All these pressures and more have come to a head for Propertymark over the past 12 months. An extraordinary litany of departures has given many the impression that Propertymark is about to implode after its chairman Christopher Hamer exited in September 2020, ARLA chief executive David Cox in July, President Kirstie Finney this February and, most recently, the sudden exit of its new CEO Tim Balcon, once again with little explanation or commentary.

                   
Left to right: Tim Balcon, David Cox, Kirstie Finney & Chris Hamer

A key job is to improve communication between Propertymark and its members and the wider world.

And the person to sort this all out? Step forward Nathan Emerson. A former senior director at Pygott & Crone with a 25-year track record at the Lincolnshire multi-branch estate agency, he has the affable personality but industry experience that Propertymark needs in a leader at the moment. Emerson has been involved at Propertymark for several years as a main board member after leaving Pygott & Crone in 2017 but has been persuaded to step up to the mark to steer the organisation through the next 12 months or more until a replacement for Balcon can be found.

He has also been a regular contributor to The Negotiator magazine, in his role as mentor and consultant to agents, tackling a range of subjects including Covid, proptech and marketing.

Speaking to The Neg on the phone just after his appointment, Emerson says one of his key jobs is to improve communication between Propertymark and its members and the wider world. The organisation can sometimes seem very detached, almost to the point of corporate haughtiness, which riles some commentators and detractors. But Emerson says his time in charge, at least, will see a new era of transparency, accountability and results – all issues that critics such as Andrew Stanton and others have been skewering Propertymark for in recent months.

Commenting on the kind of person who might lead the organisation in the coming years, Stanton said recently, “[It needs] a mind that listens and embraces the grass roots, sees that estate agency like all industries is buckling under the pressures of the emergent technologies that are sweeping into all sectors, and who is man or woman enough to hold up their hand when things go wrong and apologise – rather than shuffling off gagged and bound.”

Government lobbying

Emerson wants members to realise that trade organisations like Propertymark, who want to influence government while at the same time appearing to campaign on members’ behalf face a difficult task. “That’s why sometimes we cannot comment on things – because it could cause the membership and industry more harm if central government didn’t appreciate what we were saying and Propertymark was unable to influence decisions,” he says.

It’s an honour to have been asked to lead Propertymark… there’s a lot of work to do…

Asked whether Propertymark would employ another non-agent like Balcon, Emerson says, “We’re still a membership body and a key strength that Tim was able to share with us on the running and the strategy were very useful, and his insights on that side of things were very good, as was his expertise on qualifications; he’s finishing off a strategy document for us as well.

“But despite all this he’s indicated that he didn’t wish to continue in the property sector. There has been strong feedback from the membership and non-members that ideally we should have someone leading the organisation who has industry experience.”

Steadying the ship

Emerson says he has a clear understanding of what needs to be done to get Propertymark on a more steady footing, and has the experience and skills to do it. He is also keen to underscore the contribution of Mark Hayward who, after initially stepping down from his job leading NAEA, last July announced that he would stay on in a policy role to help Balcon, and now Emerson.

“Because much of what Mark does is behind the scenes in Whitehall, I don’t think many agents realise how worse off the industry would be without his input,” says Emerson.

“Nevertheless, it’s an honour to have been asked to lead Propertymark and I appreciate there’s a lot of work to do just to steady the ship and appease some people externally,” he says. “But really there are no issues with the day-to-day running of Propertymark.”

The post On your mark… appeared first on The Negotiator.

There are six main trade bodies and accreditation bodies covering the private rented sector, with some overlap in terms of the services they offer: ARLA Propertymark and NAEA Propertymark; the Royal Institution of Chartered Surveyors (RICS); the UK Association for Letting Agents (UKALA); Safeagent and the National Landlords Association (NLA).

There are many benefits from belonging to the right organisation, ranging from free advice and legal helplines to continuous professional development (CPD) courses, seminars, networking opportunities, discounted business insurance, and much more besides.

Many letting agents also find that it’s worth suggesting their landlords join a trade body such as the NLA, so they can keep in touch with regulatory changes – potentially avoiding tenancy issues further down the line.

One of the largest changes in the lettings market has been the introduction of the Client Money Protection scheme (CMP), which came into effect on 1st April this year. It is now a legal requirement for letting agents to deposit all their clients’ money through one of these schemes to make sure landlords and tenants are compensated if an agent goes into administration.

CMP is over and above tenancy deposit protection, which has been a legal requirement since 2007. CMP schemes are offered by all the organisations above, except the NLA. Client Money Protect and Money Shield are the other two government-approved CMP schemes available.

Propertymark
propertymark.co.uk
Propertymark was created in 2017 by the merger of five different trade bodies, including the National Association of Estate Agents (NAEA) and the Association of Residential Lettings Agents (ARLA).

As an industry body it says it aims to offer peace of mind to property buyers and prospective tenants by setting industry standards, requiring members to undergo regular training to keep up to date with legislative changes and adhere to a nationally recognised code of practice.

For members, that means not only access to training and certification, but also a major marketing tool when it comes to dealing with clients.

Benefits include:

• Specialist legal advice;
• Discounts on expert training and events;
• ‘Assured advice’ on trading standards issues;
• Updates via newsletters and factsheets;
• Free expert seminars across the UK;
• Listing on Propertymark’s ‘Find an expert’ web page and shop-window logos.

A spokesman said: “By becoming a member of NAEA Propertymark you are joining a community of like-minded estate agents across the country who want to do the best for their clients and receive support from membership in their role.”

RICS
rics.org
Founded in 1868, the Royal Institution of Chartered Surveyors is the world’s oldest and perhaps best-known organisation for individual property professionals.

RICS says it gives people working in the industry the opportunity to improve their expertise by making the most of its latest professional standards, ethical guidance, sector-specific advice and regulatory help.

It offers the chance to connect with other members around the world and leading figures across the industry using its extensive network of events, webinars and social media channels.

The organisation also claims to enhance members’ career prospects – RICS research shows that members in the UK earn on average £16,000 more each year than non-members.

The RICS is the most powerful lobbying body in the industry, putting the case to government not just to promote the housing sector, but also to improve consumer confidence through better regulation.

Hew Edgar, RICS Head of UK Government Relations and City Strategy, said RICS was working to “bring positive change and increase public confidence in the sector, parts of which have been likened to the Wild West”.

He added: “The ever-changing policy landscape is damaging confidence in the lettings market. But the private rented sector (PRS) has the enormous potential to deliver more homes that are urgently needed.

“The need for the regulation of property agents – including those operating in the PRS – is critical in order to make the sector more attractive to landlords, and of equal importance, enhance the landlord-tenant relationship. To assist this recommended regulation, we are working with industry to develop an approved PRS Code of Practice.”

RICS membership benefits include:

• Professional qualifications – RICS provides a range of CPD courses and best-practice guidance to help maintain high levels of professionalism and develop technical and professional knowledge;
• Regular seminars across the UK on issues affecting the industry;
• Improved industry status by demonstrating that members work to the highest professional and ethical standards.
• Greater consumer confidence by knowing you uphold RICS standards, driving demand for your services and creating a competitive advantage.
• Networking with 118,000 RICS professionals worldwide.

Safeagent
safeagents.co.uk
Safeagent, formerly the National Approved Letting Scheme, is an accreditation scheme rather than a trade body, it was the driving force behind the campaign for CMP to become a legal requirement.

However, as well as being an approved CMP provider, Safeagent says there are real benefits for agents who sign up with the organisation.

“The Safeagent badge is a badge of professionalism for consumers to look for and know they can trust that agent, because of the protections that agent has in place,” says Chief Executive Isobel Thomson.

“All our agents have professional indemnity insurance, redress schemes and random audits, and we monitor the handling of client money on an annual basis. It’s a mark of reassurance.

“It’s the confidence that consumers have using an agent who displays our logo that is a benefit to the agent.”

Benefits include:

• Access to client money protection scheme;
• A legal helpline;
• Legislative updates;
• Weekly newsletter.

UKALA
ukala.org.uk
The UK Association for Letting Agents now works in conjunction with the National Landlords Association (see below) and the two organisations present “a unified voice for landlords and letting agents in the sector”.

“We help agents to comply within an ever-changing regulatory environment, and offer practical advice on all letting matters,” said spokesman Martin Miller.

“We are a one-stop shop, making compliance with membership of a Client Money Protection (CMP) scheme and an independent redress scheme a single task.”

UKALA provides professional development and accreditation opportunities, with every employee of a member agency having access to a personal CPD record. It also negotiates commercial deals with trusted suppliers at preferential rates.

Benefits include:

• Business and professional development through company and individual training, including free online e-learning modules and discounted courses;
• A free telephone advice line, staffed by industry professionals;
• An online technical library;
• Marketing services to promote individual agencies to both landlords and tenants.
• Regular newsletter;
• Discounted insurance policies.

NATIONAL RESIDENTIAL LANDLORDS ASSOCIATION (NRLA) 2020

As The Negotiator goes to press, an interesting merger has taken place in this sector: The National Landlords Association (NLA) and the Residential Landlords Association (RLA) have announced that they will merge on 1st January 2020. The organisation will then be known as The National Residential Landlords Association (NRLA).

The new organisation will have a membership of more than 80,000 landlords making it by far the largest organisation in the sector.

Its members will own and manage half a million properties, about 10 per cent of the private rented sector. It will officially launch on 1st January 2020.

Benefits for agents

While the two organisations and thus, the new organisation, is and will be for landlords, lettings agents can benefit from encouraging their landlords to be members. The merger makes it easier (although that was not, presumably, the main intention) and even more useful, for lettings agents to work with members of the new NRLA as it will represent and assist 80,000 landlords who believe in running a professional business.

Agents should definitely recommend their landlords to belong to the new organisation. Landlords who are aware of their legal responsibilities generally pose fewer potential problems for agents.

The current NLA spokeswoman, Suzanne Muth says its free advice line is one of the benefits that members find most useful.

“If any of our members find themselves in a situation where they are not sure what their best course of action is, they can give our advice line a call and find out exactly what the best practice advice is,” she says.

“We also run courses, including a foundation course, which is a one-day course that goes over the basics of being a landlord, and everything they need to know. It’s always good to make sure you are doing the right thing, especially since things in the industry change quite rapidly,” she says.

“Our members find our meetings really useful as they are kept up to date with all the changes and it’s also a really good networking opportunity. Being a landlord can be a bit isolating at times,” adds Suzanne.

There are other benefits, too. “When you are marketing your properties to prospective tenants it’s always good to show you are a member of a trade association because it means you are interested in doing the best possible job as a landlord and demonstrates that extra level of professionalism.”

The post Business with benefits: belong to an industry body appeared first on The Negotiator.

Alan Stewart, Director and Head of Residential Lettings and Property Management at Caxtons, says, “Professional bodies are an effective way — and often the only way — member agencies can lobby government. They promote the interests of their members but rely on members’ interaction to give weight to, and provide an unbiased argument.

“When legislation or regulation is proposed or imposed the professional bodies are more often than not approached to comment as the collective voice of the property sector.”

Unfortunately, says Tim Douglas, who is policy and campaigns officer at NFoPP, which incorporates Propertymark- ARLA and Propertymark-NAEA, thus far their efforts have not been successful in changing the Government’s mind about the letting fee ban itself, although there have been some concessions in the draft bill, for example, the proposal to cap maximum deposits at four weeks rent has been changed to six weeks.

In other areas, however, Douglas says lobbying efforts have been far more successful, for example, in pushing for mandatory client money protection, as well as convincing the Government to cut the waiting time for Universal Credit payments.

On the Propertymark-NAEA front, he describes a recent success. “On the sales side we’ve got the new Land Transaction Tax coming in in Wales in April and the NAEA Chief Executive, Mark Hayward, gave evidence to the Welsh National Assembly Finance Committee. We said there should have been a higher rate before stamp duty kicks in and they seem to have listened, with it kicking in at £180,000 before anyone pays any stamp duty.”

But as Chris Norris, Head of Policy, Public Affairs and Research at the National Landlords Association, points out, lobbying isn’t always going to produce the desired outcomes. “I’d love to say we win all of the time but a lot of the time we don’t. Sometimes it is just about demonstrating to our members that we are trying to get the best for them and the chances of winning aren’t always great but we can show them what we are doing and what the direct impact of changes on them will be.”

THE RICS APPROACH

The RICS takes a different approach, “As the leading professional body across the land, property and construction sectors, we are bound under the terms of our Royal Charter to always act in the interests of the public as a whole,” says Lewis Johnston, Parliamentary Affairs Manager. “To this end, we are in constant contact with decision makers across the board – including in government – and we are strong advocates for the policy positions we develop. The crucial thing is that we are not a trade body – we don’t exist to advance any sectional interest and as such it is not for us to ‘fight anyone’s corner’ in the sense of lobbying for the benefit of practitioners. Rather, we work closely with Government to encourage better regulation – whether that’s through our engagement with the PRS regulatory agenda or our response to the recent consultation on improving the home buying and selling process. At every point, we act to improve standards in the public interest, and ultimately we believe this is in the long-term interests of the sector as well: upholding the highest values of professionalism.

One of Government’s most common requests is that we ‘speak with one voice’ and as far as possible that is what we aspire to. We are certainly different to other trade bodies but we share many of the same goals and aspirations. Lewis Johnston, RICS.

“We have strong partnerships with organisations right across the professions, and on issues from housing policy to Brexit, we regularly collaborate and formulate common positions with those partners. As well as positioning ourselves with a strong voice in our own right, we fully recognise the benefits of cooperation and common endeavour – one of Government’s most common requests of the sector is that we ‘speak with one voice’ and as far as possible that is what we aspire to. Under our Royal Charter we are certainly different to many of the other trade bodies operating in the built environment, but we share many of the same goals and aspirations.”

LANDLORD REPRESENTATION

On the landlord front, Chris Norris says that the big issue for the NLA’s campaigning efforts over the past couple of years has been Section 24 – the changes to the way landlords are able to claim mortgage interest relief – but he says, as with the tenant fee ban, trying to influence change on a central government issue is never straightforward or fast.

RICS allows us to draw from true data drawn from national statistics. With so many conflicting reports, it’s invaluable for us. We can discuss it with clients and advise accordingly. Tina Templeman, Mishon Mackay.

“It is easier to show members what we are doing and to reach the end of a campaign at a local level. If you look at something like trying to implement a tax change in Westminster, it is almost certain that is going to be a two or three year campaign until you start to see whether you are going to be effective or not. When it is something local, campaigning to change a local licensing scheme, for example, that will probably run its course in 9-12 months,” he says. There’s also a place for the more locally focused professional groups, says Tina Templeman, Branch Director at Mishon Mackay’s Rottingdean office, and also President of the Brighton & Hove Estate Agents Association for 2018. “We will continue to provide free training for members, an advisory forum and a voice to local councils about proposals such as board restrictions and HMO licensing rules. We were recently instrumental in the implementation of a college course for school leavers at GB MET College Brighton, a two-year course aimed at teaching the basics of estate agency and customer services.”

TOO MANY COOKS?

Not everyone is convinced we need quite so many professional bodies, however, and the difficulty the newest entrant, CIELA, the Charter for Independent Estate and Lettings Agents, has had in getting off the ground would seem to support the idea that there is a limit.

Trevor Abrahmsohn, Managing Director of Glentree International, says, “Seriously, I’m not sure if any of these august bodies (ARLA, RICS, UKALA, NALS) do anything to protect the consumer and I’m not sure they even protect agents from each other, since the antics and unethical practices between them are breathtaking and at odds with the moral code to which they are meant to conform.” He concedes, however, that “they do play their role in trying to prevent the Housing Ministry lurching from the sublime to the ridiculous”.

Abrahmsohn says he would like to see the bodies take more action to ease the regulatory burden on agents.

“The residential lettings industry has more regulation now than you can ‘shake a stick at’. Business, which is the only thing that pays for the overheads, is an afterthought today, once you have finished complying with the Estates Agents Act, money laundering, health and safety, data protection, right-to-rent, fire regulations, etc. I wish that the professional associations would work harder to lessen the tourniquet on the business.”

On this point Tim Douglas says there is a need for more ‘joined-up’ thinking from the Government. “There are over 145 pieces of legislation and 300 regulations when you come to rent out a property so we certainly agree that legislation in this area has been changed too frequently and we are continually looking for a joined-up approach from the government. Different political parties have tinkered with things in too many ways.”

ROGUES AND REGULATIONS

Isobel Thomson, CEO of the National Approved Letting Scheme (NALS) agrees, and thinks regulation could go some way towards solving the problem. “We continue to highlight to government what is needed for the good of the PRS – which is essentially a strategic vision and not just more piecemeal legislation.

“We were delighted at the Government’s announcement that it intends to regulate all lettings and management agents, as we believe it is the only way to ensure that all agents work to the same consistent standards and offer consumers the protection they deserve.”

Regulation would also go some way to improving the sector’s image, she adds,

“To be clear, we know that the majority of letting agents operate to professional standards, adhering to the many rules and regulations governing the sector, providing a much-needed service to landlords and tenants alike, and charging reasonably for it.

“Unfortunately, as in any area of life, the bad apples will tarnish the barrel and of course there are cases of criminal agents. Given that the sector is estimated to hold around £3bn of tenant and landlords’ money at any time, protecting the consumer is vital. If we want to improve the reputation of the sector, then regulating to stamp out rogues and criminals is key.”

Regulation would also presumably level the playing field, as a common gripe of agents which belong to one or more professional associations is that they are at a disadvantage to those which don’t.

Caxtons’ Stewart says, “Unless it becomes mandatory regulation for all letting agents to be members of ARLA or NALS or similar, those that are already accredited members of professional bodies are potentially at a financial disadvantage covering compliance costs, staff training and following strict codes of conduct. In addition, the door will remain wide open for non-members to abuse any guidelines, rules or regulations that firms such as ours follow to the letter.

“Our Gillingham office recently had its photographs and the description of a property that it had let ‘used’ by a non- ARLA member — the only difference being that they tagged the property on their website as ‘recently let’ – but they had never represented the landlord or the property. In this instance there is very little that ARLA, or we can do – other than the action we took to send a solicitor’s letter, but this has resulted in additional costs for us.”

PROPERTY INDUSTRY

Of course, membership of professional associations provides more than just lobbying and enforcement, with training, legislative updates and networking all prime benefits cited by members. It can also be a selling point with potential customers, says Tim Hassell, Managing Director at Draker Lettings. “Draker Lettings is registered with both ARLA and The Property Ombudsman. This not only gives us professional bodies to contact if we are ever unsure about how to deal with a situation, but it also provides our clients and tenants with a very clear assurance that should they not be happy with the services we provide, or decisions that we make, they have someone to turn to.”

On the sales front, it also gives agents an edge, says Mishon Mackay’s Templeman. “RICS allows us to draw from true data that has been obtained from national statistics and with so many conflicting reports, it’s an invaluable tool for us. We can discuss the data with clients and assess and advise on market conditions accordingly, as well as structure our business plans to incorporate market challenges and trends.”

Even if the professional bodies of the property industry do not ultimately succeed in bringing about a change in the proposed letting fee ban – which given the consensus among political parties on the issue means it is unlikely – it seems there are plenty of other areas where they are successfully influencing housing policy and proving their worth to members.

Contacts

• www.arla.co.uk
• https://ciela.co.uk
• www.naea.co.uk
• www.nalscheme.co.uk
• www.rics.org
• www.ukala.org.uk

The post Do the property industry associations do a good job? appeared first on The Negotiator.

Property industry salaries for men and women with professional qualifications increased, on average, by 12 per cent, in 2018, with average salaries now £58,633 and average bonuses of £15,703. If that figure sounds high to you, you may be female – males earn, on average, £61,705, (up by 12.3 per cent on 2017) while the average for a female is £47,260 (up by 7.8 per cent).

People should be able to bring their whole self to work in an inclusive environment, celebrating their individual talent, irrespective of differences.

So, no pay parity just yet for women, but things are getting better – the survey also revealed that the gender pay gap for those aged 26 or under remains at 3.5 per cent.

However, male or female, the lead message coming from this survey is that professional qualifications do, in due course, lead to higher rewards. On average, RICS qualifications will bring a 21 per cent higher base salary and 65 per cent of respondents reported that they had received a salary increase – averaging 6.3 per cent, along with bonuses that averaged £15,703.

MOVERS AND SHAKERS

Good salaries and working conditions certainly bring the candidates into a business – but temptation is never far away and the better the staff member is, the more likely they are to be ‘poached’. Thirty four per cent of respondents said they are very, or fairly, likely to move on in the next 12 months, which also goes some way to understanding the pay rises, along with the fact that 74 per cent said that their primary motive for moving on is a better salary.

GEOGRAPHIC IMPLICATIONS

There are some constants in financial reward, but this survey discovered that while Greater London, with an average pay rise of 12.7 per cent remains the overall honeypot, Northern Ireland and the Republic of Ireland recorded the highest growth in annual salaries of 19 per cent, while the South East recorded a 13.9 per cent growth. East Anglia has the lowest average salary at £50,285.

EXTRA TREATS

There are other sweeties in the bag, of course. While the use of a company car fell slightly to 19 per cent, the most attractive benefits were a mobile phone (69 per cent), a contributory pension (66 per cent) and paid professional subscriptions/fees at 64 per cent.

JOB SATISFACTION

A YouGov survey published in August 2017 found that 67 per cent of people in the ABC1 social grades said they either love or like their jobs. Trumping that is the happy property professional, with a significant figure of 83 per cent saying that they are either fairly or very happy with their current job.

However, being happy does not stop us wanting more, as many an employer has discovered – the job market offers constant temptation!

Barry Cullen, RICS Diversity & Inclusion Director commented:

“The results from this survey show that the built environment continues to be an attractive sector to work in with professionals’ pay hitting highs not seen since the financial crisis. As headcount is expected to increase in 2018, employers are placing greater focus on attracting and retaining talent, with attractive pay and benefit packages. However, organisations must embrace an offering beyond a salary and benefits package if we are to truly diversify the profession and meets the needs of our future.

“In 2018, the gender pay gap still remains evident and whilst it is significantly less for those under 26, more still needs to be done. People should be able to bring their whole self to work in an inclusive environment, celebrating their individual talent irrespective of differences. For the property profession to be a world leader in Diversity and Inclusion we need to place it at the heart of an organisation and ensure we retain our talent and build off the great advances we are seeing with our younger professionals.”

The post Guess how much property industry salaries increased last year? appeared first on The Negotiator.

Ultimately, a failure to properly consult could leave the Government open to a judicial challenge through the Courts, so they have opted for the belt and braces approach of committing the changes to an Act of Parliament. While the Bill will need to pass through each of The Lords and The Commons – such is the level of pre-legislative scrutiny afforded to an Act of Parliament – it’s likely to gain Royal Ascent without any major hitches.

A CAP IN HAND

You may have also noticed the inclusion of proposals to prevent landlords and agents from charging more than a month’s rent as a security deposit. Here it’s easy to see that the Government is keen to be doing as much as it can to bring down the initial cost of entry for tenants in the private rented sector. Targeting security deposits appears to make perfect sense – after all, most government departments already offer deposit loan schemes to staff looking to take up new tenancies in the sector, and workplace deposit loans are becoming more and more common especially in the Capital.

THE OBVIOUS PROBLEMS…

Whilst capping deposits at the equivalent of a month’s rent may well reduce the move-in costs for some, the major concern is that it will provide the temptation for others to revert to an all too often situation from pre-deposit legislative days, i.e. viewing it as the last month’s rent, leaving landlords out of pocket at the end of the tenancy if, for example, the property has been damaged.

New legislation will mean that you’ll need to tighten up the way you handle clients’ money if you don’t already adhere to best practice.

Furthermore, many landlords and agents ask for a higher deposit in some circumstances as it provides extra confidence when letting to ‘higher risk’ tenants – the exact kinds of people who are likely to be struggling with affordability in the first place – and the likelihood is that landlords and their agents by proxy could be deterred from offering properties to these people as a result. This issue becomes all the more acute when you consider that it hardly lays the foundations to incentivise longer term tenancies in the private sector. It could also reduce the number of landlords willing to accept pets into the property, where traditionally a larger deposit would have been an acceptable condition.

WHAT’S THE TAKE-AWAY MESSAGE?

This is another kick in the teeth for professional letting agents. It means it has never been more important to protect deposits. Furthermore, you’ll need to tighten up the way you handle your client money if you don’t already adhere to best practice.

In reality this means making sure you hold all client monies in a separate client money account, ring-fenced from your standard business account. Then get it protected with client money protection (CMP) insurance. After all, the likelihood is that mandatory CMP insurance will become law in the next year, so why wait? Don’t get caught out.

Luckily UKALA is here to help with both these aspects of running your business. Discounts on deposit protection with mydeposits, and Client Money Protection for those that don’t already have it, are just two of the many benefits of UKALA membership.

JOIN UKALA TODAY

We are the only association for letting agents to offer members a low-cost and more flexible monthly instalment plan to help manage the cost of running your business.

Join today by calling 020 7820 7900 or visiting www.ukala.org.uk to access our full range of benefits and services, including:

• Free telephone advice on landlord-tenant issues
• Unrivalled access to landlords through our unique relationship with the NLA, including free Recognised Agent Scheme status worth £2,500 per year
• Client Money Protection for landlords and tenants (if not already with an existing scheme)
• Membership of the Property Redress Scheme
• Tax Investigation Insurance (terms and conditions apply)
• Continued Professional Development and training
• Discounts on a range of products and services including deposit protection with mydeposits.

The post The Queen’s Speech delivers more bad news for letting agents appeared first on The Negotiator.

To see a clearer picture of where this generation chooses to live, work and play, CBRE conducted one of an extensive and detailed global study of millennials. This Global Major Report – Live Work Play: Millennials Myths and Realities is, says CBRE, believed to be one of the most extensive and detailed global studies of how and where the millennial generation chooses to live, work and play, with major implications for the future of real estate.

THE MILLENNIAL GENERATION

As one of the largest generations in history, millennials are reshaping the global economy and influencing the built environment along the way.

They are more connected, tech-savvy, educated and culturally diverse than any generation that’s come before them. Yet, at the same time, they face unique challenges. Many are debt-laden due to the 2008 recession. Others have delayed traditional lifestages into adulthood. They are also known as the Boomerang Generation, because, as many parents will confirm, they just keep coming back home to live. However, the survey also shows that they spend almost half their disposable income on leisure, so saving for a home of their own doesn’t appear to be a priority. They love eating out and they are keen shoppers.

As millennials enter their peak years there is a need for occupiers, investors and owners of real estate to better understand this generation.

As millennials enter their peak years, there is an opportunity – in fact, a need – for occupiers, investors and owners of real estate to better understand this generation and its strategic implications on real estate.

THE SURVEY

CBRE gathered 13,000 responses from millennials aged 22-29. There were 1000 respondents in each of 12 countries, representing the three major global regions, plus what CBRE describes as ‘an additional 6893 ‘internal responses from a range of ages to the same survey.’ They also held a series of internal discussion groups to extract more detailed findings.

THE FINDINGS

CBRE research found that a surprising 41 per cent of millennials in the UK still live with their parents. Of those, some 49 per cent intend to leave the family home within the next two years, but the majority are expecting to move into rented accommodation.

Lifestyle and socio-economic factors play a part, but it appears that the lack of affordability in the housing market, combined with tougher mortgage requirements, is significantly delaying millennials from moving out of the family home and purchasing their own property.

75% of UK millennial renters cite affordability as their main reason for staying in rented homes, compared with 63% in France and 56% in Spain.

In the UK, 75 per cent of millennial renters cite affordability as their main reason for staying in rented accommodation, compared with 63 per cent of millennials in France and 56 per cent in Spain.

There also seems to be an element of choice behind the decision to rent: 18 per cent of UK millennials prefer the convenience of renting and 72 per cent of respondents agree that purchasing a property would involve some lifestyle sacrifices.

CBRE’s research indicates the private rented sector will have an increasingly important role in providing homes for the future.

According to external forecasts, the number of households in the private rented sector will grow by 33 per cent by 2025. Developers and investors have already begun to respond to this by increasing the build-to-rent (BTR) markets in some of the UK’s most populated cities, with a rise in investment interest, in particular, from international institutions.

Although initiatives such as Help to Buy continue to encourage and support first-time buyers, the government has recently signalled a shift in policy away from a focus on home ownership for young people. Last September, the housing minister indicated that affordable rental homes may now be included in targets for starter homes.

Living standards and expectations in the private rented sector are rising, too. With more millennials moving out of state-of-the-art student accommodation (a sector undergoing a major transformation), there is greater demand for high-quality new-build homes, offering flexible and convenient living with social areas and on-site amenities.

Developers, build-to-rent providers and policymakers who respond to a changing market will be the most effective – in providing solutions for young people. Mark Collins, CBRE.

Mark Collins

Mark Collins, Chairman of UK Residential at CBRE says, “Many BTR developers are responding to millennial demand by adopting student-style living in projects, incorporating large communal and dining areas and facilities such as gyms and libraries, and offering all-inclusive rental rates.

“In London, The Collective Old Oak is a fantastic example of a co-living space that brings together a collection of individuals looking to create their own community in a flexible and hassle-free way.

Those developers, build-to-rent providers and policymakers who respond to the changing market will be the most successful – and the most effective – in providing lasting housing solutions for young people.”

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Do you think the letting fees ban will really take place – if so, any idea of timings yet?

Yes it will go ahead. It’s our understanding from officials that feedback from the recent consultation exercise will form the basis of a draft Bill to be scrutinised by a Select Committee before proceeding further in the parliamentary process.

This effectively adds another layer of oversight to the content of the Bill and the opportunity for stakeholders to give evidence if called upon by the committee.

There is still a way to go yet before the ban comes in and we will be working hard to secure a fair outcome for all parties in the rental process: tenants, landlords and agents.

Many letting agents are frustrated by the rogue agents who give them a bad name – week in, week out – can you see this ever being resolved?

There is a minority of agents who give the sector a bad name. Yet they are the ones the media always focuses on and presents as the norm.

We need more effective enforcement and policing by Trading Standards which would weed out those who continually flout the law.

NALS understands the pressures Trading Standards are under and the decisions they have to make on which areas of business to deal with and that’s why we produced a toolkit for them last year to help in the process of prosecuting those agents who fail to comply.

We also continue to lobby government for full regulation of lettings and management agents.

Do you think the tax take on landlords is a good idea – evidence points to a reduction in properties available to rent and rising rents?

Increased costs from tax rises, as well as the fee ban when it comes in, could force landlords to raise rents or withdraw from the market.

This inevitably contributes to a growing housing crisis and risks impacting on those who are most vulnerable. We would like to see a coherent housing policy rather than the piecemeal approach adopted by government to date.

The number of landlord/letting agent licensing schemes are increasing each year – what’s your view on them?

We have seen a plethora of Local Authority licensing schemes springing up in the last few years but with each individual area setting different criteria it makes it impossible for landlords and agents who operate in multiple locations to navigate the administrative processes.

NALS would like to see a standardisation of the administration of schemes and a steer from central government on how these should operate.

There are a lot of letting proptech startups ‘disrupting’ the market at the moment – OneDome, No Agent, Upad, etc – do you view them as something good for the industry?

Innovation is good in any sector but consumers should always ensure that they understand what they are paying for and that they are protected should anything go wrong in the process.

Do you think the public are sufficient aware of Client Money Protection and the standards agents should be meeting – has NALS/SafeAGENT done its job there yet?

Consumers are aware that they need to have financial protection when renting or letting but make the false assumption that it is automatically in place.

It is only when something goes wrong that they realise they should have checked at the outset.

There is still more to be done in raising awareness of client money protection schemes.

NALS and the SAFEagent campaign, which it administers, were delighted when the government announced that they would make inclusion under such schemes a mandatory requirement for all agents.

This was definitely a win for the industry and those agents and organisations that supported the campaign. The requirement has not yet been implemented so we continue to raise public awareness to protect consumers.

Do you think there are too many accreditation and regulations bodies in the lettings industry – isn’t it all to confusing for tenants and landlords?

I don’t think there is consumer confusion as to what organisations such as NALS stand for.

We offer overarching standards and protection which any agent who meets our strict compliance criteria can subscribe to.

As an organisation we are unique in that we offer a single, consumer badge encompassing agents who meet compliance requirements directly through NALS or through another trade association.

What do you feel is next for NALS and the Fair Fees Forum after the fees ban is introduced?

What’s next for NALS is to ensure that agents are supported through the transition process to a ‘no fee’ business model and in the aftermath.

We also want to ensure that tenants and landlords understand the implications of the new rental reality.

The Fair Fees Forum, established by NALS, comprising representatives from tenant, landlord and agent organisations, has worked collaboratively to inform government of the implications of the fee ban and there will still be work to be done post ban as the inevitable consequences play out.

The National Approved Lettings Scheme

The post A question of property: Isobel Thomson, NALS appeared first on The Negotiator.

This includes the mandating of property redress in 2014, fee transparency rules in 2015, and the roll-out of Right-to-Rent in England in 2016. We’ve also seen banning orders introduced to prevent repeat offenders from letting out property, as well as the recent confirmation of plans to make client money protection (CMP) insurance a compulsory requirement.

And who could forget the Government’s proposals and consultation to ban the charging of fees to tenants, which contains numerous inferences to a desire to go even further with regulation.

The message seems to be clear: the game is finally up for the cowboys, and the continued focus on letting agents is unlikely to abate post-election, whichever leader is resident behind the famed black door of Number 10.

The message is clear – the game is finally up for the cowboys and the continued focus on letting agents is unlikely to abate, whichever leader is resident at Number 10.

UKALA’S MAGNIFICENT SEVEN OF MEMBER BENEFITS

Yet there exists a sizeable chunk of agents – good and bad – that remain reluctant to join a trade body, despite half of tenants saying they’d be more likely to use one that is (1). So with all this in mind, perhaps now is the perfect time to take another look at what you are missing out on, or to reassess whether you might be able to a get a different and better deal. If you haven’t considered joining UKALA, let us present the magnificent seven of membership benefits.

UNRIVALLED ACCESS TO LANDLORDS

In order to gain that competitive edge and set yourself apart from other agents, UKALA offers you something that other trade bodies cannot. Only we have a unique relationship with the National Landlords Association (NLA) – the UK’s leading organisation for private-residential landlords – giving you unrivalled access to a network of around half a million properties. (2)

The relationship allows you to attend NLA branch meetings that take place throughout the UK, and no other representative body for letting agents offers the potential to generate business opportunities and to promote yourself directly to local landlords in this way.

Furthermore, if you join UKALA you’ll automatically become a member of the NLA’s Recognised Agent Scheme. This exclusive benefit is worth £2,500 per year and works as a business recommendation from landlords that enhances your industry status and credibility.

TRUSTED AND EXPERT ADVICE

Of the many services provided by UKALA perhaps the most useful is the help and assistance offered by our Advice Line, which is manned by a host of trained advisers offering practical and pragmatic guidance on any and all issues to do with running your lettings business.

We receive calls each year from agents who have come unstuck and need our help, covering a wide variety of problems, including how to regain possession of a property, how to deal with rent arrears, and how to navigate tricky contract law matters.

Why waste your time trawling through online forums for the information you need or spend more than you need to on solicitor’s fees, when expert advice is just a call away with membership? UKALA agents benefit from access to the Advice Line, which means that in an increasingly complex regulatory environment, you can take great comfort in having the sympathetic ear of a trained adviser in a matter of seconds.

CLIENT MONEY PROTECTION (CMP)

Agents hold a whopping estimated £2.7bn in client money (excluding deposits) but, despite wide support for mandatory CMP within the industry, this protection currently remains a ‘nice-to-have’.

However, the ability to market your services as CMP compliant before it is an obligation will help set you apart from your competitors, and demonstrate that you opt for a higher standard of service before it is forced upon you. It’s simply a matter of trust, which is why agents who join UKALA are provided with client money protection through UKALA’s arrangement with Client Money Protect, so long as you don’t already have cover arranged elsewhere.

Standalone CMP cover costs in excess of £300 or even more if obtained through other trade bodies, so UKALA membership is a snip when you consider the additional benefits on offer.

A ROUTE TO INDEPENDENT REDRESS FOR YOUR CUSTOMERS

The ability to handle complaints swiftly and professionally has the power to enhance your business, but unfortunately there will always be occasions when your customers are simply unsatisfied with the outcome. Third party redress is already a legal requirement for agents who operate in England, with the redress scheme providing reassurance to your landlord or tenant clients that they have access to an independent decision if they are unhappy with the outcome of a complaint.

All UKALA agents in England benefit from automatic membership of the Property Redress Scheme, one of the three independent schemes authorised by the Government to resolve complaints from consumers of letting agents in the country.

UKALA agents have direct access to the Advice Line – in an increasingly complex regulatory environment, you will have the sympathetic ear of a trained advisor in a matter of seconds.

COVER IN CASE YOU’RE SUBJECT TO A TAX INVESTIGATION

If HM Revenue and Customs (HMRC) suspect that your tax returns are inaccurate, you could be subject to a tax investigation. However, did you know that investigations by HMRC are often conducted at random, which means it can be a highly stressful and costly process, particularly if you require professional representation.

Luckily, UKALA has you covered should you find yourself the subject of an investigation. Tax investigation insurance can cost over £100 per year, but is included free of charge as part of UKALA’s membership package.

ACCESS TO PROFESSIONAL TRAINING AT DISCOUNTED RATES

Staff development is central to running a successful lettings business and it is the best way to improve knowledge and competence across the entire agency. But did you know that six in ten tenants think that agents would benefit from more training or professional qualifications? (1)

UKALA provides a variety of trusted and recognised training courses and gives you the option of attending face-to-face courses conducted in-house by expert trainers, or undertaking training online for free.

With UKALA you choose the option that’s most convenient for you, while potentially benefiting from discounts of up to 22% (3) per course booking. Our relationship with the NLA also gives you access to NLA-run training courses at similarly discounted rates. If you want to develop a better understanding of the lettings industry then look no further.

UKALA members also get free 24/7 access to the Online Library – one of the most comprehensive resources for agents, which doubles up as a structured learning tool for recording your or your staff’s individual development progression. It is continually updated to reflect the most recent changes in the law and provides essential advice on best practice, ensuring that you can keep up with your responsibilities to tenants and landlords.

DISCOUNTS ON A RANGE OF PRODUCTS AND SERVICES

We understand how important it is to offer good, reliable and cost effective products and services to our members, so much so that we decided to develop our own. All of our products and services are designed to take the hassle of running your business, and UKALA agents can save up to 25% on tenant and credit checks, helping you to reference new or existing tenants and take some of the risk out of renting.

UKALA agents also benefit from significant savings when protecting deposits with mydeposits’ Insurance Scheme, offering a 50% saving on the cost of annual membership (£50 plus VAT), and a massive 75% discount on each and every protection (£10 plus VAT), if you have CMP.

JOIN UKALA TODAY

UKAKA is the only association for letting agents that offers members a low-cost and more flexible monthly instalment plan to help manage the cost of running your business.

Join today by calling 020 7820 7900 or visiting www.ukala.org.uk to receive unrivalled access to landlords and our full range of benefits and services.

1 NLA Quarterly Tenant Panel – Jan 2017
2 Figures based on NLA engagement with 76,000 landlords and based on average NLA member portfolio size of seven properties.
3 Discounts relate to each individual training course booking.

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