It is no surprise that almost half of owners of flats find their factors ineffective; complaining about factors has long been a common bond among Scottish city-dwellers. A poll carried out as part of the investigation into property management companies in Scotland by the Office of Fair Trading (OFT) confirms anecdotal evidence and the findings of a previous investigation by the Scottish Consumer Council of deep dissatisfaction with both the quality and cost of factoring services.
It is no surprise that almost half of owners of flats find their factors ineffective; complaining about factors has long been a common bond among Scottish city-dwellers. A poll carried out as part of the investigation into property management companies in Scotland by the Office of Fair Trading (OFT) confirms anecdotal evidence and the findings of a previous investigation by the Scottish Consumer Council of deep dissatisfaction with both the quality and cost of factoring services.
The key question now is how to improve matters. The findings by the OFT will lead to recommendations, which could be for a code of practice or regulation. Many people who have experienced problems, from being charged over the odds to factors failing to act quickly or allowing shoddy workmanship to pass unchallenged, will say that regulation is overdue.
One of the most difficult problems is where residents are in dispute with their factor; their only recourse is through court action, a step many are reluctant to take because of the cost involved. The OFT survey found that two-thirds of those who made a complaint said they were dissatisfied with the way it was handled, with the vast majority saying their issue was not addressed. Some factors handle complaints particularly badly. The Scottish Consumer Council survey found that in one sample area, 92% of complainers were dissatisfied with how their complaint was handled. The council was reluctant to recommend regulation because the cost would result in higher fees, but regulation or licensing of factors would not only establish clear standards to be met but provide a mechanism to arbitrate on disputes. A group of private factors has taken a significant step forward in establishing the Property Managers Association of Scotland. Its code of conduct requires members to provide a range of quotations for work, transparent bills and a robust complaints procedure. As with all voluntary schemes, its main disadvantage is that it has no power to act against non-members, and the rogues are not likely to join.
However, since flat-owners have the right to dismiss their factors, they can now switch to a member of the association with some guarantee of standards of service. Those who dismiss their factors can take on the task themselves and the OFT found that this "appears to be working reasonably well in practice". That will only be the case, however, where everyone in a shared building is willing to take on the responsibility and is in agreement. It is a burden they take on only when they have been failed by their factor. That almost half of those living in shared buildings in Scotland are now taking on this task, however, is a clear indication that tighter control is needed. A Bill to require property management companies to be regulated, already introduced in the Scottish Parliament by Glasgow Maryhill MSP Patricia Ferguson, should build on the findings of the OFT report.
