Surveyors
In this chapter of our Annual Insurance Review 2024, we look at the main developments in 2023 and expected issues in 2024 for surveyors.
Key developments in 2023
Last year was a busy year for regulators, with the introduction of various building safety regulations including the Fire Safety (England) Regulations 2022 (FSER) following the Fire Safety Act 2021 (FSA), and the Fire Safety Act Commencement Prioritisation guidance (Prioritisation Guidance), which is intended to assist responsible persons with complying with their duties under the Regulatory Reform (Fire Safety) Order 2005 (FSO). Managing agents and their insurers should continue to be mindful of their ongoing obligations under the FSA, FSO and FSER and should refer to the voluntary guidance provided in the Prioritisation Guidance to assist them in meeting their duties.
The Building Safety Act (BSA) also came into force last year on 1 April 2023, which required all existing higher-risk buildings to be registered with the Building Safety Register (BSR) by 1 October 2023. The BSA defines higher risk buildings as buildings of at least 18m in height or with at least 7 storeys and containing two or more residential units. From 1 October 2023, all new higher-risk buildings must also be registered with the BSR and must receive a completion certificate before they can be occupied.
Registrations must be carried out by the Principal Accountable Person, or someone authorised by them, such as a managing agent or lawyer. Failure to register a higher-risk building is a criminal offence under the BSA. For further information regarding registrations please refer to the Government's guidance here.
What to look out for in 2024
Following the Social Housing (Regulation) Act 2023 which gained Royal Assent recently, the Department for Levelling Up, Housing and Communities plans to launch a consultation on minimum energy efficiency standards in the social housing sector by early 2024. The Government has also announced a second wave of the Social Housing Decarbonisation Fund, which will allocate an additional £80m to improving the energy performance of social housing in England to a minimum of EPC Band C.
The UK's commitment to reducing carbon emissions by 68% by 2030 and to achieve net zero by 2050, the introduction of minimum energy efficiency standards and the increasing energy prices have created a demand for retrofit services in the residential sector. An RICS residential survey has shown that energy efficient homes are more desirable and achieve a higher market value. RICS is currently reviewing feedback on a draft Retrofit standard which is due to be published in the first quarter of 2024 and there will then be a six-month lead-in until the standard comes into force.
Additionally, in line with growing international climate concerns, Scotland intends to introduce a New Build Heat Standard aimed at prohibiting the use of direct emissions heating systems in new buildings applying for a building warrant from 1 April 2024 onwards. Where there is a heating system contained within a new building, it will be required to be one that produces negligible direct greenhouse gas emissions (a zero direct emissions heating system). It will be interesting to see whether the English Government follows suit.
Written by Ibram Mahsheed.