DCLG stakeholders’ meeting for leaseholders told property manager chairman must go
UPDATE: Roger Southam and Jim Fitzpatrick MP are being jointly interviewed on leasehold homes tomorrow on BBC R4 You & Yours 12.15
A motion of no confidence in Roger Southam, chairman of the Leasehold Advisory Service, was proposed at the DCLG leasehold stakeholders’ meeting this morning.
At the request of the proposer, the motion was not discussed, nor was a vote taken. But civil servants were asked to minute it.
The no confidence move follows the disastrous annual conference of LEASE on February 1, where unease about whether the quango actually supports the interests of leaseholders was publicly aired.
Housing minister Gavin Barwell told the conference:
“What we really want is for them [LEASE] to help leaseholders. To be solely, and unapologetically, on their side.”
The housing minister also pledged additional funds, so the quango does not have to depend on courses and seminars sold to commercialisers in the sector.
Housing minister says LEASE must be on the side of leaseholders, and promises more money
Sir Peter Bottomley, speaking later, also told the Leasehold Advisory Service to stop selling “dodgy” seminars to freeholders or the professionals they employ that exploit leaseholders.
“It is improper for anyone to stand in front of a conference such as this and give advice to freeholders on how you can hide your profits with insurance commissions.
“It happened but I hope it never happens again.”
Roger Southam is a controversial figure as chairman of the quango. He is a long-term property manager, who sold his company Chainbow to Savills, where he is now employed. Full archive
In the past, he has advertised his services to freeholders in order to “maximise ground rent incomes”.
Unaccountably, Chainbow also owned embedded management companies in prime Taylor Wimpey London sites, a practice that the developer terminated after the intercession of LKP. The companies are now under the control of the leaseholders.
In February Labour MP Justin Madders questioned in the Commons the suitability of Mr Southam to remain as chairman of LEASE.
He said:
“In order to regain leaseholders’ confidence, will ministers agree to an urgent review into the suitability of Mr Southam to continue as chair?”
MP Justin Madders questions role of Roger Southam as LEASE chair
The issue of leaseholder representation on the board of the Leasehold Advisory Service is now becoming a political issue.
Yesterday Sir Peter Bottomley and Jim Fitzpatrick wrote to the DCLG, in correspondence copied to Secretary of State Sajid Javid and housing minister Gavin Barwell”
“It should be mandatory that 50% of board members to LEASE represent leaseholders’ interests. They need to be experts in knowledge of today’s leasehold sector, with an established track record in identifying leaseholder issues, problems including abuses and able to identify workable solutions.
“Preferred criteria is that candidates are experienced in consulting with government policy makers on leasehold issues.
“Might you kindly confirm if the selection panel have included / considered these?”
Last week, Mr Fitzpatrick informed the housing minister:
“The APPG is still very concerned by some of the practices of LEASE and do not believe the organisation is working in the best interests of leaseholders who require help across the country.”
He requested an early meeting with the minister.
Related posts:
LEASE chair Roger Southam resigns
DCLG rejects second complaint about Roger Southam as LEASE chair. He was appointed on merit, it claims
LEASE chair Roger Southam launched complaint to Parliamentary Standards Commissioner against Sir Peter Bottomley and Jim Fitzpatrick (and LKP, naturally enough)
LEASE chair Roger Southam in Private Eye (again)
Roger Southam should not be LEASE chair, leaseholder tells housing minister
FirstPort fined £360,000 over fatal fire at Gibson Court
Hurrah!! Let’s hope the NCL resend their letter of 16th February to Gavin Barwell to reinforce the the message- ‘LEASEHOLDERS WANT SOUTHAM OUT’!
PS- To the those who have not been following the threads , I apologise in advance…….
Oops, NLC
Mr Roger Southam, Chair of Lease,
YOU HAVE SAT TOO LONG FOR ANY GOOD YOU HAVE BEEN DOING. BE GONE ,SIR!
I will send a letter from the national leasehold campaign (NLC) Kim mirroring this. I will include several of your points u kindly wrote in the second letter that we didn’t send.
Regards
Katie
Excellent Katie!
Why does the government allow a leasehold investor like Roger Southam to be Chair of LEASE.
He’s like the fox let loose in the hen coop. He has no shame and should stick to his day job with Savills.
You never hear LEASE say stop doubling ground rents or leasehold should be abolished., . Instead LEASE allows its backers to dream up ever more immoral rip off abuses. Government inaction is basicly supporting the status quo.
Leasetenant I totally agree with you. We MUST keep the pressure on ‘LEASE and Roger Southampton to bow to Leaseholders/ Taxpayers demands! If we all stand strong together we will win!!
Mr Southam, You would be wise to observe Eduard Shevardnadze’s words ( figuratively) Quote- ” ” I think my resignation was the only way to avoid bloodshed”. GO AND GO NOW, WHY DON’T YOU ? You are of no use to Leaseholders Mr Southam.
Have a look at the News on the Block website under the heading “Raising the leasehold experience” where you can read about the usual suspects (including Roger Southam) ‘reflecting on the findings of Brady solicitors National Leasehold Survey’!!!!! It’s a joke. They really believe leasehold is going to continue just as it always has and they are wrong. It has to be abolished!!!!
Have a look too at the ARMA website who are now asking for ‘service provider companies’ to join them as ‘partners’ to take advantage of some considerable business benefits to market their products and services to their members. Does this not look like more collusion, conflict of interests, further fleecing of leaseholders and much more? It certainly does to me!!
I have just listened to you and yours. Roger Southam when asked why he/LEASE did not see this scandal emerging and advise the developers who attend his seminars that selling leaseholds houses was not beneficial to purchasers ,he replied that LEASE is not a lobbying group!! Oh and he said that managing agents have nothing to do with developers!! I might have heard Jim Fitzpatrick snigger….. I was longing for the presenter to ask him about ‘Chainbow’ and ‘Savilles’. Southam must be ousted and SOON. It is an absolute travesty that he is in post.
You and Yours was very tame. Not my problem or remit says the polished silver fox Roger Southam The poor lady with a leasehold house where ground rents make her property unmortgageable was ignored. Just a sad situation which will apply to more and more ordinary people.
Freehold to leasehold relationship is more master to slave and successive governments support it.
Roger Southam is one of the privileged few who made a fortune out of block leasehold management so why is Conflict of Interest not a problem since overcharging by management companies is another serious area of abuse. Sajid David and Gavin Barwell now have an opportunity to support the majority leaseholders but I wouldn’t bet the house on it..
Leasetenant. I am in full agreement with you regarding the Crooked managing agents that fleece leaseholders. They get away with it and are cocky enough to try it on because they know that most leaseholders are apathetic. E.G.- “Can’t be bothered to argue”- “Too much hassle to get involved” – “Too busy” etc. And then you have the elderly and vulnerable Leaseholders who are terrorised by these spivs into paying monies not properly recoverable under the lease terms or legislation. One has to stand up to these unscrupulous invidividuals. Pay the properly recoverable amount due and if they try and fleece you for more tell them to stick it where the sun rays are highly unlikely to see daylight… They will get their dodgy solicitors to send threatening letters. Reply and say you will report them to the SRA for demanding undue monies with menaces. E.G. Forfeiture is a fave with the Rachmanist wannabes. Call their bluff and continue to pay the properly recoverable sum. In the meantime check out the background of the agent/ freeholder.There will in all probability have more skeletons than the killing fields.
The National Leasehold Campaign have once again written to the Housing Minister on 17th April regarding Mr Southam.
” Thank you for your long-awaited email received on 27th March 2017. For the record our original complaint was in fact sent on the 16th February 2017 not the 3rd March as stated in your reply.
The National Leasehold Campaign now has over 3000 members and is growing each day as more and more people are realising this national leasehold scandal affects them.
In regard to your response we remain deeply concerned that you have NOT taken our complaint seriously.
Firstly; you have failed to answer point 3 of our complaint we raised. A total disregard to acknowledge this point further emphases to leaseholders that you are clearly not prepared to even consider Mr O’Kelly for this position.
Please can you confirm when we can expect a response to this point.
3) Why did ‘LEASE’ whose object is to support leaseholders, reject Sebastian O’Kelly’s application to sit on the board on two separate occasions?
The response you did make was far from acceptable to thousands of leaseholders.
Until and unless LEASE appoint someone with the genuine interests of leaseholders at heart, nobody is going to have any faith in them and they become just another meaningless trade body.
Whilst you highlight Mr Southam’s roles are “distinct and different” we would strongly disagree. How can he possibly make a decision as Chair of LEASE that would have a negative impact on his own businesses? In reality this is never going to happen. He certainly will not make any decisions which are conflicting or may damage his own business interests.
This highlights that DCLG decision making process is aligned with Roger’s interests and not with the leaseholders which is deeply concerning for leaseholders.
Your very brief response to such an in-depth complaint raising several serious concerns has left leaseholders with no answers.
You failed to acknowledge our concerns regarding the MASSIVE conflict of interest Mr Southam has with regards to his wife Roberta Andersen of Mainstay managing the Aviva Realm fund (holding 36000 residential freeholds).
The National Leasehold Campaign feel Mr Southam is making a mockery of the 7 Nolan Principles you refer to.
Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty & Leadership.
Your lack of regard for our grave concerns over the appointment of Roger Southam as chairman of LEASE together with the rejection of Sebastian O’Kelly on what we believe were spurious grounds is disappointing. We, the taxpaying Leaseholders who help fund this QUANGO require the appointment of a Director who represents the interests of the Tenants and NOT the Landlord.
Mr Southam aside the make up of the Board is as follows:
1. A Director of Strettons whose clients are predominantly Landlords, Developers and other Building Owners.
2. A Solicitor who specialises in Residential Leasehold acting predominantly for the Landlord.
3. A Managing agent acting Predominantly on behalf of residential property Landlords.
4. A solicitor who has ceased practising law and has held a number of board level appointments in the financial services sector. For the years 2013 to 2016 she was appointed Chairwoman by BPA Ltd of the ill fated ISPA, an independent organisation dealing with parking appeals on private land and from which she suddenly resigned in September 2016, stepping down with immediate effect.
Clearly the above make up is very one sided in favour of the Landlords and questions arise as to why this occurred. The balance needs to be redressed hence our support for Sebastian O’Kelly of LKP who is purely a representative for the Leaseholders. Why such opposition to this appointment keeps arising is inexplicable. The heavily weighted bias towards the Building owner ‘’STINKS’’ and we leaseholders have had enough of such one-sidedness.
On 13th April Mr Southam gave an interview on Radio 4 which has further infuriated leaseholders. Roger Southam told listeners that LEASE were not a lobbying organisation and were there to purely advise only. The interviewer highlighted that LEASE had seen this problem coming yet didn’t advise leaseholders. Mr Southam said that was not LEASES job at that time. He went on to say management companies use LEASE for advice but developers do not. Mr Southam stated “property managers don’t get involved in the development process and don’t get involved in the fixing of the ground rent”. This is where Mr Southam’s position is further conflicted. Savills who he is a director for wrote these onerous ground rents to maximise profit.
http://www.groundrentsincomefund.com/wp-content/uploads/2012/10/Savills-Research-Spotlight-on-Ground-Rents-Spring-2012.pdf
Mr Southam has been and is currently deeply involved with the freehold sector. He cannot and should not remain as chair of LEASE. It’s a disgrace. He knew what difficulties were looming for leaseholders yet did nothing to highlight this or help leaseholders. Why would he when Chainbow boasted how to “maximise profits for freeholders”. He is now in a position to help fix the very problem that he was responsible for creating.
Once again; we ask you please to use your good offices in achieving the rebalance which is long overdue. We look forward to hearing from you.
The National Leasehold Campaign would like to formally lodge a motion of no confidence in Roger Southam, Chairman of the Leasehold Advisory Service.
We urge him to step down as Chairman of LEASE.
Yours Faithfully,
I also attended the APPG on 19th April and intended to personally hand deliver a letter to Mr Southam from NLC requesting he steps down as Chair of LEASE immediately.
However he wasn’t there so therefore I handed it to Chief Executive of LEASE Anthony Essien and asked him to pass it onto Mr Southam
We shall see ……………….
Excellent response Katie on behalf of the NLC. It is indeed a pity that Mr Southam chose not to attend the APPG. I believe it shows his pure disregard for Leaseholders and their issues. However, his ‘ No show’ gives the NLC an opportunity to send Mr Southam another letter asking him to explain why he chose not to attend etc etc . Hard copy should be delivered to Lease office. Rogers fingers are clearly going to have to be prised from the ‘Holy Grail that is LEASE!!