Professional Risk Associated with Property Professionals
Mint Insurance Brokers Ltd operate in the London and Lloyd’s market specialising in servicing the insurance needs of property professionals. The following paper provides an insight to the professional risks associated with UK property professionals and how the current UK professional indemnity insurance (PI) market is responding.
The last few years have seen some of the most challenging trading conditions for UK property professionals. With continued uncertainty and turbulent times ahead, we discuss the ever-evolving risks faced by property professionals and how to best anticipate and mitigate risk going forward.
INCREASED CLAIMS FREQUENCY
We know from previous experience that during an economic downturn claims frequency increases. With the introduction of new legislation and looming regulation of property agents (RoPA) the consumer will enjoy added protection and therefore more rights to pursue property professionals.
Charlie Bending, partner at DAC Beachcroft LLP, who specialises in defending claims against property professionals and their insurers acknowledged saying that, “In addition to lender claims against valuers, particularly by short term lenders, we do anticipate claims by aggrieved landlords against property managers increasing over the next 6-24 months; these are likely to flow from rental default caused by anything from a failure by the property manager to take steps on behalf of the landlord to address maintenance issues to (more likely) tenants being unable to pay rent / refusing to pay rent due to their adverse financial situation.
Having protection from eviction (residential) or protection from forfeiture (business) due to the Coronavirus Act 2020 will only increase landlords’ losses, potentially leading to claims that the property manager failed to vet tenants appropriately. Once the protection ends, property managers will also need to have the capacity to act swiftly in order to kick-start the process; taking care to adhere to time limits and prescribed steps to avoid making a potential bad situation worse.”
Announcement from Robert Jenrick regarding Support for Renters and the Homeless
Communities Secretary Robert Jenrick has today announced extra support to house rough sleepers across all councils in England.
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Ban on bailiff enforced evictions extended
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Confirmation of court support for landlords and renters and launch of mediation pilot
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Backed by an additional £10 million in funding, all councils in England are being asked to redouble their efforts to help accommodate all those currently sleeping rough and ensure they are swiftly registered with a GP, where they are not already.
This will ensure they can be protected from the virus and contacted to receive vaccinations in line with the priority groups outlined by the Joint Committee on Vaccination and Immunisation.
Councils will also be asked to reach out again to those who have previously refused help, given rising infection rates and the colder winter months.
Renters will continue to be supported during the new national restrictions, with an extension to the ban on bailiff evictions for all but the most egregious cases for at least 6 weeks – until at least 21 February – with measures kept under review.
Lockdown 3.0 - Q and A for Letting Agents
As a result of Boris Johnson's address to the nation yesterday, many questions have been raised about what can and cannot be done in relation to Lettings, Property Management and Housing in general.
Here are a few answers to questions you may have in relation to navigating the day to day running of your agency.
Are Lettings Agents, Property Management Companies and Estate Agents permitted to open during the next Lockdown?
Yes, Estate and Letting Agents can continue to trade
Can offices open?
If members of your team can work from home, then they should do so. If an office remains open, restrict access and make sure that a “By Appointment Only” policy is in place.
Follow strict Covid Protocols and continue to implement Track and Trace
Can Viewings and Valuations take place?
Yes, however, the first option should always be Virtual Valuations or Virtual Viewings
Face-to-face appointments should only take place where it is absolutely necessary
Covid Protocols MUST be in place at ALL times and any person that is due to come into contact with members of your team MUST be advised how these protocols have been put in place to protect everyone.
Can existing deals go ahead?
Yes – Moving home is permitted and any agreed deals pre-Lockdown can go ahead. New deals can be agreed and continue to take place.
Can Inventories, Check-Ins, Property Inspections and Check Outs still take place?
Yes, but ALL Covid Protocols MUST be in place. Please note that video - Zoom - FaceTime can be used to conduct Property Inspections
Prime Minister's address to the nation as Third Lockdown for England is announced
The Transcript of the Prime Minister’s Speech made this evening at 8pm is as follows:-
Since the pandemic began last year, the whole United Kingdom has been engaged in a great national effort to fight Covid.
And there is no doubt that in fighting the old variant of the virus, our collective efforts were working and would have continued to work.
But we now have a new variant of the virus. It has been both frustrating and alarming to see the speed with which the new variant is spreading.
Our scientists have confirmed this new variant is between 50 and 70 per cent more transmissible – that means you are much, much more likely to catch the virus and to pass it on.
As I speak to you tonight, our hospitals are under more pressure from Covid than at any time since the start of the pandemic.
In England alone, the number of Covid patients in hospitals has increased by nearly a third in the last week, to almost 27,000.
That number is 40 per cent higher than the first peak in April.