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.


• 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


• 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

• 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…


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


“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


“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.”


“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.”


“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


“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..”


“We recommend that the new regulator does not

exempt agents from a qualification requirement on the

basis of experience alone.”


“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.”


“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.”


“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.”


“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


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


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


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


• 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

Andrew Bulmer - arhmconference.co.uk€¦ · Regulation –the challenges Latest proposals and the...

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