Scottish homeowners express outrage with property factors amid calls for reform

Advice Direct Scotland said it has seen a steady rise in complaints, describing the trend as “a growing issue across Scotland”.

Rebecca Fagan, the organisation’s policy executive, said: “Homeowners are increasingly reporting their disputes with building factors to us. We have dealt with 133 cases about factors in the last year with issues identified all across Scotland from Aberdeen to Ayrshire.”

She said the charity wants to hear from more homeowners about the challenges they face. “These pressures with factors make housing one of the most urgent issues for communities,” she said. “These cases will be the tip of the iceberg. Many flat owners, especially in tenements, rely on property factors for maintenance.

“We have given advice on disputes over poor service, high fees and lack of transparency and poor communication from factors. Homeowners can raise complaints via the First-tier Tribunal for Scotland but awareness and accessibility about this remains limited.

“Without coordinated management, many older buildings fall into disrepair, worsening issues like damp and structural safety. This is a growing issue so there needs to be greater awareness of the First-tier Tribunal process for disputes with factors.”

Citizens Advice Scotland also reported a sharp rise in factoring complaints, providing advice nearly 200 times between July and September – a 19 per cent increase on the same period last year.

Its housing spokesperson, Aoife Deery, said most disputes involved billing and charges, such as excessive or unusual charges. The organisation’s In a Fix report, published last year, called for clearer accountability and a review of the code of conduct for factors, especially around tenant and owner participation.

Ms Deery said: “Our evidence shows many people are struggling to afford the cost of a home which has a devastating impact on physical and mental health – it is essential that everyone in Scotland has a safe, secure and affordable home.”

She said one homeowner had challenged “additional factoring charges for items which should have been included in the existing fee”, including communal electricity, rat traps and the upkeep of broken access doors.

Concerns have also been raised by the Law Society of Scotland, which earlier this year gave evidence to Holyrood’s Citizen Participation and Public Petitions Committee. The committee is considering a petition seeking a review of legislation governing the dismissal of factors and the introduction of powers allowing the small claims court to remove them in cases of excessive charges.

The Law Society acknowledged “frustration from residents of factored properties regarding the perceived lack of accountability for actions taken by factors, including in situations where ‘excessive charges’ have been deemed to have been introduced.”

It noted that many residents feel they have little recourse when faced with unfair bills or poor performance. The society said a key challenge for any reform would be defining “excessive charge” in practice.

“If reforms are to be taken forward in this area, consideration would need to be given to what an ‘excessive charge’ means in practice,” the submission stated.

It also urged ministers to prioritise mediation and alternative dispute resolution before court action. “We consider that proper mediation between residents and factors is essential and may avoid recourse to litigation,” it said. “Modern Deeds of Conditions tend to have robust mediation clauses contained within them. We would suggest that, in line with current Scottish government policy on such matters, alternative dispute resolution as a first step is something that should be promoted and encouraged.”

Complaints about factors can be raised through the First-tier Tribunal for Scotland – Housing and Property Chamber, which was established under the Property Factors (Scotland) Act 2011. The tribunal can issue binding decisions requiring factors to repair faults, adjust charges or improve communication.

A Scottish government spokesperson said: “We recognise that homeowners face difficulties in the property factoring system. That is why we have introduced measures that will make it easier for owners of related properties to dismiss a property manager and appoint someone else.

“We have also committed to review the property factor system as an important way to explore views on areas where improvements could be made.”