Aviva Investors has recently set out its approach to the management and funding of remediation work for buildings with safety defects.
We have reproduced its website commentary in full (please click on the link below) which summarises some issues facing responsible landlords across the sector.
The recent Building Safety Act offers many leaseholders protections from repair costs. While that is very positive, much detail is still needed on how the legislation will work in practice and it is hoped the new government will address this as a priority. Until this is resolved, there may be further delay to works starting on site.
Aviva also highlights another fact sometimes not widely understood – that it is often pension funds and their pension holders, rather than the landlord, that are the ultimate beneficiaries of ground rent paid by leaseholders. This is the case with E&J landlords, where ground rents fund annuity payments to thousands of British pensioners.
The Association of Residential Managing Agents (ARMA) is among many organisations calling on government to clarify how its revised funding proposals will work. Both landlords and leaseholders need certainty if a nationwide logjam in remediation work is to be unlocked. E&J is happy to add its voice to that call.
If the current uncertainties can be unravelled, vital rectification work can gain momentum, with many leaseholders protected from most or all of the cost.