Property Factors compulsory registration scheme goes live, code of conduct demands higher standards for home owners & tenants

PROPERTY FACTORS must now beet certain standards of service and if not, they will be subject to a “robust complaints procedure” says the Scottish Government : Property factors registration scheme

All property factors operating in Scotland can apply to a compulsory online registration scheme from today. Registration is a central element of the Property Factors (Scotland) Act 2011, a new law passed last year by the Scottish Parliament.

Around 225,000 house owners in Scotland use property managers to carry out their repair and maintenance responsibilities on communal areas, roofs and stairwells.

A new Code of Conduct will demand property managers meet certain standards of service and a robust complaints procedure will be put in place if the service is unacceptable.

Cabinet Secretary for Infrastructure and Capital Investment Alex Neil, said: "The majority of property factors provide a good, effective service. This new law means that for the first time, consumers will have access to information to judge good service and for property factors, an opportunity to demonstrate the quality of their services. Compulsory registration is good news for consumers and will help enhance the reputation and integrity of the property managing industry."

Vice President of the Property Managers Association Scotland Iain Friel, said: "The Property Managers Association Scotland welcomes the introduction of the Property Factor Code of Conduct. Our members believe that the new legislation will benefit the property management industry, not only providing consumers with a recognised system of redress, it will also provide Property Factors an opportunity to demonstrate the necessary dedication, skill and experience required in the professional management of common property throughout Scotland."

Related information: The online registration system

The statutory Code of Conduct for property factors was recently approved by the Scottish Parliament and is now available in its final form at: Code of Conduct for property factors

The Property Factors (Scotland) Act received royal assent in the Spring of 2011. It was introduced as a Member's Bill by Patricia Ferguson MSP and the Scottish Government supported the Bill and worked with Ms Ferguson to make the legislation as effective as possible.This requires all factors to be registered, to operate in compliance with a statutory Code of Conduct and introduces a national Homeowner Housing Panel to which homeowners can seek redress on disputes with their factor. All requirements of the Act will be in force by October 1, 2012.

Scottish Parliament MSPs urged to back regulation of property factors

David Whitton MSP. Strathkelvin and Bearsden MSP David Whitton has urged the regional MSPs to back proposals by Patricia Ferguson MSP members’ bill at Holyrood which would give homeowners more protection by enforcing new standards of registration and accreditation on factors and property managers in Scotland. The proposals come after the Office of Fair Trading published a report finding significant problems in Scotland’s property management market.

The consultation paper for the proposals to require property factors to register and make provision for an accessible form of dispute resolution between homeowners and property factors can be viewed HERE (pdf). Notable support comes from a range of organisations including the Property Managers Association and Govan Law Centre. The OFT’s full report download : Property managers in Scotland - a market study (pdf)

David Whitton MSP said: “For too long factors have been a law unto themselves. There are many good factors but there are others who seem to see the job as a licence to print money and simply do not communicate with the people they are supposed to work for. I hope that MSPs from across the Chamber will put aside their differences and support proposals to give homeowners more rights.”

The current proposals from the Scottish Government which are simply a voluntary code, may wind up as most voluntary codes go – ineffective and requiring statutory legislation further down the line.

Mr Whitton, commenting on the Scottish Government’s voluntary idea of regulation, said : "The Scottish Government is currently proposing a voluntary scheme but we believe they need to go further and that legislation is required."

The consultation paper for Patricia Ferguson’s bill to require property factors to register and make provision for an accessible form of dispute resolution between homeowners and property factors can be viewed HERE (pdf). Notable support comes from a range of organisations including the Property Managers Association and Govan Law Centre.

Patricia Ferguson MSP launches Bill to regulate property factors

S3M-5872 Patricia Ferguson: Factoring Services : That the Parliament notes that the Office of Fair Trading market study into the property management market found that the market is not working well for consumers in Scotland; welcomes the recent cross-party support for proposals to require property factors to register and to make provision for an accessible form of dispute resolution between homeowners and property factors, and further welcomes this positive progress toward the introduction of legislation to ensure better accountability of property managers for their standards and the services that they provide.