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NLA Annual Report 2006 Chairman's report Public Affairs The Housing Act 2004 and its immediate aftermath have been major preoccupations during the past year. We continue to stress to government the importance of applying the new regulatory regime with a light rein if it is to be accepted by landlords. We are monitoring implementation by local authorities, challenging them if we think they are acting unreasonably. In April 2005 Elizabeth Brogan, senior policy officer, started working on secondment for three days a week in the Housing Markets Divisions of the ODPM (now DCLG). The secondment ended on 30 June 2006. Her task was to assist civil servants in the drafting of statutory instruments (secondary legislation) that are giving effect to measures such as HMO licensing, management orders, empty-dwelling management orders, and housing health & safety rating system. This secondment has enhanced the reputation of the NLA as a serious participant in discussion and debate on public policy for the private-rented sector. We believe that as a result of her work a more balanced, workable set of regulations are in place than would otherwise have been the case, even if we have to admit that we still don't like the Act and have reservations about the impact it will have on the sector. Excellent contacts have been made with other policy teams within DCLG, and we have also been able to influence the homelessness debate. This has provided the NLA with the opportunity to demonstrate a broad-based approach to housing policy rather than being seen as a landlord organisation purely pursuing sectional interests. We are a founder member of the Energy Efficiency Private-Rented Sector sub group and are actively promoting the interests of landlords while seeking to raise awareness across the sector on the practical effects of these proposals. We have suggested to government that an economic assessment of the taxation of rents should be carried out. Our concern is that all profit from lettings is currently treated as unearned income. We think some of the profits should be treated as earned income, enabling landlords to invest, for example, in a pension scheme and receive tax relief. Landlords are regulated and increasingly expected to run their lettings in a professional manner as a business, yet they enjoy few corresponding benefits such as rollover relief on capital gains tax. To encourage landlords further to raise standards of accommodation, there should be tax incentives for relevant improvements. No fewer than 57% of respondents to an NLA survey in April 2005 said they considered unreliable tenants to be their major cause of concern. 36% said they had at some stage been forced to apply to the courts for an eviction order. The average cost to the landlord had been in excess of £800, and time taken to gain possession was on average around 6 months. The NLA is lobbying for government to remove jurisdiction for these matters from the courts - whose procedures are often cumbersome - and place them under residential property tribunals or specialist housing courts. Members need no reminder that the private-rented sector is very heavily regulated. Even before the Housing Act 2004, there were around 50 separate Acts of Parliament, giving rise to some 70 statutory instruments, affecting the letting of private residential property. HA04 vastly complicates the regulatory environment. We have pressed government to simplify and codify this mass of regulation. The NLA shares the government's objective of creating a healthy private-rented sector, but disagrees with the prescriptive, regulatory approach being taken. We have made representations to the Minister giving our view that government would best serve the interests of the sector by encouraging the creation of a single, authoritative organisation for private landlords with which government can deal on all relevant matters. The objectives of such a professional body would include:
The Board believes we are ideally placed to take on the role of this body, if necessary as a self-regulating organisation for the sector. Raising standards has therefore become a key objective of the NLA, the other two being influencing public policy and providing benefits and services to members. During the past year we have taken a number of steps to raise standards. Improvements have been introduced in the range of information provided to member landlords designed to help them make a success of their lettings businesses. We have made good progress on further developing the NLA Code of Practice, to include provision for investigation of complaints to be properly carried out. Our network of regional representatives currently comprises some sixteen locally-based landlords. They are working with local authorities to ensure that the regulatory regime brought in by the Housing Act 2004 is implemented in an even-handed way, mistrust is reduced, and cooperation is improved. In February we held a successful meeting of regional representatives in London. A major issue this year has concerned tenancy deposit protection. The policy staff prepared a comprehensive response to the government's consultation on deposit protection schemes. Throughout the year we have had discussions with DCLG, focusing on doing what we can to ensure that the system which will be introduced in April 2007 will be workable, balanced and fair. The NLA is represented on a number of government bodies and non-government organisations (NGO):
We have had regular dealings with a number of government departments and agencies, including:
We have taken part in discussions with the Department of Constitutional Affairs on the Electoral Registration Bill, highlighting consequences for landlords that might arise from legislation. On 5 December 2005, the Chairman, accompanied by Simon Gordon, Head of Public Affairs, had a meeting with Minister for Housing & Planning, Yvette Cooper. The NLA has emerged as the key UK member of the Union de la Propriété Immobilière (UIPI), the international body representing property owners throughout Europe. The NLA Chairman is UK Vice President. We have actively supported the UIPI in its lobbying of the European Parliament and Commission. In May this year we hosted a meeting of the UIPI Executive in our new offices on the Albert Embankment. We are grateful to Axa Insurance, and to Hamilton Fraser plc, for generously sponsoring the accompanying social events. We have continued our drive to persuade local authorities to join the NLA as associate members. Currently, thirty-four authorities are members. For the third successive year, the NLA had a display stand at the Labour Party Conference in Manchester. In a first for a landlord association, we jointly sponsored with the British Property Federation a housing fringe meeting at the Conservative Party Conference in Bournemouth. In another first, we had a stand at the Local Government Association Conference, also in Bournemouth. We are pleased to have developed cordial links with 'The Big Issue'. 'CRISIS', and the London Housing Federation. Our policy team has had productive discussions on relevant matters with HM Treasury. Discussions continue on energy efficiency tax breaks for landlords. Chairman NLA gave evidence on anti-social behaviour to the Home Affairs Select Committee. Scotland, Wales and Northern Ireland We have been able to make encouraging improvements in the service we provide to members in Scotland. We have been helped in this by the affiliation in May of Fife Landlords Association to the NLA. We were very pleased to appoint Jim Parker, Secretary of Fife LA, as our first regional representative in Scotland, enabling us to create 'NLA Scotland'. Links have been established with the Scottish Executive, with articles from leading members of the Scottish Parliament published in UK Landlord. One of our policy officers is now tasked with monitoring Scottish legislation. We have developed links with the Welsh Assembly Government. As a result of our lobbying, the Welsh Executive agreed to remove the requirement for wash-hand basins in all HMO rooms. We have continued to provide a service to our members in Northern Ireland, lobbying the Housing Executive for fair play for landlords. We are involved in consultations on the introduction there of HMO licensing, and we made representations on the Northern Ireland Private Tenancy Order 2006. Media Every opportunity has been taken to publicise the activities of the NLA by means of regular media releases, meetings with journalists, and appearances on the broadcast media. The Chairman has had two letters published in the national press. Assisted by The Wriglesworth Partnership, the NLA has been increasingly regularly invited to provide comment on a wide variety of issues affecting the sector. During the 8-month period from January to August inclusive, the NLA was mentioned, and usually quoted, on 127 occasions in local and national media outlets, including The Financial Times, The Daily Telegraph, The Times and The Sunday Times. Member Services & Benefits We have improved the fact and information sheets which members can download from the website. The Telephone Advice Line has continued to be the member service most highly valued by members. There are now regularly three advisers on duty during business hours. The magazine UK Landlord has been developed as the flagship publication in its field. We have tried to ensure that fact and information sheets are as up to date as we can make them. It has been published five times over the year. We have extended and improved the NLA landlord development programme by increasing the number of one-day landlord development courses to meet demand. Four one-day landlord development courses have been run. In a major initiative, we have begun work on a web-based distance learning and information programme. An e-newsletter is now sent monthly to some 7,000 subscribers. It includes updates on legislative and regulatory matters affecting the private-rented sector. The website has continued to be an important information and marketing tool. We have held three general meetings during the year. These will continue. Normally the programme includes a presentation on a legal or regulatory matter. For the first time a general meeting was held outside London, in Northampton, on 7 June 2006. Our close working relationship with our insurance advisers, Hamilton Fraser
NLA Offices In April this year the NLA moved from its premises in Tachbrook Street, Pimlico, to, well-appointed offices on the 3rd Floor of a modern office block at 22-26 Albert Embankment. Overlooking the river and within sight of the Houses of Parliament, the new offices provide agreeable and comfortable surroundings in which our staff are now able to work. Branches & Affiliated Associations In September 2005 the Dorset Residential Landlords Association voted to dissolve itself and become a branch of the NLA, styled 'NLA (Dorset)'. We have been pleased to welcome a number of other landlord associations as affiliates. They are:
These welcome developments represent a significant step towards the creation of a unified voice at the national level for all landlords. NLA (Wessex) and NLA (Northampton) have continued to thrive as the major representative body for landlords in the South West and Northamptonshire, respectively. We very much welcomed the formation of a new NLA branch in Shrewsbury. Staff As the activity undertaken by the NLA has increased and our profile risen, so it has become necessary to employ staff to perform the wide range of tasks that require to be carried out. Including regional representatives, we now employ a staff of around 20 full-time equivalents. In November Richard Williams joined the policy staff. In June we were pleased to appoint Michelle Harris as Office Manager for the Albert Embankment offices. Our membership administrator, Pauline Wilson, relocated to the new offices from Worcester Park. In May we were delighted to welcome Paul Berwick as the newest member of the NLA team. An experienced marketing professional, Paul joined us as Business Development Manager. His responsibilities include member retention and recruitment, and member benefits. Membership Our membership has continued to grow. With around 11,000 members throughout the country the NLA is now probably larger in terms of turnover and membership than all other landlord associations put together. We consider our scheme for special corporate members to be among our major successes. Paragon Mortgages Ltd, Mortgage Trust, Birmingham Midshires, Mortgage Express and Bristol & West continue to give us excellent support, in return for our representing their case as buy-to-let lenders as we go about our lobbying and policy work with government. A membership offer sponsored by Birmingham Midshires has been an outstanding success. A Look Forward Our key strategic objective is to position the NLA as the leading representative voice for landlords in UK. We intend moving towards this objective by representing landlords on every government and NGO meeting, committee or forum tasked with examining any facet of the private-rented sector. We will continue our systematic membership recruitment drive. Turnover is expected to increase significantly. We will review and improve the services we provide to members, including those in Scotland, and will consult members on what they want. Plans are well under way further to develop UK Landlord with a view to making it automatic reading for anyone interested in, or involved in, the private-rented sector. We will increase our activity at the European level, principally through membership of UIPI. We will develop and improve our regional representative network. We will seek to persuade more local authorities to join the NLA as associate members by improving our capacity to respond to requests for advice and assistance from local authorities, particularly in implementing provisions of HA04. We will build on the success of our special corporate membership schemes, and examine what services we might provide to our larger portfolio and company members. We will build on our reputation for measured dealings with government, criticising where we think it necessary. We will maintain and expand our dealings with the media. We will redouble our efforts to persuade other landlord associations to affiliate to NLA, or become branches. In summary, I believe the signs are encouraging and that the NLA will make good progress during the coming year. If our most important resource - our members - take every opportunity to make other landlords aware of the benefits of membership, we will continue to grow. I am optimistic that in the coming year we will consolidate our position as the pre-eminent representative body for landlords in the private-rented sector. David Salusbury, NLA Chairman |
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