Royal Assent for Property Factors (Scotland) Act 2011

The Property Factors (Scotland) Act 2011 has received Royal Assent this month, marking the end of a four year campaign initiated and led by Govan Law Centre (GLC), and the start of a better deal for Scotland's homeowners.

The genesis of the Bill was grassroots. At GLC's fortnightly casework meetings our solicitors would repeatedly flag up the growing number of instances of homeowner exploitation by property factors. GLC's local Board of Trustees were equally troubled with the ability of Glasgow's citizens to be ripped-off with impunity. It was apparent something had to be done to redress the imbalance between the rights of unregulated companies and the rights of Scottish homeowners, many of whom were financially or otherwise vulnerable.

A Bill proposal and consultation paper drafted by GLC was first introduced in the Scottish Parliament by the then Govan MSP Gordon Jackson QC in March 2007, but had insufficient time to progress. The reins were quickly picked up by Maryhill MSP Patricia Ferguson and in October 2007 a fresh proposal and consultation paper was published by the Scottish Parliament. High profile support came from a series of BBC tv and radio investigations and a campaign for law reform sponsored by Glasgow's Evening Times newspaper.

Constant publicity led to the OFT launching a market investigation into Scotland's property factor industry, which had the effect of kicking Patricia Ferguson's Bill proposal into the long grass. Despite the OFT recommending the Scottish Government's favoured solution of 'voluntary accreditation', Patrica Ferguson and GLC ploughed on, gathering support and finally making a winning case for major law reform to protect Scottish homeowners.

GLC's Mike Dailly and draftperson of the Bill said: "We're very proud of the Property Factors (Scotland) Act 2011 because its a victory for common sense, and will help prevent homeowners in Scotland being exploited, while providing a new accessible tribunal remedy with 'legal teeth' if they do get stung.  It's also an example and case in point of the importance of local community law centres. Law centres are being threatened in England and Wales, but we need more of them in the UK, not less".

"Without Patricia Ferguson's tireless dedication and hardwork the Bill would not have seen the light of day. We would acknowledge the tremendous support from Patricia's researcher Chris Kelly, the Parliament's excellent Legislation Team, the Local Government Committee and various civil servants at the Scottish Government who all helped to make this progressive piece of legislation possible".

Royal Assent for Property Factors (Scotland) Act 2011

Property Factors Bill debated before full Scottish Parliament on Wednesday

The Scottish Parliament will debate the Property Factors (Scotland) Bill at Stage 1 on  the afternoon of Wednesday, 8 December 2010.  This is a make or break moment for the Bill.  The Bill, drafted by Govan Law Centre's Parliamentary Unit for Patricia Ferguson MSP, has secured the backing of the Parliament's Local Government and Communities Committee, and also has wide public support across Scotland.  However, the Bill now needs to secure the support of MSPs in the full Chamber on Wednesday in order for it to progress.

Property Factors Bill debated before full Scottish Parliament on Wednesday

Factor cases ‘swamp courts’

The Evening Times reports today: Courts are being “swamped” by cases of property factors taking legal action against home owners, the Scottish Parliament heard. And two Glasgow MSPs revealed they have been inundated with complaints about factor disputes.  Maryhill MSP Patricia Ferguson and lawyer Mike Dailly, of Govan Law Centre, told the Local Government Committee how big a problem disputes with factors had become and that a new law was essential.

Ms Ferguson’s Property Factors Bill would set up a compulsory registration scheme with a set of standards designed to root out rogue factors. It would also provide an independent dispute resolution system to prevent costly court cases. Ms Ferguson said problems with factors has become her biggest caseload, prompting the Bill. She said: “Not a day goes by without someone from across Scotland contacting me for advice. Not one day.”

A series of Evening Times investigations published over the last two years have also uncovered a catalogue of complaints and shocking cases of overcharging and poor work. Our reports were passed to the committee for it to consider. Mr Dailly said that as well as contacting politicians the courts were under pressure and people put into debt, which could be avoided. He said: “The reason Govan Law Centre got involved was because we were seeing what is happening day in, day out. Sheriff courts are swamped with property factors raising actions for payments. “A lot have added on costs, expenses are attached, and I have seen many people sequestrated by factors.”

Glasgow SNP MSP Bob Doris also confirmed the frequency of complaints. He said: “I am not short on the number of these cases I have on a weekly basis from people in factoring disputes.” Ms Ferguson said: There are property factors who threaten court action, but never see it through. Yet the charges are still added to bills.That is not acceptable.” It was the final session of evidence to the committee and it will now consider it before submitting it for the Bill.

GLC's evidence can be seen on the Scottish Parliament's Holyrood TV here (opens as video); and the Bill's Committee Page is here.

Factor cases ‘swamp courts’

Property firm tries to evade new Bill

The Herald reports that a controversial property management firm has tried to exclude itself from a Bill to impose standards on property factors.  Glasgow Labour MSP Patricia Ferguson’s Property Factors Bill began its first parliamentary stage yesterday, with factors giving evidence to the Scottish Local Government Committee.

Glasgow-based Greenbelt Group Ltd, which charges owners for land management in developments, claimed it would not be covered in the bill because it is a landowner. The Bill would introduce a compulsory register of property managers to root out rogue factors, and also set up a dispute resolution process to give homeowners right to redress.

Yesterday, Greenbelt’s managing director Alex Middleton was told by MSPs his company was effectively doing the same job as a property factor, and Ms Ferguson said the Bill would cover Greenbelt.  Mr Middleton said: “The Bill recognised the need for registration, regulation and resolution. Greenbelt is not a property factor so we don’t feel it applies to us.” Greenbelt owns the land around developments and charges the owners a management fee, billing owners for maintenance.

Conservative MSP David McLetchie said Greenbelt served the same purpose s other factors. He said: “Ultimately, it is no different if land was owned in common and they paid a factor. You bill them for the same services. The issue is not about ownership, but services and costs associated with that.” Ms Ferguson said the Bill was drafted to ensure it also included Greenbelt.

The Property Factors (Scotland) Bill, drafted by Govan Law Centre, expressly includes companies, such as Greenbelt, as the definition of 'property factor' in section 2(1)(c) includes: "a person who owns and manages or maintains land which is available for use by the owners of any adjoining or neighbouring residential properties (but only where the owners of those properties are required by the terms of the title deeds relating to the properties to pay for the cost of the management or maintenance of that land)".

Property firm tries to evade new Bill