John Peartree speaks out

A: Much of my working life was spent abroad, in the employ of food companies, initially in marketing and advertising and later in general management, which lead to involvement in property. I worked for a wine and spirits’ company in South Africa, a frozen food company in Australia and with the Hong Kong Land Company based in that former British colony prior to it being handed back to Chinese rule.

A chain of 65 retail outlets were added to my responsibilities and as a result I became more involved with property issues which were at the core of the Hong Kong Land Company’s business. I was negotiating leases both as landlord, representing Hong Kong Land, and as a tenant when trying to expand our retail business. I little realised, at the time, how valuable the experience of the cut-throat Hong Kong property market would be to me later.

When I returned to the UK I offered my services as a consultant and for several years made a reasonable living working largely for the United States Government investigating export markets.

However, among my first consultancy clients was the developer of the Bayswater block of flats in which I lived. He was not happy with the way the managing agent was performing (or rather, not performing) and asked me to become part-time company secretary to keep an eye on things. There followed a frustrating two years when I seemed to be more of a private detective trying to find out what was going on. One day I had what in marketing terms is known as a GOBO – Glimpse of the Blindingly Obvious. If the agents could not improve, then it would be less difficult if I were the managing agent! I already had the office infrastructure. The other directors agreed and we gave the original agents three months to improve their performance; if they failed then they would be dismissed. They did not improve and bowed out reasonably gracefully six months later.

When Muriel Guest-Smith became chairman of the FPRA and sought to expand the membership of the Executive Committee I volunteered as I felt I could usefully give a managing agent’s perspective while still being concerned that residents get good service. Also, at the time, I lived only about 300 yards from the FPRA office, then in Bayswater. Shortly after I joined the Committee, they promptly moved the office to the other side of London!

My property management business has grown and we now manage a portfolio of blocks and have expanded into rental properties. I helped found the UK Association of Letting Agents. However, my first love remains block management and it has been rewarding to see blocks improve and experience the satisfaction of pleased leaseholders. We have also helped a number of blocks thread their way through the maze of buying their own freeholds.

When I can, I like to sail competitively but now on other people’s yachts. The halcyon days of Hong Kong when I had my own boat are long since gone!

Q: What do you see as the greatest challenges affecting you in this role?

A: To improve services to our members so that we offer even better value for the subscription – which is already very reasonable. Thus we should both retain existing members and attract new applicants.

Q: What is your organisation’s unique selling point?

A: FPRA is unique, to quote an ex-Housing Minister, as we are the only independent not-for-profit organisation that represents the interests of private residents. This is true for long leaseholders in blocks of flats – whether or not they have bought their freeholds – and for private owners on estates.

Q: How do you plan to increase your funding, membership and/or services?

A: By asking the members what they want. We are in the process of conducting our first ever members survey to learn how they judge our current services, what we can do better and what new things – costs permitting – we should look at doing.

Q: What specific services does your organisation provide?

A: Our quarterly newsletter is probably our most appreciated service. It is a fund of information particularly on new legislation and recent court decisions that effect the sector. Last year we increased the size of the newsletter. This enabled us to accept more advertising, which is useful extra income to help keep costs, and therefore subscriptions, at reasonable levels.

We also answer specific questions that members submit by referring them to our specialist committee members.

We also talk with government on legislation issues and lobby on behalf of the sector. This is a very important activity although, I fear, rather underrated by many members.

Q: What upcoming legislation will affect (either adversely or positively) leaseholders, resident associations and RMCs?

A: We have not been very impressed by new legislation in recent years. Although initially well intentioned too much has become overblown, overly bureaucratic, imposes extra costs and will not necessarily achieve the original objective. The FSA requirements for those involved in insurance is one example where the reputable operators, which may be managing agents or self-managing RMCs, continue to largely do what they did before but now have to pay a heavy annual contribution to the FSA. Another example is the Houses in Multiple Occupation (HMO) legislation that started as a laudable attempt to improve the standards of rental accommodation at the bottom end of the market but grew into a huge net that catches middle and high end properties. The discretion given to local councils to impose further regulation on HMOs appears, in many cases, to have been used as a means of raising extra revenue. Meanwhile the rogue operators will continue to ignore legislation so nothing has really improved.

Q: What are the main concerns of your members? And do you generally always manage to help with these concerns? Highlight a recent success.

A: Understanding the existing and upcoming legislation: we are fortunate in having on the FPRA Committee people who are very experienced in most property disciplines such as legal, surveying, management, insurance etc., so we are normally able to help. We also try to keep an eye on other issues: for example we felt that the price charged by RICS for a booklet on property management seemed rather high. Once RICS attention was drawn to this they reduced the price substantially.

I am personally becoming increasingly concerned about the way that the change to digital TV is being communicated – by an organisation that is funded by the TV licence fee – as it is all to easy to conclude that one must have a satellite system. This is not necessarily always the case, and leaseholders need to do their research thoroughly. In addition they should increase the signal strength of the FREEVIEW, which is the real digital successor to the five main BBC, ITV, Channel 4 and 5 stations.

Q: Why do you think, as Peter Haler bemoans, that no one in government is listening to leaseholders? How will you, and the industry, change this attitude?

A: I agree with Peter Haler. However, I would not necessarily criticise the civil servants. Most of those who we come into contact with – which is quite a lot – are hard-working people genuinely doing their level best to progress the projects delegated to them by their masters: the politicians. Indeed, in some cases poor legislation would have been even worse without the civil servants. But the problem is a lack of understanding by senior people in Government. All too often a good intention is reduced to a sound bite that attracts media attention and then the bandwagon starts to roll and we get overblown ill-considered legislation such as Houses in Multiple Occupation that can cause a massive amount of work and expense and will do little or nothing to improve poor quality accommodation run by probably criminal landlords. By definition criminals ignore laws so what’s the point of passing new ones?

This has proved a difficult Government mind set to change. It would help if Housing Ministers were not changed so frequently.

Meanwhile FPRA is compiling a request that will probably go to the Prime Minister and the leaders of the other main parties asking that more consideration is given to the impact of legislation on leaseholders and other flat or house owners before they are put in the statute book.

Q: What legislative changes would most benefit your members?

A: Government should think harder and consult much effectively before drafting legislation. I do not believe that the FSA insurance requirements or the HMO legislation was necessary. Existing legislation was in place, which, if enforced effectively, was quite adequate.

Q: What do you see as the biggest growth areas in the industry in the coming years?

A: Depends how you define ‘the industry’. In the broadest sense there will continue to be a shortage of housing as the population grows – both naturally and by immigration – aggravated by family break-ups. So new builds must continue and investment in buy-to-let properties will probably continue to be more attractive than pension plans. Indeed, for many people buy-to-let properties are their investment plan. However, overheated property prices and increasing interest rates could burst the bubble.

Q: What has been your difficult work moment?

A: In terms of FPRA work the most difficult is giving people answers to queries in the knowledge that they will not like the answer. Unfortunately some have overly high expectations of what can be achieve. Some queries amount to: “This is the law. I don’t like it. Please arrange for it to be changed”. Sometimes we agree with the law and that makes the answer even more difficult for the member to accept.

Q: What achievements are you most proud of?

A: That FPRA continues to grow and is increasingly seen as the voice of the sector – although credit should really go other members of the Committee particularly my predecessor Robert Levene who helped steer us through some difficult times and set the course for a more secure future.

Q: Tell us a little about your personal interests?

A: I like to sail. When I was in Hong Kong I had my own boat but now I occasional race on a friend’s boat. Last year I chartered a boat and with my son sailed around the westerly Greek islands. It was wonderful.

I like a nice garden but try to apply “estate management” principles. This means I increasingly pay others to do the work. However a garden tractor can convert a chore into fun. I call it my recreational vehicle.

For more information of FPRA see their website www.fpra.org.uk which contains details of subscription fees and an application form.