MEET ARMA'S NEW COUNCIL MEMBERS PAGE 8

ARMA CONFERENCE REVIEW PAGE 10

LOBBYING ROUNDUP PAGE 15

THE NEWSLETTER OF THE ASSOCIATION OF RESIDENTIAL MANAGING AGENTSISSUE 63 | WINTER 2013

WINTER 2013

BEN JORDAN, FIRPMARMA CHAIRMAN

W elcome to this Christmas edition

of AQD. I can hardly believe another year has flown by and the festive season is upon us yet again.

I would like to reflect on some of ARMA's achievements over the last year, of which I am most proud.

Once again it has been a very busy year. We have continued to grow both in terms of size and stature; we have worked hard to maintain and improve the core services that we provide to members; we have again run a very successful programme of education and training; and a great deal of effort has gone into the implementation of our new self-regulatory regime, ARMA-Q.

At the time of writing, ARMA has 311 corporate members (and will probably have more by the time you read this). This is an increase of 7% over the year. Every new member is an important step forward; it represents another managing agent showing a desire to do things properly, and another portfolio of leaseholders having their homes and investments managed by an ARMA member.

Not only have we grown in size but also in influence and reputation. We have briefed the Housing Minister and other politicians; sat on DCLG stakeholder groups: and received government praise for ARMA-Q. We have also built on existing good relations with other stakeholders to work collaboratively on issues of joint interest.

Providing services to our members is to ARMA what managing people's homes is to our members: it's what

we're here for and it's important we do it well. Our members tell us that they find the weekly circular to be a valuable resource, and I urge all those who receive it to distribute it widely within their company to ensure it reaches as far as possible.

Many of our Guidance Notes (GNs) and Leaseholder Advisory Notes (LANs) have been revised during the year and numerous new ones added. I do not think there are many scenarios a member could encounter which a GN will not cover. But if you do come across one, our Technical Officers are available to provide advice by telephone or email.

All of the technical advice that ARMA makes available to members is available on the website and thanks to the new site, which went live in August, finding what you are looking for is now a great deal easier than it was. Further enhancements to the website are planned and will be announced in the weekly circular in due course.

One of ARMA's main objectives is to raise standards of knowledge and professionalism within our sector, and the programme of excellent training courses that we run is an important tool in achieving that. During 2013 we ran just under 40 courses, which have been attended by nearly 600 students including 121 working for non-member firms. ARMA's training courses

really are the most relevant on the market and are an excellent way of equipping staff with new skills, or refreshing existing knowledge.

Our biggest work stream during 2013 has been turning ARMA-Q from a concept into a reality. At the start of the year, ARMA-Q comprised of the Rt. Hon Keith Hill as the Regulator, and a first draft of the Consumer Charter and Standards, which were still open for consultation. From those solid foundations, the year has been spent building a workable scheme of self-regulation that members can now actually sign up to.

The thorough and professional consultation that we undertook on the Charter and Standards won us many plaudits from industry observers. I hope we proved that the exercise was a genuine one as the final version of

the Charter and Standards published in May looked very different to the drafts.

Although Keith Hill had been appointed, at the turn of the year he didn't have a Regulatory Panel to work with. So in conjunction with Keith, we recruited nine incredibly high calibre panel members, who collectively possess the entire spectrum of skills required to make decisions about our members' conduct.

In May, at Baroness Hayter's invitation, we formally launched ARMA-Q in the auspicious surroundings of the House of Lords. There were many parliamentarians present and Baroness Hanham spoke on behalf of Government, praising ARMA-Q.

September saw another milestone as our Regulatory

Panel heard their first disciplinary case, albeit against the existing bye-laws rather than the new ARMA-Q Standards. To me, ARMA-Q has always been about bringing independent scrutiny to our industry whatever the rules. In my mind, therefore, this signified the start of the regime that we have all worked so hard to put into practice.

Following another hugely successful Conference in October, we opened for ARMA-Q accreditation on 1st November. We already have members who have submitted their applications and pleasingly a third of the membership have submitted their intention to apply. If you aren't one of them, please do so before the end of the year so we can plan the Secretariat's resources.

2013 has been a busy year and 2014 looks set to be no different. As I said at Conference, we have done the hard work associated with ARMA-Q. Now it's time for members to do their bit and step forward for accreditation.

By this time next year you will either be ARMA-Q accredited or have had your membership reclassified to associate status. Please make sure it is the former rather than the latter.

I know members work incredibly hard; I am one. But I hope this introduction has given you a flavour of how hard your Association has been working on your behalf during 2013.

I would like to wish everyone involved with ARMA a very merry Christmas and a happy ARMA-Q New Year.

CONTACT USEditor: Tim TaylorTel: 020 7978 2607 Email: tim@arma.org.uk

www.arma.org.uk @ARMAleasehold

Design by BrandFour

NEWS– New ARMA Council

members PAGE 4

– Membership Matters PAGE 4

– ARMA-Q Applications roll in PAGE 5

– ARMA-Q Award winner interview PAGE 6

– ARMA Dinner in pictures PAGE 7

COUNCIL UPDATE– Meet the new ARMA

Council members PAGE 8

CONFERENCE REVIEW– ARMA Conference review

PAGE 10

COVER FEATURE– Planning for the Long-Term

PAGE 12

REGULATION AND LOBBYING– A Word from Keith

PAGE 14– Lobbying Roundup

PAGE 15

INTERVIEW– Farewell to four

ex-chairmen PAGE 16

Homestead CSL win 2013 ARMA-Q Award In This IssueWelcome

OFT proposal to examine residential leasehold property management backed by ARMA

L ancashire based members Homestead CSL have won

the 2013 ARMA-Q Award. The award was launched last year to promote quality property management and to reward a member that has visibly improved the lives of leaseholders in a particular building.

Independently judged by

T he OFT's proposal to launch a market study

into residential property management has been welcomed by ARMA.

The OFT has announced its intention following complaints of over-charging and poor quality of service by some managing agents.

It follows years of campaigning by ARMA and consumer organisations to introduce statutory regulation of the residential leasehold management sector.

The absence of regulation

means that anyone can set up as an agent and start managing people's homes. They don't need relevant qualifications or experience.

This makes it very difficult for consumers to work out which firms are offering good value for money. The result is inconsistent service levels and low consumer confidence.

ARMA has already taken steps to combat this. It is in the process of introducing its own self-regulatory regime called ARMA-Q. Due to go live in early 2015, the new regime

will introduce a number of consumer protection measures including a consumer charter and bespoke standards. ARMA members will have to comply with these standards, which promote honest, fair, transparent, timely and professional conduct.

Michelle Banks, ARMA's chief executive, said:

“This is a welcome announcement from the OFT which should promote the need for consistently high standards across the residential leasehold management sector.

“Ultimately we believe that statutory regulation is the key. In the meantime, our self-regulatory regime, ARMA-Q, will boost consumer confidence. But we can only regulate our members, not those who operate outside of any controls. We hope the OFT investigation will highlight what needs to be done to make property management a reliable market”.

personal finance journalist, Sarah Pennells, chair of the National Right to Fuel Campaign, Hugh Goldborne, and director of the Federation of Private Residents' Associations, Robert Levene, the judges were impressed with Homestead's innovative approach to securing energy efficiency measures in a block

they manage. As a result of Homestead's actions, residents saw substantial reductions in annual fuel bills of between £800 and £1,450. Wider benefits experienced by the residents included a decrease in antisocial behaviour on the development.

David Bentham, who is managing director of Homestead CSL, was presented with a trophy at the ARMA Conference in October. You can read more from David on page 6.

Two other members were highly commended this year: Braemar Estates and Living City.

··

WE HAVE CONTINUED TO GROW BOTH

IN TERMS OF SIZE AND STATURE

··

ABOVE: David Bentham, MD

of ARMA-Q Award Winners

Homestead CSL, is presented with

a trophy by Sarah Pennells who

moderated this year's Conference.

2 3AQD Issue 63 | Winter 2013

Welcome Membership News

T he first ARMA member has already submitted

their ARMA-Q application. Over 100 more have indicated their intention to apply in the coming months.

To make the application process as easy as possible, we've made everything online. Here's a quick overview of what you need to do once you're ready to apply…

NEW LOGIN DETAILSBecause the information you need to submit for your ARMA-Q application is quite sensitive, we have introduced some extra security measures.

All Corporate Members and managing agent Affiliates have been assigned new 'admin' accounts to manage their applications. This will allow you to keep the information you provide secure.

You must login with your new account to apply for ARMA-Q.

Once logged in, go to the ARMA-Q Applications tab in the navigation bar. This will take you to the Application Dashboard.

The Application Dashboard allows you to apply for ARMA-Q in four easy to manage stages:

vacancies created by two Council members taking on specific technical roles with ARMA (Jane Forsyth and Helen Christie).

Council members are eligible to serve two three-year terms, subject to successful ratification at the AGM. Anyone from the membership is invited to apply for Council vacancies. Candidates are interviewed by a subcommittee of current Council members. Successful applicants are selected based on their experience and skills that are likely to be valuable to ARMA and the membership. They are then put forward for election at the AGM.

You can find out more about the new Council members on page 8 and read about the outgoing four on page 16.

F our new Council members have joined the ARMA

board. William Heneker (Lamberts Chartered Surveyors), Daniel Burkinshaw (BBM — Burkinshaw Block Management), Matt Kirk (Rendall and Rittner) and Sue Petri (Consort Property Management) were voted in at the AGM in October.

They replace outgoing Council members Gerry Fox (Peverel Property Management), Duncan Rendall (Rendall and Rittner), David Clark (Mainstay) and Brett Williams (CP Bigwood) who came to the end of their tenures this year. All were previous chairmen of ARMA and the AGM paid tribute to their hard work and dedication to the Association over the years.

Two more Council members, Jonathan Smith (Trinity Estates ) and Michael Lee (HML Shaw and Shaw and Company (Surveyors) Ltd), were co-opted onto the board earlier in the year. They filled

· Stage 1: Submit your notice of intention to apply. This will help us to process your application promptly when it comes in. You need to do this by 31st December 2013.

· Stage 2: Complete the ARMA-Q application form. There is a standard application form, whether you are a Corporate Member or an Affiliate upgrading to corporate membership. Affiliates however will need to provide some additional information.

· Stage 3: Upload the information required to support your application. This will include documentary evidence and company procedures to demonstrate that you comply with the ARMA-Q Standards.

· Stage 4: Accept the declaration of compliance. At the end of the application process, you will be asked to state that your company is fully compliant with the ARMA-Q Standards and that it operates according to the principles of the Consumer

Charter. Once you have accepted the declaration of compliance, your application will be submitted and you will be asked to chose your payment option.

The dashboard also allows you to monitor the progress of your application. Once you successfully complete a stage, its icon will turn green on the dashboard.

PUSHED FOR TIME? Don't worry; you will be able to save your progress on the application form and return to it at a later date.

TEMPLATE PROCEDURES We've put together a set of sample procedures to help with your application. You can now download these from the ARMA-Q Procedures tab whilst logged in to your ARMA-Q account. These are mainly for guidance and you should

tailor them to reflect your own operations.

A QUICK WORD TO AFFILIATES If you're an Affiliate ready to convert to corporate membership, you will now have to do so through the ARMA-Q application process. You will also need to submit some additional information as part of your application.

WANT TO KNOW MORE? For more information, download our Guide to ARMA-Q Accreditation and Audit. You need to read this before you start applying. It explains the application process in detail and sets out the relevant costs and timescales.

At the front of the Q: First ARMA-Q applications roll in

New Corporate Members · The McDonald Partnership

· Carlton Property Management

· Veritas Estate Management Ltd

· KTS Estate Management

· Rushbrook & Rathmore

· Commerson Estate

Management Ltd (conversion)

· 2 Manage Property

· Estate Management Solutions

· Integrity Property

Management Ltd

· Crestwood Property

Management Ltd

· K&M Property Management

· Montalt Management Ltd

New Affiliates · Circle Living

· Whittingham Riddell

· Bartley Management Limited

· Merriman Property

Management Ltd

· Fairoak Estate Management

· JW Hinks

· Davids Wharf Management

· London Wharf Property

Management Ltd

Removed/Resigned from Affiliate status · Chester Street Management

Co (Shrewsbury) Ltd: Lack of

communication — non-payment

of subscription

· Point West London Limited:

In administration

· CPF Software: Resigned

· UK Car Park Management Ltd:

Lack of communication —

non-payment of subscription

· CC Management: Lack of

communication — non-payment

of subscription

· Lloyds Bank Corporate Markets:

Lack of communication — non

payment of subscription

Suspended from membership· Lambert Smith Hampton:

Reinstated on receipt of

required documents

· Premier Management Partners

Ltd: Currently suspended

pending receipt of document

· TMS South West Limited:

Currently suspended pending

receipt of document

MEMBERSHIP MATTERSChanges since July 2013

Over 30,000 ARMA-Q consumer guides sent out!

S ince we published our consumer guide

to ARMA-Q back in May we have distributed over 30,000 copies. Most of this has been achieved by members sending out supplies to their clients and customers. We've also circulated copies at external events and briefings.

It's encouraging to see word about ARMA-Q spread and awareness of the new regime is certainly building. We still have stocks left, so do get in touch if you would like a supply to show how ARMA members are leading the way through higher standards: armaq@arma.org.uk

New ARMA Council members elected

DOWNLOAD ARMA-Q GUIDE TO

ACCREDITATION AND AUDIT

FIND OUT MORE:

4 5AQD Issue 63 | Winter 2013

Membership News Membership News

STANDING IN GOOD STEAD

THE ARMA DINNER

W e caught up with David Bentham,

managing director of ARMA-Q Award Winners Homestead CSL, to find out a little more about their winning project and what success has meant to them…

AQD: Firstly, congratulations on winning the 2013 ARMA-Q Award. Can you briefly describe your project?

DB: The project was to convert sixties build Wimpy No-Fines flats where the residents were living in fuel poverty, to energy-super-efficient buildings. We fitted high-quality double-glazed windows and thermal insulated cladding as well as installing two bio-mass boilers to provide heating and hot water to each of the 104 properties. We managed this without decanting the occupants and with the minimum of disruption and cost. Simples!

AQD: Energy efficiency is very topical at the moment. What does your involvement in securing those measures say about the role that managing agents can play in the communities they manage?

DB: The development has improved dramatically since we secured the funds for the project from Scottish and Southern Energy. The investment required by the owners to fund the work was beyond most of their means. The thermal insulation levels and reduced heating bills brought the running costs down by 66% and took residents out of fuel poverty. We're incredibly proud of what we have achieved; there were some difficult moments and at times the process stalled — but I think I'm correct in saying that if we had not been so dogged in our determination to make the project work, it could well have fallen by the wayside.

AQD: What's been the overall effect of your actions on the residents and their community?

DB: The immediate impact is the appearance. The buildings are now bright and attractive. The biggest benefit is affordable comfort. The cost saving to the occupants has taken people out of fuel poverty. As yet there's no direct evidence of the effects on values, because no properties have come

onto the market since the project was completed, but I believe that there will be a dramatic effect. The physical improvements in the development and the feel-good factor which goes with them have given us a springboard to forge on and improve other aspects such as security.

AQD: How has winning the award gone down in your firm?

DB: We're absolutely delighted to have won this award in the face of very stiff competition. The value of any award is dictated by the quality of the entrants. I believe that the entries submitted by other commended participants and the winning entry by ourselves have, to adopt the theme of the recent ARMA conference, ‘raised the bar’.

AQD: What can other managing agents learn from your project?

DB: Whilst Homestead won the award, there were two other highly commended entries and I would like to offer my congratulations to both. They will understand and concur when I say that whilst we are paid for what we do, all three of our projects involved an ‘extra mile’, determination and integrity. The recognition of this by the judges in making their commendations and awarding Homestead is priceless.

AQD: This is not the first project you have been involved in which has involved substantial works to failing buildings. Could you tell us about the others?

DB: That's correct. We were recently involved in the replacement of ground to roof bays for 50 flats in five, four storey blocks in Bolton. We also handled the replacement of structural steel, defective brickwork and flat roofs in a six story block in St Annes. These projects were both self-funded by the owners. The end result in both cases was a much improved appearance, the lifting of a blight on sales, drastically improved values and, perhaps most importantly, very happy clients.

AQD: Will winning the ARMA-Q award help you with future management projects?

DB: Interestingly enough, before I left the ARMA Conference I was approached by two fellow ARMA members who wanted to discuss issues they had with buildings in their management. It seemed there might be an opportunity to work in tandem. There's no shortage of buildings in need of care and attention out there and our experience over a number of years is a formidable asset in helping RMCs solve their problems.

AQD: So will you be entering the 2014 ARMA-Q Award?

DB: We already have a project on the drawing board. The new job is quite daunting and if we are able to make it work, it will outstrip what we have achieved to win this year. But it's going to require every gram of expertise garnered from our award winning project and experience.

ABOVE: David Bentham,

MD of Homestead CSL

··

THE 2013 ARMA DINNER WAS ONE

OF THE MOST POPULAR YET. OVER

120 MEMBERS ATTENDED THE EVENT

AT THE CROWN PLAZA HOTEL IN ST

JAMES', ON THE EVENING BEFORE

THE CONFERENCE. A GREAT WAY TO

RELAX, UNWIND AND NETWORK WITH

COLLEAGUES OLD AND NEW. HERE'S

A FEW PICTURES FROM THE NIGHT...

··

7Issue 63 | Winter 20136 AQD

Membership News Membership News

Michael Lee Managing Director of HML Shaw and Shaw and Company (Surveyors) Ltd

THE NEW WAVE

I 'm a chartered surveyor and managing director of both HML Shaw

and Shaw and Company (Surveyors) Ltd. I have a background in residential landlord and tenant matters, leasehold enfranchisement and service charge disputes. I'm also an expert witness in the First Tier Tribunal (Property Chamber) and Upper Tribunal.

Since becoming a partner in 2000, I have built the business up to 7,500 units under management from our Richmond and Putney offices, with 61 employees.

As a Council member I bring my 22 years of multi-disciplinary experience along with my full support behind ARMA's future direction. I have sat on the Conference Committee for three years and have spoken at both the 2010 and 2013 events. I also provide ARMA training.

Since being co-opted to Council I have been appointed vice-chair of the recently formed Finance and Corporate Affairs Committee.

I joined the Peverel Group as Head of Consort in October 2012 after

11 years at Mainstay Group. I gained valuable experience in residential block management in a variety of operational and strategic roles including client services director, property director and commercial director.

Since joining Peverel I have been closely involved in the business transformation of the company, and working to meet the commitments that we have made in our newly introduced Customer Charter. The launch of our charter in 2012 dovetails nicely with the new ARMA-Q Consumer Charter.

I'm also actively involved in preparing for our application for ARMA-Q accreditation; we firmly believe that it should provide the industry with the benchmarks it needs to show real improvement in customer service.

Having been a member of ARMA's Technical Committee since 2010, I have welcomed the opportunity to contribute to ARMA's work in improving standards of residential leasehold management. I'm particularly interested in training and staff development and hope to make a positive contribution to ARMA Council debates on these and other topics for the benefits of all members.

When I first became a property manager, I was conscious that I was one of relatively few women in attendance at the annual ARMA Conference. It's good to see this balance has now been addressed but I do feel it would be beneficial if we could now find ways to address the balance within senior roles. When this subject was raised at my recent inaugural Council meeting, I was pleased to find that it was a view shared amongst others. I hope to be able to explore and develop this in the coming months and years.

I 'm the Managing Director of Trinity Estates, which has been an ARMA

member since 2008.My professional background is in

financial and operational management and I have worked in a variety of industries including property, insurance, facilities and I.T.

Having always been involved in small to medium sized companies with turnovers of between £15 million and £60 million, I've had experience in all aspects of how they operate within their given industry and the wider market.

My first real exposure to property management came in 2004 when I joined Trinity Estates, a firm then in its infancy with around 3,000 units under management. I became managing director in 2007 and we now manage over 40,000 units.

I'm married with two young children and I spend most weekends coaching juniors in rugby and football. I'm a social golfer and I love my holidays — mainly under canvas!

I 'm very pleased to join the Council. I have a long-standing commitment

to the industry, and a firm belief in ARMA's role in representing its members and raising standards in the sector. I have had some involvement with ARMA already and welcome the chance to play a central role in driving the Association forward, with a focus on members acting professionally, and being customer focused.

I'm responsible for ARMA-Q compliance within our company and agree wholeheartedly with the aims of the regime, promoting high standards and transparency.

I have been involved in various areas of human resources and staff development, and have encouraged staff to attend ARMA training courses. I also strongly support the Institute of Residential Property Management.

I bring to Council my experience of working in both London and Manchester, in large and small organisations, as well as my work within the company on staff development, training, and growing a management portfolio from scratch. I see my long-term future within the industry and believe I also bring enthusiasm, energy and commitment to the Council.

I have 20 years' experience in the property profession. I'm a

shareholder, company director and Head of the residential property management division at Lamberts Chartered Surveyors in London. I specialise in the residential property sector, principally in the fields of property management and Landlord & Tenant advice.

I was elected as a chartered surveyor in 1998 and, in 2004, became a member of the Institute of Residential Property Management. I work in both a managerial role as well as retaining direct responsibility for the day-to- day management of a portfolio of residential blocks.

I'm keen to continue to raise the profile of the residential property management sector, which too often is seen as a Cinderella sector. I believe that this can be achieved through a combination of regulation and education. This education needs to extend not only to practitioners but also to the leaseholders themselves where there is a lack of understanding of the rights and responsibilities of owning a leasehold property.

I believe that ARMA can play a significant role in helping to educate leaseholders both directly, and through its corporate members. I'm keen to be involved in helping to develop and deliver that process of education.

I'm also keen to ensure that the general public genuinely believe in, and subscribe to, ARMA-Q. I welcome the opportunity of being actively involved in that process.

I launched Burkinshaw Block Management in 2002, as the

only dedicated block and estate management firm in the Tunbridge Wells area.

We quickly recognised the need to become members of ARMA, and as soon as possible applied to join. I have been managing director and owner of BBM since 2007.

We are, by ten years, the longest standing ARMA member in a very heavily populated area of the South East and it's my desire to raise awareness and promote ARMA. I'm passionate about ensuring that we work to the letter of the law and also that we try to influence the industry in the future for the good of all.

I'm a trainer for ARMA (Introduction to Block Management, one and two day course) and sat on the consultative group for ARMA-Q.

I'm extremely proud to have been asked to speak twice at Conference. It was an honour to have been asked initially, an achievement to have survived, and a surprise to have been asked again!

I served as a special constable (unpaid) with Kent Police for six years. I enjoyed this work enormously, encountered many very interesting situations, met many weird and wonderful people and learned many new skills. In the end, work and family commitments meant that I had to hang up my ‘Bobby Peel’ and return to ‘normal’ life.

I thoroughly enjoy most winter sports and I'm a keen scuba diver.

Sue PetriHead of Consort Property Management

Jonathan Smith Managing Director of Trinity Estates

Matt Kirk Director at Rendall and Rittner

William HenekerCompany Director at Lamberts Chartered Surveyors

Daniel BurkinshawManaging Director of Burkinshaw Block Management

Six new Council members have joined the ARMA board recently. Two were co-opted during the year and four were voted in at the AGM. You can find out a little more about each of them here…

8 9AQD Issue 63 | Winter 2013

Council UpdateCouncil Update

2013 CONFERENCEWATCH ONLINE

Keith Hill's keynote

Ben Jordan's opening speech

Interview with Peter Bolton King

Interview with Alan Walker

ARMA CONFERENCE REVIEW 2013

T he main focus of this year's event was the start

of ARMA-Q accreditation. Opening the Conference,

ARMA's chairman Ben Jordan looked back on a year of progress. A year where the ARMA-Q Standards and Consumer charter were put out to full consultation and published in their final form; the Right Honourable Keith Hill was appointed as Regulator; nine individuals were selected out of a pool of 200 applicants to form the Regulatory Panel; a consumer guide to ARMA-Q was published; and the regime itself was launched at the House of Lords in May.

“Much of the hard work has been done — it's now over to you,” Ben said. “I have no idea how any business could retain its credibility and the confidence of its customers if it walked away from ARMA at this point.”

He concluded with a call to action: “What this industry looks like in the future is now

very much in your hands. Do the right thing. Amend your business practices if necessary. Come forward for accreditation and make ARMA and ARMA-Q the success it deserves to be.”

ARMA's CEO Michelle Banks presented the advantages that ARMA-Q will bring to the membership: “It will allow members to demonstrate professionalism, win more business and be resilient to future change.”

She also gave an overview of the audit and accreditation process for the new regime. She concluded by saying: “This is the right thing for our members, for leaseholders and the wider community”.

Keith Hill took to the podium to review his first year in office and explained how the panel has been operating. He said that “ARMA-Q was a bold move and increasingly regarded as a positive move in the sector.”

Keith closed by saying: "The leasehold sector is on the cusp of transformatory change, and the best of the sector is willing it already through ARMA-Q. The transformation will be completed either through statutory regulation or through ministerial approval of [the ARMA-Q standards]."

But there was more to the Conference than ARMA-Q. The rest of the day offered an in depth look at a range of technical issues, legal cases and interpersonal skills.

Martin Perry, ARMA's vice chairman, took a valuable legal and technical session which proved there's never a quiet year in the life of a property manager.

Always one of the most popular sessions at Conference, Martin analysed

the significant Court and Tribunal decisions that have happened in the last year. He also reviewed the important technical issues that managing agents need to be aware of, such as the impending change in format of accounts for RMCs (FRED 100) and the new CCTV code of conduct.

The legal and technical focus extended into the mid-morning session. Michael Lee from HML Shaw Ltd gave a practical analysis of the ‘Phillips v Francis’ case, advising delegates on methods for managing with this landmark decision.

Michael Maunder Taylor from Maunder Taylor followed this by looking at the importance of reserve funds, how to convince residents to have one and how to put together an effective long-term maintenance plan. This was an essential session dealing with case law, affordability issues, and coping with resistance from leaseholders.

As an independent property manager, Sharon gave a unique insight into effective communication methods with leaseholders.

Smart meters are due to be rolled out across the country by 2020. It may sound like a long way off but it could have a major impact on leasehold properties. In the last session of the day, Noella Morton, who is chair of ARMA's Technical Committee, advised delegates how to prepare for smart meters and minimise disruption to their clients when they are introduced.

The day was rounded off with a lively panel discussion where leading industry figures came together to debate issues facing the residential leasehold sector. Keith Hill, Michelle Banks, Peter Bolton King (RICS Global Director), Bruce Maunder Taylor (ARMA Council Member), Alan Walker (ARMA Regulatory Panel Member), and Alan Wake (Guinness Partnership), tackled questions from the moderator, Sarah Pennells, and took questions from the floor — an important opportunity for delegates to get answers from this panel of industry experts.

Not all members will know ARMA has a Conference Committee. The Committee always aims to respond to suggestions from delegates when planning the Conferences. Something that delegates asked for after the 2012 event was a session on the role of loss adjusters. So

this year we invited Malcolm Hyde, who is executive director of the Chartered Institute of Loss Adjusters, to present a comprehensive outline of their role and the important part they play in securing quick and effective insurance claims.

Property management is a people focused job. Good communication is essential. The after lunch session focused more on interpersonal skills, people management, and customer interaction.

Behavioural expert specialist Ian Newton gave a lively and enlightening session on dealing with difficult behavior. He was followed by Sharon Crossland of Leaseholdlife.

If last year's Conference signified ARMA's coming of age (celebrating its 21st year) then 2013 signified something of a growth spurt.

THE LEASEHOLD SECTOR IS ON THE CUSP

OF TRANSFORMATORY CHANGE, AND

THE BEST OF THE SECTOR IS WILLING IT

ALREADY THROUGH ARMA-Q

—

KEITH HILL

··

LEADING INDUSTRY FIGURES CAME

TOGETHER TO DEBATE ISSUES FACING

THE RESIDENTIAL LEASEHOLD SECTOR.

··

www.arma.org.uk/news

VIEW KEYNOTES ONLINE:

10 11AQD Issue 63 | Winter 2013

CONFERENCE REVIEWCONFERENCE REVIEW

S ome managing agents repeatedly fall into the

trap of not collecting enough money for reserve funds. Often this is down to leaseholders not wanting to contribute to the long-term maintenance of the block. Michael Maunder Taylor, of family firm Maunder Taylor, looks at how best to advise the client and how to tackle resistance…

CASE LAWGarside v RFYC Ltd involved a dispute at a development known as Frognal Estate in Finchley Road, London. Historically, little maintenance work had been carried out which led to a number of leaseholders applying to then-LVT for the appointment of a manager.

On his appointment, the manager took steps to arrange for the outstanding works to be completed. Initially a figure

of £100,000 was added to the service charge in 2009. When a detailed specification of the works had been prepared and tendered, another £538,000 was added to the proposed service charge in 2010.

Some leaseholders could not, or would not, pay so the manager applied to the LVT for a determination of reasonableness in regard to both years. The leaseholders were granted leave to appeal the LVT's decision and the hearing took place before the Upper Tribunal in 2011.

Her Honour Judge Alice Robinson said:

“It is common practice, where the terms of the lease permit, for service charges to be demanded on account over time to establish a reserve fund”. [Note that it's important to check the lease to ensure that a reserve fund can be established.] “In

deciding when to carry out the works and when to charge for them, the manager was taking into account, amongst other matters, the financial impact of the works on the lessees… These were perfectly proper decisions for him to take in the exercise of his judgement as manager.”

Subsequently, Judge Robinson held that the LVT should also have taken these considerations into account when reaching their decision. She remitted the case back to the LVT to deal with that point. The manager was replaced shortly after, so the case was eventually withdrawn and the point was never resolved.

DEALING WITH AFFORDABILITY In Hillfinch Properties Ltd v The Lessees of Southborne Court, the LVT said that in light of Garside, it seems that it is now open to a tribunal to make a finding of unreasonableness under Section 19 — specifically in the event that the landlord fails to take into account the issue of affordability in relation to the phasing and timing of proposed major works. In other words, managing agents must consider phasing works appropriately in order to avoid a determination of unreasonableness.

In Burnage Court Ltd v The Lessees of Burnage Court, the LVT confirmed that evidence of average national incomes is not relevant to any question of affordability. The tribunal also commented that in any event, the works have to be done in compliance with the landlord's lease obligations, and the decision to spread the cost takes account of any affordability issues to the extent that they are relevant.

Put simply: to deal with the affordability issue, managing

· There have been a large number of water leaks into the top floor flats as a result of the poor condition of the roof; its replacement is overdue and it has been patch repaired on numerous occasions

· The exterior repairs are also overdue. This has caused a number of complaints of water ingress. The render has been repaired on a number of occasions and some of the windows were painted shut in the last external repairs project

· The lift's control panel was removed, so the lift only stopped at the ground and fifth floors. The residents used the emergency stop button to stop the lift on the first to fourth floors! Health and safety modifications are required to the cage door in order to avoid loss of fingers. A general modernisation has been recommended due to the age of the lift and this also needs to be factored in

· The heating system could last another ten years, but the system is inefficient and results in high gas bills for the leaseholders. Some modifications can be carried out to make it 80–90% more efficient. The potential savings could be used to part-fund some of the other required major works

· A number of residents are pressing for the driveway to be repaired, as there are a number of potholes. As if that wasn't bad enough, one resident smashed their car into a concrete bollard, knocking it straight out of the ground.

LONG-TERM PLANNING A building surveyor could be instructed to draw up a LTMP or, depending upon the client's requirements, the managing agent could produce a LTMP in-house.

The property manager could make enquiries with

agents must spread the costs by phasing the works in a way that still ensures compliance with the lease. The tribunal concluded that the costs were reasonably incurred to the extent that such phasing was reasonably necessary to avoid substantial financial impact on the leaseholders.

GAUGING FINANCIAL IMPACT Thankfully, Judge Robinson gave some useful pointers in Garside:

“Financial impact could no doubt be considered in broad terms by reference to the amount of service charge being demanded having regard to the nature and location of the property and as compared with the amount demanded in previous years… The degree of disrepair and the urgency of the work or the extent to which it can wait are likely to be relevant... Another relevant consideration may be the extent of any increase in the total cost of the works if carried out in phases as opposed to one contract”.

Whilst we are not fortune tellers, we should have a rough idea of the useful life of each component of our managed buildings so we can collect enough money in advance, and spread the cyclical costs as far as reasonably possible. Long-term maintenance plans (LTMPs) are a very useful tool, which can be used to provide a snapshot of when major works are required and what they will cost.

CASE STUDY: RUN DOWN COURT Run Down Court is an ideal case study for me to illustrate the difficulties of long-term planning for some clients:

service providers to find out the useful life of the building's components and budget costs for cyclical maintenance and renewals. Once a LTMP has been drawn up, it always requires updating and amending when new information comes to light or when works are carried out.

Looking at Run Down Court, there's an awful lot of work that needs doing at roughly the same time. First of all, set your priorities:

1. Make the building wind and water tight and remedy important health and safety matters2. Repair the communal services 3. Redecorate the internal common parts4. Maintain the grounds.

Remember the advice from Garside:

· Have regard to the nature and location of the property

· Compare the sum demanded with that of previous years to avoid any substantial increase in service charges

· Consider the degree of disrepair, the urgency of works and any increase in costs as a result of phasing the works.

Part 9.2 of the RICS Code says that the usual way of working out how much money is needed to go into the fund each year (assuming the lease makes no other provision) is to take the expected cost of future works, and divide it by the number of years that will pass before that cost is incurred. It also recommends seeking new estimates from time to time and adjusting payments into the fund accordingly.

Part 9.10 suggests reviewing contributions annually and basing the amount demanded from leaseholders on current up- to-date forecasts including fees and VAT.

ADVISING THE CLIENTWhen the service charge demands are sent out, you may receive complaints from leaseholders regarding the reserve fund provision. If that's the case, it can be very productive to hold an evening meeting to discuss the LTMP, the works that are required, and the reserve fund contributions. For those leaseholders unwilling or unable to attend, take minutes of the meeting and circulate them to everyone afterwards.

Part 9.3 of the RICS Code says that you should be able to justify the reserve contributions by reference to the work required, the expected cost and when it's to be incurred; experience of similar work should be used to support your calculations.

Reserve funds can have benefits for both landlords and leaseholders alike. After all, what's more attractive to a purchaser: a flat in a well-managed block with a ‘rainy day fund’ to be used if and when something goes wrong; or one where there's no such fund where the purchaser will have to contribute towards potentially expensive works?

Part 9.12 of the RICS Code says that, where the lease allows for a reserve fund but no fund exists, you should recommend to your client that one is created. Where the lease does not allow for the collection of reserves, consider getting the agreement of the tenants to a variation of the leases or an application to the First-Tier Tribunal.

GARSIDE — THE SILVER LINING In case any readers are worried about having demanded monies for major works without having considered the affordability issue, Judge Robinson provides some reassuring words in Garside:

“It is important to make clear that liability to pay service charge cannot be avoided simply on the grounds of hardship, even if extreme. If repair work is reasonably required at a particular time, carried out at reasonable cost and to a reasonable standard and the cost of it is recoverable pursuant to the relevant lease, then the lessee cannot escape liability to pay by pleading poverty”.

PLANNING FOR THE LONG-TERM

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LOBBYING ROUNDUP

I 'm pleased to report the Regulatory Panel is very

much up and running. During October we determined four cases; one by an oral hearing and three through written representations.

In one case, the Panel found in favour of the member while in the other three, the complaint was upheld. In those cases, one member was severely admonished and in all three cases sanctions were suspended for a period, with the companies concerned to take remedial action and implement improvement measures.

There are now two Private Members' Bills being promoted in Parliament: John Healey's Letting Agents (Competition, Choice and Standards) Bill, which is scheduled for second reading in February; and Sir Alan Meale's Private Landlord, Letting and Managing Agents (Regulation) Bill, which is awaiting a date for second

I t's been a busy few months keeping leasehold issues

on the political agenda. We've continued to campaign for statutory regulation for managing agents. Many commentators, including our own Regulator Keith Hill, have expressed the belief that this is inevitable — if not in this Government then the next.

reading. Private Members' Bills normally need government support in order to become law, but they do help move an issue further up the parliamentary agenda.

We've established good working relationships with the parliamentary researchers working on leasehold issues. This has given us the opportunity to brief both John Healey and Sir Alan Meale on our sector and on the differences between lettings and managing agents. We will continue to keep in close contact, staying in the loop with any further developments.

Meanwhile, we have also kept up with the Department for Communities and Local Government (DCLG) as they introduce provisions in the Enterprise and Regulatory Reform Act that will require all managing and letting agents to join an approved redress scheme. As soon as the first Order comes into force (expected in early December 2013) DCLG will publish the final conditions and invite schemes to come forward for approval during January 2014.

We hope the ombudsmen schemes that ARMA members already subscribe to will put themselves forward for approval. But there are still issues to be settled, particularly around how the new provisions will be enforced. ARMA is established as a key stakeholder on leasehold matters so we will continue to seek to influence DCLG as they work through the next stages of implementation.

Parliament isn't the only source of changes to the law of course. We also keep a close eye on Court

and Tribunal decisions. In the last issue we reported on the Phillips and Goddard v Francis ruling, which overturned the accepted approach to Section 20 consultations. ARMA was among several organisations that supported an appeal to the decision. We made it clear that even after exhaustive discussions with practitioners, leading legal experts and government sources, it has been impossible to devise a workable solution to the ruling. As we go to press, permission to appeal has been given. We will continue to take sensible action where we can to further members' interests in this case.

Finally, we're always horizon scanning to get early warning of issues that may affect members. In recent months we've been closely involved with developments in the roll-out of smart meters. We've briefed Energy UK and the recently established Smart Meter Central Delivery Body who are working to develop a consumer delivery programme for smart meters. We emphasised the need to think about the unique situation in blocks of flats when installing the meters. Some members are getting involved with trial installations of the new technology and we will aim to report on those in the next issue.

I have personally chaired the Panel investigations. Each has involved one or two panel members, selected by rotation, but with specific experience

and expertise relevant to the case.

We have conducted investigations in line with the written procedures adopted by the Regulatory Panel and agreed with the Council. The procedures are published on the members' area of the ARMA website and I encourage any member due to come before the Panel to familiarise themselves with the process.

The Panel procedures allow us to publish details of the cases where disciplinary action is taken. However, this will only happen once the appeal period (28 days from the date of the decision) has expired. If an appeal is lodged, publication will be subject to the outcome. All disciplinary action will be published on the ARMA website, in this newsletter and in my annual report.

ARMA-Q ACCREDITATIONOne of my roles as Regulator is to oversee

The Panel is very keen to encourage improvement and practical remedies, rather than take punitive action. This is in everyone's best interests.

Five further cases are in the early stages of investigation.

the ARMA-Q accreditation process. The Council, on the recommendation of the Secretariat, will award accreditation but I will provide an independent assurance that the process is operating properly and fairly. Some of the ways I plan to do this are by:

· Having the opportunity to comment on and agree the procedure for assessing applications for accreditation

· Providing input on any difficult or borderline cases, before they are determined by Council

· Carrying out spot checks on how specific accreditation cases are being handled.

REGULATOR'S ANNUAL REPORTAs Regulator, I am required to make an annual report to Council, giving an overview of the regulatory process and making any recommendations for improvement. I plan to present my first report in the summer of 2014.

Six months on from ARMA-Q's official launch at the House of Lords back in May, it's fulfilling to see the Regulatory Panel become a reality. The fact that we are now actively reviewing cases is a major step forward. ARMA members should be proud to be the only managing agents in the sector prepared to stand up and be independently regulated.

A WORD FROM KEITH

··

I HAVE PERSONALLY CHAIRED THE

PANEL INVESTIGATIONS. EACH HAS

INVOLVED ONE OR TWO PANEL MEMBERS,

SELECTED BY ROTATION, BUT WITH

SPECIFIC EXPERIENCE AND EXPERTISE

RELEVANT TO THE CASE.

··

ARMA's Regulator, Keith Hill, reports on his latest activities

14 15AQD Issue 63 | Winter 2013

REGULATION AND LOBBYING REGULATION AND LOBBYING

unkind observers believed ‘1 to 4’ was the length of our lunch time.

This club continued for many years without having any public profile and it was about 1990/91 when the group felt we should raise our heads above the parapet. So we wrote a letter to the Estates Gazette inviting interested parties to a meeting and ARMA was born.

For sometime we existed without any outside assistance, and I would like to acknowledge the role of the late Michael Page who organised membership and meetings, originally with the 124 Club and then ARMA.

Our growth required us to seek some assistance and after various attempts, David Hewett and Garland International, his company, were appointed to become our secretariat and run our accounting functions.

David played a very significant part in establishing ARMA as a major player in the residential management sector. Leading up to his retirement two years ago, ARMA directly employed the entire secretariat and took over the lease of the offices in Battersea Park Road — another milestone in the

and a supporting Regulatory Panel. The accreditation period has now opened and I hope all our existing members will join up and lead to a bright future.

Thank you all for your support and the opportunity to meet so many nice people over the years. I wish you all every success.

they were actually written by the committee. I had learnt a lot by this stage and when the committee decided that we needed a new GN on a particular topic, I now looked at my shoes along with everyone else and hoped I didn't get volunteered again!

My reason for this little bit of nostalgia is to demonstrate how far ARMA has come in a relatively short time. Techcom (as it is affectionately known) still exists, but there is a whole array of staff and consultants who help to produce the GNs now. And this is why there are so many of them, and why they are so much better than the early ones. I'm certain that there is still a huge agenda for Techcom and must congratulate them on the volume and quality of work that they do.

As many of you know, I subsequently became chairman of Techcom when John stood down. I then went on to be chairman of ARMA before handing over to Peter Dening in 2010. Time flies when you are having fun and it must have been fun, as I cannot believe how long I have been involved with ARMA.

In 2000, which is when I first become involved, ARMA had 113 Corporate Members. Ten years later as I came to the end of my term as chairman, we had 252 members. We now have over 300.

growing up process.The ARMA of today is so

different because of the efforts of Council members over the years, supported by such a great team now headed by Michelle Banks.

Most importantly, no progress could be made without the support of the members. This has always been present and continues with an ever-increasing membership.

But enough of looking back. We're on the brink of a whole new world with ARMA-Q.

There is great enthusiasm, sensible apprehension but most importantly a great deal of determination. There is little doubt the next 18 months will be the most important in the life of ARMA.

The need for a good foundation has been recognised with the selection of an excellent Regulator, the Right Honourable Keith Hill,

With this growth, secretariat staff numbers have increased and we have been able to do much more for the membership.

For example, that Regional Briefing that I referred to in 2000 where there were about a dozen people in attendance — this is now a major event with nearer 80 people attending and with high calibre speakers.

In the year 2000, in celebration of the millennium perhaps, ARMA produced its first annual report. It was produced in-house, photocopied and distributed by post.

Times have changed. ARMA is not an organisation that gets stuck in the past. Next we had externally produced reports; then two colour reports in black and ‘ARMA blue’; then in 2008 in response to comments about the pie charts being difficult to read in seven different shades of blue (it could have been worse — there might have been 50 shades of grey!), we went to full colour. Now of course it is a paperless exercise and rightly so. This is a good example of how ARMA keeps up with the times.

The latest example of our progression is probably the new website. I know that an enormous amount of effort went into this project and I'm sure everyone will agree that it's a great site, full of useful information and will stand us in good stead for some years to come.

I encourage all of you to get involved to some degree. It doesn't necessarily mean you will end up as chairman! You can simply reply to the weekly members' circulars where questions are routinely asked. There are various other committees and working groups which benefit from individual input; indeed I chaired a forum just before the AGM on Combined Heat and Power and the issues raised will be fed into a new GN.

At the forefront of our minds in all that is done within ARMA is maintaining professionalism, continuing to raise standards and the provision of excellent customer service. Over the years, we have done a lot to move forward with training programmes, the IRPM and things such as the independent adjudication systems, firstly with IDRS and then with the ombudsman requirements. Now we have ARMA-Q which is another massive step forward for us and one to be embraced as the next stage of continual improvement.

What I must say before I close is that I have genuinely had great fun being this closely involved in ARMA and I will miss it. I have learnt a lot and have met a huge number of fantastic people — after all this is a people business.

I am grateful for the opportunity to write a

few words after 22 years on Council, originally as the Founder Chairman and then as Honorary Treasurer.

During this time ARMA has grown from an informal group to its current corporate status.

I know that nostalgia is a thing of the past but I would like to reflect on these years; partly because it has been such a privilege to be part of ARMA, and also I believe it's important to know one's roots — it literally keeps you grounded.

The origins of ARMA flow from a group of managing agents based in central London who met four times a year for lunch and a formal discussion on topics affecting the profession.

It was started by a trustee who employed many managing agents and was concerned by new legislation — the Housing Act 1974, and in particular section 124 which was the first attempt at consultation. Accordingly, the group named themselves the 124 Club, although some

I n thinking about what to write, I thought about how

I became involved in ARMA. It was way back in the year 2000, when I attended the midlands Regional Briefing at a small hotel. There were about a dozen of us. David Hewett, the then CEO, was there of course. He asked for volunteers to assist with the response to Government on what was then draft legislation, later to become known as the 2002 Act. I think everyone else must have taken one step backwards as I'm certain I didn't volunteer.

So, I joined the Technical committee. We met in the basement of ARMA's offices in Battersea Park Road — the intellectual hub of all things leasehold. The chairman of the committee at the time was John Nouch, who is also a past chairman of ARMA, and well known to many of you.

John didn't sell the concept of Technical Committee membership well. In his report as committee chairman one year, he said: “If glamour is a term that could be applied to any facet of property management, or any function connected with ARMA, then membership of the Technical Committee is probably the point furthest from that ideal”.

As well as responding to government consultations, we also oversaw the production of members' Guidance Notes. At this point in ARMA's history,

CLOCKING OFFAt this year's AGM, ARMA said farewell to four longstanding Council members and ex-chairmen. During their tenures they saw through many developments in ARMA and all played a major part in growing the Association into the thriving organisation it is today. Here Gerry Fox, Duncan Rendall, Brett Williams and David Clark look back at their times in office…

Gerry FoxHead of Compliance, Peverel Property Management Founding Chairman of ARMA

Brett WilliamsPartner, CPBigwoodChairman 2007–2010

AT THE FOREFRONT OF OUR MINDS

IN ALL THAT IS DONE WITHIN ARMA

IS MAINTAINING PROFESSIONALISM,

CONTINUING TO RAISE STANDARDS

AND THE PROVISION OF EXCELLENT

CUSTOMER SERVICE.

THERE IS GREAT ENTHUSIASM,

SENSIBLE APPREHENSION BUT MOST

IMPORTANTLY A GREAT DEAL OF

DETERMINATION. THERE IS LITTLE

DOUBT THE NEXT 18 MONTHS WILL

BE THE MOST IMPORTANT IN THE

LIFE OF ARMA.

16 17AQD Issue 63 | Winter 2013

INTERVIEWINTERVIEW

Fortunately, there's plenty of precedent showing how the twin objectives of professionalism and market-based activity can be met. Various sectors have developed regulatory structures that enhance professionalism, build barriers to unprofessional entrants and discipline incumbents. It's noticeable that the structure of all these professional service businesses is roughly the same. There's a professional body whose position as an expert regulator is supported and endorsed by government. This structure has been largely absent from property management, despite the sector having a very direct impact upon consumers and their homes, and despite agents having control over hundreds of millions of

intervention, and to position ourselves in a manner which will allow us to take the future in our stride. This can be done by taking self-regulatory action to guard against the potentially corrosive effects of completely unfettered market activity or government legislation. In a market such as ours, where barriers to entry are non-existent, the impact of unprofessional conduct can result in toe curling examples of abuse of position and unprofessional activity.

My own highlights were the creation of the Institute of Residential Property Management (IRPM) in 2002, an idea born out of the ARMA Education Committee and built on a shoestring. Now numbering 2,800 members and growing, IRPM is seen as the essential qualification for property managers. It provides a direct entry route to RICS and is a valuable signifier for both employers and consumers.

The second highlight will come out of the need for independent regulation, something brought sharply into focus when I was, for a brief period, chair of the Practice Committee. It is right and proper that we do not sit in judgement of our peers and I believe ARMA has managed to attract the highest quality individuals to the independent Regulatory Panel.

ARMA-Q must set the standards for the future and must be embraced by all in the industry — including those that, for one reason or another, choose to remain outside of the ARMA umbrella. This work has been undertaken by a dedicated secretariat headed by CEO Michelle Banks. Their absolute determination to see it through has been extraordinary and I'm filled with admiration.

Now comes the really tough bit: implementation of ARMA-Q and making certain that it becomes the accepted standard and is endorsed at the highest level. I will follow with interest from the side-lines, shouting occasionally like a bad football dad…

of vulnerable people (and active voters) live in property operated by our members.

ARMA's position as a voluntary trade association was not entirely compatible with its potential role as a Regulator. A separate Regulator-in-waiting was the best way to provide a vehicle for overseeing the sector in a manner which could work with government constructively to establish a flexible and workable regularly framework. This is the task that ARMA-Q has set itself and I wish those involved in ARMA-Q every success. I also urge all market participants to support the initiative — I believe it will serve the long-term future health of our sector extremely well in the decades ahead.

pounds of client funds.Having researched the

position during my time as chairman of ARMA, it was clear that there was no immediate appetite for government intervention but that this might not always be the case. This was especially true given that the nature of housing stock in our crowded country is moving more and more toward high density multi-occupancy schemes, and where our ageing population means that an increasing number

O ne of the issues that I took an active interest in

during my time as chairman from 2005–2007 was the role of regulation in our sector. This is a very contentious issue and of course remains a topical one today, as ARMA works through the challenges of ARMA–Q.

I have always been firmly in favour of markets as a powerful force for delivering competitive and innovative solutions for consumers; driving efficiency and self-regulating themselves in terms of establishing an

economically normalised return on capital.

I'm also in favour of our sector being a fully-fledged and mature professional services sector, able to take its place alongside that of lawyers, accountants, surveyors and others. However, we need to recognise that there can be tensions between these twin objectives. A completely unharnessed market-driven solution can drive unprofessional conduct. This discredits market participants generally and acts as a disincentive to those who wish to operate professionally. Where such conduct becomes extreme, or the norm, or falls into the public spotlight it can attract government intervention of the most undesirable type. For example we have seen numerous Landlord and Tenant Acts over the last 30 years and there are various examples of them working clumsily (e.g. s20) or not at all (e.g. Commonhold or s152 of CLARA).

I believe that in thinking about the future five, 10 or 15 years hence, it's wise for us to try and forestall the potential for further clumsy government

F ifteen years is a long time to be involved in

your trade body; some might argue too long. During that time I have gone from being a property manager to a partner, then managing director and owner and now a non exec. I have experienced a massive residential boom and a huge increase in the complexity of managements, followed by the worst recession in living memory. Make no mistake; ARMA has been a significant element in my career, a source of the highest calibre information and a meeting of the best brains in the industry. I will miss it greatly.

Best of all, and despite what you might hear from a decreasing minority of detractors, I have never met a more focussed, determined and engaged group. All of them want to improve the industry. All of them give freely of their time and they have in the last 20 years greatly changed for the better the way that agents and landlords operate.

Duncan Rendall Chairman of Rendall and Rittner Chairman 2005–2007

David ClarkPrincipal, Mainstay GroupChairman 2003–2005

··

ARMA-Q MUST SET THE STANDARDS FOR

THE FUTURE AND MUST BE EMBRACED

BY ALL IN THE INDUSTRY — INCLUDING

THOSE THAT, FOR ONE REASON OR

ANOTHER, CHOOSE TO REMAIN OUTSIDE

OF THE ARMA UMBRELLA.

··

I HAVE NEVER MET A MORE FOCUSSED,

DETERMINED AND ENGAGED GROUP.

ALL OF THEM WANT TO IMPROVE

THE INDUSTRY

I BELIEVE THAT IN THINKING ABOUT THE

FUTURE FIVE, 10 OR 15 YEARS HENCE, IT

IS WISE FOR US TO TRY AND FORESTALL

THE POTENTIAL FOR FURTHER CLUMSY

GOVERNMENT INTERVENTION

18 19AQD Issue 63 | Winter 2013

INTERVIEWINTERVIEW