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2017 2018 HOUSING A YEAR IN PERSPECTIVE FOREWORDS The Rt Hon Theresa May MP Alok Sharma MP R E P R E S E N TAT I V E S The Portman Estate Mazzard Investments Mainstay Group Grant Property Lyntonross Robinsons Urang Property Management Stanford Knights Letting Ivy Lettings Brookdale Property Management Get Living Ground Solutions UK Ainsworth Lord Estates Balinor Group Holdings E P Muldoon Building Contractors F E AT U R E S Review of the Year Review of Parliament 2018 WESTMINSTE R PUB LI CATI O N S www theparliamentaryreview co uk

Foreword The Rt Hon Theresa May MP Prime Minister And of course it was a year in which the general election showed that parts of our country remain divided and laid a fresh challenge to all of us involved in politics to resolve our differences deal with injustices and take not shirk the big decisions That is why our programme for government for the coming year is about recognising and grasping the opportunities that lie ahead for the United Kingdom as we leave the EU The referendum vote in 2016 was not just a vote to leave the EU it was a profound and justified expression that our country often does not work the way it should for millions of ordinary working families So we need to deliver a Brexit deal that works for all parts of the UK while continuing to build a stronger fairer country by strengthening our economy tackling injustice and promoting opportunity and aspiration In the year ahead we will continue to bring down the deficit so that young people do not spend most of their working lives paying for our failure to live within our means We will take action to build a stronger economy so that we can improve people s living standards and fund the public services on which we all depend We will continue with our modern industrial strategy deliver the next phase of high speed rail improve our energy infrastructure and support the development of automated vehicles and satellite technology building a modern economy which creates the high skill jobs of the future At the same time work needs to be done to build a fairer society where people can go as far as their talents will take them and no one is held back because of their background So we will continue to work to ensure every child has the opportunity to attend a good school We will continue to invest in the nHS and reform mental health legislation making this a priority And we will work to address the challenges of social care for our ageing population bringing forward proposals for consultation to build widespread support So this is a government determined to deliver the best Brexit deal intent on building a stronger economy and a fairer society committed to keeping our country safe enhancing our standing in the wider world and bringing our United Kingdom closer together We will continue to put ourselves at the service of millions of ordinary working people for whom we will work every day in the national interest This year s Parliamentary review follows a significant year in British politics It was a year in which our economy continued to grow as the government followed its balanced plan to keep the public finances under control while investing to build a stronger economy It was a year in which we began to deliver on the result of the EU referendum by triggering Article 50 and publishing the repeal Bill which will allow for a smooth and orderly transition as the UK leaves the EU maximising certainty for individuals and businesses This year s Parliamentary review follows a significant year in British politics FOREWORD 1

Foreword Alok Sharma MP Minister of State for Housing and Planning The housing market in England is broken Enough houses in the right places have not been built under successive governments over many decades asked me to meet social tenants across the country to understand the issues they face Their views will directly inform the Green Paper on social housing The prime minister has made it her personal mission to fix this We also want to see a renewal of house building by housing associations and local authorities The additional 2 billion investment in the Affordable Homes Programme and rent certainty for the sector until 2025 will help to deliver more social homes faster while also providing funding to maintain current stock Housing was front and centre of the recent Budget with more than 15 billion of new financial support announced for housing over the next five years This brings total support to at least 44 billion to 2023 The housing package which also included planning reforms and 1 billion of additional borrowing for councils in areas of high affordability pressure puts us on track to raise housing supply to 300 000 a year by the mid2020s We continue to support people to own their home with a further 10 billion for our Help to Buy Equity Loan scheme helping around 135 000 more people to buy a home by 2021 We are also introducing measures to improve the experience of those renting privately and give them greater security In the aftermath of the tragedy at Grenfell Tower we are committed to ensuring that such an event never happens again We want to improve the experience of those living in social housing and we recognise the importance of a supply of good quality social homes The prime minister 2 FOREWORD I want to see fairness restored to the housing market for first time buyers leaseholders and those living in the private or social rented sector We are committed to doing all we can to achieve this We are starting to see improvements Last year over 217 000 additional homes were delivered in England This is an increase of 15 per cent on the previous year and the highest level since 2007 08 We want to improve the experience of those living in social housing

HOUSING review of the year Grenfell Tower fire the fire which burned for more than 60 hours More than 100 London Ambulance Service crews on at least 20 ambulances attended the scene joined by the specialist Hazardous Area response Team London s Air Ambulance sent teams of doctors and paramedics by road in support The Grenfell Tower fire killed 71 people and injured over 70 The devastating fire at Grenfell Tower in June which led to 71 deaths and over 70 injuries will have far reaching consequences for the UK property sector for many years to come now recognised as the deadliest structural fire in the United Kingdom since the start of the 20th century the tragedy understandably dominated the news headlines for days The fire which broke out in a predominantly social housing tower block in the London Borough of Kensington and Chelsea in the early hours of June 14 was remarkable for its rapid growth and severity Police and fire services believe that the fire started accidentally in a fridge freezer on the fourth floor that spread rapidly because of the building s exterior cladding The cladding a common type in widespread use forms a central part of the public inquiry into the disaster which officially opened on September 14 More than 250 London Fire Brigade firefighters and 70 fire engines were involved from stations all across London in initial efforts to control On June 16 prime minister Theresa May who had been criticised for failing to meet Grenfell Tower residents following the tragedy announced a 5 million fund for those affected by the fire All those made homeless were to receive an initial down payment of 5 500 with each household to be given at least 500 in cash and 5 000 paid into an account On June 18 the government announced that a new disaster management team was taking over acknowledging that the initial response both locally and nationally was inadequate Three days later the government announced that 68 new flats in the local borough were to be made available to survivors In the weeks after the fire the Department for Communities and Local Government ordered tests on hundreds of refurbished tower blocks to investigate the type of materials used As of September of 173 buildings tested 165 have failed combustion tests There were calls for the government to give financial assistance to councils that have to carry out expensive building renovations Councillor Simon Blackburn chair of the LGA s Safer and Stronger Communities Board said The tragedy at Grenfell Tower has clearly exposed a systemic failure of the current system of building regulation The government must commit to meet the full cost to councils of removing and replacing cladding and insulation systems REVIEW OF THE YEAR 3

THE PARLIAMENTARY REVIEW Review of the Year Labour leader Jeremy Corbyn meanwhile called for sprinklers to be retrofitted in all high rise social housing London Mayor Sadiq Khan went a step further Those who mock health and safety regulations and red tape need to take a hard look at the consequences of cutting these and ask themselves whether Grenfell Tower is a price worth paying nowadays we would not dream of building towers to the standards of the 1970s but their inhabitants still have to live with that legacy It may well be the defining outcome of this tragedy that the worst mistakes of the 1960s and 1970s are systematically torn down The official public inquiry into the Grenfell Tower fire opened on September 14 2017 chaired by Sir Martin Moore Bick The inquiry s initial focus has been the designation of core participants the securing of necessary expert involvement and the gathering of documentary evidence A key focus will be to understand the conditions within the tower including the generation and movement of fire and smoke To enable the experts to reach firm conclusions they need evidence of conditions at different levels within the building as well as evidence of the development of flames on the outside of the building Obtaining accounts from both the former residents of Grenfell Tower and from the firefighters who responded is key to this About 225 residents managed to escape from the building According to the inquiry team there are about 500 witnesses to interview together with other people who have accounts that must be heard Housing at heart of Autumn Budget Chancellor Philip Hammond put housing at the heart of his autumn budget in november with a raft of announcements that he hopes will raise housing supply to its highest level since 1970 and make homes more affordable in the long term In his budget speech Hammond said that the government is determined to fix the dysfunctional housing market and restore the dream of home ownership for a new generation The budget announced a comprehensive package that will raise housing supply by the end of this parliament to its highest level since 1970s and on track to reach 300 000 per year This is through Making available 15 3 billion of new financial support for housing over the next five years bringing total support for housing to at least 44 billion over this period Introducing planning reforms that will ensure more land is available for housing see Land and Planning 4 REVIEW OF THE YEAR Providing 204 million of funding for innovation and skills in the construction sector including training a workforce to build new homes And in a move that grabbed a lot of the media headlines the chancellor also announced that first time buyers would be permanently exempt from stamp duty for properties up to 300 000 The relief will not apply for purchases of properties worth over 500 000 Chancellor Philip Hammond announced a 44 billion boost for housing

HOUSING More detail was set out in the budget documents In a whole chapter devoted to addressing the housing challenge the government admits that there is no single solution and stresses the need to push forward on all fronts underpinned by a sustainable plan to make housing more affordable in the long term by building more homes in the right places Despite recent positive noises about the benefits of building more social housing this was a budget that underlined the government s continuing commitment to homeownership as its tenure of choice including a further 10 billion extension of the Help to Buy Equity Loan scheme which it says will support a further 135 000 people to buy a home The budget also confirmed the further 2 billion of funding for affordable housing announced in October including funding for social rented homes This takes the total budget for the Affordable Homes Programme from 7 1 billion to 9 1 billion by 2020 21 It is expected that this will provide at least 25 000 new affordable homes The budget also lifted the Housing revenue Account borrowing caps for councils in areas of high affordability pressure so they can build more council homes Local authorities will be invited to bid for increases in their caps from 2019 20 up to a total of 1 billion by the end of 2021 22 The government will monitor how authorities respond to this opportunity and consider whether any further action is needed In response to the housing announcements contained in the budget the Office for Budget responsibility indicated that the stamp duty changes could increase house prices by up to 0 3 per cent It also declined to amend its house building forecasts for the coming years despite the chancellor s bold predictions learning it said from previous experience Instead it said We will keep these judgements under review as the policies are delivered and new evidence becomes available Land and planning Ever since it first formed the coalition government with the Liberal Democrats back in 2010 the Conservative Party has made it a mission to speed up the planning process Sajid Javid Secretary of State for Communities and Local Government Measures set out first in the national Planning Policy Framework 2012 followed by the Housing and Planning Act 2016 have combined a carrot and stick approach to ensure local authorities are given the necessary powers to get more homes built in the right places while at the same time censuring them if they fail to deliver up to date local plans The 2017 autumn budget took matters a step further The chancellor made planning a central priority as he set out the government s ambition to build 300 000 homes a year by the end of the current parliament The approach would be two fold Introduce planning reforms that will ensure more land is available for housing and that maximises the potential in cities and towns for new homes while protecting the green belt In order for this to happen Mr Hammond made a number of key announcements First he said that the Department for Communities and Local Government DCLG would be given powers to intervene where there is failure to progress local plans This would enable it to direct local planning authorities to produce joint statutory plans and undertake an assessment of where they should be used The government will also consult on a new policy whereby local authorities will be expected to give permission for land outside their plan on the condition REVIEW OF THE YEAR 5

THE PARLIAMENTARY REVIEW Review of the Year that a high proportion of the homes are offered for discounted sale to firsttime buyers or for affordable rent Even with the best planning system in the world the UK will struggle to build the homes it needs without an adequate supply of land With the government continuing its commitment to protect the green belt however the focus continues to be on maximising the potential of brownfield sites To that end the chancellor announced a consultation on plans to increase housing in high density urban areas including The introduction of minimum densities for housing development in city centres and around transport hubs with greater support for the use of compulsory purchase powers for site assembly Policy changes to support the conversion of empty space above high street shops Policy changes to make it easier to convert retail and employment land into housing A permitted development right to allow commercial buildings 6 REVIEW OF THE YEAR to be demolished and replaced with homes The budget also saw the announcement of further measures to speed up the planning process in particular getting homes built faster once permission is granted A further consultation will look at Strengthening the Housing Delivery Test with tougher consequences where planned homes are not being built This will be done by setting the threshold at which the presumption in favour of development applies at 75 per cent of housing delivery by 2020 Expecting local authorities to bring forward 20 per cent of their housing supply as small sites to speed up the building of new homes and increase competition in the house building market Speeding up the development process by removing the exemptions from the deemed discharge rules This will get builders on site more quickly ensuring that development is not held back by delays in discharging planning conditions The government is continuing its commitment to protecting the green belt

HOUSING The rebirth of social housing that changed attitudes towards social housing further First came the election that cost May her majority as a big turnout by young voters delivered a clutch of seats to Labour and Jeremy Corbyn including Gavin Barwell s in Croydon Central Conservative strategists concluded that tuition fees and housing were the issues at the heart of their reverses and that they had to come up with policies that reached beyond their core vote of ageing home owners There is uncertainty over whether Prime Minister Theresa May will redress burning injustices As the government continued on its mission to make the homeownership dream come true for the masses the concept of building low rent housing from public funds moved further down the political priority list Whatever money had been made available for housing associations was largely ear marked for shared ownership and affordable rent properties rather than traditional social housing Until now it seems The first signs of a shift came back in 2016 with the post Brexit change of government and a new prime minister developing a central idea a country that works for everyone that implied a greater role for the state in tackling social problems It remained unclear however whether Theresa May s new determination to address burning injustices would be matched by a step change in housing policy Credit is due therefore to the then housing minister Gavin Barwell for his influence on number 10 where he is now chief of staff Barwell seemed to understand the case for housing and the need for a more balanced approach to tenure Despite this apparent shift it was two key events in June of this year Less than a week later the country watched in horror as a fire at Grenfell Tower turned into an inferno that cost 71 people their lives The shadow of Grenfell has loomed over everything that s happened since Communities secretary Sajid Javid and new housing minister Alok Sharma were visibly shaken after meeting Grenfell families and seemed determined to strike a new tone about social housing and social tenants A series of developments in the last few months have seen both the tone and the substance of policy shift The first indication of this came in September in a speech by Sajid Javid to the national Housing Federation nHF conference that featured a startling change in rhetoric We need to shift the whole conversation about social housing reframe the whole debate We need to challenge outdated unfair attitudes We need to return to the time not so very long ago when social housing was valued It was treasured Something we could all be proud of whether we lived in it or not During the same speech the communities secretary announced a new green paper that would look not just at safety but also at wider issues of place community and the local REVIEW OF THE YEAR 7

THE PARLIAMENTARY REVIEW Review of the Year economy The paper would ask how social landlords can help to create places where people want to live in During the autumn Alok Sharma embarked on a series of consultation events with tenants ahead of publication of the green paper in spring 2018 and has quietly impressed observers with his willingness to listen October brought the Conservative Party conference Theresa May s leader s speech did not quite live up to the advance spin about the rebirth of council housing but she still had two startling announcements First she promised an extra 2 billion to take the Affordable Homes Programme for 2016 21 to 9 1 billion Bids for social housing would be encouraged and the government said the new money could supply around 25 000 more homes for social rent over the course of the parliament May also confirmed a new long term rent deal for social landlords to apply from 2020 This will restore in full the Consumer Price Index CPI plus 1 per cent formula for annual increases that was scrapped by George Osborne in 2016 in favour of a four year 1 per cent cut to rents Alok Sharma met with tenants ahead of publication of the green paper Government acts to improve the home buying process Communities secretary Sajid Javid launched a call for evidence in October with a view to making the home buying process cheaper faster and less stressful for those involved The government said its review would look to address issues across the whole of the property sector and sought the views of everyone with an interest in the home buying process including estate agents solicitors and mortgage lenders In particular the government review would look at Ways to tackle gazumping where sellers accept a higher offer from a new buyer after previously agreeing a sale Building trust and confidence through lock in agreements Providing better guidance for buyers and sellers by encouraging them to gather more information in advance so homes are sale ready Enhancing the buying process through digital innovation including making more data available online Announcing the review back in October communities secretary Sajid Javid said 8 REVIEW OF THE YEAR We want to help everyone have a good quality home they can afford and improving the process of buying and selling is part of delivering that Buying a home is one of life s largest investments so if it goes wrong it can be costly That s why we re determined to take action to make the process cheaper faster and less stressful This can help save people money and time so they can focus on what matters finding their dream home I want to hear from the industry on what more we can do to tackle this issue The government is looking to make the buying process cheaper faster and less stressful

HOUSING The government insisted that the exercise wasn t about adding extra work for buyers and sellers or seeing a return to Home Information Packs but a genuine attempt to find practical ways to improve the home buying process for all parties To coincide with the launch of the review the government published its own research into some of the issues that people face when buying or selling a home The findings of the review are due to be made public in early 2018 65 million loan from the government for UK s biggest Build to rent development by 2022 This could provide a further 15 000 homes each year with the potential to reach at least 240 000 homes built specifically for private rent by 2030 The government s support for Wembley Park coincided with proposals to make the private rented sector more attractive to potential residents new measures include Changing planning rules so councils proactively plan for more Build to rent homes where there is need The government s support for Wembley Park coincided with proposals to make the private rented sector more attractive Making it easier for build to rent developers to offer affordable private rent in place of other types of affordable home The government demonstrated its support for the booming build to rent sector during 2017 when it announced a 65 million loan for thousands of new private rent homes in London The deal signed in August will help to unlock over 7 600 new homes at the Wembley Park development in Brent north London one of the largest strategic regeneration projects in the country At least 6 800 of these homes will be for rent Across England the Build to rent sector is expanding with 80 855 homes either completed or planned The industry estimates investment in the private rented sector could grow to 70 billion Introducing longer tenancies which are more family friendly to provide better security for renters Government action in this area has already seen the offer of tenancies for three years or longer being made available to 35 000 tenants across the country according to British Property Federation estimates The Wembley Park development is backed by a loan from the government s 3 billion Home Building Fund It will bring over 8 000 jobs to the area and support infrastructure to free up land for development Work on the project has already begun and is set to be completed in 2026 REVIEW OF THE YEAR 9

THE PARLIAMENTARY REVIEW Review of the Year Consultation on local authority investment in commercial property The government launched a consultation in november with the aim of tightening guidance around local authority investment in commercial property The last 18 months have seen a significant increase in council activity in the property market as local authorities have shifted towards using assets as sources of ongoing revenue and away from disposing surplus land and buildings for housing or other use According to a House of Commons briefing paper the trend has been partly driven by local authorities experiencing substantial reductions in central government funding since 2010 The Institute for Fiscal Studies claims that grants to local authorities were cut by 36 per cent between 2009 10 and 2014 15 while revenue Support Grant funding is projected to be cut further from 11 5 billion in 2015 16 to 5 4 billion in 2019 20 In launching the consultation document however the Department for Communities and Local Government provides a different explanation The prolonged low interest rate environment has meant that investing spare cash in banks will not generate a return In addition the introduction of the general power of competence has given local authorities far more flexibility in the types of activity that they can engage in The changes in the economic and regulatory landscape have led the sector to consider different and more innovative types of investment activity As a result the government feels that it is time to look into updating the guidance as part of the more general update of the statutory codes comprising the prudential framework DCLG also pointed out that councils need to remember that their prime 10 REVIEW OF THE YEAR duty is to deliver statutory services for local residents and they have stewardship of public funds to do so Given this they should ensure that the level of debt taken on and aggregate risk is proportionate to the size of the authority and that they have considered the opportunity costs as well as the potential benefits of investment activities the paper states It further warns there is concern within government that some local authorities may become overly dependent on commercial income as a source of revenue for delivering statutory services With regards to real estate it could leave them exposed to macro economic trends For example a decline in retail rental yield may leave a local authority that is highly dependent on retail rental income to deliver core services with a structural funding deficit Central to the consultation is the requirement that a local authority should prepare an investment strategy which should be approved by full council and be publically available The DCLG pointed out that councils need to remember their prime duty

HOUSING Within this the government proposes requiring local authorities to disclose their dependence on commercial income to deliver statutory services and the amount of borrowing that has been committed to generate that income requiring local authorities to state their approach to assessing risk of loss before entering into and while holding an investment A number of examples of local authorities developing commercial property portfolios are included in the briefing paper Spelthorne Borough Council bought BP s head office in Sunbury on Thames for a sum reported variously as 360 million and 380 million The deputy chief executive of the council Terry Collier was reported as saying that no other single option would generate the level of savings and additional income that this particular opportunity presented We are being very careful to make sure we understand the risks Commenting on the deal The Financial Times correspondent John Plender said in April In balance sheet terms Spelthorne is now a property company with a sideline in providing local government services Even for the best of motives it is a highly risky bet Eastleigh Borough Council has been reported as purchasing a range of assets such as shops banks pubs and offices The most ambitious acquisition according to the Local Government Association has been the Ageas Bowl home of Hampshire Cricket where the council has invested some 40 million The new guidance is due to come into effect from April 2018 Is modular housing the solution to the housing crisis There s no doubt that ministers are keen to see more off site homes built Earlier this year the trade magazine Property Week even ran a story hinting that the government was thinking of opening its own modular homes factory Ministers are keen to see more off site homes built Ever since the prime minister mentioned a desire to promote more modular and factory built homes in her introduction to the Fixing the Broken Housing Market white paper in February off site construction has been talked about as a potential solution to the UK housing crisis Both communities secretary Sajid Javid and housing minister Alok Sharma regularly visit developments where modular homes form part of the mix Creekside Wharf in Greenwich which is using off site construction methods to deliver 249 homes for rent was included as a case study in the white paper The official line from the DCLG is this Innovative new ways of house building such as modular and off site construction methods will help deliver our plan for the biggest house building programme since the 1970s REVIEW OF THE YEAR 11

THE PARLIAMENTARY REVIEW Review of the Year The government is acutely aware that we are desperately short of the homes that we need and it is has just pledged to deliver 300 000 a year by 2022 a figure it is well short of currently Modular housing has the potential to bolster housebuilding figures It is relatively cheap easy to erect and requires less manpower to construct than a brick built house The industry is already beginning to blossom L G better known as an insurance company has just delivered its first modular homes to a housing association in London from its purpose built factory in Leeds The company says that the factory has the potential to produce 3 500 homes a year Housing associations are particularly interested in the modular model Some such as Accord in the West Midlands and Swan in Essex have opened their own factories while others such as Wrekin Housing Trust have unveiled new modular developments this year Homes England has already spotted the potential In July it added L G to its 8 billion Delivery Partner Panel covering all five regions of the UK Critics of modular housing however have one big concern size L G s first one bed properties measure 26 sq metres some way below the national space standards minimum requirement of 37 sq metres That said the cost of renting such a property 600 to 700 a month in London makes it more affordable than most on the market reforming the leasehold market The government announced radical new proposals to cut out unfair abuses in the leasehold market back in July as the national media ran horror stories of people being trapped in contracts with spiralling costs Ahead of a major consultation broadly welcomed by the property sector Sajid Javid set out plans to ban new build houses being sold as leasehold as well as restricting ground rents to as low as zero which he said can often expose homebuyers to unreasonable and long term financial abuse Leasehold generally applies to flats with shared spaces but developers particularly in the north west have been increasingly selling houses on these terms Mr Javid added It s clear that far too many new houses are being built and sold as leaseholds exploiting home buyers with unfair agreements and spiralling ground rents Enough is enough These practices are unjust unnecessary and need to stop 12 REVIEW OF THE YEAR Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future Measures outlined in the consultation included Setting ground rents to zero levels In recent years these have increased significantly in some cases doubling every 10 years The government aims to cut out unfair abuses in the leasehold market

HOUSING Under government plans they could be reduced so that they relate to real costs incurred and are fair and transparent to the consumer The Leasehold Knowledge Partnership which has vigorously campaigned on this issue estimates that around 100 000 homebuyers are trapped in contracts with spiralling ground rents There are many more people in leasehold flats some of which also have doubling ground rents The consultation has set out a range of measures including setting ground rents to zero levels Closing legal loopholes to protect consumers such as leaving some leaseholders vulnerable to possession orders Changing the rules on help to buy equity loans so that the scheme can only be used to support new build houses on acceptable terms According to the government the terms of some leases are becoming increasingly onerous to those purchasing a leasehold flat or house who often find they need to pay thousands of pounds to their freeholder to make simple changes to their homes recent cases included A homeowner being charged 1 500 by the company to make a small alteration to their home A family house that is now unsellable because the ground rent is expected to hit 10 000 a year by 2060 A homeowner who was told buying the lease would cost 2 000 but the bill came to 40 000 Ground rents are charged on all residential leasehold properties but evidence shows that they are becoming increasingly expensive Leasehold is a significant and increasing tenure for new homeowners On April 6 2017 the DCLG published statistics estimating that there were four million residential leasehold dwellings in England in the private sector in 2014 15 The percentage of residential sales that were leasehold grew across England between 2011 and 2015 Land registry figures show that leasehold made up 43 per cent of all new build registrations in England and Wales in 2015 compared to 22 per cent in 1996 Many parts of England have seen an increase in the development of flats that are sold on a leasehold basis The last major legislative reform to leasehold was the Commonhold and Leasehold reform Act in 2002 although the government took action in 2014 to cap repair charges imposed on leaseholders by government funded public sector landlords Leasehold legislation is complex and spread across several statutes Many prospective leaseholders are not fully aware that this form of tenure involves a landlord tenant relationship or of the significant financial and other interests they sign up to or the range of rights and responsibilities for each party as set out in the formal contract between them the lease redress is mainly through courts and tribunals which can be costly and can prolong uncertainty REVIEW OF THE YEAR 13

THE PARLIAMENTARY REVIEW Highlighting best practice The Portman Estate A map of The Portman Estate Chiltern Street independent boutiques FACTS ABOUT The Portman Estate T he Portman Estate is a central London family business steeped in heritage with a strong commitment to the future success of its Marylebone home for generations to come As stewards of the area since the 16th century the Estate provides high quality residential market let properties among its mixed use portfolio and the business prides itself on its customer service and its contribution to the community Headed by Bill Moore CBE Established in 1532 Based in London Services include commercial and residential asset management facilities management and projects 67 employees Comprises 110 acres in Marylebone and 3000 acres of farmland in Buckinghamshire and Herefordshire www portmanestate co uk Communities of all types of occupiers are essential in our city centres to maintain the UK s advantage as international competition heightens Core districts must not only offer workspaces for the next generation of global HQs and their demanding workforce but also must be able to set workplaces in the context of leisure commuting and housing provision which meets increasing expectations of wellbeing and social cohesion The Portman Estate closely manages its core West End neighbourhood to ensure it maintains such a progressive offer within its unique historic context As development markets swing from commercial uses to residential and back long term sustainability is only served by the protection of a balance of land uses moderating such swings and consistently seeking to nurture communities whether residential workplace or around the vital retail and hotel sectors The Estate s strategy ensures its location functions successfully at every level whether that be village business centre or shopping district and all within the greater metropolis A longer term interest justifies our increasing attention to wider property factors such as the environment placemaking and place management Our interests are fully aligned with the concerns of residents and occupiers over air quality and the ongoing impact of traffic in our city centre location Placemaking and the public realm have a 14 THE PORTMAN ESTATE

HOUSING pivotal role to play in dense city centre locations where competing demands place greater strains on infrastructure Expectations of high quality streets and their maintenance are also rising with higher standards in comparative locations abroad Infrastructure investment sharpens London s competitiveness Partnerships are key Our challenge today reflects that of many city centres maintaining the economic relevance of our central business districts whilst respecting the very human scale values that ensure a sense of community Close partnerships with Business Improvement Districts Baker Street Quarter Partnership Marble Arch London and New West End Company for each of our core locations along with a positive relationship with amenity societies help ensure that we continue to evolve in the context of the neighbourhood and its social needs Growth for housing or commerce In the City of Westminster the debate continues over the look and feel of Good Growth as it does elsewhere in London and the UK Whilst the London Estates plan for the long term redevelopment of specific sites makes this an incremental process With 75 per cent of Westminster having protected historic status significant growth must tend towards the business districts and at a scale large enough to Marble Arch London BID and Street Team attract investment but with a sensitivity to these historic neighbourhoods The case for expansion is strengthened and the impact mitigated where the projected tax revenue from development can justify Treasury investment towards local infrastructure thereby generating sustainable growth over the longer term In London the potential to expand land uses in an area is finite at any one time A key question therefore is whether the available growth potential should be directed towards commercial uses with all the benefits of commercial growth to the economy and exchequer or whether a city s business districts should provide an increasing contribution to the housing deficit The simple answer is of course both If commercial planning applications do not deliver on their housing responsibility then the cumulative outcome is under supply If growth is wholly allocated to housing in the core areas however then the opportunity costs are huge and competitive edge is lost Effective housing provision The more apt question is where should the housing provision be made and by whom The historic family estates and portfolio developers have a broader ability to bring forward sites in parallel to best collocate the required mix of uses according to the neighbourhood whilst meeting planning policy For the Our interests are fully aligned with the concerns of residents and occupiers over air quality and the ongoing impact of traffic in our city centre location The Portman Estate dates to farmland in Marylebone in 1532 then at the junction of the Oxford Road and Watling Street It is now firmly established in the economic triangle of Baker Street Oxford Street and Edgware Road It is also part of the core of the West End The Estate s heartland and character however remains defined by its unique Georgian townscape and fine architecture THE PORTMAN ESTATE 15

THE PARLIAMENTARY REVIEW Highlighting best practice Baker Street Quarter summer food market Vinoteca Seymour Place A city s core does not offer the best sites or value for money in housing creation compared to outlying areas 16 THE PORTMAN ESTATE single site developers however a town planning compliant solution can leave longer lasting issues over sustainability value for money in housing provision and conflict created by new land uses in commercial areas needed Borough boundaries which are impermeable to the flow of housing finance or cross borough development solutions create a hindrance to supply A matter for all strategic planning authorities Arguably new housing in the prime centre of London continues to be acquired not as a principal home but as an investment and is thereby failing to contribute fully to housing supply This is a local picture but its impact needs to be countered by planning policy The private rented market by contrast operates at near 100 per cent occupancy The profits available from short letting and the accommodation gig economy are driving property values beyond the reach of regular homeowners Such landlords often operate on an unregulated basis from both a taxation and health and safety perspective and leave holes in communities as permanent occupiers are priced out Working for the long term Across much of the South East payments in lieu for the provision of housing in new developments have to date not created the much needed supply New solutions must be found A city s core does not offer the best sites or value for money in housing creation compared to outlying areas but neither should the burden always be borne by the suburbs to the centre s commercial benefit More flexibility is The hollowing out of our city centres in the 21st century is not an inevitability The Portman Estate s model of longterm stewardship shows how residential communities can be protected whilst advancing the economic contributions of the capital s business districts We have sought always to look to the future to counter balance the excesses of market swings and more recently to invest in local sustainability to protect our environment Partnerships are essential to local prosperity Our sense of stewardship aligns with our local authority s objectives including key relationships with Business Improvement Districts BIDs and has brought measurable benefits to day to day management above our abilities alone The Portman Estate s contribution to the success of its mixed use location within a major city centre is helping to preserve long standing community values whilst continuing to serve as a vibrant and significant contributor to the UK economy

HOUSING Mainstay Group Birmingham canal side development managed by Mainstay M ainstay Group is an award winning residential and mixed tenure property asset management company operating across England and Wales Founded over 18 years ago and a leading ARMA Q RICS and IIP accredited company Mainstay has a strong investment in instilling a collaborative personal hands on approach to all the communities it looks after The firm s managing director Luke Sanders discusses the need for highly expert regulated and accredited technical services in the property management industry Having provided residential commercial and mixed used property management services for more than 18 years we have garnered a portfolio comprised of 40 000 homes under our management and a further 45 000 units under institutional fund management We are a successful independent and privately owned company with a dedication to providing residential facilities and mixed use asset management The status of our business nationally not only guarantees that a comprehensive and robust back office support infrastructure is at the heart of what we do but our locally based teams ensure that we instil a personable collaborative and hands on approach to all the communities we support Luke Sanders Group Managing Director FACTS ABOUT Mainstay Group Headed by Luke Sanders Established in 2000 Based in London Worcester Birmingham and Manchester Provides property and asset management services 500 employees Service users include private and institutional investors leaseholders tenants and residents management companies www mainstaygroup co uk After the Grenfell Tower tragedy professional management is rightly under scrutiny Any effort to ensure that unqualified firms and individuals cannot simply call themselves managing agents and oversee risks and hold leaseholder funds for complex estates and buildings is welcomed MAINSTAY GROUP 17

THE PARLIAMENTARY REVIEW Highlighting best practice responsible for providing safe secure and welcoming common areas with a focus on communal living For this reason the onus falls on caring and robustly structured managing agents with an established brand and longevity to protect it Speaking on these issues key note speaker at the Association of Residential Management Agents ARMA annual conference Sajid Javid who is the Secretary of State for Communities and Local Government rightly called for the regulation of all managing agents and asked for evidence to be given to the Department for Communities and Local Government DCLG Vicky Clark Area Property Manager IPM London After the Grenfell Tower tragedy professional management is rightly under scrutiny Block property management New demands It is well known in the property management industry that there is a drive for revolutionary approaches to national and regional housing needs Not only that but a new and innovative approach to property management that encompasses the insecurity following Brexit as well as the demand from freeholders leaseholders residents and investors who require an exceptional level of immediate compassionate and responsive service Coupled with this is a desire for rigorous compliance procedures that ensure that homes are both safe and secure along with community place making Given the government s focus on national housing issues we are aware that the sector is undertaking exponential shifts changing it beyond all recognition The significant investment in regenerating urban areas has resulted in an increase in apartment blocks being built The kernel of these developments hinges on property management companies that are dedicated to and 18 MAINSTAY GROUP Responding to this proposal David Clark Mainstay Chairman and former chair of both ARMA and the Institute of Residential Property Managers IRPM said As accredited ARMA Q agents we welcome any attempt to create some meaningful barriers to entry in a market that impacts millions of leaseholders He also stressed the fact that professional managing agents are all too often in a race to the bottom competing purely on price with part time and amateur managers If standards are to be raised the first step must be some compulsion around both personal qualifications and firm level regulation Without that a small minority of rogue businesses will continue to flourish Amid complex statutory and regulatory frameworks in which residential block management operate we pride ourselves on delivering regulated accredited and paramount technical service apace with an original approach to customer engagement Regrettably quality property management is not always appreciated by freeholders and leaseholders until something happens like the tragedy at Grenfell Tower which brings this into focus

HOUSING At the forefront Mainstay has been at the forefront of pushing for mandatory regulation in the leasehold management sector Not only that we were one of the first property management companies to take the initiative when ARMA Q regulatory scheme started in 2014 as well as conserving our ISO9001 Investors in People and OHASIS 14001 accreditations We are also unique in that we have developed a range of industry advancements which are particularly relevant insofar as they reflect our commitment to safeguarding our residents For example we have dedicated compliance risk health and safety services We were also the first company to introduce a fully integrated property management solution alongside bilingual resident handbooks to support the diverse communities we work in Delivering first class customer and client engagement is our foundation We purposefully recruit front line staff from alternative industry sectors where top class customer service is a prerequisite for success Supporting our operational staff is a dedicated in house facilities management division including building services engineering managers that oversees both the provision and review of all mechanical and engineering services Our approach to PRS Private Rented Sector and BTR Build to Rent is similar We believe it requires a fresh approach to the way property and asset management has been conducted In virtue of our vast experience in the residential block and portfolio management sector we are uniquely placed to provide a pragmatic and strategic approach with our IPM Integrated Property Management model Our approach to all PRS and BTR developments is to make sure all residents enjoy an exceptional degree of customer service apartments designed by first rate building developers an array of life improving benefits robust financial management to protect voids and asset value on behalf of our clients and of course a property management company that has its clients and residents best interest at heart including the building and the wider community Winners of Residential Block Property Management of the Year 2017 Within the complex statutory framework in which residential block management operates we pride ourselves on supplying transformational accredited and highly expert technical services coupled with a fresh approach to exemplary customer engagement We are proud to approach things differently to achieve this for the benefit of our colleagues residents clients and the wider community in which we work Mainstay has been at the forefront of pushing for mandatory regulation in the leasehold management sector We have cultivated a unique vision based on transforming how property management services are embarked upon with a strong commitment to administering excellent customer service Fostering a close knit relationship with the communities in which we work we aim to deliver the highest standards of professional conduct in every sector of our company MAINSTAY GROUP 19

THE PARLIAMENTARY REVIEW Highlighting best practice Lyntonross Hexton Hertfordshire St John s Wood London FACTS ABOUT Lyntonross Headed by Barrie Norman L yntonross has been developing small housing schemes around Buckinghamshire Hertfordshire and Bedfordshire for over 20 years Led by co founders Barrie Norman and Ross Miller the company has established a regional reputation for designing and building visually appealing high quality and sustainable homes The company turns its attention to the chancellor s recent autumn budget championing the potential of small to medium sized housebuilders to build fit for purpose developments on the outskirts of existing rural communities that best meet the needs of Millennials looking to get on the property ladder and the elderly looking to downsize Established in 1995 Based in Buckinghamshire Services include developers and housebuilders 12 employees www lyntonross co uk What marks us out from many of our contemporaries and even national housebuilders is our approach every project is truly bespoke unlike so many developers that generally operate in a formulaic way Tradition is at the centre of every development we undertake but you couldn t accuse us of being oldfashioned Innovation technology and sustainability take centre stage for every new build This year we have taken on an intern from Nottingham Trent University who is studying architectural technology for the sole purpose of designing passive and carbon neutral housing at an affordable level We hope that by embracing new technologies that are evolving with respect to renewable resources we will be able to provide cheaper and more affordable homes where design and innovation are not just associated with larger single units But this will only be possible after it is widely recognised that the land surrounding rural settlements is available and prime for development As long as these sites are 20 LYNTONROSS

HOUSING The role of small medium sized housebuilders In his 2017 autumn budget chancellor Philip Hammond announced that the government would invest 44 billion in order to give the housing market a much needed boost along with a range of new measures aimed at delivering 300 000 new homes each year by the mid 2020s The firm believes the Chancellor s plans are a positive initial step but identifies three points of continuing concern Firstly as large firms have increasingly dominated housebuilding over recent decades there are a dwindling number of developers that actually exist to build these homes The greatest number of houses ever built in the UK was half a century ago in 1968 when 425 000 new homes were built At the time small to medium sized housebuilders were responsible for delivering around 60 per cent of new homes whilst the balance was met by firms with a national presence That figure presently stands at around 12 per cent It cannot just be left to large developers to construct the number of new homes required They neither have the capacity nor the financial incentive to meet the demand What s most worrying is the accelerating speed in which firms like ours are closing Had Lyntonross been trading in 1968 we would have been one of 12 200 small housebuilders in the UK By 2006 there were fewer than half that number and by 2014 that number had halved again to 2 400 It is statistics like these that shed light on one major factor underlying the repeated failure of successive governments to meet their housebuilding targets Sustainability green belt potential Secondly planning authorities seem to focus on achieving their allocated housebuilding targets and working to the guidelines set out by government by placing all their trust and support in major housebuilders who promise to develop whole new communities But in doing so they erroneously eschew the efforts of small housebuilders and overlook a more simplistic and equally effective approach to solve the housing crisis small to medium sized developments around established rural communities It cannot just be left to large developers to construct the number of new homes required developed in a sustainable ethical way and the developments themselves are small in scale they have the potential to provide a mixture of housing types that ably meet the needs of rural demographics and allow for the movement of people within their village communities Many of the Lyntonross projects are in rural locations considered to be areas of great natural beauty By the very Great Brickhill Buckinghamshire LYNTONROSS 21

THE PARLIAMENTARY REVIEW Highlighting best practice Hemel Hempstead Hertfordshire Many of the Lyntonross projects are in rural locations nature of these projects this means working closely with the local planning authorities which in itself can be a difficult task due to the structure and targets that the government imposes upon these councils Taking into account the usual constraints if every rural settlement increased its build settlement proportionately by building small housing projects on the edge of new defined boundaries this would provide a significant number of new homes without overwhelming existing infrastructure and whilst adding much needed support to local communities That the chancellor recognises the vital role that small housebuilders have traditionally played not only by creating employment but also by providing a training environment for new recruits to the industry Red tape Finally the current planning process is too slow and too bureaucratic We try hard to work constructively with the local authorities But there is often resistance and red tape It is interesting to note that Mr Hammond recognises the planning system is not delivering In London alone he drew attention to the startling statistic that around 270 000 residential planning permissions that remain unbuilt The protection of the green belt around cities is something most people support ourselves included but to cope with the pressing demand for new homes the emphasis in the public conversation must 22 LYNTONROSS shift to building homes that people want and where they need them most The planning system from our grass root perspective is broken As a small housebuilder it is next to impossible to create opportunities and plan for the future when the goal is constantly being moved and when policy is being dictated by ever changing case law The process must be streamlined and the role and needs of small to medium sized housebuilders recognised Only with demonstrable consistency will there be confidence in the decisionmaking process In responding to these points of concern the government must consider the needs of the two most important demographic groups in the years ahead By 2020 Millennials will be the largest consumer purchasing group Many will still be laden with debt from university and looking to get a leg up on the property ladder At the other end of the scale we have an ever ageing population many of whom will be looking to downsize to a home with no stairs Yet no one is building bungalows anymore The government has set the bar high with its targets for new homes Past governments did too time and again they failed Without acknowledging and addressing our concerns we doubt this government will fare any better

HOUSING Urang Property Management Anchor Brewhouse by Tower Bridge is managed by Urang T he Urang Group has been providing high quality residential and commercial property management throughout London for almost two decades a considerable achievement for a company expanding into other areas at the same time Urang has taken a comprehensive approach to the property sector offering a wide range of related services from internal and external renovations to sales and lettings Urang Director Paul Cleaver considers how Urang s commitment to staff development and innovation has underpinned the company s success and he anticipates what the future holds for the property management sector On hearing our company s rather unusual name for the first time a surprising number of people like to jokingly respond with You Rang m Lord the wellknown phrase that embodies a lifetime of dedicated silver salver service That s exactly where the name Urang comes from it means that they ve immediately grasped what we re all about Paul Cleaver Founder and Director FACTS ABOUT Urang Property Management Headed by Paul Cleaver Established in 1999 Based in London Provides residential and commercial property management 60 employees Group turnover over 3 5 million urang co uk Our name emphasises that bespoke customer service is still the core of our company s DNA just as it was when we first conceived the idea of an all embracing lifestyle management company in the run up to the Millennium in 1999 I studied Classics at Oxford followed by a career in investment banking M A at London s NM Rothchild but I d always dreamt of building a small start up business that could have an immediate and positive influence on people s lives URANG PROPERTY MANAGEMENT 23

THE PARLIAMENTARY REVIEW Highlighting best practice Although we initially imagined Urang as an all encompassing lifestyle management company it became increasingly apparent that what many of our clients wanted was someone who could manage their properties and organise their building works Today with an annual turnover of more than 3 5 million we now serve over 300 blocks of mostly London flats What s more they wanted someone capable of carrying out these tasks with the same dedicated and personal service they d already enjoyed as our concierge clients Accordingly the Urang Group began serving a steadily growing number of property management clients and by 2008 this had become our core business Today with an annual group turnover of more than 3 5 million and around 60 direct employees we now serve over 300 blocks of mostly London flats and look after more than 4000 leaseholders and freeholders in homes that come in a very wide variety of shapes sizes and architectural periods Staff investment There are many things that I could point to as decisive in Urang s continuing success but investment in people is one of the key factors from recruiting new staff to supporting and empowering them in their careers 24 URANG PROPERTY MANAGEMENT We always aim to develop people who share our drive and vision Our clients expect us to service an ever widening range of needs including finance legal health safety maintenance major works repairs and redecoration company secretarial services and insurance We have teams of qualified in house specialists in all these areas working in unison to give our property managers immediate expert support and allowing them to focus on core property management Our clients find this very reassuring they know that every facet of the management of their building is getting the very best expert back up across the board We are members of the Association of Residential Managing Agents ARMA and the Leasehold Knowledge Partnership LKP and we ensure that our property managers are fully trained Recently we ve brought in a senior well regarded and very experienced property management expert to mentor our energetic team of property managers so that they exceed industry standards and can accommodate the growth and development of our high profile properties and clients

HOUSING I think it s very important that our staff are passionate about helping people and in return we offer a multi faceted training system to help them develop As a result both customers and suppliers regularly tell us that our offices have a very positive and vibrant feel that marks us out from our competitors and similar businesses because it is evident that everyone gets a real buzz out of helping our clients an atmosphere we encourage Innovation We are a company that aims to keep innovating whether it s introducing new technology or keeping ahead of the economic and political developments in our sector We continue to invest and improve on ways to communicate with our clients such as investing in cloud based solutions to share progress with clients in real time or trialling improvements such as keyless entry We also continually evaluate and improve our online block management software and we work closely with developers to ensure that any innovation will match an individual client s needs as closely as possible A changing industry Recent events such as the Grenfell tragedy and financial scandals such as some housebuilders reaping a harvest of rapidly escalating ground rents have rightly made headlines and mobilised public opinion These events have highlighted the problematic issues surrounding the effective management of health and safety as well as finances and have raised calls for increased legislation rather than relying on industry self regulation Groups like the LKP of which Urang is an active member have campaigned to get poor practice onto the political agenda It may be that the property management business will see more government regulation in the future If so Urang is extremely well prepared to guide our clients through these changes We are fully committed to promoting best practice and showing existing and prospective customers that we can guide them through the challenges new legislation may present particularly on such vital issues as safety and financial propriety We think the greater awareness and scrutiny of such issues now and in the future there will be the more people will be concerned about investing where needed Exterior of one of the properties Urang manages on Onslow Square Groups like the LKP of which Urang is an active member have campaigned to get poor practice onto the political agenda I also believe in giving everyone in our team an appropriate level of personal responsibility with the safety net of a strong support and mentoring culture We allow them to learn to use their initiative and make responsible decisions so that they can give our clients individual tailored attention rather than just working to a one size fits all formula Client feedback suggests this approach is appreciated URANG PROPERTY MANAGEMENT 25

THE PARLIAMENTARY REVIEW Highlighting best practice Ivy Lettings We specialise in central London homes Guy van der Westhuizen Founder FACTS ABOUT Ivy Lettings Headed by Guy van der Westhuizen Established in 2009 Based in Chelsea London Short let and vacation rentals specialists 10 employees Over 10 000 bookings since inception 120 central London homes www ivylettings com I vy Lettings is a boutique short lets company based in Chelsea London Established in 2009 the company has managed over 10 000 lets in their portfolio of central London homes Their hosts are given the opportunity to earn extra income from their homes whilst guests enjoy the character space and savings of staying in a London home instead of a hotel CEO and founder Guy van der Westhuizen discusses the company model and how it differs in its offering from short stay home rental sites like Airbnb When I set up Ivy Lettings in 2009 making your home available to paying guests was a niche concept and one that didn t appeal to all The idea came to me however when I was staying in a villa in France with my wife and baby for a month and had wanted to let my own flat in London to cover the expense of our holiday It didn t seem right that my home was sitting vacant when I was sure that it d make the perfect base for one of the millions of visitors to the city When I returned from holiday I set about starting my business I d been a lawyer for a magic circle London firm before quitting and moving to Morgan Stanley where I lasted 14 months before losing my job in the financial crisis in 2008 I was determined not to rush into another City job as I wanted to develop my own idea I was lucky enough to attract some excellent press coverage a few months later which was a huge leg up and seemingly overnight I found myself managing a portfolio of just under 50 properties I was run off my feet carting linen bundles around London on the back of my Vespa checking guests in all over the city and cleaning the occasional flat when my cleaner let me down 26 IVY LETTINGS

HOUSING Cut to 2017 and short stay home rentals largely following the explosive growth of Airbnb have represented the most significant trend in residential property in a generation Although this development has presented a number of challenges it has also created an exciting environment in which to grow Ivy Lettings Managing the whole process Our goal is to offer a streamlined hassle free service our guests expect a quasi hotel experience and our hosts expect their homes to be looked after at all times and to not have to deal with any issues arising during the stays Ivy hosts and homes are comprehensively insured The result is that we run a business that is extremely operationally intensive It requires excellent teamwork and communication especially when we re very busy such as at Christmas and during peak summer We use technology as much as possible to help keep us coordinated but I urge my team to pick up the phone whenever possible speaking being the most effective means of communication Ivy Lettings provides a complete home management service Our goal is to offer a streamlined hassle free service In essence Airbnb provides a platform on which anyone can advertise their home Our offering is much more involved we select the homes to list on our site and provide a full management service which covers every aspect of the stays themselves from handling the initial guest enquiry preparing the homes making up the beds with our linen and stocking the bathrooms with toiletries to dealing with any maintenance problems that might come up Our housekeepers are fully trained IVY LETTINGS 27

THE PARLIAMENTARY REVIEW Highlighting best practice home in the past are now comfortable with the concept The downside has been that unfortunately Airbnb has a mixed reputation in London which affects the industry as a whole Our homes meet strict selection criteria Dealing with people s homes I m frequently asked how the growth of Airbnb has affected Ivy Lettings The answer is that it s a doubleedged sword Managing properties that are our hosts own homes for most of the year demands a very personal service and the keystone to our successful relationships with our hosts is trust Many of our property owners have fairly specific and detailed housekeeping instructions and whilst they expect a level of wear and tear we set ourselves a high standard in undertaking to look after our hosts homes as if they were our own The most important part here is of course finding the right guests for our homes We are selective and operate filtering criteria to protect our hosts properties which has served us well over the years Whilst we ve never had to use it our homes and indeed their neighbours are automatically protected by Hiscox underwritten insurance for all our stays guaranteeing peace of mind for our hosts The rise of Airbnb I m frequently asked how the growth of Airbnb has affected Ivy Lettings and the answer is that it s a double edged sword On the one hand it has brought London home rentals and holiday lets into the mainstream people who d never have considered opening up their 28 IVY LETTINGS One major concern has been the effect that the short stay industry might have on the traditional long let market landlords hoping to earn more via for example Airbnb could turn away from long lets therefore depriving the market of stock and driving up prices Speaking for Ivy Lettings none of our properties would be offered for long lets anyway since they are used by their owners for much of the year For Airbnb s part in January 2017 it required its London hosts to adhere to local regulations by restricting them from letting their homes for more than 90 days per year For us a far greater impact is the negative reputation earned by certain Airbnb guests who abuse its platform and its homes which has led to wholesale prohibitions on short lets within entire blocks Of course I can understand this but for professional agencies who screen guests it s a great shame since the automatic assumption that short let tenants compromise the security of apartment blocks make noise and leave rubbish strewn across the common parts is wrong Our typical guests are a couple in their 60s from Illinois who ve stayed with Ivy several times in the past We require our lead guests to be over 30 operate a 5 night minimum stay and take large deposits starting at 500 from our guests all of whom are required to adhere to strict house rules regarding neighbourly respect These have served us very well over our 10 000 bookings and we obviously have a continuing interest in our hosts relations with their neighbours which makes our industry quite neatly self regulating

HOUSING Get Living East Village the former London 2012 Athletes Village N Hand caf one of East Village s 25 independent retailers eil Young CEO at Get Living has a vision to revolutionise the way the UK lives and rents Since 2013 they ve been a disruptor in the property industry never charging fees offering three year tenancies as standard and remaining the only major landlord to offer a resident only break clause We are the largest build to rent B2R operator in the UK owning letting and managing close to 2 000 homes across two London locations with a further 4 000 homes in the pipeline including future neighbourhoods in Glasgow and Leeds Our flagship neighbourhood is East Village the former London 2012 Athletes Village which established us as the first major mover in the sector in 2013 We now have more than 3 000 residents living with us in East Village and a further 2 000 rental homes in development In the summer of 2017 we launched our second location in Zone 1 s Elephant and Castle Wherever our location our residents benefit from our commitment to delivering incredible service including our relationship management team on site seven days a week We don t use agents and rent increases within contracts are aligned with CPI FACTS ABOUT Get Living Headed by Neil Young Established in 2013 Based in London Provides build to rent homes 79 employees Future neighbourhoods in Glasgow and Leeds www getliving com Constant conversation with our residents ensures that we continue to challenge ourselves to raise standards to deliver a service and enable a lifestyle that exceeds our residents changing expectations Our independent customer feedback programme polls more than 100 customers each month Customer service sits at board level within the Executive Team and runs through our reporting via a balanced scorecard approach The Get Living team s remuneration is directly linked to resident feedback Unusually for the property sector we pay no sales based commissions GET LIVING 29

THE PARLIAMENTARY REVIEW Highlighting best practice From the industry response we know that we ve disrupted the market For the first four years we charged a six week security deposit because that was what was done The assumption has always been that residents couldn t be trusted and by holding thousands of pounds of their cash landlords could easily recoup damages But looking at our figures this narrative didn t play out On average we were taking just a few hundred pounds out of household deposits We were only needing to recover just a few days rent So why did we hold 3 million of our residents money As the former London 2012 Athletes Village East Village was a completely new 67 acre neighbourhood with no pre existing identity Since 2013 we ve helped foster a strong sense of community by bringing in independent retailers funding grass roots clubs and activities and hosting free events from food festivals weekly markets to outdoor film screenings and fireworks night We see the importance of bringing people together and last year over 18 000 people attended these free events So in 2017 we scrapped security deposits simultaneously returning around 3 million to our existing residents We were the first to revolutionise the rental experience in the UK so being the first to scrap deposits was a natural next move Through our regular customer service feedback we can also respond to public realm suggestions quickly Residents were disappointed they weren t permitted to barbeque on their balconies with many referencing communal outdoor barbeques Owning the neighbourhood meant we could introduce these quickly with four brick barbeques trialled It was such a success more have been added From the industry response we know we ve disrupted the market From our resident and new applicant response we know that we have knocked over another barrier to renting Our role isn t just to rent homes but to support the growth of new neighbourhoods We go beyond the role of a traditional landlord because people don t just live somewhere because they love the home but because they love the place Free summer event in Victory Park East Village We bring our neighbourhoodthinking approach to every location where we operate Renting with Get Living means being part of a vibrant tenure blind and exceptionally wellconnected neighbourhood that we are committed to for the long term We are not alone in trying to change the way the UK rents Where Get Living has led others have followed Since we launched in 2013 with no fees and longer contracts all major UK political parties and other large landlords have made similar commitments Together the sector is helping to add much needed supply to the UK s strained housing market by creating professionally managed rented housing purposefully designed with the renter in mind There are now 83 650 B2R units either completed or planned across the UK Notwithstanding this we are still a fledgling sector Currently BTR units 30 GET LIVING

HOUSING Buy to let B2L investors have played a crucial and commendable role in supporting Britain s housing market over the past 20 years B2R however is different we are professional landlords with one business owning all homes in a development This is the fundamental difference between the private rental sector dominated by buyto let investors and the professionally managed B2R sector B2R investors such as ours Qatari Diar clients of Delancey and the Dutch pension fund asset manager APG are focused on long term yielding assets providing security and the funding for rapid growth in new home delivery stimulating real change quickly As well as providing renters with high quality homes and a professionalised experience BTR is accelerating UK housing delivery through letting rates being higher than sales rates A recent Savills report identified that our 1 500 rental homes at East Village were rented four times faster than an equivalent sized for sale development would have been sold and occupied While the majority of Brits still aspire to own their own home many struggle with affordability and finding deposits and are buying later in life By 2021 25 per cent of all UK households are expected to be privately renting up from 19 per cent today From our own experience we have seen young professionals wanting to rent well if it s going to be more than just their stop gap before they own their own home For others flexibility and living hassle free is important Building neighbourhoods where people can establish roots and build community is at the heart of what we do As well as providing renters with high quality homes and a professionalised experience B2R is accelerating UK house delivery don t yet make up even 1 per cent of the Private Rented Sector PRS housing stock Of five million private rented households in the UK there are just 15 925 completed BTR homes Savills counts BTR as seven years old and while it took the US multifamily and UK student housing sectors 20 to 25 years to mature we d argue that we can get there quicker A Get Living apartment and cycling through the wetlands Whatever the reason the UK s renters deserve a better service better homes and a wider choice all that B2R operators can provide GET LIVING 31

THE PARLIAMENTARY REVIEW Highlighting best practice Ainsworth Lord Estates Our office in Darwen Lancashire Paul Ainsworth Manager FACTS ABOUT Ainsworth Lord Estates Headed by Paul and Deborah Ainsworth Established in 1994 A insworth Lord Estates is an estate agent and property manager in East Lancashire headquartered in Darwen and led by husband and wife team Paul and Deborah Ainsworth Lord A dedicated local business with a professional network it has an exceptional knowledge of the area that has allowed it to grow from a hobby to one of the most influential estate agents in Lancashire Paul warns of the phasing out of mortgage relief and widespread adoption of selective licensing by councils which is profoundly affecting the property sector Based in Darwen Lancashire Property specialists with a wide range of skills including selling and letting private and commercial properties and land redevelopment and property conversions 13 employees Paul manages awarded the Top 100 Property Blog darwenpropertyblog co uk ainsworthlordestates com 32 AINSWORTH LORD ESTATES Ainsworth Lord is property specialists with a wide range of skills including redevelopment property conversions and selling letting private and commercial properties and land Inspiration to enter the property business came after Paul s life changed in his teens following a near deadly illness He decided he had to find a reliable source of income to take care of himself and extend this security to any future family Working in property became the key to being comfortable and secure As an investment vehicle very little is safer for solid income earning and return on investment than working with property Shortly after marrying Paul and Deborah began buying a small number of houses though with no intention of buying many Since then over 20 years have passed and the couple have not stopped expanding their portfolio Moving within property investor circles they began to be recommended clients and decided to move from investment into the landlord business The pair s business continued to grow not only in the breadth of the property field they covered but the number of clients too When the recession struck they were approached by banks to undertake retail

HOUSING Throughout their growth from kitchen hobby to high street presence the relationship with clients and tenants that the pair pursue has never changed Properties managed by Ainsworth Lord Estates are treated like they were the couples own home The business model marries professionalism with personability Maintenance requests are always dealt with swiftly Landlords would be wise to follow suit in addition to satisfied tenants Paul notes that the quicker issues are dealt with the lower the eventual cost of repair The company has also never expanded too significantly in the area it conducts its business and with good reason For property investors Paul notes the trick is knowing your territory and keeping an intensive presence in your patch Combine this with a genuine passion for property investment and professional success follows naturally Motivations Ainsworth Lord Estates like all estate agents exists to make the best returns possible on their investments But as Paul points out most other agents misunderstand this to mean optimising fee generation out of their clients charging high fees promoting six month tenancies due to the profits accrued through tenancy renewal fees and generally operating with short term profit margins in mind Ainsworth Lord differs in that they see optimal returns in working with their clients to build portfolios and income streams on a long term basis This strategy pays off Paul was able to help one client grow their portfolio so significantly that it returned 700 000 over the course of two years The company does not consider themselves infallible however and are constantly looking for innovative ideas It is recognised nationwide in the property investment circles in which ideas and best practice are circulated It is important to understand that other businesses do the job differently in different parts of the country What does not work in one region will work in another It Throughout their growth from kitchen to high street presence the relationship with clients and tenants that the pair pursue has never changed appraisals as well as working with large asset management companies It was working with the banks that helped the pair expand from letting to including the direct sale of properties and facilitated the move from an increasingly serious and lucrative hobby to a fully fledged business We pride ourselves on delivering excellent service AINSWORTH LORD ESTATES 33

THE PARLIAMENTARY REVIEW Highlighting best practice Committed to making the property buying process hassle free is crucial to speak to other businesses and improve oneself through dialogue Ainsworth Lord strives to be excellent in all the diverse areas of the property market it covers and this can only be achieved through maintaining exacting standards positive relations with their clients and an honesty and human understanding that it can always improve Property Sector The property market is currently a legislative minefield The property market is currently a legislative minefield Estate agents now must navigate about 450500 separate pieces of legislation which Paul points out is roughly double what it was ten years ago Not only are landlords and agents having to navigate all the legislative changes being enacted but they are also having to deal with increasing taxes and costs involved as well as challenges arising in the sector today which are increasingly more sophisticated and complex The imposition of selective licensing for example wherein local authorities require that properties are licensed before they can be rented out has given councils the power to impose massive extra costs on landlords for little reason The cost varies between 34 AINSWORTH LORD ESTATES 100 to 1000 depending on where one is in the country Paul worries that this appears to be an entirely arbitrary number that councils set upon as a way of gaining extra revenue from landlords in addition to the invariable additional costs accrued from interactions with the councils themselves Similarly the phasing out of mortgage relief over the next five years means clients are no longer allowed to offset their mortgages through rent Ainsworth Lord is having to restructure client s portfolios from private landlord businesses to limited companies so these clients can retain some form of relief This poses few difficulties for new landlords with small portfolios But for their established clients with between 50 100 properties it can be a game changer In fact many of these landlords are exiting the market because of this The upside to this is that new housing stock is freed up for new landlords whether the government had intended this is a moot point but many of AinsworthLord s longest clients have had no choice but to look to other vehicles and assets to invest their money

HOUSING E P Muldoon Building Contractors E P Muldoon Building Contractors Ltd EPM is a local family run and deliberately small building company based in Stockport The company was founded in 2000 when after many years spent working for other local builders founding director Eddie Muldoon recognised that there was a shortage within the industry for genuine builders offering quality as a standard and operating regionally with a pride in offering competence customer care and integrity in equal measure Rear elevation awaiting porcelain tiles to hardstanding patio FACTS ABOUT E P MULDOON BUILDING CONTRACTORS We offer general and high specification building work including domestic new builds refurbishments and extensions loft and cellar conversions orangeries and sun rooms and specialist carpentry and kitchen fit out Client wise our focus towards targeting householder clients was a deliberate choice of preferring to work for real people and families in their homes or future homes rather than targeting more corporate commercial markets It has allowed us to become well established and respected in the region not just for a very high standard of work but equally for our high levels of service both on site and post project This has been a phenomenal year for us and our turnover this year is 1 7 million Looking forward to next year we will be aiming to maintain build on and to consolidate our growth Headed by Eddie Muldoon Despite this growth EPM remain keen to retain a small loyal core of quality employees alongside a wider supporting team of specialist sub contractor affiliates We pride ourselves on remaining a classic SME We believe this keeps us fluid despite shifting economic times whilst also helping ourselves remain innovative and competitive The company also supports old school traditional best practice such as our in house development of employee skills via traditional apprenticeships and day release training programmes epmuldoon builders co uk Established in 2002 Based in Stockport Provides new builds extensions renovations and refurbishments 7 employees FMB Award Winners 2006 2007 E P MULDOON BUILDING CONTRACTORS 35

THE PARLIAMENTARY REVIEW Highlighting best practice To help support this on the job learning all of our tradesmen be they in house permanent staff or affiliate sub contractors are fully time served experienced professionals who specialise in the domestic market Ethics and accreditation In 2006 and 2007 EPM was awarded prizes in the FMB s Master Builder Awards To continually manage and improve this bespoke quality offer we gained our registration as a licenced trader builder under Trustmark the only government endorsed scheme for trades in and around the home EPM was awarded this accreditation after a vetting process that included on site inspections to ensure that the company was seen to be raising industry standards As such EPM fully abides by Trustmark s three cornerstones of quality good trading practices good customer service and technical competence This accreditation gives customers reassurance of quality and protection from rogue traders which is a real problem in this economically sensitive industry Similarly EPM is also now a fully vetted member of the Federation of Master Builders FMB FMB is the UK s largest trade association representing the UK s construction industry Before becoming a master builder members must also meet FMB s strict membership criteria as well as passing Front elevation awaiting new drive with feature turning circle another vetting process To become registered members must have a minimum of 12 months trading pass an independent inspection have public and employers liability insurance and pass credit and director checks Once accepted members are inspected every three years by an inspector from the British Board of Agr ment As such we also very happy to abide by the published FMB Code of Practice for Members Project focussed In 2006 and 2007 EPM was awarded prizes in the FMB s Master Builder Awards which celebrate the best of the best in the construction industry In 2006 we became the NW Region Winner in the Master Builder of the Year Award Category 3 Medium Renovation Projects for Lilac Cottage in Lymm comprising a 2 storey oak conservatory mezzanine level and gym refurbishment and in 2007 we again became the NW Region Winner but in the Category 2 Small Renovation Projects for Elmsway in Bramhall comprising two extensions a loft conversion and refurbishment We are currently completing a sustainable life time home where the client s emphasis lies heavily towards the ecological and environmental effect the build will have on the land and surrounding area With the new technology available today such as ground source heat pumps combined with traditional methods and ecological measures including new bat roosts the project has presented itself with unique and rewarding challenges Focussing on the future of such ethically responsible and environmentally friendly projects is a route I see the company continuing along No matter what the project is however I always ask myself the same two questions once it s complete First 36 E P MULDOON BUILDING CONTRACTORS

HOUSING Walled garden Times ahead We have no aspiration to work for commercial developers Our ambition is to explore small scale development projects of our own given the shortfall in housing particularly affordable sustainable housebuilding that facilitates place making The problem as usual for an SME with limited staff turnover and cash reserves is gaining the finance to help achieve land purchase and enable cash flow In this government initiatives like the Housing Growth Partnership and Home Building Fund could potentially help but the problem is getting on the first rung and gaining a track record that can then be used to gain funding assistance The alternative of looking for business and bridging loans is not sustainable or financially viable and banks have seemed reluctant so far Builder and Engineer magazine once quoted only 15 per cent of property and construction executives in the UK had favoured an exit from the EU We supported the Remain campaign believing that leaving the EU could upset the economic balance and inhibit the growth and confidence within the industry But in terms of policy change the loss of EU bureaucracy and free movement might see a benefit to the UK building industry through a strengthening of our own technology policies and mandates The recent Grenfell Tower and the implications that might result from an independent review of it such as the import and installation of non compliant technology from nonUK sources is a critical area that we ll be monitoring during and after our departure from the EU We have no aspiration to work for commercial developers if the client were to have further work carried out at a later date would they use my company again And second has anything cropped up on this project that we now feel we would handle differently should it happen again We also sit down with the client and ask them for their input and whether they think we could improve in any way I think that carrying out these constant checks and measures on both the quality control of the work and the experience we aim to give our clients has a big influence on client retention E P MULDOON BUILDING CONTRACTORS 37

THE PARLIAMENTARY REVIEW Highlighting best practice Mazzard Investments Maximising existing features The Old Glove Factory Main courtyard The Old Glove Factory FACTS ABOUT Mazzard Investments Headed by James Windsor Established in October 2010 Based in Filleigh North Devon Services include Residential Property Construction Development 5 employees Current and committed future developments will deliver approximately 65 new converted dwellings with a total value in excess of 17 million www mazzardinvestments co uk E stablished in 2010 Mazzard Investments is a family run residential property development company that focuses primarily on bespoke residential developments in Devon Its ambition is to deliver individual homes that stand out from the rest of the marketplace through design and quality of finish Mazzard is managed by James Windsor who joined the family company in late 2011 He and his father have both overseen property developments worth over 6 million Projects have been delivered working in tandem with landowners other development companies and private equity investors Barriers to entry As a fledgling company operating in the challenging industry of property development we faced barriers to entry around sourcing opportunities financing developments and initiatives and attracting buyers from other established developers An established track record is vital in the property development industry Although our background is construction based we needed to work on forming relations with various industry stakeholders and needed to be able to evidence our ability on delivering projects and development margins To separate ourselves from our competitors we quickly realised that we needed to strive to be market leaders in our relative field producing a high quality product when referenced against the relevant market price point 38 MAZZARD INVESTMENTS

HOUSING We typically undertake developments spanning between four to 20 dwellings Projects such as these are too big for an individual builder to finance and too small for a regional developer to consider We also undertake complex regeneration projects such as brownfield conversions and works to listed buildings as they often provide opportunities to create spaces that are truly unique We aim to produce homes that have a high quality finish and a unique style varying in size and design We are certain whether building a small cottage a four bed detached house or a high end apartment that our pride in the finished product will always remain the same The outcome from our developments is not just measured in our financial successes but also in what has been achieved by the process and the lessons that we can extrapolate from it in order to improve our performance In delivering property developments we aim to compliment the local landscape While every project is different and has its own constraints and opportunities we aim to make a positive impact wherever possible My father has been in construction for over 30 years and he takes pride in the accomplishments that he has achieved This sense of accomplishment is something that I endeavour to achieve and replicate through future projects A good example of this in practice is the Old Glove Factory in Pilton Barnstaple set in the grounds of a former Benedictine monastery The Old Glove Factory was converted to form nine high quality unique apartments The project was delivered over a period of 18 months and has involved extensive refurbishment and challenging development works We are immensely proud of what our team managed to produce turning a derelict building into nine unique spaces that will be enjoyed by its residents for years to come As we are a small company we are personally involved in every project and are firmly invested in the eventual outcome design and finish Whilst we only have a small number of direct employees the way we form our teams is comprehensive and well informed We choose the designers all of whom have had extensive experience over myriad projects alongside the subcontractors who work on the ground We believe a rounded and experienced team is crucial in understanding the quality Barn conversion Barnstaple Devon We aim to prouce homes that have a high quality finish and a unique style varying in size and design Our niche market place and approach Detailed and considered finishes MAZZARD INVESTMENTS 39

THE PARLIAMENTARY REVIEW Highlighting best practice New build development Barnstaple Devon Award nominated conversion of former public house that we are looking for It also imbeds a feeling of loyalty and shared values and successes in the result We have worked closely with banks private equity investors and development finance companies to deliver our projects This approach has resulted in positive outcomes for us both in terms of our customer feedback the new opportunities that we have taken on and the external recognition we have received in the form of local authority building control LABC building excellence nominations for the Old Glove Factory and our recent conversion project of a Grade II listed former public house into four cottage style dwellings We have worked closely with banks private equity investors and development finance companies to deliver our projects The debt marketplace remains challenging as lenders react to the uncertain economic environment but we have been fortunate enough to have been supported by NatWest The Homes and Communities Agency under their home building fund programme and Exeter based lenders Exeter Finance Our relationships with these lenders remains central to our capacity for growth The future In the past two years we ve had a marked increase in growth both in terms of the number of opportunities 40 MAZZARD INVESTMENTS being presented to us and in the size of development projects We will continue to increase the amount of our staff to react accordingly One of our main challenges is to instill our company ethos in all of our employees so that they understand our guiding principles and the standards that we wish to uphold within the company We predominantly focus on small to medium sized developments to date There are difficulties delivering projects of this size owing to the short construction and development programmes as well as the loading of site infrastructure costs against a relatively few number of dwellings To date we have balanced out these abnormal costs against a relatively low overhead cost base and we have isolated project risks from each other as much as possible A further challenge for us is retaining our position within the small marketplace delivering multiple small to medium sized developments whilst controlling our direct overheads We plan to do this through sensible recruitment and site selection but we also recognise the need to have an ongoing pipeline of projects and avoid gaps and void costs between developments

HOUSING Grant Property Headquarters is based in Edinburgh I t was 21 years ago that Peter and Colette Grant decided to buy a property in Edinburgh renovate it and rent it out to tenants They bought a few more and got quite good at it building up a large portfolio of properties Soon after their friends started asking if the couple could do the same for them Peter and Colette suddenly realised that they were in business Today Grant Property based in Edinburgh now operates in ten cities across the UK sourcing renovating furnishing and managing residential property for individuals and institutional investors based in 30 countries around the world Peter Grant Co founder FACTS ABOUT Grant Property Headed by Peter and Colette Grant Established in 1996 Based in Edinburgh Investors are constantly looking for steady returns made up of a combination of monthly income and long term capital gains The attraction of residential investment property is obvious with tenants paying rent monthly and the housing market delivering capital growth Although the UK residential property market has had its ups and downs over the last 35 years its value has grown at an average of rate of 7 per cent per annum making it one of the best performing types of investment asset The ability to borrow from the banks has meant that many longterm residential investors have done very well from capital growth It is very likely this will continue in the future as the UK is significantly undersupplied in residential property and rental demand is continually increasing in our regional cities as fewer people can access finance to buy Services include residential property investment and management 100 employees 300 million of property under management www GP invest com The lack of housing in the UK has been widely debated for years now but no government has come up with a coherent plan on how to bridge the gap between supply and demand The draconian planning laws across the UK and a lack of GRANT PROPERTY 41

THE PARLIAMENTARY REVIEW Highlighting best practice accessible mortgages continue to frustrate housebuilders who desire to increase volumes In addition local council plans for affordable housing are repeatedly stalled due to a lack of government funding It is now projected that 25 per cent of the UK population will be renting long term by 2025 More significantly nearly half of those under 30 will be renting which traditionally represented the bulk of the first time buyer market Colette Grant Co founder Local council plans for affordable housing are repeatedly stalled due to a lack of government funding Grant Property installs high quality bathrooms 42 GRANT PROPERTY The role of the private landlord in the UK has been crucial in meeting the growing demand for rental property The government however has targeted landlords by increasing the tax burden on the sector On the positive side regulation around the private rental sector has increased significantly to guard against slum landlords which has greatly improved safety for tenants This has also lead to greater professionalism in the property management industry Scotland has further led the way with the recent introduction of its own Letting Agent Code of Practice 2016 which sets operating standards and new legislation that is meant to provide greater security of tenure for tenants We would like to see this new legislation adopted across the UK as it would greatly enhance the professionalism of the industry and greatly improve the standard of private rental housing We have found that investors are diversifying away from stocks and shares and looking to UK residential property to deliver higher yields and more stable long term returns UK and overseas investors are turning their back on the London market as house prices have gone into reverse and rental yields are only 2 3 per cent pa They are now buying in regional UK cities where yields are much higher at 6 per cent and house price growth is running at 6 8 per cent This is fulfilling the need for income in a low interest rate environment and offering the prospect of healthy capital returns as well The spectre of Brexit has not reduced investor appetite and the weakness of the pound sterling has put the UK property market on the map for foreign investors as their money is going a lot further than in the recent past Our investors are still seeing value in the long term residential market in the UK In theory investing in residential property is easy Buy the property do it up and rent it out The reality is somewhat different You need to buy in the right place and at the right price Renovations need to be focused on those areas that increase the value of the property and the specification needs to suit the modern day tenant You need to source and manage contractors to carry out the work and ensure you are on site to review the quality of the work You then need to find quality tenants manage every aspect of their stay and ensure you are compliant with the onerous safety legislation Even if you outsource these activities you will still need to co ordinate lawyers contractors and agents to get the job done which is very time consuming and expensive if you get it wrong Then try and do that in several different cities and see how you get on as one will realise just how difficult it is At Grant Property we take care of all these elements for our clients which takes all the hassle out of investing and saves them time and money

HOUSING One of its modern contemporary kitchens Our clients also enjoy the added benefit of having a dedicated account manager who will act as a single point of contact for their entire portfolio across the UK This saves our clients making numerous calls to different agencies and property managers when they want to make enquiries The additional comfort our clients have is that we have carried out more than 2 500 renovations and currently manage more than 300 million of UK residential investment property Going ahead Grant Property will continue to expand into more UK cities increasing choice for investors and we will be looking to team up with a residential investment fund to reach out to investors who want exposure to our product but do not have enough money to invest directly Our unique proposition of sourcing renovating furnishing and managing traditional UK residential property across multiple cities will not change however as we continue to help investors across the world achieve their aim of long term financial security Grant Property offers a unique proposition that sets us apart from other buy tolet companies Grant Property offers a unique proposition that sets us apart from other buy to let companies We operate in ten cities across the UK including Edinburgh Manchester and Bristol which allows our clients to choose properties across the UK s regional hotspots They can build a geographically diversified portfolio of traditional properties renovated to the same high standard and positioned in areas with the highest level of rental demand After agreeing on an investment strategy with each client we have expert buyers on the ground in each of our target cities who use local knowledge to source the best properties to match the needs of the client All our renovation work comes with a fixed price guarantee and is managed in house delivering an average turnaround time of eight weeks Crucially the renovation work is valueenhancing so that the value of the property increases by the amount spent GRANT PROPERTY 43

THE PARLIAMENTARY REVIEW Highlighting best practice Robinsons Queensgate Redhill office to residential scheme Steven Lane Partner FACTS ABOUT Robinsons A mongst the significant happenings of 2017 the commercial property market has seen the pendulum for office space availability swing from oversupply to scarcity at an unprecedented pace For the residential letting market the strains for continuity of tenancies is a predominant theme Robinsons with Martin Brown is a three partner chartered surveying firm with a staff of ten operating out of the Surrey market towns of Reigate and Dorking Headed by two partners Established in 1992 Based in Reigate and Dorking Services include commercial property agency commercial property management and residential lettings Nine employees www robinsonsmb com The core of our business is our specialisation in commercial property as consultants offering a broad range of services through the sale letting and acquisition of offices retail and industrial premises commercial property management landlord and tenant consultancy and valuation In addition we operate a specialist residential lettings operation from both offices Our territory is primarily Surrey Sussex and South London but extends nationally for landlord tenant and agency work Our clients are a broad mix of private and family property companies and trusts individuals and local authorities In the commercial property sector the headline of the year has been the vast reduction in office space availability and as a direct result significantly improved rents The conversion and redevelopment of swathes of empty office buildings into apartments by recent changes in the planning rules is providing many homes throughout provincial England Many projects reached physical completion and residential occupation during 2017 The first tier result is positive the initiative has provided towns with a significant supply of much needed residential homes whilst putting otherwise empty office blocks to use 44 ROBINSONS

HOUSING In my operational area primarily Surrey we are now achieving rents exceeding the previous highs of 2011 The latest market leading office scheme in Redhill Surrey was built speculatively and has achieved rents breaking the 30 per square foot threshold This has made some 20 per cent improvement on rents as a direct result of the introduction of converting office buildings into residential use This robust occupational story for offices has in turn strengthened the investment market and reacted positively to the improving income that office buildings now produce This strengthening of the office market has provided a further benefit The larger towns now awash with residential schemes and a lack of available office space are driving the applicant requirements for offices out to the adjoining smaller towns Permitted development rights which allow office buildings to be converted to residential homes provide highly effective corrections to the oversupply of office space and lack of housing stock in the larger towns This policy has had a knock on impact on smaller market towns In small towns loosing dormant offices isn t a big issue for local traders but losing numerous offices where the employees are key customers for the local traders has an immediate impact Local retailers lose their lunch and commuting trade it loses daytime retail customers and dries up the local daytime pavement footfall The available choice of office space available is now at an all time low For the office market the headlines are encouraging A surplus of offices has been corrected meaning that buildings are being redeveloped measurably improving the local community and economy The available choice of office space available is now at an all time low Rents are therefore increasing and occupancy is greatly improved Countless small businesses rely on the custom of office workers they buy their sandwiches visit the barbers buy everyday goods close to their workplace in so doing stimulating the local economy As an agent I try to steer a change of occupiers from those dependent on daytime trade to those that reflect and Dorking period offices to residential scheme ROBINSONS 45

THE PARLIAMENTARY REVIEW Highlighting best practice property stock stifles supply at a time where financial regime and tax changes are deterring and hindering buy to let growth and causing stock decline with private Landlords halting or reducing their ownership with a significant number advised to exit the private rental sector This reduced inflow of properties available to rent leads to scarcity in all but the prestige sectors high value London and City apartment schemes and executive family homes that remain out of reach of the masses and drives core rents upwards The government should now introduce an updated form of tenancy to cater for the changing times The key is to provide rental stock for medium term renting that offers tenants more security of tenure along with basic repair responsibilities Office suites within Westcroft Reigate serve the arrival of the new residents Late night pharmacies micropubs and convenience stores are more relevant to these needs All towns require more housing stock but we must not underestimate how changes in the dynamics of a location immediately impacts commerciality The government should now introduce an updated form of tenancy to cater for the changing times 46 ROBINSONS Looking at the residential lettings market as Partner responsible for the residential lettings and management element of my firm I am driven by conviction that the last 12 months have demonstrated an immediate demand for the private rental sector to be supported by changes to the law on housing 2017 provides stark evidence that the supply of property to rent is too low with most residential tenants renewing their existing tenancy arrangements annually Many do not see themselves having the likely disposable income freedom to upgrade to larger rental property by any significant proportion or vacating to purchase This lock in of rental For the landlord and industry this option for gaining more certainty over the continuity of income should harness renewed private investor commitment to the sector lenders appetite for the market and enable a significant improvement and volume of rental housing stock A variation on the assured shorthold tenancy framework modified for this purpose should address Granting a term of five years Annual rent increases in line with Retail Price Index provides a transparent adjustment A route for a landlord to terminate the letting during the term solely as a safeguard by way of formal grounds of recovery if a tenant is in breach of contract Having been an agent dealing with residential lettings for over twenty five years I firmly believe that such an initiative is now justified and required

HOUSING Stanford Knights Letting Live tour of HMO Multi Family Units in Northampton 2016 S tanford Knights Letting is the managing agent division of Wealth Success Alliance a leading multi family specialist in the UK Its aim is to improve the quality of the sector create innovative solutions and provide thought leadership to investors and the government Matthew Moody has been an active proponent of lobbying the government to improve standards in the private rental sector and easing the burden of bureaucracy for good landlords Matthew Moody Founder FACTS ABOUT Stanford Knights Letting Founded by Matthew Moody Commonly called houses in multiple occupation HMO houseshare or multi let I believe that this sector should instead be known as multi family as the sector begins to mature and expands to multiple markets price points and quality levels Founder of Stanford Knights Lettings and Your HMO Expert I have been operating in the sector since 2003 and have managed over 1250 units of stock Other accolades include winning Letting Agent of The Year Midlands featuring on BBC Radio 4 and other broadcasting platforms authoring and publishing the book Cracking the Property Code and developing 6 million worth of multi family stock Our aim is to help investors in two ways to invest in suitable multi family unit stock that delivers a good yield and to educate and consult with investors who wish to build their own portfolio through training coaching and thought leadership Established in 2013 Based in Northampton Manchester Services include Managing Agent Investment Training Firm Focused on the MultiFamily Market 15 employees 1 million turnover Accredited Partner of Shawbrook Bank stanfordknightsletting com As an accredited partner of Shawbrook Bank we work with investors to develop multi family units in Northampton Manchester with six new locations opening next year to broaden our scope and offering STANFORD KNIGHTS LETTING 47

THE PARLIAMENTARY REVIEW Highlighting best practice Our aim is to appropriately educate investors on the business of being a landlord running a business and achieving the highest possible standards whilst working in partnership with national and local government Part of our unique modus operandi includes allowing the owner s perspective to influence our work This is coupled with our desire to become the leading provider of multifamily investment education and advice in the UK Some of our core values include situational and time awareness strong communication skills and remaining ahead of the curve in both service provision and client satisfaction Our target market is typically investors wanting returns above 8 per cent landlords wanting to double their profits and local councils having issues with rogue landlords Part of our unique modus operandi includes allowing the owner s perspective to influence our work being on the cutting edge of technology systems and construction and going above and beyond to complete tasks The proven process that we abide by relies on our multifamily profit principle Our next focus is upon opening up new locations in 2018 the launch of our online academy and legacy provisions Matthew Moody speaking What s the problem in housing Official figures claim that we need to build 250 000 new homes each year to satisfy demand Add reports by Crisis and Shelter stating that 94 465 307 000 lived on the streets and the final figure could be as high as 550 000 new homes So how do we cater for this demand given that our current housebuilding has not exceeded 165 000 in the last decade We need to consider the multi family approach and concede that given the lack of appropriate labourers skilled project managers materials and archaic planning system the figure of building 300 000 new homes a year seems to be at present unrealistic Multi family living is nothing new The name alone is eerily reminiscent of the workhouse era with families often sharing rooms facilities and working together This standard of accommodation is in many cases incompatible with modern standards Alternative solutions to the housing crisis however are still a pressing issue It can be argued that today s workforce is often more transient than traditional workforces People may want to travel take short term contracts and relocate With technology the burgeoning Airbnb market and growing popularity of short term lets could we embrace a functioning and ethically based multifamily unit model The need for accommodation should allow investors the ability to convert units such as disused commercial buildings former schools pubs carehomes and build to rent schemes in order to rapidly achieve the objectives set down by the government in achieving the housebuilding target Given that one property could provide six to 20 units within a multi family environment there might well be a solution to the housing crisis 48 STANFORD KNIGHTS LETTING

HOUSING We focus on turning typical three to four bed properties that would traditionally cater for one family into six to eight units of accommodation These properties are larger than the minimum size and are cost effective solutions owing to the fact that these alternatives are cheaper than renting a flat Such developments are compliant with government legislation and can be undertaken across the UK Our intent is to develop larger units where co living and concepts of workplay stay are combined providing larger developments with shared outdoor spaces parking and infrastructure For this to happen successfully across the UK certain changes must occur 1 The broad concept of multifamily should be considered in line with government house building targets so as to understand how we could accommodate more people 2 The planning housing building regulation and fire safety officers should work in tandem to create cooperative guidelines a legislative framework and comprehensive guidelines 3 The stigma of HMOs should be removed by focusing on the multifamily model and the benefits it brings to a local community with improved economy demand for transportation and employees 4 The government should encourage more of these types of development schemes in order to renovate dilapidated buildings or to build from the ground up 5 Investment should be encouraged to drive these schemes with tax breaks for investors The broad scope of what we see happening excites us The rise of the multi family sector Happy clients from HMO Accreditation Programme The broad scope of what we see happening excites us but it is only by working with policymakers as a sector that we can truly provide a new model and standard of living STANFORD KNIGHTS LETTING 49

THE PARLIAMENTARY REVIEW Highlighting best practice Brookdale Property Management Brookdale s office Peterborough FACTS ABOUT BROOKDALE PROPERTY MANAGEMENT Headed by Dave Curtis and Mike Tomlinson B rookdale Property Management was launched in a shared house in Peterborough nearly 30 years ago by two young men Dave Curtis and Mike Tomlinson with a phone line at the bottom of the stairs With no previous knowledge experience help or financial support their future prospects were not looking great at a time when the business of renting and managing residential properties was just the baby brother of a massive market in buying and selling homes dominated by estate agents Established in 1989 Based in Peterborough Cambridgeshire Provides full management of residential flats apartments and houses 14 employees Successfully manages a portfolio of 1140 properties www brookdale pms co uk Today that situation has been transformed and latest figures suggest that the average branch of a lettings agent manages just under 200 properties By contrast Brookdale s sole office manages a staggering 1 140 houses and flats That is achieved with two directors and just over a dozen staff covering Peterborough and the surrounding area So how did we as a small independent property management agent in just one town outcompete national franchises large national chains and high street agents to become what we confidently believe is one of the most successful and largest independent letting agents in England We left our previous and very different careers and took temporary jobs as milkmen to provide us with an income and sufficient time in the day to start up the business Nearly three decades later we are still hands on directors Thus the years of knowledge we have amassed are still put to good use daily both in problem solving and in growing the business 50 BROOKDALE PROPERTY MANAGEMENT

HOUSING Brookdale team From the outset we focused on the principle that by thoroughly providing the best quality of service to landlords and tenants the business would succeed and profit would follow This remains the central principle today and we are proud that the vast majority of our landlords come through recommendation Our watchwords are customer care and service and we have tried to follow that ethos in an industry that is notoriously lacking in those areas To become a market leader in such a competitive industry we needed to consider the points of difference and initiatives we would offer that other agents cannot match Thus we undertake home inspections of the current address of any local prospective tenants before they are accepted we undertake pre leaving inspections to ensure tenants receive clear guidance on how to return the property and we are proactive with landlords to maximise rental income by highlighting possible negatives with their property and encouraging improvement to maximise the opportunity of a swift let as well as minimising the time a property stands empty Locally we have a reputation for having houses and flats in the best condition which encourages good tenants to take care of the property In addition we are so confident of our vetting and management techniques that we can offer our own in house guarantee to landlords that their rent will be paid even if the tenant defaults If something goes wrong we learn from it so it won t happen again Pain can be a great motivator for creativity in thinking and for moving forward We certainly had our share of growing pains in the first 15 years We have come to understand the importance of well trained staff Clients tend to judge a business based on their experience with the last member of staff with whom they have dealt We are also acutely aware of the importance of employees having a good working environment Accordingly we try to be as flexible as possible with family friendly practices for example granting time out for special occasions like school sports days and this encourages loyalty and appreciation If staff enjoy their work they are more likely to be productive and give their best Locally we have a reputation for having houses and flats in the best condition We consider the two most important factors of our success to be the stability of management and our continued focus on the quality of work with both landlords and tenants BROOKDALE PROPERTY MANAGEMENT 51

THE PARLIAMENTARY REVIEW Highlighting best practice A crucial aspect of our business is keeping abreast of proposed new legislation and organising our own internal structure and systems in advance In recent years there has been legislation on gas safety energy performance smoke detectors new deposit regulations selective licensing and more We always research the likely consequences of new laws and inform our clients well in advance of any new legislation that will affect them Directors Dave Curtis and Mike Tomlinson Our satisfaction and reward is derived from people recognising the quality of our work 52 Staff pay and incentives are built around performance We are happy to reward good performance through pay and bonuses We don t pay commission because we believe this may cloud judgement Staff have yearly appraisals to review their performance and they are encouraged to feed back their ideas and issues As a team we organise social events two or three times a year financed by the business As a result of these practices we have a low staff turnover which contributes to the stability of the business and means we have a highly experienced team Conversely if things are not working out with a member of staff it is imperative to recognise and change this we are only as good as our weakest link Our research in 2017 showed that fees charged to tenants by many high street letting agents were more than double ours Their charges often bore no relation to the amount or skill level of their work Moving a tenant into a house is not open heart surgery and we believe the fees should reflect the actual work done Nationally tenants who were charged these punitive fees rightly protested As a result tenant fees are due to be banned completely in 2018 by the government Some of the more rapacious agents looking for a quick profit rather than a sustainable business will now have to work out how to make up the 20 30 per cent of their income they will soon lose BROOKDALE PROPERTY MANAGEMENT Looking to the future we see the rental market as secure It is clear that there will always be people who want to rent a home It is more flexible than home ownership and allows much more freedom to move location as work or personal life demands Moreover with the high price of buying a property and the eye watering sums demanded as a deposit we can be confident there will be a strong private rental sector for the foreseeable future Where there is a demand there will be landlords to meet this As a reputable agent we look to work with responsible landlords offering well presented properties which then allows us to secure quality tenants the key Poor tenant selection will cost time money and reputation We look forward to still being part of that secure future for private rented flats and houses because for us our business is not just a job Our satisfaction and reward is derived from people recognising the quality of our work Over the past four years we have been included in the UK s largest customer review property website allagents co uk and we have won awards each year This year we were the number one letting agent for the east of England Our team s hard work determination and passion for quality is something we are proud of as is the fact that after so many years we both still enjoy what we do Long may it continue

HOUSING Ground Solutions UK G round Solutions is an established family owned managing agent that specialises in the management of residential apartment blocks commercial developments and public open space Though headquartered in Derbyshire the company manages properties across the UK from Southampton to Cardiff and as far north as Pickering on the border of the North York Moors Drawing on several recent experiences the company voices concerns it has with National House Building Council NHBC practice and the effect that minimum value claims have on leasehold owners as well as the conflict of interest that arises when the responsibility of investigating poor workmanship falls to the same body that signed off on it When the construction industry fell into recession we had to restructure the company and re imagine its direction In many ways we owe our success to being forced to do so We had started the business in 2006 targeting developers and positioning ourselves as a grounds maintenance company The housing market crash two years later meant that this strategy was no longer feasible We had secured a number of initial contracts at this point but many fell through as the other parties no longer had the funds to honour them Landscaped area apartment block FACTS ABOUT Ground Solutions UK Headed by Mike Pett Richard Pett Christine Pett and Rebecca Pett Established in 2006 Based in Swadlincote Derbyshire Services include management of blocks of apartments areas of open space and commercial developments 23 employees Centrally based means that it keeps the maintenance of the majority of its sites in house and so offers employment to the local area www groundsolutionsuk com We began approaching existing apartment blocks and developments in the local area We were invited to a meeting with the directors of a management company responsible for three blocks of 12 apartments in Hilton Derbyshire directors who were unhappy with the managing agents they had at that time They decided to GROUND SOLUTIONS UK 53

THE PARLIAMENTARY REVIEW Highlighting best practice client or resident had an issue we d be straight out to sort it We now employ 23 staff not including the directors all from our local area Apartment block maintenance The sector of business experiencing the highest level of growth is the management of local spaces Quiet corner of open space 54 GROUND SOLUTIONS UK give us a try We decided that the way to do this better was to take control of the maintenance by doing the cleaning grounds maintenance and other maintenance ourselves Like everyone else in the sector we were experiencing a period of very slow growth at the time and initially the three directors took on the work themselves Word of mouth spread quickly We found ourselves managing most of the blocks of apartments in this area taking on local staff to go out to do the maintenance and cleaning We did the work to the highest possible standard and if a Being family owned and family run has been a crucial factor in company growth Residents like the fact that one of the directors is always accessible and will turn up on site if needed particularly those who have had bad experiences with previous managing agents as many seem to We also make a commitment to regularly attend resident meetings trying as far as possible to ensure that these are at times convenient to them This is generally in the evening after the working day or occasionally during weekends which requires that we take personal time out for them but we feel we owe this to our clients and we know they appreciate it As we then go on to do what we promised we would in the meetings ensure we always listen to their concerns and feedback and act on it they feel included respected and the contracts tend to last for many years The sector of business experiencing the highest level of growth is the management of public open spaces Local authorities are increasingly unwilling to take responsibility for the management of such spaces particularly on housing estates Rather it has become common practice for residents to form resident management companies and pay service charges for the maintenance of their estates to managing agents like ourselves As the resident management companies are able to hire and fire the managing agents depending on performance it ensures that the residents that live there aren t tied into poor service through the contracts that local government used to enter into It protects all parties by empowering the people receiving the service We now manage over 100 sites and we have many more waiting in the pipeline

HOUSING Green areas around apartment blocks Secondly the NHBC on occasion seems to play the role of both player and referee acting as an arbiter of decisions that they were meant to make responsibly in the first instance We have a site in Uttoxeter with significant defects mainly affecting road access as well as a large criblock retaining wall holding up the car park It is already visibly giving way Some of the first residents have lived there for over five years and yet the road is still to be completed with raised ironworks and sunken drains throughout One resident even has to move a cone and then replace it every time he moves his car as there is a dangerous drain right behind his space The Rt Hon Andrew Griffiths MP the local MP has requested a site meeting with the CEO of the NHBC but to date has not received a response The NHBC had acted as a building control rather than the local authority signing things off There is a wide feeling amongst residents and purchasers on the site that the NHBC should not be allowed into a position where they investigate claims of poor workmanship when they were the body responsible for signing off in the first place The NHBC had acted as a building control rather than the local authority signing things off Increasingly we have been concerned by significant shortcomings in National House Building Council NHBC construction warranties and insurance packages particularly concerning leasehold property affecting a large number of our clients The first issue surrounds mandated minimum claim values On smaller properties this often poses no problems But when the property is a leasehold block or apartments this figure is often so high as to render the vast number of claims insufficient for compensation For example we manage a block of apartments in West Bromwich around four years old It has become quite apparent that the flat roof was not installed correctly already there has been water ingress on the flat roof and the lead flashing does not correctly overlap You would expect the leaseholders to be protected against this kind of thing due to their NHBC warranty But the minimum claim value for their warranty is 12 000 higher than the estimated cost of repairs and the claim was rejected The leaseholders have had to fund the repairs themselves and are understandably disillusioned with the NHBC GROUND SOLUTIONS UK 55

THE PARLIAMENTARY REVIEW Highlighting best practice Balinor Group Holdings Typical management company development Debbie Perry CEO B alinor Group Holdings provides a full range of essential service requirements relating to residential property management and offers a high quality and cost effective service to both developers and property owners A personalised and professional service FACTS ABOUT Balinor Group Holdings Headed by Debbie Perry Established in 2008 Based in Hertfordshire Provides residential property management Seven employees www balinorgroupholdings co uk Our organisation is a residential property management company based in Stanstead Abbotts Hertfordshire Managing a variety of developments we manage apartments estates and commercial premises covering London the south east the south west home counties and East Anglia We provide high quality cost effective property management services for residential freehold leasehold and mixeduse developments Our clients include major national house builders regional developers and individually run management companies Aside from property management we also provide maintenance and contractor services a company secretary development site visits insurance day to day management and planned maintenance right to manage RTM ground rent debt recovery solicitor enquiries for property sales director resident meetings finance administration and supplier management correspondence and health and safety compliance We believe in providing a personalised service to our existing and prospective customers as we know how important the investment and property is to them Most of our new business is derived from recommendations from existing clients which demonstrates the successful application of the service driven ethos of our company Whatever the size of the development and however big or small the requirements we offer the same personal service delivery 56 BALINOR GROUP HOLDINGS

HOUSING Encouraging initiatives to drive improvements Within our organisation staff and management work on processes and procedures that have been implemented on a day to day basis We hold monthly staff meetings to discuss the current processes and encourage staff to be proactive use their initiative and to bring new ideas in to the business or the processes We like to think beyond the processes so that we do not miss obvious improvement opportunities It is not just from staff that we seek ideas to improve our business but also from our clients and customers through direct responses and questionnaires Armed with this information we can select the area or process that requires attention and then develop design and evaluate alternative solutions Once a new solution has been implemented we maintain and monitor the solution to ensure that it delivers the required outcome and the expected benefits have been achieved In house training added benefit that we can give more of a personal service One of the main challenges that we face is competing with much larger companies We do not have the resources for marketing or to recruit sales and marketing staff which is why it is so important that our performance is good so we can trade on our reputation and recommendations We face the same challenges when recruiting staff It is not just about meeting the criteria for the role itself but the person must have the right attitude and be a team player As a small and medium sized enterprise SME we have to ensure that there are no conflicts amongst staff We emphasise to all applicants that they will be working in a small business environment and not a large corporate company When we compete for any potential new business getting our foot in the door is the biggest challenge Once we have the opportunity to introduce our business in more detail and show what we can offer it is evident that we can compete with anyone We can offer the same service and package offered by larger companies but with the Aside from directly employed staff we work hard to ensure that all our subcontractors are of the highest standard because their performance reflects on us The barrier we have is that there are not many small local We believe in providing a personalised service to our existing and prospective customers Facing and overcoming challenges BALINOR GROUP HOLDINGS 57

THE PARLIAMENTARY REVIEW Highlighting best practice A C C R E D I T A T I O N S Affiliate member of Association of Residential Managing Agents Ombudsman Property Services Member Federation of Small Business Member of Institute of Directors Information Commissioner s Office Registered We believe in achieving sustained performance through personal growth contractors who are interested in the proposed works despite the level of unemployed so we often have to rely on larger organisations that carry a higher cost Surviving with regulatory burden and financial challenges We face the same financial challenges that SMEs face in any industry There is very little funding or support for SMEs in the UK and the tax and wage regulations can be quite onerous A good case in point is the minimum The office team wage regulations that keep rising even for 16 year olds Outside the minimum wage staff package expectations for senior employees are growing and for a small business it is hard to satisfy the demands for benefits such as subsidised travel in the form of company cars fuel allowance and private healthcare When it comes to taxation there is a continued heavy burden from employers National Insurance NI contributions and the high level of Corporation Tax There should be help with NI for SME s and the rate of Corporation Tax should be set on turnover The introduction of the Work Place Pension has just added another burden to SME s and added another three per cent to salary costs Performance through motivational leadership We believe in achieving sustained performance through personal growth Leadership is the common thread that runs through the entire process of translating strategy into results and is the key to engaging the hearts and minds of our people Good leadership will acknowledge and allow communication with all staff which is vital to link individual commitment and activity to the fulfilment of our organisational plans Performance management is a key factor in getting the entire organisation aligned and mobilised to achieve higher standards and work collaboratively together to deliver results We set individual targets and work plans while consistently measuring progress assessing performance and supplying feedback The objective is for everyone in the organisation to understand the strategy and specifically how their role will contribute to its overall delivery 58 BALINOR GROUP HOLDINGS

HOUSING review of Parliament A snap election Commons majority required to trigger a dissolution under the Fixed Term Parliament Act would be reached The immediate effect was to turn what were now the two remaining Prime Minister s Question Times of the Parliament into de facto leader s debates especially since it was made clear that Theresa May would not take part in the kind of televised debates held in the 2010 and 2015 elections Prime Minister Theresa May sought to strengthen her position before negotiations with the EU began On the 19 April 2017 prime minister Theresa May sprung a complete surprise when she summoned the press to Downing Street to announce that she would seek a Commons vote to go to the country on 8 June 2017 The announcement made as parliament returned from its Easter break had the force of a thunderclap in Westminster Quite unexpectedly MPs and parties were plunged into election mode with no one in any doubt that the two thirds On this occasion her first questioner was the Conservative backbencher Alberto Costa who zeroed in on his party s campaign theme strong countries need strong economies Strong countries need strong defences Strong countries need strong leaders Who else in this house apart from the prime minister can provide the leadership that is needed at this time The prime minister did not miss a beat there are three things that a country needs a strong economy strong defence and strong stable leadership That is what our plans for Brexit and our plans for a stronger Britain will deliver The right Hon Member for Islington north Labour leader Jeremy Corbyn would bankrupt our economy weaken our defences and is simply not fit to lead The Queen s Speech What a difference Theresa May and Jeremy Corbyn s final Commons confrontation before the election had seen the Conservatives limbering up for a triumphal campaign which would culminate in the inevitable smashing of their Labour opponents When the diminished battered band of Conservative MPs reassembled minus their parliamentary majority for the state opening of parliament on 21 June they were chastened and uncertain while euphoria gripped the occupants of the Labour benches REVIEW OF PARLIAMENT 59

THE PARLIAMENTARY REVIEW Review of Parliament When they came to speak in the traditional debate on an address thanking Her Majesty for the Queen s Speech the dynamic between the two main figures had changed completely Mr Corbyn seemed far more confident and assertive relishing the opportunity to throw back the taunts that had been hurled at him during the election campaign nothing could emphasise that chaos more than the Queen s Speech we have just heard a threadbare legislative programme from a government who have lost their majority and apparently run out of ideas altogether On Brexit Mr Corbyn stuck to Labour s careful positioning in favour of a deal with the EU that puts jobs and the economy first He called for full access to the single market and a customs arrangement that provided Britain with the exact same benefits as now In his final flourish he warned the prime minister that Labour were now not merely an opposition we are a government in waiting The Queen s Speech announced the government s legislative plan for the coming Parliament Last rites on the Brexit Bill Back in March when an election seemed a distant prospect parliament s main focus was on the European Union notification of withdrawal bill This bill which would give Theresa May the authority to begin the UK s divorce from the European Union was forced on the government after a supreme court ruling that parliamentary approval was required to begin the process When the changes were put to MPs the Brexit secretary David Davis said they should not be accepted On the issue of EU citizens he agreed that they made a vital contribution to the UK But the issue was that the European Union would not begin talks until the UK had begun the formal process of leaving so their status could not be confirmed Securing their status and that of UK citizens living in the EU was an early priority for the forthcoming negotiations Labour ex Minister Pat McFadden suggested that in the event of no deal being agreed the government was seeking the authority to default 60 REVIEW OF PARLIAMENT to a trading relationship with the EU based on the World Trade Organization rules without a Commons vote Keir Starmer warned that would be the worst possible outcome quoting the Confederation of British Industry s view that the cost of change is simply too high to even consider it The leading Labour leave campaigner Gisela Stuart said the government should make the status of EU citizens in the UK a priority but she opposed the bill on the basis that this bill has one purpose and one purpose only to give legal effect to the decision of the people on 23 June The debate was held within hours of the announcement by Scotland s first minister nicola Sturgeon that she would hold a second referendum on Scottish independence In the Commons the former first minister Alex Salmond complained that the government had broken its promise not to trigger the formal process for leaving the EU until there was an agreed UK David Davis stressed that MPs should accept the EU bill

HOUSING approach backed by Scotland He also complained that the government had ignored the SnP compromise proposal to allow Scotland to stay inside the EU single market He added there might not be a meaningful vote in this chamber but there shall be a meaningful vote in Scotland about protecting our millennium long history as a European nation Article 50 is triggered reliable partners willing allies and close friends We want to continue to buy goods and services from the EU and sell it ours Indeed in an increasingly unstable world we must continue to forge the closest possible security cooperation to keep our people safe Jeremy Corbyn warned against leaving without a trade agreement the prime minister says that no deal is better than a bad deal but the reality is that no deal is a bad deal Theresa May meets with European Council President Donald Tusk in Downing Street The prime minister said that she wanted to build a close partnership with the EU we know that we will lose influence over the rules that affect the European economy We know that UK companies that trade with the EU will have to align with rules agreed by institutions of which we are no longer a part just as we do in other overseas markets we accept that However we approach these talks constructively respectfully and in a spirit of sincere co operation for it is in the interests of both the United Kingdom and the European Union that we should use this process to deliver our objectives in a fair and orderly manner We will continue to be The then Liberal Democrat Leader Tim Farron called for a second referendum on the terms of the final deal I am determined to be able to look my children in the eye and say that I did everything to prevent this calamity that the prime minister has today chosen Eurosceptic Conservative backbencher Jacob rees Mogg quoted the Elizabethan hero Sir Francis Drake There must be a begynnyng of any great matter but the contenewing unto the end untyll it be thoroughly ffynyshed yeldes the trew glory I wish my right Hon friend good luck and good fortune in her negotiations until she comes to true glory and is welcomed back to this house as a 21st century Gloriana A terrorist attack on Parliament On the afternoon of March 22nd as MPs were engaged in a routine vote on the pensions bill a man drove his car into pedestrians just outside killing two people and injuring dozens more before stabbing to death a police officer who was guarding the gates to the Houses of Parliament after which he was shot dead by security forces The sitting of the Commons was suspended and MPs were held in the chamber for several hours before being escorted away When they REVIEW OF PARLIAMENT 61

THE PARLIAMENTARY REVIEW Review of Parliament returned the next day they began with a minute of silence The prime minister gave an account of the previous day s events A single attacker drove his vehicle at speed into innocent pedestrians who were crossing Westminster Bridge killing two people and injuring around 40 more In addition to 12 Britons admitted to hospital we know that the victims include three French children two romanians four South Koreans one German one Pole one Irish one Chinese one Italian one American and two Greeks and we are in close contact with the governments of the countries of all those affected The injured also included three police officers who were returning from an event to recognise their bravery two of those three remain in a serious condition The attacker then left the vehicle and approached a police officer at Carriage Gates attacking that officer with a large knife before he was shot dead by an armed police officer Tragically as the House will know 48 year old PC Keith Palmer was killed The Labour leader Jeremy Corbyn said people should not allow the voices of hatred to divide or cower them adding that PC Keith Palmer had given his life defending the public and democracy The attack on Westminster was one of several terrorist attacks in the UK during 2017 Watching impassively in the crowd of MPs standing at the Bar of the House in the area across the chamber facing the speaker s chair was the Foreign Office minister Tobias Ellwood He had tried to save PC Palmer s life by giving him mouth to mouth resuscitation Many MPs took a moment to exchange a word with him as they passed or pat him on the arm And many of those who spoke over the next hour praised his actions President Trump One of the first acts of the new US President was to order a blanket ban on people from a list of Middle Eastern countries travelling to the US In the Commons the former Labour leader Ed Miliband and Conservative MP nadhim Zahawi joined forces to ask the speaker for an emergency debate which was held that day Mr Zahawi born in Iraq to Kurdish parents arrived in the UK as a nineyear old refugee from Saddam Hussein s regime He is now a British citizen but because he was born in Iraq he believed he came under the Trump ban The Conservative Sir Simon Burns said I think it is absolutely right that the 62 REVIEW OF PARLIAMENT British government continue the work of the prime minister to build bridges with President Trump so that we can through engagement seek to persuade him and to minimise or reduce the danger of his more outrageous policies nadhim Zahawi MP strongly criticised the Trump administration s travel ban on certain Muslim countries

HOUSING I believe that very little would be achieved by cancelling a state visit to which the invitation has already been extended and accepted The emergency debate was on a formal motion that MPs had considered Donald Trump s travel ban so no call for a policy change was voted on Universal Credit Duncan Smith who served as work and pensions secretary during the coalition He said the gradual roll out was deliberately designed to avoid any repeat of the grave mistakes made when the previous Labour administration rolled out its tax credits system in a big bang leaving he said over 750 000 people with no money at all One of the architects of UC was former Conservative Leader Iain Duncan Smith The new system commanded cross party support in principle but as it began to be implemented across the country many MPs heard from constituents who were forced to wait six weeks before receiving any money and who had been left penniless as a result That was partly because UC is paid monthly in arrears to mirror working salaries although ministers have stressed that claimants can ask for an advance which then has to be paid back One of the architects of UC was the former Conservative leader Iain The SnP s Mhairi Black supported the idea behind UC but added it was being betrayed by the implementation plunging people into debt does not incentivise work forcing people into hunger does not incentivise work causing anxiety and distress and even evicting some families from their homes does not incentivise work Some Conservative backbenchers were also worried Sarah Wollaston the chair of the health committee supported the principles of the new system but warned ministers she would vote against the government because the payment delay was a fundamental flaw which undermined the whole UC concept The Second reading of the EU Withdrawal Bill Launched with a rare two day Commons debate the European Union withdrawal bill was a mission critical piece of Brexit legislation It was all about processes very important processes The Bill repealed the 1972 European Communities Act which took the UK into what was then the common market But at the same time it transferred 40 years of accumulated EU law into British law In some cases changes will be straightforward perhaps replacing some EU commissioner or regulatory body as a responsible authority with an REVIEW OF PARLIAMENT 63

THE PARLIAMENTARY REVIEW Review of Parliament equivalent British minister or regulator But other changes might turn out to be much more significant So even at this second reading debate on the Bill previously called the great repeal Bill there were concerns across the parties including crucially among Conservative MPs about the sweeping Henry VIII powers it gave ministers to re write the law The Brexit secretary David Davis said the Bill was essential to ensure that on Brexit day businesses knew where they stood workers rights were enshrined and consumers protected He estimated that up to a thousand pieces of secondary legislation would be needed Labour s shadow Brexit secretary Sir Keir Starmer targeted clause 9 of the Bill which allowed regulations to be made that could do anything that could be done by a full act of parliament a true Henry VIII clause That is as wide as any provision I have ever seen he said What are the limits and safeguards The regulations may not impose taxation make retrospective provisions they are usually a very bad idea create a criminal offence or amend the human rights act Everything else is on limits Shadow Secretary of State for Exiting the European Union Sir Keir Starmer But the Conservative MP Jacob rees Mogg argued power was being returned to Westminster Is not the fundamental point of this bill that it is better that laws should be made by our government and our parliament than by an unelected EU bureaucracy A new Industrial Strategy It has been out of fashion for 40 years but now the concept of an industrial strategy is back in vogue and the business secretary Greg Clark made it official with the publication of a white paper setting out how he planned to ensure Britain was at the forefront of a new technological revolution And with one eye on Conservative colleagues for whom the concept smacked of pre Thatcherite heresy he challenged the idea that it was wrong for governments to have industrial strategies at all But he promised this government would not repeat the 64 REVIEW OF PARLIAMENT mistakes of past versions by seeking to thwart competition shield incumbents and protect the status quo For Labour rebecca Long Bailey dismissed the strategy as a public relations gimmick thin on detail thin on investment and thin on ideas She said Labour s target to spend 3 per cent of GDP on research and development by 2030 was substantially more ambitious than Mr Clark s target of 2 4 per cent Meanwhile revised forecasts for debt had been drawn up while those for growth real wages and GDP had been revised down Business Secretary Clark unveils industrial strategy to boost UK productivity

Acknowledgements Images in this publication have been reproduced courtesy of the following individuals organisations Grenfell Tribute Flickr ChiralJon Philip Hammond Flickr Ag ncia Brasil Fotografias Sajid Javid 2 Flickr Legatum Institute Green Belt Flickr Pibmak Theresa May Flickr EU2017EE Estonian Presidency Alok Sharma Flickr FCO For Sale 2 Flickr Terence Stevens Alok Sharma at Wembley Flickr Department for Communities and Local Government Midlands Engine Flickr Dept Communities and Local Government Modular House 2 Flickr Tom Parnell Commons Debate Flickr UK Parliament Leasehold Flickr Edoguerr David Davis Flickr Jason David Davis Gov uk Keir Starmer Flickr University of Sussex Westminster Publications is grateful to Mark D Arcy and Jon Land for their contributions to this publication COPYRIGHT WESTMINSTER PUBLICATIONS 2018 All rights reserved by Westminster Publications No part of this publication may be reproduced stored or transmitted in any form or by any means without prior written permission from Westminster Publications Westminster Publications warrants that reasonable skill and care has been used in preparing this publication Notwithstanding this warranty Westminster Publications shall not be under liability for any loss of profit business revenues or any special indirect or consequential damage of any nature whatsoever or loss of anticipated saving or for any increased costs sustained by the client or his or her servants or agents arising in any way whether directly or indirectly as a result of reliance on this publication or of any error or defect in this publication Westminster Publications shall not in any circumstances be under any liability whatsoever to any other person for any loss or damage arising in any way as a result of reliance on this publication