areas – corridors, lifts etc – in residential blocks of flats are subject to commercial electricity contracts rather than price-capped domestic arrangements.
FirstPort places its contract for the supply of gas and electricity for the 5,500 sites it manages via a broker, EnergyCentric. FirstPort and EDF have refused repeated requests to disclose the commission earned by EnergyCentric on the contract.
From the figures leaseholders can see, total expenditure on electricity at St David’s Square is estimated to increase from £104,830 in 2022 to £265,784 in 2023: an increase of £160,954. Yet the service charge demand does not explain how the increase has been calculated.
It amounts to 154% increase overall.
Some parts of the electricity budget have been increased by 210%.
FirstPort has twice refused to provide leaseholders with the full budget and twice refused to explain how the figures have been calculated. The site’s total electricity bill could be near £600,000 for 2023.
The issue is being disputed by Liam Spender, a City solicitor and an LKP trustee who earlier this year mounted a four-day case over the service charge demands at St David’s Square, for which a ruling is still awaited:
On 27 October 2022, the government made the Energy Bill Relief Scheme Pass-Through Requirement (England and Wales and Scotland) Regulations, which came into force on 1 November 2022. These made FirstPort, as a “relevant intermediary”, subject to a requirement to effect pass-through to end users.
Mr Spender pointed out that FirstPort had had five weeks to consider the Pass-Through regulations before issuing its service charge budget at St David’s Square.
Although not relevant to the energy issue, Mr Spender’s letter to Ms Sahdra also included reference to the 20% increase in insurance costs at St David’s Square and FirstPort’s own 7% increase in management fees.
Mr Spender added in his letter:
“It has become your practice to refer routine correspondence of this nature to JB Leitch [solicitors based in Liverpool]. FirstPort is paid a significant management fee to manage the site, now in the region of £175,000 a year. Having made a service charge demand with insufficient information to justify the large increase demanded, you are obliged to answer the questions set out in this letter. In the event that you choose to refer this correspondence to JB Leitch, be advised that the costs of that will not be reasonably incurred and should not be passed to leaseholders.”
FirstPort, rather than JB Leitch, subsequently replied that the EBRS only applies between 1 October 2022 and 31 March 2023.
“At present, there is no information about whether any discount will be available after 31 March and we have been advised that a decision is not likely to be forthcoming for some time. As a prudent property manager, we do not consider it appropriate when setting budgets for 2023 to assume that the discount will continue for the full year. It is not in the interests of residents to run the risk of a deficit arising as the year progresses.
“For the above reasons, we consider the budgeted increase of 154% for the year as a whole to be reasonable.”
The letter did not confirm whether the subsidies had been factored into the 2023 budget or not.
At today’s hearing, Judge Vance ordered the landlords – which are part of NatWest Trustee and Depositary Services – to hand over copies of electricity bills received between 1 October 2022 and the date of the service charge demand. The landlords were also ordered to say when the electricity contract was signed and to provide a copy of the full 2023 service charge budget.
The site’s landlords hold the freeholds of the site on trust for ground rent investor the ARC Time Freehold Income Fund. In turn, the fund uses the Tchenguiz Family Trust owned Freehold Managers plc – part of the Consensus Business Group – to administer a portfolio of roughly 60,000 ground rents.
The case illustrates the lengths leaseholders have to go through to get even basic information about service charges, even after the government has made regulations requiring this information to be provided.
The landlords were represented at yesterday’s hearing by JB Leitch and barrister Miriam Seifert, of Landmark Chambers
Update 17th May 2023
You will recall we have been following the claims made St Davids Square residents regarding insurance commissions and the non allowance of government electricity assistance in the appropriate time frame.
You will be delighted to read this article from The Leasehold Knowledge Partnership who have championed this ground breaking ruling.
We are now in process in studying the full consent order to learn how it may be applicable in part to Orwell Quay leaseholders.
"Black Friday for FirstPort: ALL leaseholders at St David’s Square to share £479,000 service charge triumph. And £55,000 in energy subsidies to be paid up
A disastrous Friday for FirstPort last week as it agrees to repay ALL 436 leaseholders at least £479,000 in overpaid service charges, rather than just the 120-odd who participated in the action mounted by Liam Spender.
Residents at the site have yet to see the final number, but the credits in relation to the tribunal decision could total around £600,000 when the landlord’s concessions on building insurance commission and other items are taken into account.
And in another action led by Mr Spender, a City solicitor, leaseholder and trustee of LKP, another £55,000 in government energy subsidies are being passed over which, unaccountably, were overlooked when setting the 2023 budget for the prime Docklands site.
All in all a hugely expensive week for FirstPort, which also agreed to refund £300 in Tribunal fees and to pay Mr Spender £2,500 for his time over the energy challenge – a most unusual occurrence in service charge disputes.
FirstPort managing director Kully Sahdra wrote to all leaseholders on 12 May to wave the white flag. The letter can be read here:
https://www.leaseholdknowledge.com/wp-content/uploads/2023/05/2023.05.12-LetterfromFirstPort.pdf
It is an open question what French property management giant Emeria, which bought FirstPort in March 2022, makes of this debacle.
Initially, there was a possibility that the non-participating leaseholders at St David’s Square could be made to pay the legal fees of the landlord, FIT Nominee Limited and FIT Nominee 2 Limited both subsidiaries of the NatWest Group plc, even though it lost the case. The letter does not say whether this will happen.
“I would also like to take this opportunity to assure you that all leaseholders at St David’s Square will benefit from the reductions, not just those who participated in the Tribunal application,” wrote Ms Sahdra, adding: “We look forward to continuing to work with all residents to make sure that St David’s remains a safe and comfortable place to live.”
Of course, the non-participating leaseholders contributed nothing to the action, so any payback is a windfall. Doubtless they will show their appreciation to Mr Spender in some fashion.
The dispute over the energy subsidies concerned the 2023 estimated electricity budget of around £350,000, which paid for corridor lighting, lifts, swimming pool and street lighting.
The original budget was set ignoring extensive government subsidies provided under the Energy Bill Relief Scheme. The budget was also set on the basis that the current high prices would apply for all of 2023, when it was known they were falling and are likely to fall significantly from 1 October 2023.
A settlement, subject to approval by a judge so the application is still live, means all 476 flats and houses at St David’s Square will share a refund of at least £55,000, with potentially a further £30,000-£40,000 once reduced electricity prices are taken into account.
The final figure will be known in the next few weeks.
The overall reduction should be a minimum of £90 per flat and house, and up to around £250 per flat. The actual reduction will vary by the size of the flat. The houses only pay toward charges made on a flat-rate basis so should each receive the same level of refund.
The consent order can be read here:
https://www.leaseholdknowledge.com/wp-content/uploads/2023/05/LiamSpenderEnergyConsentOrder.pdf"
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