
In fact, it’s not as complex as it seems,
says Peter Bolton King, Group Chief
Executive of umbrella organisation
NFOPP, which counts NAEA and ARLA
among its constituent organisations.
He points out that organisations tend to
specialise, whether by representing a
particular type of member (estate agents,
landlords, owners or developers), or by
specialising in a particular area.
“If one puts on one side the RICS, which
is a different animal to some extent with its
royal charter and its regulatory role, the
others are either specialised small
organisations or general large ones,”
he says, “and there aren’t that many.”
For instance the lettings sector appears
to be heavily over-organised, with ARLA,
ARMA, The Guild of Letting &
Management, the RLA, and NALS. But in
fact each organisation exists for a different
reason. ARLA is for lettings agents, the
RLA is for landlords, ARMA is highly
specialised, for managing agents of
leasehold properties, and NALS is not a
trade organisation but a regulatory scheme.
There’s overlap, but no great duplication.
ARLA is the larger of the two lettings
associations, with a high profile and several
thousand members but the (smaller) Guild
of Letting & Management (GLM) offers
education, resources, information, and
membership for letting agents, managing
agents, private landlords and local
authorities. It has no affiliation to
residential sales, focusing on the private
rented sector. Susie Crolla Chief Executive,
says, “GLM offers qualifications which
certify competence and professionalism in
the form of vocational BTEC qualifications.
GLM is a partner for those wanting to
develop their career in lettings and
management”.
Caroline Pickering, NALS Chair, says
“The National Approved Letting Scheme –
otherwise known as NALS – is the only
Government-recognised scheme for
lettings and management agents in the
private rented sector. We have strict
criteria which they must adhere to in order
to hold accreditation. NALS’ purpose is
two-fold: to offer consumers peace of mind
when using the services of a lettings and
management agent and to provide agents with continuous best practice guidance
and an industry kitemark that is
synonymous with responsibility and
security. NALS is an open access scheme
with a strong consumer focus – which is
how we differ from trade associations who
represent the interests of their members.”
According to Peter Bolton King, there’s
no other general agency organisation other
than the 10,000 member strong NAEA.
“The Guild of Professional Estate Agents
is really a marketing brand,” he says. “They
don’t have the same interest we do in
training, advice and support.” It also
numbers only 700 agents. The same is true
of the Independent Network of Estate
Agents, which is largely a marketing group
and property portal.
What is interesting, and does muddy the
waters a little here, is that the NAEA also
operates a property portal, PropertyLive.
co.uk. This was launched in response to
members’ concerns about the cost of
advertising on some of the major property
portals and it is provided free of charge to
principal, partner and director members.
About 50 per cent of eligible members
have signed up.
David Hewett, Chief Executive of
ARMA, runs one of the smaller and more
specialised trade bodies. Apart from the
even more specialised Association of
which is specifically focused
Retirement Housing Managers,
he says, “We’re the only body on residential leasehold management.”
He claims ARMA represents managers of
about 80 per cent of all managed leaseholds
– some 850-900,000 properties in 35,000
blocks. For his members, focus is
important. The job of a managing agent is
quite different from that of a lettings agent
or surveyor, and, “they come to us because
we provide focused, specific support for
their management agency business.”
Other smaller organisations such as
ICBA also have a specific focus – in this
case on the business transfer sector, which
has a rather different skill set from the
chartered surveyors’.
Membership size differs greatly. NAEA
had 10,500 members at its peak, though
with the recession this has dropped to
9,000 – applications are increasing again
now. ARLA membership is increasing,
with around 3,500 member offices. As a
very tightly targeted organisation ARMA
has only 200 members while RICS is the
‘gorilla’ in the sector. Louis Armstrong,
Chief Executive Officer, RICS, says,
“RICS is different from other
organisations in the property sector.
We are a professional body with a Royal
Charter which places on us a responsibility
to regulate our members and to act in the
public interest. RICS also covers a wide
range of sectors providing the
leading professional
qualification for all aspects
of land, property,construction and related environmental
issues. We have a global membership of
some 100,000 professionals and over
50,000 trainees in 100 countries.
“However, we are also very active in the
UK residential sector, setting standards and
providing guidance. We recently launched
a definitive guide for estate agents, the
Blue Book. This will raise agency standards
but will also improve the consumers’
experience of the home buying and selling
process. In addition, we also supply
information and market commentary –
especially through our leading housing
market survey – and work with other
sector groups and the government, to raise
standards and improve efficiency.”
The numbers are slightly misleading,
though, as some organisations admit
corporate members, while others only
admit individuals. The BPF has mainly
corporate members; NAEA and RICS
individuals. Meanwhile, ARLA was
previously corporate, but is now moving
to an individual membership basis. This
appears to be going well, with only four out
of 865 firms deciding to remain outside
the new membership structure.
Trade associations differ in their
objectives as well as their membership.
RICS for instance is a professional body
which awards certification and has a
regulatory role; to some extent you could
compare it to one of the accountancy
bodies. The British Property Federation on
the other hand is primarily a lobbying
force, as Andrew Teacher explains. “We’re
a lobbying body for the industry – property
investors and developers, big retailers,
agents, planners and investment funds.”
The various trade bodies do admit that they overlap, but in a complex
industry, that’s always likely to happen.
David Hewett for instance says that of his
225 corporate members, 84 are also RICS
registered. Peter Bolton King notes that
“An awful lot of members of NAVA –
which is part of NFOPP – are chartered
surveyors too, so they obviously feel we
offer something they’re not getting
elsewhere, or from RICS.”
Part of NFOPP’s work has been to
simplify the structure of trade
organisations. Because a sizable number of
estate agency firms have an overlap within
them between lettings and sales business,
NFOPP is about to roll out dual
membership of NAEA and ARLA.
But Bolton King sees nothing wrong with
multiple memberships – and doesn’t see
his organisation as in competition with
RICS. He says, “We operate jointly with
RICS where it’s clearly in our members’
interest,” for instance on anti-money
laundering measures. It’s much stronger
talking to Government as an industry,
rather than going as separate organisations
and letting them pick you off one by one.”
He does consider, though, that it’s the industry might have different agendas
– for instance, estate agents and property
investors might not always have the same interests – they are adequately represented.
Andrew Teacher is a
spokeperson for the British Property
Federation (BPF),
which represents property owners and
developers. He says, “We work with
the RICS in various groups – they’re a
professional body, we’re a lobbying body,
so we can cooperate well.” Across the
industry, most of the trade bodies work
together – so perhaps it’s not surprising
that in the case of NAEA, ARLA, NAVA
and ICBA, that’s led to the creation of
NFOPP as an umbrella organisation and
the provision of some services jointly
between the bodies.
What can the trade bodies offer their
members? Many offer significant resource
to help their members cope with
regulatory change. David Hewett says that’s
important for ARMA. “There’s a lot going
on in regulation, a lot of changes to cope
with, and we can be a source for
information for our members.” NAEA operates free advice lines for its
members on legal matters.
Training is a particular
focus for many
organisations.
David Hewett is justifiably proud of
the qualification
offered by the
Institute of
Residential
Property
Management, which was launched
by ARMA in 2002.
He points out that over
a thousand people went through training in the lastyear – that’s a significant slice of the
estimated 7,000 or so working in the sector.
Peter Bolton King says NFOPP has made
training a priority. Indeed NFOPP’s status
as an independent awarding body for
qualifications was one of the reasons other
trade bodies decided to join. Over six
thousand people have now taken awards,
both at NVQ level 3 and at diploma level.
NAEA focused on improving training
even before the government made minimum competence levels mandatory
for sales agents. “We’ve been banging on a
lot about minimum competency and so
on,” he says, “and now we’ve got moving
and actually set the schemes up.”
He believes the qualifications have
helped bring down the average age to
36 within NAEA, against what he thinks is
about 57 for RICS members. He also sees
some signs of training attracting women to
the organisation. “There are a lot of women
working in the sector, yet the trade
organisations are still male dominated.”
However, trade bodies should not be
seen simply as vehicles for delivering
benefits directly to their members. They
also have an important role in coordinating
the industry’s response to government
proposals. Lobbying is one of their major
tasks. Andrew Teacher says it’s not just a
question of responding to proposals.
“We’re trying to drive policy rather than
simply responding to it, he says.”
That can involve many different areas.
The BPF is currently involved with a huge
number of different issues, from the credit
crunch to planning issues, regulation of
landlords, and even housing benefit.
The trade bodies also have an
increasingly important part to play in
managing public perception of the industry
– which hasn’t always been complimentary.
After all estate agents are not many
people’s favourite professionals. FOPDAC,
now part of NAEA, was instrumental in
trying to improve the reputation of
overseas property developers and agents,
and introducing tighter rules.
The codes of practice which members
must adhere to, as well as complaints and
redress schemes, are important in this
regard. So are the professional and public
liability insurances that are provided by
many of the trade bodies. Many sales and
lettings agents are now stressing their
membership of NAEA and ARLA.
David Hewett says ARMA maintains
quite a stringent admissions process;
NAEA, too, has tight member criteria.
So, which trade body should a company
or an individual choose? There’s no easy
answer; it might not even be a single
choice, but a choice of two or even three
bodies. And though that may seem
confusing, given the complexity of the
industry and the number of different
specialisations within it, we’re just going to
have to live with it