Having conspicuously failed to find any opportunity to discuss the issues facing residential leaseholders at the PLSA investment conference, my attention turns to next Tuesday (March 5th’s) Pension PlayPen coffee morning , when Norma Cohen, Harry Scoffin and I will be discussing the progress of the Freeholders and Leaseholder’s bill through parliament , the issues facing pension schemes into buying residential freeholds – directly of through funds and the wider issue of what a pension scheme’s social purpose is, if not to improve society.
The issues are live (the bill has just had its third reading and of interest to us all. It is one of the most emotive debates of today
Not a moment too soon! Hapless leaseholders are finally organising to fight back against exploitive Freeholders. Retirees on fixed incomes are most at risk! Join #PensionersAgainstLeasehold now! https://t.co/4jrlFTzYGm
— Norma Cohen (@NormaCohen3) February 26, 2024
Norma and Harry between them have made this an issue not just for leaseholders, but for anyone who considers the ESG of pensions.
Arun’s poll relates to a more general issue but is relevant to this debate. The question we need to ask ourselves is whether it is acceptable , for the funding of a pension scheme, that returns are harvested where they can legally be found or whether the CIOs of schemes should prevent private socially toxic assets from sitting within their portfolios.
My position is clear, ESG includes an “S” which stands for “social”. If it can be proved that owning freeholds gives rise to
- demands for ground rent payments that give no value for the money
- bad practices from leasehold management companies , extracting further rents from those captive as leasehold flat owners
- forfeiture of leaseholds for those who can’t or won’t comply. with the above.
then CIOs are at least conflicted by their trustee’s fiduciary duty and more properly bound to call out rotten practice when they see it, as Rail pen has, and the PLSA so dismally didn’t.
As I am organising this event and you are kind enough to read my blogs, I am offering a free link to this event. Those kind enough to be already getting access to these events by subscribing to the Pension PlayPen, won’t need this link, but I’m keen to get as many on the call as possible and conscious that the full price for these events is prohibitive.
The free link to the event is here.
