Author: Chris Alexander

Regular blog readers may recall that I have written about some of the more curious senior court decision concerning the provisions of the Housing Act 2004 in relation to tenancy deposit schemes.

These were schemes set up to require that landlords paid the tenancy deposit into a government authorized scheme and confirm details of these arrangements with the tenant to prevent exploitation of tenants at the end of a tenancy.  Failure to do so meant that a landlord could not rely on section 21 as a ground for possession and faced returning the deposit and a fine to the value of three times the value of the deposit for non-compliance.

The courts took the view that the punishment did not fit the crime, particularly in relation to the fine payable and the decisions in Tiensia v Vision Enterprises Ltd (trading as Universal Estates); Honeysuckle Properties v Fletcher and others; and Gladehurst Properties Ltd v Hashemi more or less stripped the legislation of its effectiveness.

The government went back to the drawing board and under the Localism Act 2011 has tried to plug the holes created by the judiciary with some amendments to the original legislation:

1. Penalties for non-compliance apply to tenancies that have come to an end after 6 April 2012.
2. Penalties for non-compliance apply where the landlord or agent has protected the deposit after the deadline.
3. The deadline for the protection of deposits has been extended from 14 days to 30 days.
4. An element of judicial discretion has been introduced so that the financial penalty for non-compliance is now between one and three times the deposit.

It remains to be seen whether the Tiensia decision will stand and that a landlord can still fully protect themselves by registering a deposit before the final hearing for the matter.  However, the clear message for landlords must be to ensure that the deposit is protected and the tenant is properly informed of its whereabouts or face the consequences!

The Department for Communities and Local Government FAQ is published here.

If you would like more information or advice relating to a specific matter, please do not hesitate to contact Chris Alexander on 01727 798042 or by email chris.alexander@salaw.com or any member of the Property Litigation Team.

© SA LAW 2012
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual case.

Author: John Moore

For the sixth year in a row we are sending a team to attend this major property conference MIPIM.
This year our attendees being Steve Ryan, John Moore, Lynsey Newman and Chris Alexander.  We have a busy itinerary, to include attending the Savills Shedmasters party on Wednesday 7 March and the BDO Stoy Hayward drinks reception.  On the final day, we are also jointly hosting a brunch with Brasier Freeth at a beach front Cafe, hosting our various clients and contacts attending the conference.

Please contact one of our team if you are personally attending the conference or know someone who is and would like to meet up for a coffee/beer, etc.

With slightly more positive economic news over the past month, we very much hope to spot the first green shoots of recovery in the property sector!

Author: Victoria Thomson

SA Law’s outstanding work for commercial and private clients has been recognised by the Chambers and Partners 2012 Guide to the UK legal profession.

SA Law has been recognised as a leading regional practice by independent legal research bodies Chambers & Partners and The Legal 500, in addition to achieving The Law Society’s Conveyancing Quality Scheme accreditation.

A leading publisher of legal research, Chambers conducts thousands of interviews with lawyers and their clients every year to identify regional leaders around the world.
All of SA Law’s departments have been recognised as regional leaders in the Northern Home Counties, with Managing Partner Steve Ryan cited as a top tier lawyer: “These achievements are extremely important in a sector that suffers from fierce competition in a slow economy. Achieving recognised first class credentials in the marketplace has never been more essential.” Adds Steve Ryan.

To find out more about SA Law and how our dedicated team can assist your business, visit our website www.salaw.com

Author: Jacqueline Button

2011 was an inclement year for retailers. Most found trading hard and some were swept away by the storm – including Jane Norman, Habitat and, most recently, Barratts. Retailers expected Christmas to be tough but in fact it was dazzling (to use the BRC’s term). December like-for-likes grew by 2.2% with particular improvements in food, clothing and footwear. Closer analysis suggests that the figure isn’t quite as good as it first appears – remember the snowy weather of last December and the fact that Christmas Eve in 2011 fell on a Saturday – effectively giving retailers another day of Christmas trading. However with stores such as Sainsburys reporting a “record-breaking” Christmas it was certainly a season to be jolly for some.

So with Christmas now behind us what is the outlook for 2012?

Sunny Spells

As mentioned above Sainsburys had a happy Christmas and look to be going from strength to strength. All its figures are up – total sales for the third quarter by 4.5%, on-line grocery trading by 20% and convenience sales by almost 25%. This is very impressive and with a busy year for Diamond Jubilee street parties and Olympic themed barbeques coming up there is no doubt that Sainsburys will be basking in profitability in 2012.

Like Sainsburys, Debenhams had a good Christmas with like-for-likes up by 6.5%. After years in the shadow of John Lewis and House of Fraser they have got the department store formula right and are set fair for 2012.

So diversity is an indication of success (Sainsburys having extended its non food offer) but it’s not essential. Greggs opened 98 new stores in 2011 and plan to open 90 more in 2012. It sold 7.5 million mince pies and 75,000 “giant” ginger bread men in the Christmas period and its cheap but tempting (and unhealthy) offering will continue to appeal to cost-conscious consumers in 2012.

Other retailers likely to enjoy a balmy year include perennial favourites Waitrose and John Lewis and newer but popular smaller retailers such as Cath Kidston and The White Company.

Scattered Showers

Despite the success of Sainsburys and Debenhams , Marks and Spencer, usually capable of weathering any storm, reported a mixed Christmas with sales of general merchandise (particularly home goods) down on the previous year. This isn’t a surprise – beds and sofas aren’t going to be at the top of the list of economically challenged shoppers while a treat from M&S’s food department might be. They will have the same problem in 2012 unless they can offer better value on home goods as they have done quite successfully on clothing.

A surprising victim of the adverse conditions is Tesco whose like-for-likes are down by 1.3% and whose CEO is predicting a year of minimal profit . In addition they have just announced the “temporary” closure of 12 Fresh & Easy stores in the US. Perhaps the message is that diversification is good in a tough climate whilst global expansion might not be.

Also likely to suffer variable weather is Argos who are currently looking at closing stores but who, as a value retailer, should dodge the showers and have a reasonable year.

Mainly Cloudy

I have blogged about the ongoing troubles of HMV and Game before. They have both had a difficult 2011 and there is no sign of a better outlook for them in 2012. Game’s like-for-likes plunged by 15% over Christmas and HMV’s by 8.2%. The trend is simply moving away from buying music, games and technology on the high street when they are so easily available on line. By this time next year one or both retailers may no longer (sadly) be trading.

They’re a different type of retailer but Early Learning Centre suffered store closures over 2011 and its hard to see them reversing this trend in 2012. Their products are available elsewhere so the business is by no means finished yet but its hard to see this year as anything but miserable for them.

Also struggling are Thorntons who were buffeted by gales in 2011 and must expect a gloomy 2012.

Stormy Weather

So who is really going to suffer from the vagaries of the British retail climate? Barratts have (as mentioned above) just gone into administration, La Senza is closing 81 stores and looking for a buyer and Hawkins Bazaar is in administration and looking for a buyer for its remaining 25 stores. Past Times is also on the brink of being drowned in the flood. Its an eclectic mix but there are similarities – large chains, small stores no diversification and products which aren’t what cash-strapped customers want to buy. Whilst administration isn’t always the end of the road for a business some or all of these names won’t be around in a year’s time and, unfortunately, there will be others (whose problems aren’t yet apparent) who will join them.

Overall its hard to see that 2012 will be anything other than tough for the majority and disastrous for a few. The bright spots of the Jubilee, the Olympics, Paralympics and European Cup will help some but not all and for most success (or otherwise) will be as unpredictable as the weather.

Jacqueline Button is a Solicitor in the Real Estate Department and also SA Law’s Retail sector expert. To read previous blogs by Jacqueline, click here.

For further information about our Real Estate or Retail services, or to discuss a particular matter or situation in more detail, contact Jacqueline Button at our St Albans office by email at jacqueline.button@salaw.com or on 01727 798000.

© SA LAW 2012
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual cases.

Author: Steve Kenneford

What is Chancel Repair Liability?
Chancel Repair Liability is both a confused and confusing area which dates back to medieval times. Many churches in England and Wales, previously ministered by rectors, were acquired by monasteries which then became responsible for the church chancel (the space around the altar at the east end of a traditional church). However when Henry VIII dissolved the monasteries the responsibility passed to new owners and, down the years, successors in title. Hence we arrive at the situation of today where potential liability falls upon present day successors.

Could this affect me?
The potentially dramatic effect of Chancel Repair Liability was highlighted in the case of Aston Cantlow v Wallbanks which was heard in The House of Lords in 2003. Mr & Mrs Wallbanks were asked to pay approximately £10,000 towards the cost of repairs to the local church chancel. They agreed but sought to make their co-operation conditional upon the church waiving any future claims. The church refused and the matter was referred to the Court. Mr & Mrs Wallbanks lost and were ordered to pay a repair bill of approximately £250,000 (by the time the case reached Court significant problems with the foundations had also been identified) and also legal costs of around £200,000…

To read the full article click here.

Author: Jacqueline Button

St Albans is a bustling market town 22 miles north of London with expensive houses, high end shops and a multitude of pubs and restaurants. It has done well in the recession with shops opening where in other towns they have closed although there are still empty shop units, particularly at the north end of the town. St Albans is popular with tourists and, although it is fairly well served by hotels one operator, Premier Inn, has seen a gap in the market and wants to fill it.

2000 years ago Verulamium was the first major stop for travellers heading north on Watling Street. It had, as far as we know, expensive town houses, a forum, basilica and theatre. It prospered in Roman times although, as no copies of Retail Week’s forerunner Vendere Hebdomas survive, there are no records of shop unit vacancy rates.

As an important trading centre and the Roman equivalent of motorway services Verulamium would have contained a selection of places to stay for all types of visitor from the luxury guest villa with en suite bath house to the budget hostelry – rooms for 29 sestertii a night with hire 2 slave girls get 1 free offers. As Lenny Henry’s Roman ancestor might have said “omnia princeps nisi pretium”.

Premier Inn is a budget hotel operator and it really does offer rooms from £29 a night and has a stay 3 times get 1 night free offer. It has submitted a planning application for a 4-5 storey 125 bedroom hotel with gym facilities at the north end of St Peters Street. Three empty shops (including the old McDonald’s unit) form part of the development site and will be revitalised as either shops or restaurants.

This is surely a good decision. St Albans is a tourist destination not only in its own right but also because of its proximity to London (where, lets not forget, a fairly big sporting event initiated by the Roman’s Greek rivals, is taking place next year). More tourists means more spending in shops and restaurants and on local services. The north part of the town will receive a much needed boost and a medium sized hotel will create a large number of jobs.

So everyone is happy about it? No, of course not. A debate on the Review website became heated as residents objected to both the location and the quality of the proposed hotel and, most vehemently, its design. Artists’ impressions of the new development are shown here.
And copies of the full planning documents can be viewed on the Council’s website.  The drawings, other than the fact that they are as bland as all artists’ impressions, don’t look too bad. Clean, smart and just a little bit unimaginative but not, according to the Review’s readers good enough for historic St Albans with our beautiful cathedral and clock tower. Oh, and those expensive houses.

Much has been written about the government’s proposed changes to planning laws (including by myself here) and, in particular, the concept of localism which is supposed to give councillors, communities and individuals more say in the development of their area. People (particularly the people of St Albans it seems) are sceptical about the new proposals and fear that the power promised to people to control development in their neighbourhood will be overridden by economic concerns.

Premier Inn are a reputable company and their hotels are popular. Some residents might think that a budget hotel doesn’t fit with St Albans’ upmarket image but they are ignoring the true history of the historic town as a trading centre and staging post.  Surely any development at the north of the town is better than none and the extra money the new hotel will bring will be welcome to the local economy. As for the design, there are some beautiful buildings in St Albans but there are plenty of ugly ones too and something plain and inoffensive certainly won’t make the balance worse.

The planning application has only just been submitted and it will be interesting to see how it progresses – with or without the input of the local community.

Author: Jacqueline Button

Most people who encounter it agree that the planning system in England is cumbersome, complex and confusing. Whether you’re putting a conservatory on your house or redeveloping a town centre you’re at the mercy of laws riddled with jargon, inconsistencies and red tape. You will encounter the local authority with its members and planning officers and committees and delegated powers and you might emerge with a planning consent or you might not. And either way you will have spent time and money on the process.

Earlier this year the government announced an overhaul of the system producing a framework which will be “localist in its approach, handing back power to local communities to decide what is right for them” according to Planning Minister, Greg Clark. He also promised that the new system would be “simpler and swifter”.

Most people agree that a revamp is desperately needed but the rows over the details began immediately. According to the Country Land and Business Association (CLA) an organisation which represents landowners and rural business the policy is too cautious and doesn’t address the lack of rural housing or sustainable jobs.

But other bodies representing rural interests take a different view. The Campaign to Protect Rural England (CPRE) says the new laws will have “grave consequences for the English countryside and the character of our towns and villages” whilst the National Trust (NT)  says the framework “fails to protect the everyday places that local communities love.”

Meanwhile the British Chambers of Commerce (BCC) is optimistic about the proposals and said that “a pro-growth approach must fast become reality on the ground with local councils saying yes to business growth and expansion far more than they do at present”.

So which of these acronyms is right?

In support of its argument the NT produced (in a more bizarre than alarmist manner) an aerial shot of Los Angeles with its high rise buildings and dense development but they can’t seriously fear than England’s green and pleasant land is going to be transformed by the proposed new laws into Beverley Hills with bad weather.

The CPRE in a more balanced response said that it welcomed “much of the thinking” behind the framework but worries about the “crude focus on economic growth”.

The government (of course) defended the proposals as encouraging “opportunities for sustainable growth to rebuild the economy” and says they commit to protecting the greenbelt and Areas of Outstanding Natural Beauty and Sites of Special Scientific Interest and specifically deal with other environmental issues like electric car charging points and renewable energy projects.

Excessive development and development in the wrong place should be avoided at all costs and new laws need to make sure this does not happen. But the fact of the matter is that England needs development. The number of people owning their own homes is at the lowest level since the 1980s. House building is needed as is commercial and social development to go with that new housing.

The Home Builders Federation (who perhaps call themselves the HBF) justifiably accuse the NT of “scaremongering” and correctly say that the new policy must “focus on the wider needs of the country not the narrow focus of the few.”

The framework is now the subject of a 12 week consultation period. Whatever the outcome of that consultation it looks as if the rows will run and run.

Related Posts: Not so Premier – Jacqui Button comments on the planning application for a Premier Inn Hotel to be constructed in St Albans and the concept of localism issues following the proposed planning law changes.
Click here to read the post.

Author: Steve Kenneford

With The Legal Onbudsman’s latest piece of research stating that “the legal professions confused system of regulation is leaving consumers without protection if things go wrong”. SA Law’s Steve Kenneford turns his attention to how to spot a quality, regulated law firm.

All trades and professions are populated by people who are trained to do the job for which they are  employed. That is a given, and consumers should be entitled to expect a minimum (satisfactory) level of competency and professionalism. However, when the need for a lawyer arises what will set one provider apart from the rest? Who has that ‘added value’?

Commodisised legal services providers are on the increase. With the advent of the changes to law firm management and ownership (Alternative Business Structures) which will be introduced later  this year, this is only set to increase further. So with more choice in the market place it is important that the consumer knows what type of organsiation they are instructing and who they are regulated by. This is where quality standard schemes come into their own.

Examples of quality standards can be found within  trades such as plumbing/gas and electrical installers, the former being covered by CORGI (Council for Recognised Gas Installers) now GasSafe, the latter by NICEIC (National Inspection Council for Electrical Installation Contracting) The NHS even operate NICE (National Institute for Clinical Excellence) so it is about time that the legal industry followed suit.

Law Firms are highly regulated. Their integrity and professional competence is overseen in hawklike fashion by The Law Society, Solicitors Regulation Authority and The Legal Ombudsman. These organisations set the minimum standards to which law firms need to adhere.

Quality schemes within the legal profession address quality of service, governance, planning (business, strategy and operational) performance and management.

So when buying legal services what do you look for to ensure you will instruct a firm that will add value and go that extra mile?

The answer is the Lexcel Accreditation.
Lexcel is The Law Societys’ practice management standard. The scheme certifies that certain standards have been met following independent assessment. The standard is only awarded to law firms who meet the highest management and client care standards. Lexcel Accredited practices undergo rigorous independent assessment every year to ensure that high standards are maintained. The standard is exceedingly difficult to win and equally hard to retain. In the arena of legal services a Lexcel accredited practice is the safest possible pair of hands.

More specifically within the framework of legal quality standards The Law Society has just launched its’ Conveyancing Quality Scheme (CQS). This will provide a recognised quality standard for residential conveyancing services within a law firm. The CQS will establish a level of credibility for member firms based upon integrity, adherance to best practice, and a high level of client focused efficiency.

So “Who Ya Gonna Call?” Well, a shrewd and informed consumer will undoubtedly be inclined towards a law firm who has a recognised quality accreditation – that’s who you should call!

SA Law are a Lexcel Accredited law firm and in the process of being assessed for The Law Society CQS standard.

If you would like more information or advice relating to a specific matter, please do not hesitate to contact Steve Kenneford on 01727 798000 or by email at steve.kenneford@salaw.com or any member of the Commercial Dispute Resolution team.

© SA LAW 2011
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual cases.

Author: Chris Alexander

After watching this weeks Dispatches programme on Channel 4 (Landlords from Hell), I thought that it might be useful to summarise a number of the legal issues raised by John Snow in his investigation of the private rental market.

The main issues raised were:

• Unlawful eviction
• Rent Control
• Disrepair
• Overcrowding/HMO’s
• Sale and rent back agreements

I have written an article which you can read by clicking here looking at the various offences that landlords can commit and the private remedies that exist for tenants.

My own view is that the programme recognised that the legal remedies exist to punish rogue landlords but that local housing authorities have been woefully inadequate in prosecuting those offences.  Further, the types of tenant worst affected are those with low incomes with the least practical access to justice especially as legal aid becomes increasingly scarce.

I tend to act more for landlords than for tenants in these cases and anecdotally, many private landlords feel that the balance is stacked too heavily in favour of the tenant, for example it generally takes at least three months to evict a tenant with rent arrears.  My own view is that the private market is not currently well suited to low income or housing benefit tenants who often require greater overall support than most small scale private landlord’s can afford to offer; but Grant Shapps showed little appetite for changing the status quo in his interview.

Click here to read the full  Dispatches Landlords from Hell article.

For further information about our Property Litigation services or to discuss a particular matter or situation in more detail, contact Chris Alexander at our St Albans office by email at chris.alexander@salaw.com or on 01727 798000.

© SA LAW 2011
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual cases.

Author: Jacqueline Button

Its been a bad week for some retailers. Comet are the latest multiple to announce planned store closures (22 are to be sold), New Look have announced bad results and don’t get me started on the subject of HMV and their refinancing which indirectly makes us, their tax-paying customers, part owners of the struggling brand.

But elsewhere, in a land of ice, frost and frozen food things are looking up. This week Iceland announced a record year with pre-tax profits of £155.5m up 14.8% from last year which in itself was a good one. During the last financial year the retailer opened 21 new stores and plans another 15. These are impressive figures. Iceland is doing well under the management of founder Malcolm Walker who, along with his team, owns 23% of the business.

Not all mums go to Iceland and I’m afraid that I’m one of the heathens who goes to Sainsburys instead. A visit to an Iceland store however does a lot to make even the snobbiest shopper think twice about taking their 4X4 to Waitrose. The stores aren’t the most ascetically pleasing on the high street but the offering is broad and the food is cheap. No, its not made by Heston Blumenthal or advertised by the suave and classy Rupert Penry-Jones but when most of the products cost £5 or less you don’t expect it to be. In fact, the face of Iceland is now reality “star” Stacey Solomon, a big step up in wholesomeness (not to mention singing ability) from the disgraced former “star” Kerry Katona.

Iceland’s website follows suit: its not going to win design prizes in cyberspace but its clear, colourful and helpful. There is a section for “busy mums” and information on healthy food and home delivery.

So has Iceland had it easy during this never-ending period which feels as dark as the days of an Icelandic winter? They’re a value retailer (but so are New Look) and they sell food (but mainly food – no diverse offering like Asda, Tesco and Sainsburys to spread the risk). Yes, they’ve had it easier than some but their profits and their expansion and the fact that they are being eyed-up for a takeover by both Asda and Morrisons speak for themselves.

But, as with all retailers, Iceland could do better. Walker says “we know we’re doing the right things as our existing customers are spending more money with us”. They need to do even more right things to attract new customers. My suggestions: instore cafes (always popular with busy mums), premium brands and don’t sell to Asda, Morrisons or anyone else. Iceland is a successful retailer. Its not glamorous or luxurious but it does what it does really well and with a few improvements it might divert some of those 4X4s away from Waitrose.