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NLA Annual Report 2008

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Chairman's report

It has been another busy year for the National Landlords Association. I think it fair to say that is how we like it.

When you are a growing organisation, change and challenge is something you should embrace. We realise that it is only by keeping up with events and developments, be they in government, the financial world or IT, that the NLA is able to realise its potential as the leading representative body for landlords in the United Kingdom. By pursuing our policy of presenting ourselves as a professional and coherent organisation which speaks with authority for private landlords throughout the country, we believe we best serve the interests of our members and, hopefully, those of the wider private-rented sector.

That we are now truly national was exemplified earlier in the year with a very successful reception at the Scottish Parliament. Simultaneously, we continue to establish ourselves with the Welsh Assembly Government which, as we are the most readily available voice to landlords in Wales, is particularly important. In Northern Ireland we are moving forward to increase our profile and presence. At the same time we place great importance on our links with the Greater London Authority, with its component parts, the Mayor of London and the Greater London Assembly. Here we are already building a presence which will come more to the fore as new housing policies are developed. Finally, we do not overlook the European level. The NLA is playing an increasingly important role as the UK member of the International Union of Property Owners (UIPI). As more legislation affecting the private-rented sector emanates from the European Union, we need to ensure that we play a full part in this international forum in influencing polices that take proper account of the interests of landlords.

All this activity is undoubtedly critical to our success, but we must never forget that NLA activity at local level has to be our staple diet, not least because the main contact with government for the overwhelming majority of our members is with local authorities. I am pleased to report that an increasing number of local authorities are recognising the contribution of the NLA by choosing to become Associate members, thus contributing to greater understanding between landlords and local policy-makers.Our network of Regional Representatives is playing a tremendous role in building links with local authorities while working to bring landlords together at local level. Where a local authority appears to be pursuing polices that are potentially damaging to our members the NLA acts to safeguard the interests of those concerned.

The year has also seen us continue to expand the range of services and products available to members. I am very conscious that what we, as landlords, want is to be able to get on with running our lettings businesses in the best possible way and with the minimum of intervention by government. Any extra service that can contribute to that goal is always helpful. That is why we have put great emphasis on expanding and improving the range of benefits and services we offer our members. In particular, I should mention that the tenancy deposit protection scheme which we sponsor, now rebranded as mydeposits, goes from strength to strength.

Members - and landlords everywhere - tell us they want a unified voice and ask when are we going to get our act together? As members know, in July we took a major step forward for the sector by merging with the NFRL. We were not the only ones to believe this was the right thing to do. We had numerous messages of support and congratulation from other organisations working in the private-rented sector, from government officials and politicians. Judging by the number of NFRL members who are contacting us and accessing NLA benefits, the merger has been well received by those who matter most - the members.

I would also like to say a word about governance of the NLA. As we have expanded, our membership is drawn from an increasingly diverse community of landlords. It has to be admitted, however, that the composition of our Board does not accurately reflect this diversity. With some justification, we were criticised for this at the last AGM. I very much want to do something about this, but I am sorry to have to report that, despite the subject being high on our agenda, as yet we do not have any female directors. So, although we will always treat applications from men and women in exactly the same way, we would encourage any lady member with wide landlord and managerial expertise who would like to make a contribution at board level to offer their services as a director. In the first instance, please get in touch with my colleague, Patrick Jacobs ( ), saying why you think you would be able to carry out the role and enclosing your CV.

Communications

It has been very busy for the three areas of the Communications Department: media, policy and public affairs.

Since the expansion of the NLA Press Office in December 2007, the media profile of the Association has significantly increased. The level of coverage achieved is equivalent to £1.7 million of advertising space, with 1,500 individual mentions in national, local and specialist press and broadcast media. There have been more than 400 media enquiries to the press office. All of this activity enables the NLA to further promote and protect landlord's interests in the media. Some key issues for commentary have included sale and rent back, letting agents' renewal fees, the credit crunch, energy performance certificates and tenancy deposit protection, as well as individual occasions when landlord and tenant cases hit the news.

Dr Julie Rugg of York University was commissioned to carry out a review of the private-rented sector in 2007. The NLA has been closely involved in this with the policy team attending a number of round table-meetings with other stakeholders in the housing field. At a joint meeting, the NFRL Chair and I met Julie Rugg to discuss the wide range of topics she was addressing. This was in addition to the detailed written submission the NLA made, in conjunction with the NFRL, to the review.

During the year the issue of retaliatory eviction has come to the fore. In our submission to the private-rented sector review, in talks with Minsters and civil servants, in articles and interviews, and in meetings with other stakeholders, the NLA has robustly countered attempts to modify the right of landlords to use Section 21 to get possession. While no consensus has emerged about the next stage in this debate, attention has now turned to discussing the impact of the Rugg Review. The government has said that it will follow this with a Green Paper, expected in the autumn. The line we have been taking was debated at length at an NLA-sponsored landlord forum in February, attended by landlords' representatives from all over the country.

Energy Performance Certificates came into force for any new tenancy starting after 1 October. In the run-up to that date the NLA was closely involved in the debate on energy efficiency, with some success over recent years with the introduction of the Landlords Energy Savings Allowance. With EPCs being introduced across the board in UK housing it was not possible to argue that the private-rented sector should be exempt. However, the NLA has worked to ensure that guidance for landlords is easily obtainable offering information on EPCs and where they can be purchased.

The NLA has worked closely with LACORS (the body responsible for coordinating local authority work) and the Association of Chief Fire Officers to develop and produce a comprehensive, understandable guide on their obligations, with a view to simplifying the plethora of fire safety legislation.

During the year we have lobbied the Government on the issue of 'studentification' so as to remind them of the need to balance the needs of communities with the business interests of private landlords. Local Housing Allowance is beginning to be an issue, and the NLA continues to bring examples of these problems to the attention of the relevant Ministers and civil servants and point out the flaws in the system. The NLA also continues to work with Digital UK on the switch-over for television to a digital signal, and the impact this might have on landlords.

An NLA Bulletin for stakeholders was designed and developed. In response to consistent lobbying for topdown regulation of landlords within the sale and rent back market, the NLA successfully concluded negotiations to position us as the only landlord association accepted to apply for the Consumer Code Approval Scheme. The NLA status and visibility with HM Treasury and HMRC has been raised in relation to strengthening landlords' input on taxation policy. We continue to build relationships with local authorities by advising and responding to regional and sub-regional housing plans which have a direct impact on the business interests of NLA members.

During the year the NLA has strengthened links with the Scottish Government and the Welsh Assembly. With a view to better represent our members in Scotland we have agreed with the Scottish Government to have regular meetings to discuss initiatives and policies that will affect the private-rented sector. The creation of similar ties has also started in Wales and an expansion of NLA activities is under way in Northern Ireland. The NLA has opened discussions with the office of the Mayor of London and with the Greater London Assembly.

We have continued to develop links with MPs and peers at Westminster. We continue to contribute to the various consultation processes emerging from the Government and other official bodies, such as the Law Commission. Once again, the NLA attended the conferences of the main political parties. Our presence at the Labour Conference attracted a great deal of favourable attention with eight Ministers visiting our stand. At the Conservative Party Conference we held an event that targeted MPs, parliamentary candidates, councillors, and other representatives. Grant Shapps MP, Shadow Housing Minister, spoke and took questions.

The NLA joined a Coalition of interested parties in the Cut the VAT campaign calling for a cut in VAT on repairs to households.

At the European level the NLA has played a leading role within the UIPI, with representatives sitting on the various committees which examine and monitor polices originating in the EU and which have a bearing on the letting of private residential property. The NLA Chairman is now Chairman of the UIPI EU Affairs Committee and the Association is working with other member organisations to create an enhanced professional presence in Brussels.

Our house journal UK Landlord continues to develop as a publication. Every effort is made to ensure that it carries a range articles designed to keep members informed of developments affecting the sector as a whole while providing practical advice and comment on day-to-day issues facing landlords. Our editorial team, Andy Stern and Louise Gale, continue to produce a high-quality product of which the NLA is justly proud, a pride justified by the favourable comments we continue to receive.

Operations

Advice Line

The Advice Lines are staffed from a pool of fifteen skilled, experienced advisors, now working in both London and Brighton. At the beginning of 2008 advisors were handling between 750 and 1125 calls per week. By April this had increased to between 1000 and 1600 calls per week.

The complexity of the enquiries and the length of the calls have also been increasing owing to regulation arising from recent housing legislation coming into force. The impact of this has been felt on the advice-line, which, as a key benefit to members, is constantly monitored. We continue to regard the advice line as the flagship benefit for our members and will continue to search for ways of improving the service.

Landlord Development

Landlord development is now a major part of the NLA's activities. The Landlord Library has been launched and so far it has over 2,000 unique users. A panel of NLA members has been surveyed to get a better idea of development requirements. A number of NLA Regional Representatives are now able to deliver development courses, enabling Foundation Courses, originally run in London, to be run in other areas of the country.

Specialist courses have been introduced, the first designed to teach landlords to carry out their own portable appliance testing. The next is scheduled to cover taxation. The NLA can now deliver bespoke training sessions on request to external bodies, such as Crisis and ALMA. We are now working to deliver a development service for landlord accreditation in Wales and for the London Landlord Accreditation Scheme. A review of the Landlord Development Manual has also been started.

Member Services

A new position of Member Services Manager was created in January with responsibility for working with NLA staff and service providers to improve and maintain the level of service. The role is also intended to create a dedicated point of contact for members who might have queries and complaints about services. Additional tasks involved in this new role include organising the NLA Conference.

The NLA now has a total of 94 local authority associate members drawn from right across the United Kingdom. A majority of Welsh local authorities are now members of the NLA.

Sale and Rent Back

Since the project's inception in 2007, NLA RentBack has successfully negotiated with external stakeholders to position NLA RentBack as the primary source of information and focus for efforts to improve the SRB market.

We have sought to grow and diversify the NLA's public profile and as such improve the reputation of private landlords. This has involved the drafting of, and consultation on, a code of practice and conducting considerable market research to safeguard the interests of members and the wider private-rented sector.

The NLA is now in the process of making application to the Office of Fair Trading to obtain the status of the Consumer Code Approval Scheme (CCAS). We are pleased that the NLA is the first landlords' representative body to be invited to apply for this coveted award.

Support and Advice

As an experiment, in January 2008 the NLA set up a service to help members having problems with local authorities or other bodies. The aim is to assist where an issue is unusually complex and has a bearing on the interests of landlords generally, and the member needs extra help to resolve the issue. The service has already come to the assistance of more than fifty members and has dealt with a range of matters, including HMO licensing, HHSRS, planning issues including building control standards, and council tax. Cases taken up are, in the main, selected from advice-line records, and contact made with an individual member whose experiences might benefit landlords generally. This service is not openly offered to members.

Working in conjunction with the NLA Policy team the new service continues to work on issues including council-tax and the new Fire Safety Standards, which may soon be extended to Wales. In addition we are contacting members who have used Section 21 so as to have a body of evidence to hand should any attempt be made to limit the scope of its operation.

Work in the Regions

As part of our programme for increasing NLA activity in the regions, in April 2008 we appointed a centrallybased Regional Co-ordinator to act as the focal liaison point for our network of Regional Representatives, branch volunteers and affiliated landlord associations. Together this team is responsible for meeting with, and assisting, local authorities to understand issues of importance to landlords, and providing information and networking opportunities at events for landlords throughout the UK.

This has been accompanied by putting a solid communication structure in place before we employ more representatives and building on the number and frequency of events for members across the country. The NLA now employs 25 Regional Representatives. In three regions we have developed a Regional Organiser role to co-ordinate communication, activity, and events.

We now have fifteen branches run by local volunteers who are handling regular meetings for members.

Six other landlords associations are affiliated to the association.

Marketing

Identifying prospective members continues to be the Association's biggest challenge. The NLA marketing budget does not allow us to explore fully - to the degree required to ensure a realistic return on investment - all opportunities, such as advertising at a national level. Therefore the thrust of the marketing effort will continue to focus on the use of public relations, the internet, our website, events (national, regional and local), working with third parties (suppliers), and by offering services to the entire industry. These activities lead to membership enquiries and improvements in converting these into actual membership is an area of continuous effort.

Much work has been carried out, and will continue, on understanding the many types of landlord 'membership' (novice or those with one/two properties versus those experienced with large property portfolios); how needs differ between these categories and how they might choose to interact with the NLA.

The results of this work will aid efforts to refine what we offer as 'a service and the associated package of membership benefits, and how we might respond to individual members.

The introduction of new products and services (online Landlord Library, NLA Mortgages, NLA EPCs and NLA Tenant Checks), combined with continuing efforts to improve communications (welcome packs, UK Landlord, the website and e-newsletters), has already begun to make a difference to membership growth and retention for the financial year August 2008 to July 2009.

There has been a steady growth in the number of new members culminating in a total 3,400 for the financial period August 2007 to July 2008.

Less encouragingly, we have witnessed an increase in the number of members leaving the NLA during the same period. A total of 2551 members did not renew. Approximately 900 of these non-renewals can be attributed to those individuals who became NLA members through the free membership scheme operated by Birmingham Midshires. The net effect is thus an increase of 849 for the financial year.

Systems

As the NLA continues to grow and becomes more dependent on technology the Systems area has worked towards improving the facilities available and increasing resilience in the technology used and the technical skills and human resource available. Increasing staff levels within the organisation have also inevitably led to expansion and reconfiguration of existing facilities.

The NLA's existing external IT suppliers have been replaced by a single company which is able to provide resilience as required for our support requirements and the broad range of technical skills that are now needed.

Despite capacity being available within the phone system itself, the technology used to provide external connectivity was replaced to provide additional lines and an easier upgrade route for future growth. Member service has been improved by implementing real-time interfaces between many facilities and our central membership database, removing some of the delays previously experienced owing to overnight update processes.

Concluding Remarks

We live in interesting times. We have seen turmoil in the financial markets. We remain in a turbulent period in the housing market. However, what has emerged is, I hope, an increasing realisation that the private-rented sector is a vital part of the overall housing mix. There are signs that government - at all levels - is now beginning to realise that landlords should no longer be seen as the whipping boy of the housing market but actually as a positive part of the solution to the nation's housing needs. The image of the landlord is thus showing signs of improvement, and the NLA is now the first port of call for journalists, civil servants and politicians wanting information, advice or help on matters relating to the private-rented sector and the role of the private landlord.

In therefore believe that during the year our association has made good progress towards its strategic goals. I further believe that reputable landlords such as those we represent must continue to support efforts to drive out the rogue operators who blight our industry. At the same time, we must redouble our efforts to persuade government to desist from burdensome and excessive regulation. Thus whilst we are making our mark, there is, as ever, no room for complacency.

With the support of our members and superb staff, we will continue our efforts to make a difference - and I am confident we will succeed.

David Salusbury, NLA Chairman

NLA Members: Download the full Annual Report, Accounts and AGM Proxy Form here>>