David Hewett: If Leasehold Managing Agents Were Licenced

Leasehold Life is pleased to welcome guest contributor David Hewett, outgoing Chief Executive of ARMA, the trade association for leasehold managing agents. Although the Government currently has  no intention of licencing this sector, I asked Mr Hewitt for his thoughts as to how ARMA might be affected should they have a change of mind. Here is his reply.

"However the regulatory regime was set up its role would have been to assess all those entities that manage leasehold property or handle service charge funds as to their fitness to do so.  The regime would have monitored performance, overseen complaints and would have had various sanctions including the ultimate sanction of banning organisations/individuals from the leasehold sector.  It is worth noting that it was mooted that the regime would cover not just managing agents but investor freeholders, RMCs and RTMcos that were self-managing. And it should be noted there were no plans for the regime to provide technical advice, support and training for those so regulated."

"The affect of this regime would have been to create a level playing field and hopefully drive out the rogues. It would have also removed from ARMA its self-regulatory role which you perceive would remove ARMA's USP to members, but this would not be the case."

"In virtually every case when membership applicants are asked why they wish to join ARMA, they respond 'for the technical support and advice as well as our training courses, workshops, seminars etc.' This attraction to membership rather than a pure commercial one is further borne out by the type of Affiliates (who cannot hold themselves out as members) we have which include RMCs, RTMs, høusing associations, local authorities, banks, insurers, lawyers and accountants."

"ARMA perceives that any regulatory regime would in fact expand its role in supporting all types of stakeholders in the leasehold sector. Losing its self-regulatory activities would release the resources to promote this."