A meeting was held with James Livesey-Clarke, senior property manager at Trinity, on the 24th Oct 2024 with members of the HRRA committee.
Prior to the meeting an analysis of the new service charge budget was carried out based on the total budget across the various property headings, e.g. converted block, new build block, estate charge etc. We were unable to analysis each element of the budget as we only had information relating to the properties we had knowledge of.
Below shows the overall increase. The percentage increase for each resident will differ depending on which property each resident occupies, but it is obvious that the main reasons for the increase are the insurance charge and the Building Act charge.
We posed the following questions to James, followed up in an e mail:
2024-25 Service charge budget:A
Overall increase on 2023-24 budget is approximately 20%
Insurance increase accounts for 12.3%
Building Safety Act accounts for 6%
Therefore, excluding the above the overall increase would be 1.7%
Insurance questions:
2022-23 Budget was £90,200 with a declared value of £59,541,786
2022-23 Final Account £112,086
2023-24 Budget was £90,201 with a declared value of £59,541,786
2024-25 Budget was £177,200 with a declared value of £118,912,951
Has there been an insurance revaluation which would account for the approx. doubling of the declared value? And when was this carried out? Is this what you mean when you say “additional units coming into management”?
The Insurance valuation budget is shown every year, if this is only carried out every three years would it be better accounted for as a sinking fund?
Can you confirm that whilst Trinity procures their insurance policy though a block policy covering all the properties which Trinity manage (currently 71,000), that High Royds is not penalised by some of these properties being high rise with potential cladding issues and therefore higher risk?
Can you confirm that the Insurance renewal date for this year was the 1st August 2024 and therefore the insurance charge which will appear in the 2023–24 final account can be confirmed now and can you let residents know this figure in advance of the final account been issued? Whilst the final balancing charge may be different it would give residents an opportunity to make provision for this additional charge.
FCA [Financial Conduct Authority] Compliance:
We note that you confirmed that the Insurers / Trinity were FCA compliant, which is good to know.
With regard to the policy entered into on the 1st August 2024 when can residents expect to be given the following:
A summary of the features of the policy, including main benefits, coverage and exclusions of the policy, duration, and insured sum.
The policy premium:
Where the policy covers a portfolio of buildings, firms must disclose the premium at building or dwelling level.
The remuneration (money paid for work or a service) which any authorised intermediaries received for arranging the insurance, as well as remuneration they pay to other parties including unregulated PMAs and freeholders.
Information about potential conflicts of interests, such as ownership links between the intermediary and the insurer, and about the insurers with whom the intermediary may place the policy.
The number of alternative quotes they have obtained (with further details of these to be provided on request) and a brief explanation of why they have proposed or recommended that the policy is in the interests of both the freeholder and leaseholders.
Building Safety Act 2022 questions:
Which buildings on High Royds does the Building Safety Act 2022 apply to?
Are there any “higher risk” buildings as defined under the act on High Royds?
Are there any “relevant buildings” in respect of s117 of the Building Safety Act 2022 on High Royds?
Are there any buildings on High Royds that qualify for “Leaseholder protection”?
Have Trinity identified any defects in the fire safety aspects of the High Royds buildings which have common parts which are in breach of the original Fire Risk Assessment and Fire Management Plan as required by the Fire Safety Order 2005?
Once we (at HRRA) have received a reply to our questions we will provide a further update.
High Royds Residents' Association 