Exclusive: Almost one-half of flat owners believe their factors are not effective in getting things done, while one-third rate their service as poor value, the Office of Fair Trading has found.

Almost one-half of flat owners believe their factors are not effective in getting things done, while one-third rate their service as poor value for money, the Office of Fair Trading has found.

The first results of a landmark investigation, which could spark a massive shake-up of the unregulated Scottish property management industry, has revealed that 53% of owners want to make complaints about the service, rising to 57% among those with a private sector factor.

Campaigners for changes to the industry have said the research illustrates its "endemic failings" and insist that only statutory changes rather than voluntary codes can improve the sector.

The study carried out for the OFT by Mori is the first to cover the whole of Scotland and will be considered as it decides its recommendations for the future of the industry.

It found the vast majority of those who do complain were dissatisfied with how their complaints were handled, most claiming the issue had not been addressed, while a lack of information and getting the necessary agreement from all owners, including absentee landlords, are seen as the key barriers to changing factors.

One-quarter rated their property manager's performance in making routine checks as "very poor".

Prominent housing lawyer Mike Dailly said: "Now we've got indisputable empirical evidence that shows that shoddy practices in property management is endemic in Scotland.

"Now we have this, the only solution is formal statutory regulations such as the licensing of factors, where they could lose the licence should they fall below the required standards, and a mechanism to resolves disputes without costly court actions."

The Property Managers Association Scotland (PMAS ) said its membership had engaged extensively with the OFT in its study.

A spokesman said: "The report of findings will considered with great interest and in detail by PMAS in the context of the current legislative framework relating to management and maintenance of common property and the Scottish Government proposals for an accreditation scheme for property managers, the principle of which is supported by PMAS.

"Detailed comment will be made once PMAS has digested this lengthy report and sought any necessary clarification from the OFT."


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