News - Insurance warning over flood risk
Posted on March 31, 2008
Filed Under Property insurance | Leave a Comment
One key concern is around 200,000 new homes are planned for flood risk areas, in south east England.
More Than’s report also warns defences being built now may not prove adequate in future and believes 3.5 million homes will then be at risk of flooding.
The firm said the government had made progress, but more needed to be done.
The report also warned the Thames Barrier was only designed to be effective until 2030, yet substantial new was planned behind it.
David Pitt, the firm’s head of insurance, said the government had made progress by including plans to raise spending on flood in England and Wales in recent spending reviews.
He said it was also positive the government had acknowledged the role of the Environment Agency in the planning process.
Climate change
“However more needs to be done, particularly with the potential for climate change to drastically affect weather patterns and cause disaster for homeowners and businesses,” he added.
Mr Pitt said claims made to More Than after a flood averaged 30,000 “to get the property back to normal”.
He added it was “imperative” the insurance industry continued to raise issues about the future of flood protection and work closely with the government to ensure home owners and firms had adequate protection.
Read more about .
News - Katrina rebuilding rules issued
Posted on March 30, 2008
Filed Under Property insurance | Leave a Comment
| The US government has issued guidelines on rebuilding thousands of homes and businesses in New Orleans, seven months after Hurricane Katrina hit.
|
News - Chancellor is fed up with playing games
Posted on March 29, 2008
Filed Under Property insurance | Leave a Comment
In his eighth Budget the Chancellor has put an end to the annual game of innovative tax avoidance schemes by announcing that they need to be registered with the Inland Revenue before being offered to the public.
Gordon Brown has obviously become frustrated with playing catch-up with tax avoidance schemes as they’ve been dreamt up.
Click here to watch full BBC coverage of the Budget
Until now tax saving schemes have been launched, substantial amounts of tax saved, and then the loophole closed.
Now the schemes will have to be approved prior to release rather than the other way round.
This means that high earners in particular will have less creative opportunities to get tax back from the Revenue.
Two specific examples announced today are a new tax on small company dividends and tax relief for films being restricted to the film-makers rather than the investors in them.
Distributed profits as dividends will attract a 19% tax meaning that small company owners will pay a similar amount of tax as if it were earned income.
Up until now investors in films could create losses against income reclaiming tax back at up to 40%.
tax relief to film makers effectively closes this loophole to most private wealth investors.
No cold wind of change
The Chancellor announced freezes on rates of tax for Capital Gains Tax, Corporation Tax, air passenger tax, insurance premium tax and, happily for estate agents, stamp duty.
The property market received another shot in the arm with the confirmation of the Real Estate Investment Trust Scheme.
This will mean that many of us will be able to invest in the residential property market (which the Halifax Property Index tells us rose 18% in the last 12 months.)
This means a new source of financing homes and rented accommodation as well as providing a new asset class for UK investors.
The Inheritance Tax nil rate band has increased to 263,000 resulting in 95% of estates now paying no Inheritance Tax.
Each pensioner household (for those over 70) will receive an extra 100 towards winter fuel allowance. This takes it up to 300 for those over 70 and 400 for those over 80.
All is not lost for higher earners
Despite the restriction on tax avoidance schemes for the future, the Chancellor announced two schemes which were marginally more beneficial for higher earners.
The first was the doubling of the Venture Capital Trust Allowance (VCT) to 200,000 a year and a doubling of the tax relief to 40%.
This should open up the VCT market to savers and investors and enable more tax relief to be reclaimed.
The hike of the proposed pension cap from 1.4 million to 1.5 million (increasing to 1.8 million in April 2006) means that wealthy pension pots can squeeze a little more into them than originally anticipated.
These last two measures will probably only benefit more wealthy savers.
Drowning your sorrows becomes a little more expensive
If it’s all getting too much for you, it’s best to drink either spirits, cider or sparkling wine because there’s no additional duty on them this year.
Red sparking Shiraz will enjoy a niche market all of its own. It shouldn’t attract the 4p a bottle increase on other red wines.
Beer goes up 1p a pint so you’ll have to drink a gallon to pay the same amount of increase as the 8p per packet rise on cigarettes.
Charitable giving gets a boost
The Chancellor announced two new charitable ideas.
One is a National Community service which, if it follows the US example, will mean that young people get help towards the cost of their education in turn for working within their local communities.
The other involves the mentoring of youngsters.
Churches and sacred places can now reclaim all VAT on repairs until 2006.
So if you’re an over 70, cider-drinking, vicar, and on a state pension, you can feel pretty pleased with yourself.
But if you work in the Government of Work and Pensions, Customs and Exercise or the Inland Revenue - given the proposed job cuts - and if you pay higher rate tax, smoke and have a house worth over 263,000 then it’s a very different story.
News - Death certificates for UK missing
Posted on March 28, 2008
Filed Under Property insurance | Leave a Comment
British nationals missing presumed dead after the Asian tsunami will have death certificates issued even if their bodies are not found.
Foreign Office minister Douglas Alexander said because of ” ” the normal wait for a certificate could be waived.
The move should allow many families to resolve the financial affairs of their missing relatives much sooner.
The number of Britons missing presumed dead is 203 and 53 confirmed dead.
A further 346 are categorised as missing, “possibly involved”.
Life insurance
Normally, a death certificate cannot legally be issued in the absence of a body until seven years have elapsed.
Without a certificate, relatives may have problems resolving mortgages, selling property or inheriting assets.
But insurance firms say the absence of death certificates will not delay payments on life insurance policies belonging to people presumed killed in the tsunami.
Mr Alexander told journalists the government was “keen to address the concerns” of the families involved.
The particular problems individuals face are much too intense for that period of time seven years to elapse
But he warned that the process of issuing the certificates could take months.
Mr Alexander said four tests would have to be passed before a death certificate could be issued.
These are:
UK police are currently in Thailand helping with the process of identifying the bodies.
Only once these bodies have been identified will certificates be issued where a body has not been found.
Earlier this week the Lord Chancellor, Lord Falconer, told the BBC that the idea of waiting seven years was “unthinkable”.
“The particular problems individuals face are much too intense for that period of time to elapse,” he told the World at One programme on Tuesday.
News - Chancellor is fed up with playing games
Posted on March 27, 2008
Filed Under Property insurance | Leave a Comment
In his eighth Budget the Chancellor has put an end to the annual game of innovative tax avoidance schemes by announcing that they need to be registered with the Inland Revenue before being offered to the public.
Gordon Brown has obviously become frustrated with playing catch-up with tax avoidance schemes as they’ve been dreamt up.
Until now tax saving schemes have been launched, amounts of tax saved, and then the loophole closed.
Now the schemes will have to be approved prior to release rather than the other way round.
This means that high earners in particular will have less creative opportunities to get tax back from the Revenue.
Two specific examples announced today are a new tax on small company dividends and tax relief for films being restricted to the film-makers rather than the investors in them.
profits as dividends will attract a 19% tax meaning that small company owners will pay a similar amount of tax as if it were earned income.
Up until now investors in films could create losses against income reclaiming tax back at up to 40%.
Restricting tax relief to film makers effectively closes this loophole to most private wealth investors.
No cold wind of change
The Chancellor announced freezes on rates of tax for Capital Gains Tax, Corporation Tax, air passenger tax, insurance premium tax and, happily for estate agents, stamp duty.
The property market received another shot in the arm with the confirmation of the Real Estate Investment Trust Scheme.
This will mean that many of us will be able to invest in the property market (which the Halifax Property Index tells us rose 18% in the last 12 months.)
This means a new source of financing homes and rented accommodation as well as providing a new asset class for UK investors.
The Inheritance Tax nil rate band has increased to 263,000 resulting in 95% of estates now paying no Inheritance Tax.
Each pensioner household (for those over 70) will receive an extra 100 towards winter fuel allowance. This takes it up to 300 for those over 70 and 400 for those over 80.
All is not lost for higher earners
Despite the restriction on tax avoidance schemes for the future, the Chancellor announced two schemes which were marginally more beneficial for higher earners.
The first was the doubling of the Venture Capital Trust Allowance (VCT) to 200,000 a year and a doubling of the tax relief to 40%.
This should open up the VCT market to savers and investors and enable more tax relief to be reclaimed.
The hike of the proposed pension cap from 1.4 million to 1.5 million (increasing to 1.8 million in April 2006) means that wealthy pension pots can squeeze a little more into them than originally anticipated.
These last two measures will probably only benefit more wealthy savers.
Drowning your sorrows becomes a little more expensive
If it’s all getting too much for you, it’s best to drink either spirits, cider or sparkling wine because there’s no additional duty on them this year.
Red sparking Shiraz will enjoy a niche market all of its own. It shouldn’t attract the 4p a bottle increase on other red wines.
Beer goes up 1p a pint so you’ll have to drink a gallon to pay the same amount of increase as the 8p per packet rise on cigarettes.
Charitable giving gets a boost
The Chancellor announced two new charitable ideas.
One is a National Community service which, if it follows the US example, will mean that young people get help towards the cost of their education in turn for working within their local communities.
The other involves the mentoring of disadvantaged youngsters.
Churches and sacred places can now reclaim all VAT on repairs until 2006.
So if you’re an over 70, , vicar, and on a state pension, you can feel pretty pleased with yourself.
But if you work in the Government departments of Work and Pensions, Customs and Exercise or the Inland Revenue - given the proposed job cuts - and if you pay higher rate tax, smoke and have a house worth over 263,000 then it’s a very different story.
Financial adviser Graham Hooper looks at some of the measures announced by the Chancellor and assesses what they will mean for your finances.
Click here to watch full BBC coverage of the Budget
News - Pretty vacant skyscrapers?
Posted on March 26, 2008
Filed Under Property insurance | Leave a Comment
One of London’s tallest and perhaps best-loved skyscrapers, the Swiss Re Tower, has been a resounding critical success. But it’s also standing half-empty.
Why can’t it rent its vacant office space?
Think of ground-breaking, sky scraping architecture and Manhattan or Kuala Lumpur spring to mind. London does not even make it on to the shortlist.
But that’s about to change. By 2010 the capital will house Europe’s tallest building and a raft of competitors, all tall, all innovative.
The first of these structures has already thrust its way on to the London skyline - the much hyped Swiss Re building, or Erotic Gherkin, as it’s more colourfully labelled.
|
BBC NEWS: VIDEO AND AUDIO
 Watch the report
|
The building certainly makes the boldest of statements and has picked up architectural accolades aplenty, including the prestigious Stirling prize.
Looking up at it, it’s bizarre to think, given its elegant curves, that the tower has only one curved piece of glass -the one at its very pinnacle. Otherwise all the panes are straight.
Empty Gherkin
So it’s surprising that the building is still standing half empty.
 Inside the Swiss Re Tower
 In pictures |
The owners, insurance company Swiss Re, occupy a quarter of a million square feet, but that leaves a space of similar size which is entirely vacant. City rents mean the company is foregoing 100 per working minute.
So why won’t it rent and will this commercial anomaly jeopardise the planned skyscrapers, which may have been granted planning permission, but have not yet left the drawing board.
It seems that the owners misjudged the demand for office space when the tower was under construction.
Graham Coles, of the Royal Institute of Chartered Surveyors believes “they packaged up the space in units of 100,000 square ft which seemed a good idea at the time, but when the building was finished, the demand for rentals of that size had evaporated.”
It has taken a significant rethink to carve up the space into smaller units, but the problem of demand is not a new one. Peter Rogers, founding director of Stanhope Property Development says that constant research is required regarding location and tenants.
Changing market
Even so a market can change enormously in the several years it takes to go from drawing to brick and mortar - or should I say steel and glass -reality. Especially so, as the commercial property market in London is notoriously cyclical.
Another factor for the vacancy is Swiss Re’s insistence that anyone renting space in their tower should be of the highest pedigree.
Peter Rees, planning officer at the Corporation of London thinks their inflexibility is understandable. “If you were renting a room in your own house and the market was a little soft, you wouldn’t take anyone. So it is for Swiss Re.”
He points out that when a building houses an owner occupier, the demands are more stringent, but equally, the architecture can be more adventurous.
London Mayor Ken Livingstone wants more skyscrapers
|
Mr Rees draws a parallel between the Gherkin and the Victorian head office of the Prudential, which at the time was considered outrageously different. Had it been built as a purely commercial development, rather than as a home for the insurance giant, Mr Rees feels it would have been far less innovative.
But the equation between innovation and seems to break down with the new towers on the horizon. London Bridge Tower, or the Shard of Glass (each of the new constructs comes complete with exotic sobriquet) is anything but conservative.
It will be the tallest building in Europe and its pinnacle will consist of sculpted panes of glass reaching up to the sky.
Commercially it will also be breaking new ground. The building will be a virtual city with office space, shops, flats and a hotel contained within the pyramid.
Risk
London Bridge Tower (aka the Shard of Glass) will be Europe’s tallest building
|
It sounds a risky enterprise and it is. Potentially costing up to 1bn, the developers told us that they are unable to go ahead unless 35-40% of the building is pre-let.
Others we talked to thought it would be a tall order and doubted whether it would ever go ahead.
The Heron tower is another developer-led project. Fred Pilbrow of architects Kohn Pederson Fox Associates told us that the way they are seeking to avoid the commercial pitfalls suffered by the Gherkin is to segment the space into small flexible spaces.
“We are building villages of three floors each which will make it unlike any other large tower in London. The space will be far more sociable.”
Sociable or not, the new towers are being scrutinised for how they will affect the London skyline. English Heritage’s Philip Davies is at pains to point out it has nothing against tall buildings per se, but that they mustn’t interfere with “strategic views” of St Paul’s Cathedral.
Nor should they affect the space on the ground adversely. Mr Davies believes” You have to be very careful with a tall building as it can suck out the life of a City for generations to come.”
How London’s skyline should look by 2010
|
And yet, given the space restrictions on the ground - especially in the square mile - it seems logical for buildings to get taller and taller. London’s Mayor Ken Livingstone thinks the City learned its lesson when large companies started to desert it for Canary Wharf.
In any case, the economic argument is only half the tale. There is more to these towers than simply rent, yields and capital value.
Developers, planners and architects alike believe that for London to maintain its image as one of the key capitals of the world it must have ground breaking architecture.
But as George Ferguson, president of the Royal Institute of British Architects (RIBA) puts it ” that does not mean that London becomes an architectural zoo. What we need is not height for the sake of it, but fantastic structures that people can enjoy, especially at ground level.”
Only then will the social and commercial elements come together and another Gherkin pickle be avoided.
Gillian report was screened on Tuesday, 23 November, 2004.
Newsnight is broadcast on BBC Two at 2230 BST every weeknight in the UK.
News - UK voters’ panel: Gary Watson
Posted on March 19, 2008
Filed Under Property insurance | Leave a Comment
| Chris Li: Bournemouth
“I am so pleased that the government knows who the key voters are - working families and pensioners are the ones who will get them re-elected”
Gary Watson:
“This Budget has done nothing for me, which is better than the previous eight under Gordon Brown, and seems to be a non-event”
Philippa Bartlett:
“All in all there were no nasty surprises, lots of popular moves and no clear explanations as to how everything is going to be paid for”
|
I didn’t expect this to be a dramatic or contentious Budget and there were very few real surprises.
The only people gaining from this Budget appear to be pensioners. This help is long overdue.
It’s unfortunate that the help is very limited. I doubt free bus travel and a 200 council tax rebate will have many dancing in the streets.
Rather than a freeze on corporation and insurance premium taxes, a reduction would have helped businesses, especially small companies like mine, where there is not much capital for reinvestment and a minimum level of insurance is a legal requirement.
With my school governor hat on, I hope the refund of VAT for building our children’s centre means the money spent on our centre will go further.
This would be a huge benefit to the area, but we’ll have to see where the rebate goes.
My biggest concern was not addressed in the Budget. There were no real tax improvements at any level of income. I would have expected some sweeteners to make us feel the economy is doing well.
Does no sweeteners mean the economy is not doing well? I think that must be so.
This Budget has done nothing for me, which is better than the previous eight under Gordon Brown, and seems to be a non-event.
I certainly won’t be changing my voting intentions because of this.
Send us your comments on Gary’s views using the form below.
Your comments:
I agree with Gary: A damp squib of a Budget. It does nothing for younger voters or . It’s crude vote grabbing at its worst.
Jon Harrison, York, England
As an older voter I find Gary’s belief that the UK economy is not doing well to be quite . Property values have risen consistently, especially in Peterborough and on the back of rising employment and real take home pay there and across the east of England. Moreover the undisputed real growth in national incomes is 25% over the seven years, and faster than ever before or in most of the major European economies. Consequently we find overseas holiday prices to be more affordable for Brits than for many years.
Andrew Dundas, Ilkley, UK
The economy is in appalling shape. It’s just that no one is prepared to admit it. We have spiralling public and private pension costs and no way of paying them. The police, fire and medical services have huge numbers of people about to reach retirement, and no money set aside to pay for them. These problems have been building up for the last 30-40 years as successive governments have collected NI payments from people and spent them, meaning there is nothing saved.
Nathan Hobbs, Luton, UK
The 200 isn’t per year, it’s a one off deal - so it’s a pre-election bribe and nothing more. It does nothing to deal with the root inequities of council tax, and the amount Labour has allowed it to rise. The economy didn’t just suddenly start growing in May 1997 - Gordon inherited a growing economy from the and stuck to their spending plans at first.
James, London, UK
A solid economy from the Tories? Since when have a recession and crumbling public services been seen as solid? Have you completely forgotten the early 90s?
Gemma, Manchester
Does Gemma not realise that Gordon Brown’s famous 50 quarters of continuous growth includes at least four years of Tory government? Yes, Labour did inherit a solid economy. If she can’t forget problems in the 80s and early 90s (whilst the country was being sorted), is she prepared to remember the woeful performance of previous Labour governments? By the way, I have voted only once in 30 years, but I recognise their achievements.
Tony Weddle, Newbury, UK
Interesting to see the viewpoint that the economy is not doing well - we currently have the highest growth in Europe. As usual Conservative supporters seem to view the past under the Tories with rose tinted spectacles - have they forgotten the cycles of boom and bust in the 80s and 90s? Can they not objectively compare this with the largest period of sustained, stable growth since 97? I am particularly impressed with the comment about it being about time pensioners got some help - if Gary was truly concerned about this he would not support the Conservatives, the party that has caused the most harm to pensioners’ financial positions.
Mark Davies, London, UK
When Brown started his chancellorship he stuck with Tory spending limits and the country’s finances were in the black with national debt being repaid. Today there is a large deficit again and the only way the paltry bribes of this Budget can be financed is to tax North Sea Oil revenues in advance. As to the Conservatives having “caused the most harm to pensioners’ financial positions” Mark Davies ought to look carefully at Brown’s removal of dividend tax relief and the yet more taxes on insurance companies included in this Budget.
Alan Tayler, Wivelsfield, UK
The equivalent of 4 a week, 200 per year, means nothing to Gary, but it is a big chunk to us pensioners. Along with the 200 to help with the fuel bills, makes 8 per week, on top of our pension. I would like a pension raise on top of that sometime.
William, Rochdale, England
I agree with Gary - a non-event. If I drink one pint of beer less per week I will be 5p better off! Just the incentive I need to vote for a party bent on removing personal liberties at any cost.
Chris, Leicester, UK
I agree - this budget tacitly acknowledges that the economy is not in great shape. They inherited something very solid from the Tories, and have now messed it up.
Ed, London, UK
Terms & Conditions
News - Sewer saga
Posted on March 18, 2008
Filed Under Property insurance | Leave a Comment
|
in the South West could end up with higher water bills if Government plans to change the ownership of sewerage systems go ahead. DEFRA says half the properties across the country are connected to private sewers of one kind or another and it wants the water companies to become responsible for them. An extensive review of private sewers began in 2001. The Government said the results of that showed a high level of support for transferring ownership to the water companies.
Water Company concerns South West Water has doubts about the proposal. Keith Richards, Head of Regulation for the company, says at the moment it is responsible for 9000 km of sewer. That would rise to 14,000 km if it became responsible for private sewers. “We should have sufficient time to consider the costs of the adoption” he said, “such as bringing those assets up to scratch and the ongoing costs so that we can explain to our customers what the impact would be on our water and sewerage bills.” Increased bills OFWAT says initial estimates give a range of annual bill increases of between 3 and 11 across the nine water companies in England. The Liberal Democrat MP for Torbay Adrian Sanders is concerned it could be more in the South West. “We need some clarity about what the cost is actually going to be for the people in the south west area” he says. “If the costs are going to be greater in the South West then there should be a different mechanism that reflects that and supports people in terms of the charges that can be levied in the south west.”
Greater clarity? DEFRA says the new system will bring clarity for who will understand what they are responsible for. But those who represent water consumers in the South West want more thought going into the proposals. Charles Howeson, the South West Chairman of the Consumer Council for Water is sceptical. “I think deeper research is necessary. There will be public consultation in June for a period, and that is when this needs to be thought through very properly. “Whether it will be in the same shape after the consultation I sort of doubt. “And down here I remain worried about it.”
Property at risk Two years ago the ground floor and garden of Dave Large’s home in Paignton flooded seven times in two months. A collapsed pipe below his property had prevented rainwater from escaping. South West Water said because it did not own the drain it would not have to repair it. Eventually Mr Large’s insurance company paid the thousands of pounds it cost to repair what was an undesignated sewer. He says the new system would bring him and others like him peace of mind. Politics Show The Politics Show wants to hear from you. Let us know what you think. Join Rebecca Wills and Chris Rogers in the Politics Show on Sunday 20 May 2007 at 12:00 BST on BBC One. : The BBC may edit your comments and cannot guarantee that all emails will be published.
|
News - Council to pay developers £1.6m
Posted on March 17, 2008
Filed Under Property insurance | Leave a Comment
A Cornwall council has been told to pay developers nearly 1.6m over failed plans for a factory shopping village.
The Lands Tribunal ruled Restormel Borough Council should make the payout to Land and Property Ltd in the case of Victoria Business Park near Roche.
The claim came about after alterations were made to an original planning permission for five warehouse units on the business park in 1997.
The council said it was pleased at the outcome and it was time to move on.
|
We believe it is now time to put this long-running saga behind us
Restormel Borough Council
|
The decision to alter the planning permissions resulted in the retail proposal being ruled out by a government inspector who described the planning consent as “grossly wrong”.
It was deemed the development would harm “the vitality and viability” of the town centres of St Austell and other nearby towns of Newquay and Truro.
The retail permissions were modified and quashed which left the council with a massive compensation claim from Land and Property Ltd.
Land and Property claimed 6.25m in compensation from Restormel, a sum twice the council’s annual income from council tax.
The company was claiming almost 70,000 for which it says turned out to be “abortive” and more than 4m for in the value of its land-holding.
It was also claiming large sums in professional fees and interest.
Council Leader Joan Vincent said of the 1.6m ruling: “We are pleased at the outcome, which supports the council’s decision to contest Land and initial claim, which was for in excess of 6.25m.
“We believe it is now time to put this long-running saga behind us.”
The council said a third of the payout will come from insurance, and that changes in procedures should mean nothing similar ever happens again.
See related site about .
News - ‘Search for first home is over’
Posted on March 17, 2008
Filed Under Property insurance | Leave a Comment
| September 2004: Interest rates have gone up - they seem to have gone up about ten times since my search started. The rises would literally have put about an extra 100-150 on my monthly payments since I first asked for a quotation.
House one. Up until now, I’ve been wholly pragmatic and rational about the houses I’ve looked at so far and have yet to experience that ‘right-one feeling’ that people tell me about. But I actually do like this one - not quite what I’m looking for - a wee bit rough around the edges - but tons of potential and ticks many of the boxes. Except for the box marked ‘lottery winner’ or ‘affordable’ or ‘I am Russian oil tycoon’. Too steep.
Get on the phone and offer the asking price. The anxious wait beings… phone rings… offer accepted. What the hell have I done! A fusion of fear, fright, relief, and, cold sweats. But the overriding emotion is one of relief that I’m on the road to getting the one house - from all the houses I’ve viewed - that I actually did like.
But nope, spending a six figure sum of money and buying a load of bricks is wham bamm, , good night, good luck and see you after! I’ll call. Honestly. In the end, it’s one signature as straightforward as that.
|
, and more another.
keep looking »