OpinionINTERVIEW


property sector.“InitiallyARMA’saim was to tryand provideservices tomembersto help themdo a good job but until 1996 those services were limited: we didn’t provide memberswithany writtenguidancebut theaspirationwas there.”David explains that it was theCommonhold and Leasehold Reform Act of 2002 that was “the kicking off point”:ARMAhad comeof age. “The legislationmeant that propertymanagers hadtofurther changethe waytheyworked– they hadtobecomeevenmoreprofessional, to hone theirskillsand to understandthe implications of theAct,” says David. In turn ARMAresponded by providingextensive technicalsupport formembers forthe first timeandgivingthemaplace to go forhelp andadvice. Theeconomic situationintheUKwasalso


working in ARMA’s favour. Up until 2007, thepercentageofnew homesbeing built wasgrowing year-on-year,witharound 80,000 flats builtin2007–that’s60% of all newhomes coming onto themarket–and thosedevelopersweredirectlycreatingnew business forARMAmembers.Since then of course themarkethas changed outofall recognition butARMAisstill growingata comfortable rate. David believes this is due to increasing competitionamong property managers operatinginatight market. “ARMA membership not only gives agents an edge over their non-ARMA competitors but also provides aregulatoryframework in asector that is still striving to prove its professional credentials,” he says. “Annualsubscriptioncostsstart at £765


+VAT per year so we are not pay and display” says David. “Firmshave tomeet stringent criteria to gain ARMAmembership –theyare fully accountablebothtothe organisation and to their clients and customers for their conduct, with allmembers having to prove they have adequatePII cover, adhere to ARMA’s strict client accounts procedures, comply with therecognisedcodes andjoina registered ombudsman scheme.”


ARMAtiMeline 1991ARMAformed


1993 Leasehold Reform, Housing andUrban Development Actboosts membership


1996 Housing Act boosts membership further


DavidHewett appointed chief Executive


2000 Corporate membership exceeds100 firms


2002 Commonhold and Leasehold ReformAct boostsmembership In-depth technical supportformembersis introduced


34


ARMAformsInstitute of Residential Property Management (IRPM) forindividualstogain a recognisedprofessional qualificationwithin the sector


WHAtiSARMA?


formedin 1991, theassociationof residentialmanagingagents is the onlybody inenglandandwales to focusexclusivelyonmatters relating to themanagement of long leasehold residential property.armahasmorethan 260member firms that betweenthem managearound900,000flats inmorethan 34,000blocksorestatesofwhichover 60%arelesseecontrolled properties. arma’s principalaims areto represent its membersandthe interestsofflatowners, residentmanagementcompaniesand investor freeholders.tofindoutmore,go towww.arma.org.uk


Customer-foCus Oneofthe biggest changes Davidhas seen during histenureatARMAisthe increasing emphasis on theend user –the flatowner. During the1980s and1990s therewasn’t thesameprofessionalapproach to property management as thereisnow.“This has been largely legislation-driven,” he explains. “Also, we are nowliving in a more customer-focused cultureand it is notjustthe client–whether that is alandlord orRMC/RTMCo-but the residentswho have becomeevenmore importantinrecentyears.Ithas beenvitally importantfor ARMAto getthatculture in placebecauseourmembersare dealing with people’smost valued possession, their home, andindeed substantialamountsoftheir money,” he says. Management practice has hadtoevolve


over theyears butasDavid points out, people don’tchange: “living side-by-side with other peoplestill raises thesameissues,suchas noise andoverflowingbaths that it always has done”. It is theway inwhichthese aspects of communal living aredealt with that separates theprofessionalfirm fromthehave-a-go propertymanager. “Propertymanagement is a profession,” he asserts. “The number of


skills required is proofofthat”.David believes that gettingthisacrosstothe public is the biggest challenge of alland achievingthat goal will provetobeARMA’sgreatest success. “However” he adds, “there is no point in agents paying lip service to professionalism –theymustbehavethatway too”.Heisquick to pointout that somecriticismslevelled atmanaging agents are valid but he also believes thereare somepeople“coming into themarketmakingmischiefsimplyin order tomakemoney. They aremaligning the leasehold sector for their own gain,” he asserts.


Lookingforward As hiscareerwithARMAcomes to an end and he looks forward to a newchapter in hislife, David’sgreatest hope forthe sector is forall leaseholdlegislation to be brought together in aConsolidation Act. “Asitstands now, propertymanagers have to be familiar with allthe variousamendedActs in order to provide an efficient and compliant service. AConsolidation Actwould simplify theway theleaseholdsectorworks”. However, given the economic situation and the Coalition government’s stance of notinterfering with existing leasehold legislation, David is certain that anything that happensinthe sector in theimmediate future will be driven by the industry rather than by Parliament.Thatsaid, hispersonalpredictionisthatinfive years’ time,“leaseholdwillbeperceived by everyone as aperfectly respectableand suitable form of tenure,ofequal status to freehold”. Sowhat advice will Davidbegivinghis


successorasanew erabeginsatARMA? “First, it is vitalthatARMAcontinues to support themembers andprovidesthemwithgood technicalinformation andsupport.Second, legislationmustbeconstantlymonitored to keepmembersup-to-datewiththe impact on theirbusinessesand indeed theimpact on leaseholders.Finally,ARMAmustnever lose sight of thefactthatthe customer is the leaseholder”.●


2003Bespoketraining courses developed


2004ARMAincorporates


2007 Construction of newleasehold flatshits 80,000 per annum


2008 Corporate membership exceeds200 firms


2009Membership of a recognisedombudsman schemebecomes mandatory forARMA members


2011Membership exceeds 260 firms


IRPMmembership exceeds2000 property managers


Morethan40bespoke training courses available


RICSintroduces AssocRICSqualification for blockmanagers. DavidHewett announces hisretirementand is madeaFellowofthe RICS


Winter 2011 Flat Living


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