Estate Rent Charge
Introduction
Nearly all Sovereign Harbour property owners are contracted to pay an annual charge (currently a little over £200) to Sovereign Harbour Trust (SHT) via the ‘Estate Rent Charge’ for flood defence work and Harbour maintanence. This page gives a little of the background and history of the charge.
The Estate Rent Charge
The Deed of Grant and Covenant entered into upon the purchase of a Sovereign Harbour property, governs the Estate Rent Charge, comprising of three elements:
1. The Southern Water (SW) Charge. The SHT covenants with the homeowner to apply the SW Charge towards the cost of execution of the Littoral Drift obligations and of the maintenance and improvement of the beach and sea defences within the vicinity of the Harbour, and towards Harbour Maintenance or any one or more of such objects. This was set at £75 in 1988 and varies in accordance with the change in the Retail Price Index (i.e. it has steadily increased).
2. The Marina Charge. The Marina Costs are all costs and expenses reasonably and properly incurred in connection with or incidental to the cleansing, repair and maintenance of the Harbour and the waterways.
3. The Berth Charge. The Berth Charge is only applicable to berths that are privately owned.
Sovereign Harbour Trust (SHT)
The Sovereign Harbour Trust is a company limited by guarantee and registered as a charity, set up to preserve and protect the environment along the beach frontage in front of Sovereign Harbour.
It collects and spends the Estate Rent Charge, distributing the monies collected to various bodies including the Environment Agency and Premier Marinas.
The Trust is in the process of transferring the rent charge arrangements and collections to a wholly owned subsidiary Community Interest Company or CIC.
Issues
The Rent Charge and the SHT have been the source of much dissatisfaction on the part of residents, not least of all because of the lack of transparency. For example, the published accounts show that admin and collection charges rose from £40,000 in 2008 to a whopping £144,000 in 2009 without explanation.
SHRA has been working to get residents represented on the Board of Trustees and a fuller disclosure of where the money is spent.
We are currently seeking further information about the imminent transfer of SHT obligations to the new Sovereign Harbour (Sea Defences) Community Interest Company CIC).
In early March 2011 SHRA wrote to the CIC about the large increase in their administrative charges. We also asked for clarification on a number of points raised by our members. Click here to read the letter from SHRA. The CIC responded shortly afterwards and their letter does clarify some points we raised and contains information about costs and liabilities that residents may find useful. Click here to read the response from the CIC.
If you have an issue you would like to discuss, please contact SHRA.
Key Milestones
1980 - The Eastbourne Harbour Bill was passed, specifying that the original developers (Chatsworth) would be responsible for rectifying the interruption of littoral drift of shingle caused by the construction of the harbour.
1988 - An Agreement made between Southern Water (SW) and the new developers Tarmac, stated that an estate rent change would be levied on all harbour properties for the ongoing maintenance of the beaches and harbour waterways. (At that time SW carried out flood defence work; a responsibility transferred to the Environment Agency during the 1989 privatisation of SW.
As part of the 1988 agreement, SW agreed to repair the groins on the Sovereign Harbour beaches and Tarmac agreed to transport the shingle built up on the Western harbour arm across to the Eastern side. Tarmac also agreed that it would, within nine years, set up a trust to collect the ‘rent charge’ and manage the funds
Late 1990s - Following a near catastrophic failure of the sea defences in 1999/2000 which resulted in flooding at Pevensey Bay, and the failure by the parties to meet their agreed obligations, the Environment Agency declared the 1988 agreement to be null and void and withdrew from it.
2000 - SHT Memorandum and articles of Association incorporated 14 December 2000.
2001 - The Environment Agency and Tarmac, now Carillion, signed a new agreement "The Sovereign Harbour Beaches Sea Defences Deed". This new agreement absolved both parties of their obligations under the 1988 agreement and the responsibility for sea defences and marina maintenance was transferred to the property owners.
2009 - The Sovereign Harbour Trust resolved to transfer its interest in and obligations under the rent charges to a wholly owned subsidiary community interest company, Sovereign Harbour (Sea Defences) Community Interest Company which will thereafter undertake the collection and distribution of monies to be collected under the rent charges.
2010 - Sovereign Harbour (Sea Defences) Community Interest Company formed.
2011 Spring - Exchange of correspondence between SHRA and The Trust clarifies some issues (see above).
2011 Summer - Local Councillor Patrick Warner appointed to the boards of the Sovereign Harbour Trust and the Sovereign Harbour Sea Defences CIC.
Further Information
Check out these issues of SHRA's newsletter Waterlines for further information.
Issue 53 - August
2010
Issue 52 - June 2010
Issue 50 - Feb 2010
Issue 49 - Dec 2009
Issue 43 - Feb 2009.
Contact Us
To contact SHRA click here