This Month's Articles: Don't Drink and Read, Raising the Standard, Insurance Reinstatement Assessments: Are You Covered? |
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Don't Drink and Read |
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The Government has shown it has no intention of letting up on rules and regulations for the licensed trade, having produced its new consultation on a Code of Practice for Alcohol Retailers in the same week as the House of Commons Business and Enterprise Committee published their report on Pub Companies and Beer Ties. |
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Whilst they are unlikely to win the Costa Book of the Year Award, they are not quite dreary enough for GPs to recommend them for insomniacs. |
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The trade press has highlighted some of the headline figures from the BEC PubCo Report, quoting: "We are not saying that all, or even any, Pub Co's abuse all lessees all the time, but it is clear that not only is there potential for abuse, but also that abuse occurs", and calling into question the reliability of the evidence provided to the Panel by the main Pub Co chiefs. What this report will actually mean for the long term future of the Pub Co business model is as yet unclear, as the recommendation is merely to report the matter to the Competition Commission and so far there has been no Government response, as they are all too busy dealing with their own expenses claims. |
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| The consultation for the Code of Practice for Alcohol Retailers, however, is worthy of greater consideration, with its recommendations that pubs should offer small wine glasses and spirit measures, and provide free tap water; the banning of some drinks trade promotions; and, perhaps more concerning, the recommendation that Local Authorities should be given additional powers to impose conditions on licences. This Code of Practice, if implemented in its entirety, is likely to impose further costs upon an already beleaguered trade. |
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| Despite the proliferation of red tape, there are still a large number of tenants seeking to buy their freeholds from their landlords and many of these are businesses that responsible lenders should be supporting, with experienced operators and historic trading records supporting serviceability. In addition, as it is freeholds only being purchased, there is relatively modest overall loan to market value, which should fit most sensible lending criteria, even for those lenders that have lost some of their thirst for the licensed trade. |
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| Article by Pinders Director Malcolm Kidby |
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Raising the Standard |
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As the CQC (Care Quality Commission) takes over from the CSCI, a public consultation has been launched to help develop guidance on what care services must do to meet new legally enforceable registration standards. The consultation closes 24 August 2009. However, it would appear that the opportunity is being taken to make changes to the regulation of health and adult social care. |
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| From April 2010, all regulated health and adult social care providers will be required by law to register with CQC. This is the first time that all public and independent health and adult social care services in England will need to meet essential common standards of quality and safety and all providers will therefore have to be fully aware of the onus that will be placed upon them by the new regulatory standards. |
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With high profile reporting in the press on care issues, particularly surrounding such tragedies as Baby P, there is a strong sense of determination that the CQC should not be impeded in exercising its authority in any case where vulnerable members of society may be put at risk. |
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Whilst the impact this may have on care homes per se remains to be seen, it is another further indication of the importance of quality standards and the emphasis that is being placed upon improving levels of care across the board. As this continues, issues surrounding the environmental standards in homes, particularly size of rooms, number of single bedded rooms, amount of day space and overall presentation, become even more important in investment terms. Operators with access to funding in a difficult lending market are ever more conscious that, even where a home's current occupancy and trading position appear unaffected by such issues, it is only a matter of time before market forces dictate otherwise. |
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The sensible operator, particularly if they have an eye to a possible sale at some point, seeks to reinvest in 'future-proofing' their business as far as possible. With development sites so much more readily available and at much more attractive and viable prices following the decline in the residential market, home-owners never know when a high profile competitor may open up in their area. Such was recently the case seen with one operator who hesitated, for whatever reason, to begin a planned development to make their home largely 'standards compliant'. The worst happened, as they didn't spot an application from a major corporate provider to build in their area. Accordingly, before they had a chance to improve, the new competitor had the opportunity to cause irreparable damage not only to their trading position but also to the value of their home and the value of any potential that it may have held. |
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For the unwary, or those simply unable or unwilling to raise standards, there is no assured 'exit route' at present, with depressed values for alternative uses making that option very difficult. |
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However, for the astute and committed owner, the care sector remains robust for operators, investors and lenders alike, with values of good quality homes holding up relatively well in this difficult period. The continued raising of standards in care should not only help protect vulnerable members of society but also lead to improvement in otherwise vulnerable businesses. |
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| Article by Pinders Director Steve Marriott |
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Insurance Reinstatement Assessments: Are You Covered? |
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The insurance industry advises that up to 90% of commercial property claims relate to buildings that are under-insured. Lack of adequate cover could leave a business with serious funding issues and significant delays in re-opening for trade |
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So how does an Insurance Reinstatement Assessment ensure that the level of cover is appropriate? |
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The process begins with taking accurate measurements of a building and recording the construction forms of its various elements, allowing the surveyor to calculate the base sum required to reinstate the building. However, there are further aspects that will affect the final cost assessment value: |
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- Special factors, such as canopies, ornate structural elements, specialist lighting or significant landscaping.
- Site factors that may cause costly restriction, such as access or surrounding land uses.
- Location factors: potential complications caused by remote isolation or, conversely, a position within a built-up city centre.
- Heritage factors: potential costs caused by Listing or location within a Conservation Area.
- Regional factors: the application of a quantitative adjustment to the base level of build costs dependent upon regional location.
- Demolition factors, such as site clearance, asbestos removal and landfill tax.
- Fee factors, including the cost of the professional team to reinstate the building, and cost of obtaining Building Regulations and Planning consents
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At Pinders, our surveyors have the experience and construction market knowledge to provide Insurance Reinstatement Assessments of property across all our core sectors. |
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| To discuss how Pinders can assist you in ensuring appropriate cover provision and to obtain a quotation, please call our Building Surveying team. |
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| Article by Pinders Simon Coats |
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