Regulation of the 'wealth creation' industry

For ten years now, Property Tribes and its community have been doing whatever they can do to create awareness of the issues surrounding what we call the "wealth creation" industry, as well as producing due diligence resources and knowledge around this part of the sector.

However, sadly it appears that it is not enough.

Given all the significant financial losses up to and including even the recent tragic loss of life that can be directly attributed to people getting involved in the "wealth creation" sector, there has to be something more than can be done to STOP this from happening again.

Let us be clear - Property Tribes supports "authentic education" and there is always a place for this and we stand behind it and those companies who provide it.

But selling what amounts to a ticket to see a Unicorn to vulnerable people of limited financial means is totally deplorable behaviour.  

Property mentees are getting into debt to undertake expensive education and mentoring with what appears to be a distinct lack of support and "duty of care" by the trainer or mentor.

These mentees are then left high and dry and even shut out from the mentor's network if they dare to seek support or complain and, according to his family, this is what had a direct impact on Danny Butcher taking his own life 10 days ago.



Danny not only lost money that he could ill afford to spend (£18K was borrowed on credit cars and loans) with nothing to show for it, he also lost his HOPE for a better future for his new wife and family.

The sector does not just need some form of "kite mark" - it needs some form of robust regulation and a route of redress if things go wrong or services are not delivered upon.

There is a lot happening behind the scenes, both in terms of industry stake-holder conversations and also media extensions, about what has happened.  Everyone is shocked and motivated to make a difference, however we need your help to do this.

Remember, none of us is as smart as all of us, and community self-regulation still has an important role to play, but we need your help on one simple matter - what format should this regulation take?  Let's get some ideas together!

To get the ball rolling, I spoke to my long time friend Paul Shamplina of Landlord Action about recent events and what we, as a caring and responsible part of the sector can do to ensure that we limit the exposure and risk of newcomers getting involved in what can only be described as disgraceful business practices and ethics. 

These newbies can end up spending what amounts to the deposit on a property for "advice and education" that is not delivered upon and/or does not work in the current market conditions.

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