Adjusting our sails - Preparing for change in 2025
EXPLORING THE LATEST TRENDS AND DEVELOPMENTS IN PROPERTY & CORPORATE LAW
Preparing for change in 2025 Adjusting our sails
CONTENTS
Introduction By Vijay Parikh, Managing Partner
03
Company Law - Improving Transparency: Changes at Companies House By James Oxley, Partner & Head of Coprate & Commercial
04
#TRENDS: Adapting to a New Era - What Trump's Presidency could mean for UK Businesses Interview with Abishek Sachdev, Founder/CEO Vedanta Hedging
08
Finding opportunity in the Labour Budget for Businesses in 2025 By Abida Ghafoor, Founder and CEO, Arc Management Consulting Limited
10
Looking ahead: Leasehold Law - Where are we now? By Andy Finkel, Partner Residential Property
14
Looking ahead: Employment Law - A Mixed Bag for 2025 By Marina Vincent, Partner Dispute Resolution, Employment
18
Agentic AI: Transforming Work and Law in 2025 By Jess Jeetley MBE, AI Strategy Advisor
20
Property Management in 2025 Interview with Paul Ruocco, of Home Minders
24
Looking ahead: Planning Law - Building Liability Orders under the Building Safety Act By Chris Snodin, Partner Development and Planning
28
Harold Benjamin: Looking Back, Looking Ahead A look over the past year
32
Stay up to date with the latest news & editions. Follow Harold Benjamin on social!
harold benjamin
@hb_solicitors
2
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
VIJAY PARIKH Managing Partner
vijay.parikh@haroldbenjamin.com
Connect with Vijay
In this issue As we approach 2025, we find ourselves nav - igating shifting political, legal, and economic headwinds which bring both challenges and opportunities. This edition is dedicated to exploring these changes and offering insights on how busi- nesses, professionals, and individuals can prepare for these unchartered waters. We look ahead with updates on company, employment, and property law from our expert team. In this edition, we are grateful to Jess Jeetley for her article on AI and to Abida Ghafoor for her views on what businesses can anticipate in 2025. We speak to Abhishek Sachdev for his insights into what a Trump presidency means for UK-based businesses. For landlords, we are grateful to Paul Ruocco, of Homeminders’ for his insights into what is expected of them in the coming year. We hope as always that our latest edition of The Legal Corner magazine is packed with insights relevant to the coming year.
HAROLDBENJAMIN.COM
3
Improving Transparency: Changes at Companies House LOOKING AHEAD
There are some changes ahead in 2025 at Companies House that business owners will need to be aware of.
BY JAMES OXLEY Partner and Head of Corporate and Commercial
4
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
HAROLDBENJAMIN.COM
5
Background Companies House are in the process of implementing the initial stages of the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”). The ECCTA received Royal Assent on 26 October 2023. It is primarily aimed at preventing the abuse of UK corporate structures and tackling economic crime, and includes new powers for the Registrar of Companies to assist with the promotion of four key objectives: Objective 1: Ensuring that any person required to deliver documents to the Registrar does so, and that they comply with the requirements relating to proper delivery. Objective 2: Ensuring that information contained in the register is accurate and contains everything it should. Objective 3: Minimising the risk of information set out in the register creating a false or misleading impression to the public. Objective 4: Minimising the extent to which companies and others carry out, or facilitate, unlawful activities.
6
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
2025 Changes
Some of the changes due to take place during 2025 include:
The ability for individuals to supress historical documents where their home address is shown as a registered office address or where listed elsewhere.
The ability for individuals to supress full date of birth, signatures and occupation.
All new directors and people with significant control (“PSCs”) will need to complete identity verification. For companies currently registered, all directors and PSCs will have a 12-month period to verify their identity with Companies House. This should be a one-off requirement. The ability of agents such as solicitors, accountants and incorporation agents to file documents at Companies House will be more tightly con - trolled. Agents will need to become Authorised Corporate Service Provid- ers and will be required to carry out and confirm identity checks on their clients.
The ability to use PO Boxes, or similar, as registered offices will cease.
james.oxley@haroldbenjamin.com
Connect with James
HAROLDBENJAMIN.COM
7
Adapting to a New Era: What Trump's Presidency could mean for UK Businesses
With Trump's return to the presidency, UK businesses face a shifting landscape shaped by trade wars, geopolitical tensions, and economic uncertainty. Abhishek Sachdev, the Founder and CEO of Vedanta Hedging - the UK's largest independent firm specialising in hedging and derivatives for SMEs - shares his expert insights on navigating these uncharted waters. As a scrutiny member of the Federation of Small Businesses (FSB) board and a banking ambassador, Abhishek’s perspective offers valuable guidance for UK enterprises. Much ink has been spilled over what a Trump 2.0 presidency might look like, and the challenges it poses to UK businesses aiming to engage in cross-border trade. Brexit has already complicated trade with Europe, and Trump’s history of engaging in trade wars could further hinder British exporters’ prospects across the Atlantic. “The UK is stuck between a rock and a hard place,” notes Abhishek. Yet, he remains optimistic about Britain’s ability to adapt. “The UK has a history of enterprise and adaptability. Businesses should lean into their strengths in sectors such as services - recruitment, legal, tax consultancy - as well as creative industries, biotech, and education.” At the same time, he emphasises addressing weaknesses in energy, farming, and manufacturing through strategic investment and support.
INTERVIEW WITH ABHISHEK SACHDEV Founder / CEO, Vedanta Hedging
8
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
A Trump presidency would likely focus on maintaining US capital market supremacy, while the UK government has prioritised public service investment and raising living standards. These diverging visions could not be more different - both are an- swers to the big questions facing mature economies, deliverable by their own clear democratic mandates. These diverging ideas of what the best medicine is for the modern-day affliction of falling productivity, living standards and growth may create additional friction in areas such as climate goals, food safety, and international security. However, the unpredictability of realpolitik should not be underestimated. Whether Trump can follow through on his tariff threats without derailing his own agenda, or whether the UK can withstand US demands for regulatory changes, depend on unforeseeable factors. Abhishek’s advice to smaller businesses is clear: focus on resilience. “UK business- es have always excelled at keeping calm and carrying on. By seeking expert advice, mitigating risks, and exploring untapped markets, they can weather even the most turbulent times.”
The EU is also not immune to challenges. Political instability in France and the rise of right-wing movements in Germany raise concerns about the union’s future stability. The appetite for upheaval is little, while the appetite for more national navel gazing is high. The affliction is not limited to the US alone. These issues could impact export-focussed UK businesses. However, Abhishek suggests such shifts might also open new doors with opportunities beyond the EU and US. Emerging markets in the Middle East, India, and Southeast Asia are alternatives. Unlocking these markets will require businesses to leverage government programs and grants, even if accessing these resources feels daunting at times. For UK businesses to navigate uncertainty, high-quality advice and support are therefore essential. Organisations like the FSB play an important mediating function, guiding enterprises offering resources, and connecting them with government support. For example, companies looking to export to Singapore can access dedicated funding, although navigating multiple departments may require persistence and quality support. Abhishek also underscores the importance of managing financial risks, particularly ex - change-rate volatility. “Fixing rates for the future can act as an insurance policy for your business,” he explains. He encourages businesses to think of these tools as they would a mortgage or warrants essential risk management instruments that are readily available, and simpler than one might imagine.
vedantahedging.com
abhishek.sachdev@vedantahedging.com
Connect with Abishek
Interview by Bhavini Kalaria Connect with Bhavini
HAROLDBENJAMIN.COM
9
Finding opportunity in the Labour Budget for businesses in 2025
BY ABIDA GHAFOOR Founder and CEO, Arc Management Consulting Limited
10
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
HAROLDBENJAMIN.COM
11
well-being, implement fair policies, and embrace flexible working practices will likely see improved retention and productivity, which are crucial for long-term success. For family-run businesses, a cornerstone of the UK economy, changes to inheritance tax might prompt a strategic review of operations. This could be an opportunity to restructure, diversify, or transition leadership in a way that strengthens the business for future generations.
As a small business owner, a member of the Asian Business Association (ABA), and an active participant in the London Chamber of Commerce and Industry (LCCI), I am deeply committed to supporting SMEs as they navigate change. With over 25 years of experience in marketing and manage- ment consultancy, and as the founder of Arc Management Consulting Limited, which operates in both London and Paris, I have seen first-hand the tenacity of SMEs and their ability to adapt, innovate, and drive economic growth, even in the most challenging circumstances. The 2025 Labour Budget has introduced policies intended to repair public finances and deliver long-term economic growth. Measures such as increased employer National Insurance contributions, changes to business rates relief, and proposals under the Employment Rights Bill are undoubtedly raising questions within the business community. However, while these changes present challenges, they also create opportunities for businesses to rethink strategies, build resilience, and innovate for a stronger future. A recent LCCI survey of over 200 business leaders highlights the need for change. Only 23% of respondents expressed confi - dence in the Government’s ability to deliver growth over the next five years, and 78% predicted negative impacts from increased employer National Insurance contributions. However, this uncertainty also highlights a key takeaway: businesses that proactively adapt to these changes have the potential to emerge stronger and more competitive.
The Role of Innovation
The rise in employer National Insurance contributions and reduced reliefs will require businesses to be more efficient in managing costs. Adopting technology and digital tools is one way SMEs can streamline operations and enhance productivity. For example, investing in automation, data analysis, and customer management systems could reduce overheads while delivering a better customer experience. Moreover, the emphasis on innovation could lead to new opportunities. Businesses that take advantage of innovation grants, tax credits, or funding opportunities will be better positioned to remain competitive and expand into new markets. Policymakers have an opportunity to further incentivise this innovation, and through collaboration with organisations like the London Chambers of Commerce ABA, tailored solutions can be created to empower SMEs.
Harnessing the Strength of Community
Asian-owned businesses, which make up a significant portion of the UK’s SME sector, are uniquely positioned to adapt to these challenges. The entrepreneurial spirit, resilience, and deep-rooted values within the Asian business community mean there is great potential for reinvention and growth. Strong networks within the community can be leveraged to share best practices, collaborate on projects, and amplify advocacy for supportive policies.
Opportunities to Strengthen Businesses
The Employment Rights Bill, designed to bolster worker protections, may initially create operational challenges, but it also presents an opportunity to build more sustainable and employee-friendly workplaces. Businesses that prioritise staff
12
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
Businesses that engage with customers and communities meaningfully will also see long-term benefits, as loyal relationships often lead to greater stability during times of uncertainty.
Similarly, family-run businesses can focus on building generational wealth and legacy through innovation and diversification. While the challenges are real, they also present a chance for these businesses to modernise, build financial resilience, and contribute even more to the UK economy. "The Employee Rights Bill, designed to bolster worker protections, may initially create operational opportunity to build more sustainable and employee friendly workplaces." challenges, but it also presents an
Conclusion
The 2025 Labour Budget undoubtedly presents challenges, but it also offers businesses the opportunity to innovate, grow, and redefine how they operate. With collaboration between government, industry leaders, and the business community, there is potential for a brighter and more resilient future. SMEs remain the backbone of the UK economy, and by embracing change and focusing on strategic opportunities, they can continue to drive prosperity and growth. As we navigate these changes, it is im- portant to remember that adversity often inspires creativity. By working together - across communities, industries, and regions - we can ensure that SMEs not only adapt but thrive in the face of change. Every challenge is a chance to innovate, and 2025 can be a year of transformation for businesses willing to seize the opportunities ahead.
arcmanagementconsulting.com
Connect with Abida
Strategic Adaptation
For SMEs, resilience starts with preparation. Businesses should focus on identifying inefficiencies and optimising their operations, whether through process improvement, adopting digital tools, or upskilling employees. Building financial strength through tax planning and exploring flexible funding options can help businesses better manage policy changes. Investing in employee development is also a key opportunity. By fostering a culture of learning and growth, SMEs can equip their workforce with the skills needed to thrive in a rapidly changing landscape.
HAROLDBENJAMIN.COM
13
14
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
Leasehold Law: Where are we now? LOOKING AHEAD
BY ANDY FINKEL Partner, Residential property
Shortly before the recent general election, the former government passed the Leasehold and Freehold Reform Act 2024 (“LAFRA”). The current government needs to resolve some complicated issues regarding valuation criteria and pass some secondary legislation in order to bring LAFRA into force. In particular, issues regarding deferment rates and capitalisation rates (two of the elements on which calculation of the premium payable for astatutory lease extension are based) remain unresolved and are unlikely to be resolved any time soon. The press statement on 21 November 2024 by the Minister for Housing, Communities and Local Government, Matthew Pennycook MP, indicated an intention to introduce and implement some reforms in 2025. The main plank of their plans to reform (abolish?) leasehold ownership will be a Commonhold Reform Bill in the second half of 2025. This is not a simple fix and will require public consultation and probably much debate before any tangible changes are implemented. The idea of Commonhold is that leases in a building are converted to indefinite Commonhold instead of enfranchisement followed by lease extensions. There is a Commonhold Association (i.e a Limited Company whose members are the flat-owners) and a Commonhold Statement, which is a constitution which will contain some prescribed provisions but which can be added to by majority vote of the Commonholders. Commonhold has existed in England and Wales since 2002, but has been largely rejected by property owners. At present, it requires 100% acceptance by flat-owners and their mortgage lenders to be effective. The current proposals do not address some of the practical problems of commonhold; in particular, who will pay the landlord for the share
HAROLDBENJAMIN.COM
15
of flat-owners who do not wish to participate in the Commonhold process. It is not clear whether, and to what extent, the govern- ment will implement the provisions of LA- FRA regarding lease extensions, as opposed to trying to bring in a new regime under its Commonhold Reform Bill. The Government says it will implement some of the provisions of LAFRA this year, primarily abolishing the “two-year rule” which inhibits flat-owners from extending their leases until they have been the registered owner of their flat for at least two years before claiming a statutory lease extension. Some amendments to the Building Safety Act 2022 contained in LAFRA will also be introduced this year, as will some
This is because at present, the development value cannot be “unlocked” until the Management Company lease ends. However, under LAFRA, intermediate interests, such as a management company lease, are deemed to merge with the freehold on enfranchisement, which means that the development value will be immediately unlocked and more valuable to the Landlord. Oh, and just for good measure, there is at least one challenge to the validity of LAFRA on Human Rights grounds being prepared for submission to the Court at present. In the meantime, the current law, governed by the Leasehold Reform, Housing and Urban Development Act 1993 “(the 1993 Act”), will continue to apply.
measures to tackle perceived unfair management practices by landlords.
However, the key aspects of leasehold reform, i.e simplifying and making cheaper the enfranchisement and lease extension process, are unlikely to be implemented for some time. Whilst the Government expressed the intention of abolishing leaseholds by the end of the current parliamentary term, whether this can be done remains to be seen. Whilst a lease extension under LAFRA, as currently worded, should be on more advantageous terms for the flat-owner than under the current law, LAFRA will not be of practical assistance to anyone needing to extend their lease within the next 12 months, probably longer. LAFRA contains a few potential snags for flat-owners seeking to enfranchise their freehold. Firstly, Part IV of LAFRA will impose stringent management obligations on Landlords, particularly in relation to providing management information to a flat-owner in a timely fashion when a flat is being sold. Failure to comply will result in a hefty fine for the Landlord. Secondly, if the building is subject to an overriding lease, such as a headlease to a Management Company, AND there is “development value” in the building, e.g the potential to build additional flats in the roof space, LAFRA could have the effect of increasing the development value and a higher premium payable to the Landlord.
To sum up:
The 1993 Act applies, although the “two-year rule” is likely to be abolished shortly. I cannot see the statutory basis for lease extensions changing before the end of 2025 at the earliest. Most of LAFRA, and in particular the lease extension and enfranchisement provisions, remains to be implemented, and will need extensive secondary legislation before it can be brought into force. This does not look like happening any time soon. The Commonhold Bill may come into force sometime in the next four years and may mean that all newbuild flats will henceforth be Commonhold rather than leasehold. Whether current leases can be converted to Commonhold without all flat-owners in a building agreeing to this remains to be seen.
Where are we now? Up the creek, and we cannot be sure what the paddle will look like.
andy.finkel@haroldbenjamin.com
Connect with Andy
16
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
Scan to play on spotify
Click here to check out our Four Corners Legal Podcast series on spotify!
17 HAROLDBENJAMIN.COM 17
Employment A mixed bag for 2025 LOOKING AHEAD
BY MARINA VINCENT Partner, Dispute Resolution, Employment
18
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
Paternity Leave for bereaved partners
The Labour government plan to introduce many changes to employment law but most will not come into law effect until 2026. Below are some changes which are either already in place or are imminent.
The Paternity Leave (Bereavement) Act 2024 was intended to be brought into force in April 2025, although this date has not been confirmed. It gives a new right to bereaved fathers and partners when a mother dies in childbirth. Bereaved parents of children born through a surrogacy agreement and those of adopted children and will also be covered. This will be a day one right, so requires no period of employment in order to be eligible. It currently provides for fathers/partners to be given paternity leave in these circumstances, and it was intended that the period of leave could be extended by regulations to 52 weeks. We are waiting to see what the regulations say.
Protection from Sexual Harassment.
The Worker Protection (Amendment of Equality Act 2010) Act 2023 has been effective since October 2024, but many employers will be playing “catch up” in order to comply with the law. The law imposes a positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the workplace. A breach of this can result in an Employment Tribunal uplifting any damages awarded to a complainant by 25%.
National Minimum Wage
There has been much in the media about the increase in NMW, which will be increased go up from 1st April 2025 to the following:-
Employers are recommended to:-
Review and update policies dealing with harassment and sexual harassment Risk assess the workplace and record that risk assessment Train staff regarding the issue of sexual harassment Properly investigate and address reports of sexual harassment
21 and over £12.21 per hour 18-20 £10.00 per hour Under 18 £7.55 per hour Apprentice £7.55 per hour
Based on a 37.5 hour week, anyone aged 21 or over would be paid approximately £24,000 per annum. Employers will need to check their current pay arrangements and make sure that none of their staff will fall below this level in order to avoid inadvertently breaching the NMW requirement. It is a serious matter to breach the NMW requirements, such as with consequent potential financial penalties and the risk of being “named and shamed” so employers need to be careful.
Neonatal leave and pay
Whilst many employers will already be sympathetic to employees whose child requires neonatal care and make pay and leave allowances for them, these new legal rights are expected to be introduced in April 2025. The Neonatal Care (Leave and Pay) Act 2023 gives parents the right to take 12 weeks leave and receive pay if their child requires neonatal care. The right lasts for 68 weeks post the date of birth. The right to take leave (NCL) applies from day one of employment, but the right to receive statutory neonatal care pay (SNCP) only arises after being employed for 26 weeks and is akin to statutory maternity pay. Dismissal of an employee arising from taking their NCL will be an automatically unfair dismissal.
marina.vincent@haroldbenjamin.com
Connect with Marina
HAROLDBENJAMIN.COM
19
Agent
20
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
BY JESS JEETLEY MBE AI Strategy Advisor tic ai: Transforming Work and Law in 2025
HAROLDBENJAMIN.COM
21
"AI can analyse past cases to predict outcomes, helping lawyers build stronger strategies."
Artificial intelligence (AI) has come a long way, and we’re now entering an era where AI doesn’t just follow orders - it takes the initiative. This new wave, called agentic AI, is set to shake up the workplace in ways we’re only beginning to understand. By 2025, these systems, which can set goals, make decisions, and act independently, will be everywhere, transforming how we work and live.
suggests strategies - then writes a report for your client, all in real-time.
What Exactly is Agentic AI?
An AI agent is a software entity designed to autonomously perform tasks on behalf of a user or another system. Think of agentic AI as the next-gen coworker that doesn’t need constant hand-holding. It’s built to handle tasks on its own, adapt to changes, and learn from experience. Thanks to advancements in machine learning, natural language processing (NLP), and adaptive algorithms, agentic AI is becoming more reliable and ubiquitous, with the promise
Businesses are already seeing the benefits. Thomsons Reuters invested over $200 million in AI in 2024, which led to the development of Westlaw AI and CoCounsel - AI-powered products that conduct legal research and document review processes. These investments resulted in an 8% increase in revenue.
Services-as-Software: The 2025 Revolution
that it will improve accuracy and performance in our daily workflows with scale.
In 2025, "Services-as-Software" will take centre stage. AI agents will deliver the expertise and functionality of traditional service providers, but entirely through software. Anthropic, a leading AI company, now holds 24% of the Enterprise AI market, while OpenAI (the creator of ChatGPT), at 34%, has seen its share drop by 16%. Anthropic’s success is fuelled by their partnership with Snowflake, integrating Claude AI directly into Snowflake’s platform, where many legal AI startups manage their data. The most common enterprise AI use case in 2024 has been code generation, but according to Menlo VC's annual report, the healthcare and legal sectors are leading the charge in generative AI adoption and agentic AI workflow automation.
How Will AI Agents Change Your Workday?
Imagine if you didn’t have to spend hours on repetitive tasks. That’s where agentic AI comes in. For legal professionals, this means automating the discovery phase of litigation, where vast amounts of documents are reviewed for relevant information. AI can sift through thousands of files, identify key precedents, and flag potential risks in record time. Beyond discovery, AI agents manage compliance reporting and streamline client intake processes, freeing lawyers to focus on strat- egy and advocacy. Agentic AI can not only make data-driven decisions faster than any human, it can act on that data without your involvement. Imagine having an AI assistant that crunches numbers, analyses trends, and
22
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
What About the Legal Profession?
areas are benefiting too: EvenUp for injury law, Garden for patents and IP, Manifest for immigration and employment law, and Eve for plaintiff casework from client intake to resolution. These innovations are redefining how legal work is done. Of course, using AI in law comes with challenges. What happens if an AI’s decision is biased? Who’s accountable if something goes wrong? These are questions we’ll continue to address. The EU AI act is the first step in ensuring AI is used fairly and transparently.
If there’s one field that’s ripe for disruption, it’s law. Historically resistant to change, the legal industry is now fully embracing AI to manage massive amounts of unstructured data. 2025 is the year agentic AI will make legal support affordable and accessible for people and businesses. Enterprise AI spending in law is expected to hit $350 million this year. Going through mountains of legal paperwork is tedious, but not for AI. By mid-2025, AI agents will handle up to 80% of routine document reviews, according to Gartner. They’ll analyse legal texts, review large numbers of documents for privilege, check citations for accuracy, and compare contracts to one another, giving lawyers more time to focus on strategy and building rapport with clients. Drafting and reviewing contracts can be a headache, but AI is making it easier. Tools like ContractPodAI already automate much of the process. Soon, AI agents will not only draft contracts but also negotiate terms and predict outcomes, saving time and reducing costs. AI can analyse past cases to predict outcomes, helping lawyers build stronger strategies. Tools like Lex Machina already do this, and by late 2025, they’ll be indispensable. This could lead to faster settlements and better risk assessments. AI is breaking down barriers to legal services. Platforms like DoNotPay already help people contest parking tickets or handle small claims, and GitLaw helps businesses for free with an open repository for legal contracts, powered by AI. Legal tech is also getting specialised. Everlaw focuses on litigation with tools for legal holds, e-discovery, and trial preparation. Meanwhile, Harvey and Spellbook are transforming transactional law with AI-driven solutions for contract review, legal research, and mergers and acquisitions (M&A). Specific practice
Are You Ready for the Future?
Will agentic AI take over jobs in the legal profession? Some junior associates, yes, but the best prediction is that it will happen slowly because AI agents don’t function the same way that human beings do. These agents specialise in one specific task and follow discrete steps which cannot replicate a lawyer's workflow that varies on a case-by-case basis, for now at least. The World Economic Forum estimates that by the end of 2025, AI and automation will create 97 million jobs - more than the 85 million they’ll replace. The catch? You’ll need skills that humans value - emotional intelligence, critical thinking, and adaptability to thrive in this new landscape. Agentic AI isn’t just a buzzword; it’s a revolution. It will be everywhere, transforming industries and redefining roles. The legal field shows us what’s possible: smarter, faster, and more accessible services. To make the most of it, we’ll need to adapt. That means learning new skills, rethinking how we work, and embracing change. It’s not just about surviving - it’s about thriving in a world where humans and AI work side by side.
me@jessjeetley.com
Connect with Jess
HAROLDBENJAMIN.COM
23
24
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
Property Management in 2025 An interview with Paul Ruocco of Home Minders
The UK property management landscape is evolving rapidly, and the sector faces transformative changes. From new legislation to sustainability demands and emerging technologies, landlords and investors must stay ahead of the curve. Paul Ruocco, Managing Director and founder of Home Minders, with over 30 years’ experience, shares his forward-looking insights on these shifts and building resilience for the future. The Renters’ Rights Bill is set to reshape the private rental sector. How should landlords prepare for these changes? The Renters’ Rights Bill marks the most significant housing law reform since 1988. While its aim to balance renter protection with landlord confidence is commendable, its success will depend on practical
implementation. Landlords need to stay agile, informed, and ready to adapt. In 2025, being proactive rather than reactive will be the key to navigating this new legal landscape. Looking ahead, how can overseas investors future-proof their property portfolios? Investment decisions this year will require a long-term mindset. For overseas landlords, understanding not only the market trends but also regulatory frameworks like the HMRC non-resident landlord scheme will be essential. Strategic planning, combined
with expert local guidance, will help investors build sustainable, high- performing portfolios.
HAROLDBENJAMIN.COM
25
Finally, what does Home Minders offer to landlords and investors navigating this future landscape? At Home Minders, we see ourselves as strategic partners, not just property managers. Our role goes beyond administration—we provide forward-thinking advice, proactive maintenance solutions, and tailored strategies for every property. With over 30 years of experience, we’re equipped to guide landlords and investors through legislative changes, market shifts, and sustainability challenges. Our focus is on long-term value, peace of mind, and ensuring every property we manage is inspected regularly and thrives in an evolving landscape. "PREDICTIVE MAINTENANCE WILL BECOME THE STANDARD, NOT THE EXCEPTION. AS TECHNOLOGY ADVANCES WE'LL SEE SMARTER SYSTEMS CAPABLE OF FLAGGING ISSUES BEFORE THEY ARISE."
Sustainability is becoming non-negotiable. What future trends should landlords anticipate? Environmental responsibility will continue to be an important part of the property agenda in 2025 and beyond. From tighter energy efficiency standards to the integration of smart technologies, landlords must invest in upgrades that align with future regulations. Properties that meet these standards won’t just comply—they’ll thrive in an increasingly competitive market. Predictive maintenance seems to be a growing trend. How do you see it evolving in the coming years? Predictive maintenance will become the standard, not the exception. As technology advances, we’ll see smarter systems capable of flagging issues before they arise. By 2025, landlords who embrace predictive maintenance will not only reduce costs but also enhance the lifespan and performance of their properties.
How important is regular oversight in building long-term value?
Landlords who prioritise regular inspections and consistent property oversight will see the greatest returns. Routine checks, data-driven insights, and hands-on management create a foundation for trust, tenant satisfaction, and long-term financial growth. These aren’t just operational tasks—they’re strategic investments.
What’s your vision for the future of property management beyond 2025?
homeminderslondon.co.uk
Connect with Paul
Property management is entering a new era shaped by technology, regulation, and sustainability. The most successful landlords will be those who view property management not as an administrative burden, but as a dynamic and evolving partnership. Looking ahead, the key will be embracing change, leveraging expertise, and staying focused on long-term outcomes.
26
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
For previous issues of the HB Legal Corner or other legal insights visit our website: haroldbenjamin.com/legal-corner-magazine
Planning Law: Building Liability Orders under the Building Safety Act LOOKING AHEAD
BY CHRIS SNODIN Partner, Development & Planning
28
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
HAROLDBENJAMIN.COM
29
The 1897 case of Salomon v Salomon which established that a company’s legal personality is separate from that of its shareholders and directors, so that the company’s shareholders and directors are not liable for a company’s debts and liabilities. There are a very limited number of cases where the veil of incorporation can be pierced, probably one of the best known being where directors are liable for wrongful trading. As part of “the biggest changes to building safety regulation in a generation” (the Government’s words), the Building Safety Act 2022 (BSA) introduced a new device to pierce the veil of incorporation in the form of a Building Liability Order (BLO) and this needs to be taken on board by developers used to the comfort of limiting their liability by use of SPVs. The claimant needs to find a relevant liability of the developer doing the works, referred to as the developer’s SPV below. There are three potential ones. Liability under section 38 of the Building Act 1984, which allows the claimant to recover damages from the developer as a consequence of their non-compliance with Building Regulations. This provision was in fact only brought into effect on 22 June 2022 and only applies to buildings con- structed after that date. The BSA increases the liability period under section 38 to 15 years beginning on the date when the offending works were carried out. Liability under the Defective Premises Act 1972, which allows the claimant to recover damages from the developer if a dwelling, when initially completed or when later further works on it were completed, was not fit for human habitation. This act was previously regarded as relative toothless be- cause of its 6-year limitation period begin- ning on initial completion of the dwelling/ further works. However, the BSA length- ened this to a 30-year limitation period for
dwellings/works completed before 28 June 2022 and a 15-year limitation period for dwellings/works completed after 28 June 2922. Liability because of a ‘building safety risk’, which is a risk to the safety of people in or about the building arising from the spread of fire or structural failure. This is a new cause of action under the BSA, so its scope is uncertain. The claimant can ask the High Court to make a BLO under section 130 of the BAS in relation to a relevant liability. Two obvious questions here. Who else can be made liable under the BLO? It’s those companies that are associated with the developer’s SPV, who can be made jointly and severally liable for the relevant defect with them and it matters not that developer’s SPV has been dissolved. Under section 131 of the BSA ‘associated’ means that one of them controls the other or a third body controls both of them, with ‘control’ being at least 50% of the shareholding/voting rights.
These companies are referred as a BLO target below.
What test does the court apply in finding the BLO target liable? There’s no useful case law on this yet so that’s an open question for the moment. Under section 30 of the BSA the Court needs to consider it ‘just and equitable’ to grant a BLO. This phrase was previously used in section 122(1) of the Insolvency Act 1986 in relation to Court’s discretion to order a company’s winding up. In the context of section 122(1) the Courts have steered away from defining categories of cases in favour of looking at all the circumstances of a particular case, which would seem to apply to a BLO as well. Common sense guidelines suggested by others in this context, which seem to make sense, are as follows. The BLO target specifically contracting on the basis of limiting their liability (because of agreement that they would wholly rely on insurance of cap their costs) could militate against a BLO being made.
30
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
"The main aim of the BSA is to make sure buildings are safe."
The purpose of a BLO is to prevent par- ties avoiding liability by working through SPVs, so a BLO target lays itself open to a BLO being made. The main aim of the BSA is to make sure that buildings are safe. So maybe a BLO is more likely to be made if the current owner can’t afford to do the works. The other side of this is that if the current owner is well able to afford to do the works but the BLO target is not, then maybe a Court would be less inclined to grant a BLO, particularly if the BLO target is already exposed to claims under the BSA from other parties. The above are guesses and more finessed detail comes out of one of the very few cases on this, Wilmott Dixon -v- Prater and others 21 March 2024 (unreported) where the Technology and Construction Court held as follows.
Developers are used to a 12-year liability, they now need to get used to 15 and even 30-year liabilities. That means keeping records of projects for more time.
The innocent disposal of the assets of the developer’s SPV does not prevent the granting of a BLO being just and equitable. The BLO target’s having adequate PI insurance can render the granting of a BLO against them more likely.
Potential BLO targets will need to be insured.
However there has yet be any very useful caselaw on this, so currently the risk of being the target of a successful BLO is uncertain.
A BLO target can itself apply for a BLO against other BLO targets.
So, what to do?
chris.snodin@haroldbenjamin.com
An interesting lacuna in section 130 of the BSA is that only a company can be liable under a BLO. An individual cannot be made liable under it. So perhaps the owners of developers should elect to own the developer SPV personally rather than through the medium of group/intermediate companies. But that has wider tax and contractual consequences.
Connect with Chris
HAROLDBENJAMIN.COM
31
Looking Back, Looking Ahead.
32
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
At Harold Benjamin, 2024 was a year of engagement with our local and international business communities. We proudly contributed as sponsors and speakers at an array of prestigious events, including the Finance Professional Show, the Asian Jewish Business Network, and LAWASIA, among others. Our commitment to sharing knowledge saw our private client team deliver insightful on transferring the family home, and a cross-team effort on discussing the legal features of running a restaurant business. Our much-anticipated seminar on insolvency and finance in March was a standout drawing a wide audience and lively discussions. The firm also ran its first ever cocktails and canapés event at MIPIM, attracting the great and the good of the property world. Harold Benjamin was also the recipient of the 2024 Law Firm of the Year Award at the Eastern Eye Awards and was shortlisted at the Bridging & Commercial Awards. What truly drives us, however, is the inspiration we draw from our clients and the extraordinary work they entrust us with. Some of our most memorable achievements this year include completing more than 200 transactions for Gail’s Bakery, concluding the refinance of a London hotel at £13.5m with a UK Private Bank within tight timescales, and completing a 35-property refinance with a value of £12.6m acting for an FTSE250 Bank. As we look ahead, we are excited for the opportunities 2025 holds - for our readers, our clients, and the new projects we will have the privilege of supporting. Here's to another remarkable year of collaboration and success!
HAROLDBENJAMIN.COM
33
34
THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
HAROLDBENJAMIN.COM
35
If you are a property or funding specialist and would like to contribute to this magazine we would love to hear from you. To submit an article, or for other ways in which your business can feature in this magazine, please send an enquiry to marketingteam@haroldbenjamin.com
Stay up to date with the latest issues. Follow us on social.
harold benjamin
@HB_solicitors
haroldbenjamin.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36Made with FlippingBook Digital Proposal Creator