Andrew Bulmer - arhmconference.co.uk€¦ · Regulation –the challenges Latest proposals and the...
Transcript of Andrew Bulmer - arhmconference.co.uk€¦ · Regulation –the challenges Latest proposals and the...
Regulation – the challenges Latest proposals and
the role of qualifications
Andrew Bulmer BSc FIRPM FRICSwww.irpm.org.uk
Institute of Residential Property Management (IRPM) est. 2002
IRPM’s mission…
• to raise standards in the management of residential property
• provide individuals with independent professional accreditation
IRPM is not a trade body and does not lobby, but is an authoritative and
trusted voice with Government and stakeholders as an unbiased speaker
of truth to power.
Institute of Residential Property Management (IRPM) est. 2002
• Not-for-profit professional body; c.5,000 members
• Individual property management professionals, not firms
• Leading provider of learning, apprenticeships and qualifications in the
residential leasehold, block, factoring and build-to-rent sectors
Institute of Residential Property Management (IRPM) est. 2002
• OFQUAL regulated qualifications, through ABBE• Level 3 leasehold (AIRPM)
• Level 4 leasehold (MIRPM)
• Level 4 build-to-rent (MIRPM)
• Four Elements – redefining property management professionalism
IRPM Update
IRPM Update
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
• Dame Judith Hackitt – Review of Building Regs & Fire Safety• Grenfell Public Enquiry• Prohibiting new build leasehold houses (exceptions…)• Restricting ground rents in new houses and flats• Closing loopholes for leaseholders and freeholders; those
RTEs, consents, hidden commissions• Reinvigorating commonhold• 13th Law Commission – watch this space• Mandatory regulation of property managers, note – for both
the corporate entities and individuals• Nationally recognised qualification for property managers,
with CPD
Policy and influence
Power to the people!
Law Commission and MHCLG – a clear direction of travel
• easier enfranchisement of existing leaseholds• better consumer info/switching agents• end of the 3rd party landlord going forward?
• zero ground rents• ending excessive commissions
• rebooting commonhold• increasingly dealing with RMCs. Or commonhold…
This is culture change
Dame Judith Hackitt’s Review of Building Regulations and Fire Safety
“Despite many who demonstrate good practice, the means of assessing and ensuring the competency of key people throughout the system is inadequate.”
“Those responsible for high-risk and complex buildings should be held to account to a higher degree.”
“Managing agents were singled out [by residents] as tending to ignore or dismiss requests for information and for giving insufficient or incorrect advice.”
Dame Judith Hackitt’s Review of Building Regulations and Fire Safety
- the Regulator- the Accountable Person – an individual (exc CHold)- the Building Safety Manager- the qualification- the Safety Case- the ‘issue’ – RMCs/Commonhold – who is the AP?- The Residents’ Voice
- DJH wants culture change - nothing less
Lord Best’s RoPA Working GroupRegulation of Property Agents
- for sales, lettings and block- a state regulator, regulating culture- new code(s) of practice- Designated Professional Bodies – how does that work?- licencing and mandatory qualifications- leasehold matters- timings…
Lord Best’s RoPA Working GroupRegulation of Property Agents
Working Group members were:• Royal Institution of Chartered Surveyors (RICS) • Institute of Residential Property Management (IRPM)• ARLA/NAEA Propertymark• National Trading Standards (NTS)• Professor Christopher Hodges, Oxford University• Leasehold Advisory Service (LEASE)• National Landlords Association (NLA)• Citizens Advice• Ombudsman Services
Lord Best’s RoPA Working GroupRegulation of Property Agents
“We recommend that the new regulator should be
able to vary licensing conditions as it sees fit and
that it maintains accessible records of licensed
property agents.”
- firms or individuals?- fit and proper test- an airline, with pilots
Lord Best’s RoPA Working GroupRegulation of Property Agents
“While there are many roles within property agency
businesses, mandatory qualifications should apply
only to licensed agents who carry out reserved
activities.
The new regulator should set and periodically review
a modular syllabus for property agent qualifications,
to be delivered by separate providers.
Continuing professional development should also be a mandatory requirement for licensed agents.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“We therefore recommend that licensed agents
should be qualified to a minimum of level 3;
company directors and management agents
should be qualified to a minimum of level 4.
The regulator should be given the flexibility to require
a qualification below level 4 for property managers
that carry out reserved activities with a reduced level
of responsibility, such as combined caretaker/site managers.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“Throughout this report we note the importance of
effecting cultural as well as technical change. We
recommend that the syllabus should not focus too
narrowly on technical skill – safety, consumer
relations and ethical behaviour are also essential
components which should be reflected in qualifications..”
Rings a bell..?
IRPM re-booting professionalism
The “Four Elements”
• Technical competence• Safety• Customer and consumer• Ethics and behaviours
Lord Best’s RoPA Working GroupRegulation of Property Agents
“Throughout this report we note the importance of
effecting cultural as well as technical change. We
recommend that the syllabus should not focus too
narrowly on technical skill – safety, consumer
relations and ethical behaviour are also essential
components which should be reflected in qualifications..”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“We recommend that the new regulator does not
exempt agents from a qualification requirement on the
basis of experience alone.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“Some agents will hold qualifications at a higher level
than that required by the regulator. So long as these
cover the content in the syllabus set by the regulator,
these professionals will not need to evidence further
training. Other agents will have a qualification but
below level 3 (or the level appropriate to their role);
the new regulator may approve some but not all
previous or current level 3 qualifications.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“Nevertheless, it would be excessive to require these
‘partially-qualified’ agents to redo their training from
scratch. Instead, we recommend that the new
regulator allow partially qualified agents to make up
the difference between their qualification and the
required standard by taking specified continuing
professional development.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“We recommend that the new regulator takes over
from the First-tier Tribunal the power to block a
landlord’s chosen managing agent where the
leaseholders have reasonably exercised a veto.”
Lord Best’s RoPA Working GroupRegulation of Property Agents
“The regulatory code should include standards for
transparency; potential conflicts of interest (e.g.
mandatory disclosure of commissions and
management fee charges); communication and use of
service charges; administration charges; permission
fees; use of covenants; and protection of client
money.”
Institute of Residential Property Management (IRPM)
Future challenges 1 – Mandatory regulation
• And the point is?
• When?
• Who will be regulated? – Regulated activities
• How does that work with other regulators?
• How? – Regulating culture
Institute of Residential Property Management (IRPM)
Future challenges 1 – Mandatory regulation - DPBs
• The regulator will decide IF they are prepared to permit Designated
Professional Bodies.
• And if they do, on what terms. Regulating what?
• CPD compliance
• Reformatting compliance function
• Regulation = expensive, not-for-profit activity carried out in public interest
• Co-operation between DPBs will be essential
Institute of Residential Property Management (IRPM)
Future challenges 2 – Mandatory qualifications
• The regulator will set the syllabus and the rules – until then, everyone is
guessing
• OFQUAL regulated
• But note - Lord Best adopted IRPM Four Elements as founding principles
• No grandfathering for those with no qualification
• Those with a lower qualification will need CPD to upgrade
Institute of Residential Property Management (IRPM)
Future challenges 3 – Forget RoPA, it’s the customer, stupid!
• “The role of qualifications”
• Four Elements of Property Professionalism
• Revised Working Groups
• Upgraded learning platform
• Developing learning and member support products
• Collaboration as a first principle – e.g. LEASE for training video
Institute of Residential Property Management (IRPM)
• Clarity on role of a professional body
• Public interest – promoting the usefulness of the profession…
• Working with government on leasehold reform, building safety,
regulation, mandatory qualifications, standards and the bigger picture
• Working with other stakeholders; professional and trade bodies,
experts, lenders, etc.
• Listening……..
• Technical competence• Safety• Customer and consumer• Ethics and behaviours
Andrew BulmerCEO Institute of Residential Property Management