In case you missed the various news reports, the two year stamp duty exemption for first time buyers for homes costing less than £250,000 (saving up to £2,500) ends on 24^th March 2012. The Government’s view is believed to be that it didn’t manage to stimulate the property market and get young people onto the property ladder.

Various commentators – such as the Council of Mortgage Lenders (CML) and the National Association of Estate Agents (NAEA) – have urged the Government to look at other methods to get things moving.

Increase in private rental market

As a result, private tenants are typically renting their homes for the record duration of 19 months. The average length of a tenancy has risen by 17% in two years, from 16 months and two weeks at the end of 2009 to around 19 months and a week by the end of 2011, the Association of Residential Letting Agents (ARLA) has reported.

So would-be first-time buyers unable to raise a deposit or meet borrowing criteria have remained trapped in their current homes, meaning that the rental sector boomed last year as the housing market remained flat.

The housing market – London and South East increases 

Savills, agents for the top end of the residential market, recently produced a report http://www.savills.co.uk/research/residential-research.aspx which says:

■ The shift to equity has favoured the housing markets of London and the South East. These two markets hold the greatest pool of housing wealth, and together account for 26% of the UK’s housing stock but, at £1.55 trillion, 36% of its value. 

■ London is operating as a global city – almost completely divorced from the surrounding nation. Unsurprisingly, the way that equity is flowing is reflected in London, which is acting as a wealth preserver in a sea of global uncertainty.

■ By 2016 they expect new housing completions to increase to 125,000 per annum as market capacity increases slowly, together with support from government measures.

■ They expect the private rented sector to expand to 20%-23% of housing stock in England by the end of 2016.

Higher value properties attract overseas investors

From our perspective, most of our clients have properties that are of a much higher value than first time buyers typically purchase – there is still the issue around confidence.

On a daily basis we receive multiple media messages about the potential of a double dip recession, higher inflation, increasing unemployment and the failure of banks to extend credit to either consumers or commerce.

And our interest rates have been at an unprecedented low level for some time now – most people believe that the rate will increase (especially as inflation continues to increase) and this causes concerns about mortgages.

An article yesterday on Overseas Property Professional http://opp.org.uk/news-article.php?id=6219 stated: 

• The central London residential market remains resilient with home prices back to pre-financial crisis levels and rental values rocketing (Colliers International).
• Overseas property buyers are driving the boom as since 2000 property values in London have consistently outperformed the FTSE 100 over the long term. London’s super prime residential market is particularly attractive to many high net worth individuals (Incredibly, the article notes that the development at One Hyde Park contains Britain’s most expensive flat – a £136m, triplex apartment acquired by the Ukrainian oligarch Rinat Akhmetov).
• Financial insecurity in the eurozone is driving money into the London residential market. According to Real Capital Analytics, London saw £11.3bn of commercial cross-border real estate transactions in 2011, compared with only £5.1bn in Paris. Colliers commented: “Anecdotally, the Greeks, Russians and Chinese seem to be the most active in the London prime residential market”
• The result of all this has been a renewed effort from developers in London. “In addition to the London-focused developers (such as Barratt and Berkeley Group), other house-builders and contractors, who have traditionally focused on areas of the UK outside of the South East, are now pursuing a London development plan,” says Colliers. “For example, Taylor Wimpey, Redrow, Crest, Galliard, and Ardmore, have now focused their attention on London. Last year, Crest Nicholson began a £100m residential development drive in London targeting mid-range sites and developing 50 to 150 units at a time. Contractor Ardmore, already involved in luxury hotel work, is now involved with high-end luxury residential developments in the capital.” 

Banker’s choice reduces home owner choice 

Closer to home, a number of our clients have mentioned the impact of HSBC’s decision to restrict its panel of just 43 firms of legal advisers. There was an article on 17^th February indicating that a conveyancing regulator also expressed concern that “the limited size panel risks inadvertently restricting consumer choice and distorting competition in the conveyancing market”. 

Mr Olowe of CLC said: “HSBC maintain that their panel arrangements support consumer choice at competitive fees. However, our concern, if this type of approach did become more widespread, is the extent to which the legitimate choice of individual consumers could be compromised by powerful institutional consumers. If the choice of lenders adversely compromises the choices of many individual consumers, it might be in the public interest for us to consider requiring each party to have separate representation on all future transactions”.

Whilst most people would not dream of intentionally offering or taking a bribe, the Act is drafted so widely that it touches anyone doing business in the UK. 

A particular problem is that the Act in reality requires businesses to put in place adequate procedures to prevent their 1) employees and 2) other business partners (such as consultants and agents) from breaching the Act. The penalty for breaching the Act is up to 10 years in prison and/or an unlimited fine. 

To many people “putting in place adequate procedures” sounds like yet another bureaucratic obstacle for business. However, it is much more straightforward than it sounds. 

The practical way to go about this is to draw up an “Anti-Bribery Policy”. Such a policy should reflect the risks the business faces in terms of bribery and could include issues such as: 

1) how you deal with payments to public authorities, business partners and others;

2) the giving and receiving of gifts;

3) corporate hospitality;

4) facilitation payments; and

5) whistle blowing arrangements. 

Once the policy has been prepared, policy compliance must be monitored and the employees must receive training in the policy and in the Act in general. 

Finally, the policy must from time to time be reviewed to make sure that it continues to address the risks which the business faces in relation to bribery. 

For further information please contact Claus Andersen on telephone 0044 (0)20 7842 1462 or email cka@royds.com

Despite the blizzard and arctic conditions that descended on the West Midlands over Saturday evening the Spring Fair 2012 opened as usual on Sunday 5th February. 

After an understandable slow start business picked up as the weather thawed. 

Spring Fair is the UK’s largest trade event with over 300,000 brand new products being exhibited. The show has been refreshed this year with additional facilities for exhibitors and visitors to enjoy. 

Royds’ clients can be found spread across the 20 halls of the vast NEC complex, which makes for a lot of walking for the firm’s intellectual property unit lawyers! 

Based on the British Jewellers Association stand we provide advice and assistance to members of the BJA as well as instant access to legal help to all clients whether exhibiting or visiting the NEC. 

The successful jewellery show has about 400 designers, suppliers and manufacturers representing the best of the British jewellery industry. New to 2012 is crystal company Swarovski; and a designated area for watches, “Time”. The Pandora Catwalk cafe acts as a focal point as well as place of interest (or distraction!). 

As brands are increasingly promoted across the globe with the use of the internet through search engine optimisation, display advertising and social media so the need for trade mark registration in more than the home territory of the business arises. Features of the legal advice and matters of interest at this years show have been the protection of the brand, exploitation of copyright images on the internet and preserving confidence amongst core retail customers in the face of aggressive internet competition. 

Britain is trading, that’s clear!

Taking unwanted items to the local charity shop is often on everyone’s “to-do” list but is frequently put off for another day. Instead, you simply take donations into work and Oxfam will do the collecting!  Many commute in by tube or train but there is no need to bring in all donations in one go.

Royds’ first collection will take place later in February and we have identified an area for storage until then in one of our offices. We are also encouraging staff to sign up for Gift Aid www.oxfam.org.uk/collects/atwork (as it just takes one minute) so if Oxfam sell a donated jumper for £10 they can claim an additional £2.50 from HMRC for Gift Aid making the jumper worth £12.50!

Staff can also find out how much money their unwanted items have raised for Oxfam. They just register online at the link below with the firm’s name. Oxfam will then write to them with their own unique ID number and this is attached to your bag and Oxfam will be able to track your stock and let you know how much you have raised for Oxfam through sales in their high-street shops or their online shop.

His clients include wealthy individuals in the UK and overseas (he has long standing relationships with clients in the Middle East) and substantial trusts. His specialist areas of expertise include:

-Tax and estate planning – particularly inheritance tax (IHT) and capital gains tax (CGT)

-Trusts – establishing, administering and winding up trusts including trustee appointments and taxation

-Probate administration – for estates over £1m and contentious probate claims

Tony Millson also advises on charity law and has a number of charitable and not for profit clients. He is Trustee of the Roy Kinnear House (http://www.roykinnearhouse.co.uk/), a charity providing a home for life for people – especially young adults – with profound and complex learning and physical disabilities. He was previously Chairman of a wildlife charity and a former pension scheme trustee. He also acts as a Deputy (Office of Public Guardian – OPG) for vulnerable people and those with mental capacity issues.

Stewart Wilkinson, managing partner at Royds said “Our private client, family, residential conveyancing and other legal services for individuals – whether they are in the UK or abroad, business people, entrepreneurs, media figures or those with family wealth – are a significant part of our business. We are delighted to welcome Tony into the firm whose expertise will also be put to very good use by our charities team”.

Tony studied law at University of Newcastle Upon Tyne. He is a member of STEP (Society of Trusts and Estate Practitioners), SFE (Solicitors for the Elderly) and ACTAPS (Association of Contentious Trust and Probate Specialists).

Tony is married and lives in Horsham, West Sussex. His interests include golf and bridge and he is a member of Sussex County Cricket Club. He has been a Horsham District Councillor and leader of Horsham District Council. 

For further information, please contact: 

Stewart Wilkinson, Managing Partner          020 7583 2222 

saw@royds.com 

Tony Millson, Private Client Partner            020 7583 2222                

aem@royds.com

 Where and when?

Who?  

The conference will be essential to all of those with any payroll, expat, HR or tax and NIC responsibility.  

What?  

This will be a packed one-day conference led by subject experts who will guide you through the challenges for employers in this Olympic year.    

 Full details of the conference, along with a complete agenda, please click here http://viewer.zmags.com/publication/05b60ae3#/05b60ae3/1

 How much?

How?

Alternatively, if you have any queries regarding employment, HR or legal matters, please feel free to contact Caroline Doran of Royds’ Employment Team.

Caroline is speaking at the Conference and, with the other members of the Royds Employment Team, will be present on the day to assist with any queries you may have. 

The Royds Employment Team looks forward to seeing you on 23 February.

The leading case goes back to Mills-v-Barnsley Metropolitan Borough Council (1992). Here the paving defect was 1.25 inches at worst and the claimant won in the first instance before a judge but lost at the Court of Appeal. There have been at least 18 further reported decisions since 1992 where this case was followed and claims were not successful. 

Another Court of Appeal case was Esdale-v- Dover District Council (2010) where the pathway defect was between .75inches and 1inch – again, the claim was unsuccessful as the Court found that the council had taken reasonable steps.  Therefore, particularly in times of recession and cut backs the courts are far more likely to support the Defendant local authority in “Slipping and tripping” cases.

However, I am pleased to report that we were able to secure successful outcomes for our clients in the following more serious and complicated cases (minor details have been modified to protect client anonymity):

Pedestrian Student A student was knocked down and severely injured when crossing a road. The Police did not prosecute the driver and the defence falsely claimed that as the student was listening to an iPod, had not looked before crossing the road and he was entirely responsible for the accident that befell him. We managed to help him win an award of £9,750 – 75% of the original claim.

Burning Dress A guest at a wedding reception received very severe burns (and subsequent horrific scarring) across her body after her dress caught alight near a gas fire. Liability was denied by the venue (which was also found to be inadequately insured) and who suggested that it was the claimant’s fault. The final award was for £98,000.

Cycling accident In another case where the Police did not prosecute, the van that hit a cyclist causing him severe head injuries and personality changes argued that it was the cyclists fault for pulling out. The award was for £120,000

Dressed as Rogues and armed with a map, a codeword and strict instructions to arrive promptly, we ventured across to the designated meeting place; a small cemetery down a dark lane behind Smithfields market. Around every corner we discovered an increasing number of ‘40s clad characters until we were accosted by a mob of soldiers of varying nationalities who shuffled us into orderly lines and, with a continual and bemusing dialogue, frog-marched us across to the main event.  Along the way suspicious characters darted across our path with offers of stolen watches and bootleg goods but quickly shoed by the soldiers they vanished into the night.  We arrived at a discreet doorway through which we were welcomed into a Viennese hotel where in-character actors dressed as period bar staff ensured we were well looked after before we drifted into a world of fading grandeur with specially designed zones and rooms dressed to represent key locations in the as yet unannounced film.  The sets, characters and plot began to unravel as live performances and music enveloped us and we were totally submerged into an atmospheric glimpse of life in post-war Vienna at the start of the Cold War.

There seemed to be endless possibilities depending on the rooms you entered, the narratives you were drawn into and who you spoke to during the course of the evening.  We were interrogated by sergeants recruiting linguists in one area, gently directed towards a sewer in another and with all manner of bizarre encounters in between, constantly kept on our toes with unexpected twists at every turn.  Names were whispered in hallways and key characters introduced in small scenes acted out all over the impressive and atmospheric Victorian warehouse.  Ushered towards various viewpoints, depending on your location, the film was announced and the unfolding story pulled together the details and snippets of information imparted on each persons personal journey.

A brilliantly executed concept and a must do event for lovers of film noir!  Still bewitched it seems somewhat difficult to delve back into the legal world of 2012 this morning….

 British Airways, Virgin and bmi

 The rivalry between British Airways and Virgin has resumed over the slots at Heathrow (Virgin has 3% and BA 45%) and the sale of BMI by German national carrier Lufthansa.  IAG, owner of British Airways, has now announced that it has reached agreement to buy BMI in a £172M deal which will provide it with an additional 56 take-off and landing slots at Heathrow.  Willie Walsh makes no secret of the fact that one of the primary motivations was to obtain the additional slots, but he has also warned that there are likely to be a number of job losses at BMI.

 Eurozone Crisis

 The International Air Transport Association warned that global airlines will plunge into combined losses of $8bn (£5.1bn) next year if the Eurozone crisis becomes a full scale banking crisis and recession. If the crisis is resolved, it forecasts global airlines will generate total profits of $3.5bn next year. European airlines, however, are expected to make a loss regardless of the outcome – falling freight traffic as well as depressed passenger numbers being to blame.

Closer to home, the air passenger duty increase confirmed by the Treasury is estimated to cost the UK economy £4bn and 80,000 jobs by 2015. Germany, Austria and the US are also planning levies. There are concerns over delays in implementing the Single European Sky project which targets increased airspace capacity and reduced air traffic costs.

American Airlines

A short time ago, the parent company of American Airlines (America’s third largest airline) filed for bankruptcy protection (Chapter 11 in the US – Administration in the UK). It is facing huge debts ($29 billion) from high fuel prices and expensive staff contracts which its competitors moved away from years ago.

Rivals United and Delta used bankruptcy to shed costly employment contracts, reduce debt, and start making money again. They also grew through mergers – and a possible merger with US Airways has been suggested. Some analysts – including Vaughn Cordle – think the move will lead to further consolidation in the airline industry, particularly the 20 commuter airlines. 

 Aerospace

 For the aerospace industry the outlook looks better – AMR (American Airline’s parent company) wants to proceed with an order for 460 new jets from Boeing and Airbus and take delivery of over 50 others already ordered.

 2012 certainly promises to be an interesting year!