Policy Forum 2: Implementing the Rugg Review

1. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David SalusburyChairman, National Landlord’s Association

2. The private rented sector: professionalism and quality - consultation Summary of responses and next steps

3. Implementing the Rugg Review • Regulation of letting and managing agents • National Register of Landlords • Written tenancy agreements • Increase of AST threshold • Selective licensing • Improved redress for tenants and landlords • A future for the Private Rented Sector

4. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David Salusbury Chairman, National Landlord’s Association

5. Implementing the Rugg Review Regulation of letting and managing agents David C. Hewett FCA FIRPM Chief Executive Association of Residential Managing Agents

6. Implementing the Rugg Review • Over 3m families in private rented housing • Some 2.5m families live in leasehold flats • A large proportion of these properties managed • by agents • Tenants’ homes and their money • Vast majority in favour of • regulation/licensing

7. Implementing the Rugg Review • “an individual or organisation that acts on behalf of a third party in letting or managing a property under a tenancy or leasehold agreement” • But what of self-management?

8. Implementing the Rugg Review • Drivers for regulation:- • Consumer protection • Increase the professionalism and reputation of the management sector • Drive improvements in condition (of PRS) • Create a level playing field for all agents

9. Implementing the Rugg Review • Key principles and characteristics:- • ?? Separate regime for estate agents ?? • Self-funding • Independent redress • Safeguards to protect client money • Hurdles to entry • Fairness/transparency of fees • Sanctions

10. Implementing the Rugg Review • Structure and type of regulation • A fully independent Regulator • Industry-led • - The Property Standards Board (PSB)

12. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David Salusbury Chairman, National Landlord’s Association

13. David SalusburyChairmanNational Landlords Association

14. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David SalusburyChairman, National Landlord’s Association

15. Political Posturing!What does the post-election period have in store for the property industry? Liz Peace Chief Executive British Property Federation KPMG Tax Seminar 4 February 2010

16. The Economic Outlook • Economy contracted over 6 consecutive quarters (longest period since records began in 1955) • 0.1% GDP growth in last quarter 2009 • 1 – 1.5% growth in 2010, 3.5% in 2011. B of E – 2.2% in 2010 • Public borrowing at £178 billion (12.6% GDP) in 2010 • Chancellor plans to halve deficit by 2014/15 • Threat to credit rating if not controlled • Tax incentives/spending cuts – one third/two thirds • Fall entirely on public spending after 4 years

17. The Economic Outloook for Property • £300bn debt in commercial property • £1.5 trillion debt in housing • Working out of commercial debt will take minimum of 5 years • Doubtful occupier market • Restructuring in retail – but supermarkets thriving • The end of retail led regeneration?

18. General Election Forecast Tory majority - 32 2005 2010 2005 2010 2005 2010

19. How the parties line up • Competing with each other to deal with deficit • Labour – more of the same? • Conservatives – cut quickly & deeply (possibly!) • Lib/Dem – tough choices but don’t cut prematurely

20. Tories • Wants to be the party of small Government, low taxation • Room for manoeuvre on tax cutting limited • Interest tax relief under threat? • De-regulation • Localism • TIFs?

21. Localism unpicked • A Tory dogma shoe-horned into planning system • Removing regional layer of Government/target setting • But clear national framework; commitment to supply of housing/development land • Revert to “Option 1” figures • Local financial incentivisation – Business Rates/Council Tax • IPC integrated into PINS • Planning simple and more effective

22. Lib Dems • A franchise, not a party • Their own brand of localism – empowering local authorities • Radical surgery on public spending – but not too quickly • Local control of business rates • Financing mechanism for big infrastructure

23. So what does this mean for us? • No immediate prospect of tax relief – EPRs etc • Danger of smash and grab raids cf 1997-99 • Possibly useful de-regulation • Reduction in debt • Low rates of commercial development activity due to economy and localism combined • Less public sector development activity

24. What should we do? • Information • Relationship – building • Support for new Government • Coherence

25. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David SalusburyChairman, National Landlord’s Association

26. Policy Forum 2: Implementingthe Rugg Review Chair: Ashley Hook CIHSE Committee Member David Hewett Chief Executive, Association of Residential Managing Agents (ARMA) Liz Peace Chief Executive, British Property Federation David SalusburyChairman, National Landlord’s Association