On Wednesday 24 February 2010 the RICS published the Final Report on the Consultation ‘Transparency in Professional Fees’, reiterating a call upon government to introduce comprehensive regulation of the Residential Property Sector. This emphasizes the annual call from ARMA, which from my direct experience has been going on since working with ARMA in committee back in 2000.
The RICS Consultation, launched in April 2009, found ‘ numerous examples of unwelcome practices and inconsistencies in the level of transparency provided for professional fees.’
Consultation responses concerned:- Service Charge levels, Valuation Fees, Commissions on Letting Renewals, Home Information Packs, Energy Performance Certificates
RICS wants Landlords, Letting Agents and Managing Agents to be subject to regulation by an independent body, such as the Property Standards Board. Further, a government review of existing legislation, greater transparency and clarity of in the description of Mortgage and Valuation Fees for Mortgage Applicants.
Those in property law reform like CARLEX and CARL have more strident views than another self-serving industry QUANGO. Government legislation to regulate via the Financial Services Authority (FSA), Office of Fair Trading (OFT), Local Government Trading Standards and, Serious Fraud Office (SFO) is there already. It just needs joined up government !!
Back in 2001, I had a selected opportunity to question Charles Clarke MP, then Secretary of State for Education, the question and response as below:-
AI Q: ‘ What the hell has happened to Housing !!
CC R: ‘ Hand on heart, Housing has been on the back burner for far too long. Next year should see some significant progress. ‘
In 2002 came the Commonhold and Leasehold Reform Act, which was, as we all know fundamentally flawed from the outset. Largely, the only really useful bit has been ‘Right To Manage’, bin the rest.
Housebuilding has collapsed and skewed the residential property market through lack of supply against demand, this compounded by the international Finance Sector induced crisis affecting wholesale funding and the mortgage market.
Despite the quality report ‘An end to Feudalism’ by Nick Raynesford MP and Frank Dobson MP, the Labour Government have lost the PLOT over Housing and Property Law Reform. That is if they ever understood the PLOT and the fundamental affectation of Housing on the wider economy and society in general. Focused from 1997 on Education, Education, Education, followed by Health Service, Health Service, Health Service, almost everything else under government has been gut response to crisis after crisis under intensive micro-management leading to comprehensive mis-management.
Leaseholders, Pensioners and many other inter-linking groups have been ignored and alienated. Now, of course, there will be the inevitable sharp focus on Voters, as so much is at stake to govern in the future.
GAME ON FOR THE GENERAL ELECTION – 6 MAY 2010. However one votes is personal choice and for many a very private function. Persuade all you can to exercise their right to vote – People died for it !!
Alan Ingram
Consultant
Fair Property Ownership