Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
* Suggestions made by Mark Alexander, founder of Property118.com –
Imagine an organisation with 10’s of millions of pounds of budget every year, funded entirely by its landlord members and acting only in the interests of its members. No sponsorships, no affiliations, no sharing of member data or side deals with any suppliers of services to landlords whatsoever.
For decades our sector has been contemplating how this could actually be achieved in practice, and how every landlord in the UK could be compelled to join such an organisation without any legislative change needed.
If the groups listed below agreed only do business with landlords who are members, this would mean that no landlord could operate without becoming a member.
In practice, this could be achieved even if only the three Deposit Protection Scheme providers where to agree to support the proposals, but the other groups are also needed to add balance and to unite their expertise without disturbing delicate politics in their own sectors.
Even after factoring in a substantial number of landlords leaving the sector, a realistic numbers prediction is circa 1.5 million landlord members, each paying £10 to £20 year. This produces a fund of £15000,000 to £30,000,000 annually.
The proposed organisation would operate on a ‘not-for-profit’ basis and its sole aim would be to serve its membership of landlords only.
With the levels of budget described above it could afford to have dedicated helplines, PR teams, lobbyists, event organisers, regional representatives and meetings, regular member webinars and high profile social media presence.
The organisation would be staffed by its own employees.
Now consider the influence and power the organisation would wield, with 15 to 30 million pounds of funding every year, on issues such as:-
The PRS needs this to combat the destructive anti-landlord lobbying of organisations such as Shelter, Generation Rent etc. Their crazy ideas are being listened to but the voices of landlords and their supporting service providers are not.
Landlords Associations have proven to be ineffective, it is time for change.
All Directors would be voted in annually by members and would serve a maximum of four years in every 8.
Directors would all be seconded by their employers from the sectors outlined in the “Support required” section above.
These organisations could nominate their employees to run for election as Directors on a secondment basis. If they are voted onto the board by members their salaries could then be reimbursed to their employers from the membership fund. Assuming an average salary for Board members of £100,000 a year, the cost of running the Board of Directors would be a drop in the ocean in comparison to the Budget.
One Director would be elected from each group.
The members voting system for the appointment of Directors would be online in a format resembling the following:-
e.g. Tax, Law, Lending, deposit Protection, Insurance
|Online Profile||[website link]|
When I published this article I hadn’t considered Monopolies, closed shops legislation or restrictive trade practices or thought about running my ideas past our Legal Counsel Mark Smith before publishing. If I had done so, this article may never have been published. However, the subsequent discussion would not have happened either, so i think it is important that I leave this page up to facilitate further discussion and sharing of ideas.
So, where does that leave us?
It feels to me like we are back to square one of landlords being an apathetic group of somewhere between one and two million people without effective representation and an easy target for any Government authority to milk as cash cows whenever they see fit.
Anybody got an alternative solution they would like to propose?
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