GLC raises concerns over Local Housing Allowance for private sector tenants in Scotland

On 28 March 2019, representatives of Govan Law Centre gave evidence to the Scottish Parliament's Social Security Committee alongside Shelter Scotland and Living Rent Edinburgh. A video of of the evidence session is available on the Scottish Parliament's website here. The Official Report of the meeting is available here (opens as a PDF).

GLC raises concerns over Local Housing Allowance for private sector tenants in Scotland

Scottish Government should return to first principles to be fair to consumers in reforming the law of prescription in Scotland

Govan Law Centre (GLC) has argued that the Scottish Government's reform of the law of prescription - the date that obligations are extinguished in law - should go back to first principles. GLC's Principal Solicitor set out our position yesterday before the Scottish Parliament's Delegated Powers and Law Reform Committee, which is leading the Stage 1 inquiry on the Prescription (Scotland) Bill.  The evidence session is available to watch on YouTube.

The Scottish Government's aim - and the starting point of the Scottish Law Commission original Discussion Paper thinking - was to create clarity, simplicity, certainty and fairness in the law on prescription.  GLC believes that this should mean all legal obligations are subject to a five year prescriptive period as a matter of principle. The current law, contained in the Prescription and Limitation (Scotland) Act 1973, is almost half a century old and the justification for requiring 20 years to pursue debts and obligations is outdated with today's standards and technology.

While the Scottish Law Commission originally envisaged Scots law being simplified so that all statutory obligations would be subject to the five year 'quinquennium', the Bill makes a number of exceptions to this rule for tax generally, national insurance, council tax, child maintenance and reserved social security benefits. These exceptions result in a 20 year prescriptive period.

GLC notes that public policy arguments have been accepted for differential treatment, but we still believe that the five-year prescriptive period should apply to all statutory obligations.  For example, there is no justification for council tax to be subject to a six year prescriptive period in England but 20 years in Scotland.

If the Scottish Government is not willing to amend the Bill, GLC has encouraged the Parliament's Committee to do so, which failing to consider a fall back compromise position.  For example, the Bill’s current exceptions could be subject to five years, and an extended period of 10 years in the following exceptional circumstances:

• Where there has been willful, false or misleading information by the debtor which has resulted in a material delay in enforcing the debt due, or

• The creditor can prove that the delay in enforcing the obligation was not due to a material delay on its part, and it would be in the public interest to allow an extended period.

As a matter of public policy, we can see why there may be a case for individual exceptions, but they should be genuinely exceptional, otherwise what the Bill will fail in its goal of providing “certainty, clarity and fairness”, by allowing debts and obligations to linger for 20 years without being pursued as early as possible.

In relation to social security benefits, we believe there is no justification for not having all devolved and reserved benefits subject to the five year prescriptive period.  It is inequitable that people have a month to appeal a benefit decision, while the DWP would have 20 years to pursue reserved benefit debts.

GLC believes that the “appropriate date” for the start date of the running of the five year prescriptive period for consumer debts in terms of section 6 of the 1973 Act should start from the last payment made.  This current law is set out in section 6 and schedule 2 of the 1973 Act and depends on whether the contract makes provision for when repayment is due, which failing when a written demand for repayment is made.

We have a number of cases in court at present where old consumer credit debts have been sold by banks to debt collection companies, and we think the starting point for prescription for consumer debts should be simplified as the last payment made by the consumer.  The alternative is the current position of highly technical arguments where the creditor can argue that a later start date applies, for example, when it demands full repayment – which can add an extra year or more to the quinquennium.

GLC fully supports section 5 of the Bill which amends section 11 of the 1973 Act, and introduces a new "discoverability test'. Section 5 of the Bill would address the 2014 UKSC decision in Morrison & Co Ltd v. ICL Plastics Ltd, which established that the start date for prescription was when a pursuer knew they had suffered loss, injury or damage. This can result in unfairness when no-one knew who was culpable until some years later.

Section 5 of the Bill would require additional knowledge in relation to the fault/negligence and identity of a defender before the prescriptive period can begin in a damages claim.  We believe this represents practical common sense, and is a fair and reasonable approach.

GLC argued that section 8 of the Bill should be deleted.  There is no cogent case to change the law on when the 20 year prescriptive period begins. At present the period runs from the date of a pursuer's knowledge of a defender’s act or omission, however the Bill would run the period purely from the actual date of the act or omission.  We have no difficulty with section 6 of the Bill in relation to removing interruptions to the 20 year prescriptive period.

We have significant concerns over section 13 of the Bill, which would permit contracting out of the five prescriptive period by one year with a 'standstill agreement'. Very often consumers in financial difficulty are in a weak and vulnerable position, and may not seek independent advice until the last moment, so we believe this provision could result in serious injustice in practice.  We suggested a possible compromise that section 13 of the Bill should only engage where there is certification from a solicitor or accredited money advisor (in debt cases) that the consumer has taken independent legal advice and agrees to extend the five year prescriptive period.

Mike Dailly was giving evidence on behalf of GLC, along with Mike Holmyard of Citizens Advice Scotland. The Committee's Stage 1 inquiry on the Bill is ongoing, with the Minister scheduled to appear before the Committee next week.  

Scottish Government should return to first principles to be fair to consumers in reforming the law of prescription in Scotland

Celebrating financial capability in Scotland

Last night stakeholders and guests at the Scottish Parliament celebrated financial capability work taking place across Scotland, as part of UK "Financial Capability Week".

The event was hosted by Ayrshire MSP, Ruth Maguire, and heard from Yvonne MacDermid, Chair of the Scottish Financial Capability Partnership, Govan Law Centre's Mike Dailly, Alison Hardie of Young Scot, Alison Watson of Shelter Scotland, Simon Watson of the Royal Bank of Scotland, Jonathan Baxter, Head Teacher and pupils from Flora Stevenson Primary School

As part of #TalkMoneyScotland week, Govan Law Centre will be providing a free financial capability and money advice session at Homes for Good, 97 Main Street in Glasgow’s Bridgeton this Thursday 16 November 2017 from 10am to 3pm. No appointment is necessary.

GLC's Principal Solicitor Mike Dailly said: "Good money skills are always key to resolving financial challenges and difficulties. But most importantly they are essential as a preventative tool: to avoid being scammed, fleeced, being hit with excessive fees and charges, borrowing at uncompetitive rates, buying financial products you don’t need or aren’t suitable for you, or ultimately just getting a bad deal as a consumer".

"Key life events – for good or for bad – will affect all of us throughout our life and having some financial resilience and support can make an unbelievable difference in a crisis. Knowledge truly is power, and we are a point in time where we can make financial capability skills and knowledge freely and instantly accessible to consumers when they need it if we utlise new opportunities next year from Opening Banking and the new Payment Services Directive".

Mike's talk is available here (opens as a PDF).

Celebrating financial capability in Scotland

Govan Law Centre's evidence to the Economy Committee on the draft Bankruptcy Fees (Scotland) Order 2017

Mike Dailly, David Menzies (ICAS), Alan McIntosh

On Tuesday 21 March 2017, representatives of Govan Law Centre gave evidence to the Scottish parliament's Economy, Jobs and Fair Work Committee on the draft Bankruptcy Fees (Scotland) Order 2017, along with the Institute of Chartered Accountants in Scotland.

We were all in agreement that the proposed regulations were ill-advised, unfair and should be rejected pending a full review of how the Accountant in Bankruptcy is funded, and operates, particularly in relation to duplicate or unnecessary roles, and conflicts of interest.

You can watch a video of the Committee hearing here (which also includes evidence from the AiB, and the Minister for Business, Innovation and Skills). It is understood the Committee has deferred consideration of the draft Order until next week.

Govan Law Centre's evidence to the Economy Committee on the draft Bankruptcy Fees (Scotland) Order 2017

GLC warns MSPs that Private Tenancies Bill would give tenants a 'zero hours contract' on their home unless amended

Govan Law Centre gave oral evidence before the Scottish Parliament's Infrastructure and Capital Investment Committee on 18 November 2015, along with the Legal Services Agency, the Law Society of Scotland, COSLA, ALACHO and the City of Edinburgh Council. The Official Report of the meeting is available online here.

Giving evidence on behalf of GLC, Mike Dailly said: "The aims of the Private Housing (Tenancies) (Scotland) Bill were good but there were too many mandatory grounds for landlords to evict tenants. It is the equivalent of giving a tenant a zero hours contract on their home."

"As a matter of principle and economic prudence, Govan Law Centre does not believe an ever-increasing PRS is capable of meeting Scotland’s housing need. The sector falls short of being fit for purpose at present. We support UNISON Scotland’s proposals for encouraging pension funds to invest in building good quality affordable housing for rent."

"The private rented sector in Glasgow has grown in recent years and it can be summed us as 'A tale of two cities.'  For those who can afford higher rents there is choice and more good properties available but for those who have no alternative it is a bad experience. The executive looking to move home for a job would have good choice because he has good income but lots end up in private rented homes because they have no other choice."

The ICI Committee is taking oral evidence from the Minister for Housing in Scotland on Wednesday 2 December 2015, and will thereafter prepare its Stage 1 Report on the Bill in January 2016.

GLC warns MSPs that Private Tenancies Bill would give tenants a 'zero hours contract' on their home unless amended

GLC bedroom tax petition remitted to Welfare Reform Committee for full consideration

The Scottish Parliament's Petition Committee has today agreed to remit Govan Law Centre's (GLC) bedroom tax petition to the Welfare Reform Committee for full consideration and discussion. GLC believes that this is a positive step forward in the 'No evictions for bedroom tax' campaign in Scotland. Today's development will enable the case for progressive law reform to avoid evictions for bedroom tax arrears to be made with reference to Scottish empirical evidence and compelling real life case studies.  See also the earlier news report on this story on the STV website.

GLC bedroom tax petition remitted to Welfare Reform Committee for full consideration

GLC to discuss impact of bedroom tax for Scots with learning disabilities at Scottish Parliament

Govan Law Centre (GLC) will address members of the Scottish Parliament's Cross-Party Group for Learning Disability this afternoon on the impact of the 'bedroom tax' on Scots with learning disabilities.

The Cross-Party Group chaired by Jackie Baillie MSP, Convenor, and Jim Eadie MSP, Deputy Convenor, will be provided with an update on GLC's 'No eviction for bedroom tax' campaign - which is due to call again before the Parliament's Petitions Committee on Tuesday 25 June 2013 - and a report on the uptake across Scotland and the UK of GLC's Challenge the Bedroom Tax 'Toolkit'. 

The Parliamentary Group will be presented with real life examples of casework from GLC's Alistair Sharp and Gary Burns. Our case studies aim to highlight the particular issues surrounding those with a learning disability in relation to the bedroom tax. We will highlight the recurring issues and particular problems facing someone with learning difficulties, and what organisations can do in order to offer support in relation to the bedroom tax and other welfare reform. 

GLC aims to demonstrate how people with learning difficulties may have problems in asserting their legal rights, and in many cases may require coordinated access to other agencies. GLC will explain how small changes to an agency's practice can help provide positive solutions and better outcomes for Scots with learning disabilities.

GLC to discuss impact of bedroom tax for Scots with learning disabilities at Scottish Parliament

Bedroom tax facts, myth and legends: why evicting households for bedroom tax arrears makes poor financial sense in Scotland

The debate on whether Scotland should introduce a 'No evictions for bedroom tax' policy is gaining widespread public support, with many councillors, some councils, MSPs and MEPs now backing the principle of GLC's Scottish Parliamentary petition.  

GLC is aware, however, that some people and politicians remain undecided about the workability of not evicting tenants for bedroom tax arrears, and that a number of assumptions and assertions are circulating against the principle of the petition, which can be summarised as follows:

• Not evicting someone for bedroom tax arrears will mean many people who can pay won’t pay, which is unfair for those tenants who choose to pay, or are unable to do so.
• It would take several years to build up a sufficient level of arrears before a social landlord considered going for eviction, so what is all the fuss about?
• It would be unworkable for a social landlord to separate ‘bedroom tax arrears’ from other rent arrears, and therefore not evicting people for bedroom tax arrears cannot be practical.
• Not evicting tenants for the bedroom tax will damage the revenue streams of social landlords, make their business operations unsustainable, and ultimately damage the interests of other tenants who do pay.

Accordingly, in the interests of well informed public debate, GLC is publishing a 'Bedroom Tax Facts, Myths and Legends' paper  (opens as PDF) which explains the hard facts with reference to the relevant law, practice, and empirical evidence available in Scotland. We believe the facts overwhelmingly support the case for not evicting tenants for bedroom tax arrears in Scotland and hope that you will consider lending your support to our campaign by signing our petition here and tweeting and disemminating this post to a wider audience.

Bedroom tax facts, myth and legends: why evicting households for bedroom tax arrears makes poor financial sense in Scotland

Oxfam Scotland backs 'No evictions for bedroom tax' campaign in Scotland

Oxfam Scotland is backing a change in the law that will help tenants affected by the controversial cuts to housing benefit stay in their homes in Scotland. The charity, which works with partners in Scotland to fight poverty and create sustainable livelihoods, is supporting a petition to the Scottish Parliament by Govan Law Centre (GLC), calling for an amendment to existing housing law.

The amendment will mean that rent arrears caused by the so-called 'Bedroom Tax' can't be used as grounds for eviction by social landlords like councils or housing associations. Government changes to housing benefit mean that, from April, people who are judged to have a 'spare room' will face a massive 14% cut in the support they get to keep a roof over their heads. Those with two 'spare rooms' will face a 25% cut.

Judith Robertson, Head of Oxfam Scotland, said: "Last year our Humankind Index for Scotland found that an affordable, decent and safe home is the top priority for Scots across the country. But housing benefit cuts will put thousands of people at risk of losing their homes. People on low incomes are already struggling.

"We recognise that social landlords are being placed in a difficult situation by these housing benefit cuts, but our priority surely has to be to keep families in their homes. The change in the law proposed by Govan Law Centre will help make sure that happens.

"We hope MSPs will support the petition, and we hope the UK Government realises the enormous damage these cuts will have on people."
 
 GLC's Principal Solicitor, Mike Dailly, said: "We are delighted that a leading global anti-poverty charity has decided to back our 'No Evictions for Bedroom Tax' petition in the Scottish Parliament.

"Oxfam's support for our Scottish campaign underlines the seriousness of the situation, with the prospect of tens of thousands of low income households in Scotland being threatened with homelessness unless they can find extra money for rent, and many families being pushed into destitution and poverty.

"We believe the Scottish Parliament has devolved powers which could be used to significantly mitigate the adverse impact of these changes to housing benefit, and hope that MSPs will join civic Scotland in supporting our No Evictions campaign".

Oxfam Scotland backs 'No evictions for bedroom tax' campaign in Scotland

Money Advice Scotland back 'No evictions for bedroom tax'in Scotland' campaign

GLC is delighted to announce that Money Advice Scotland has agreed to back the 'No evictions for bedroom tax in Scotland' petition and campaign. The petition to the Scottish Parliament now has 1,066 signatures since going live at the weekend, and is growing every day. You can sign the petition here.

Money Advice Scotland (MAS) is the national umbrella organisation in Scotland which promotes the development of free, independent, impartial, confidential money (debt) advice and financial inclusion. 

MAS serves a membership of over 200 members organisations and individuals drawn from local authorities, CABx, and other voluntary projects, who all provide money advice. Other members who are supportive of our objectives include Insolvency Practitioners, creditor and debt collection organisations.

GLC believes that the bedroom tax is the new poll tax in Scotland, and that bedroom tax arrears of rent should be treated as an ordinary debt in Scots law, so that tenants do not have to suffer the pain, suffering and indignity of bring evicted from their home because of the bedroom tax.

Money Advice Scotland back 'No evictions for bedroom tax'in Scotland' campaign

GLC calls for action on 'Bedroom tax' from Holyrood

The Scottish Parliament has been asked to change the law to prevent tenants being evicted because of changes to housing benefit. Speaking on BBC 1's Sunday Politics Scotland show, Mike Dailly of the Govan Law Centre said that people could be homeless because of the UK government reforms.  He said Holyrood should act to minimise the consequences of the change.

But, talking on the same programme, SNP MSP Linda Fabiani claimed little could be done until the Scottish parliament has more powers. The changes to housing benefit are intended to encourage mobility by discouraging tenants from staying in homes deemed too large for their needs. Mr Dailly said: "This is the new poll tax in Scotland. It's a vicious attack on the low paid and poor." 

The law on benefits is a reserved matter, controlled by the UK parliament at Westminster, but Mr Dailly said Holyrood could change the law in areas that it does control. "The Scottish government can do a lot to prevent people from being evicted. We are calling on is for the Scottish Government to change housing law so that if you incur 'bedroom tax' arrears that should be treated as an ordinary debt but not allow you to be evicted," he suggested.
 

You can sign GLC's Scottish Parliament petition for 'No eviction for bedroom tax' here. Almost 500 people have signed the petition within 48 hours of the petition going live on the Parliament website. The Sunday Politics Scotland show is available on the iPlayer here (41 mins in). Read more on this story from the BBC. 

GLC calls for action on 'Bedroom tax' from Holyrood

Scottish Parliament: consensus for change at the Fair Access to the Legal Profession event

The student-led Campaign for Fair Access to the Legal Profession's (CFALP) event in the Scottish Parliament witnessed a remarkable consensus for progressive change from SNP, Labour and Lib-Dem MSPs, members of the Scottish legal profession, university representatives, civic society groups and law students tonight (23 October 2012).

The event hosted by the SNP's Edinburgh Central MSP, Marco Biagi heard from two fourth year law students who were now faced with the harsh prospect of being priced out of the Diploma (PEAT 1) after the Cabinet Secretary for Education, Mike Russell, moved their funding goal posts and any hope of being able to afford to complete the mandatory PEAT 1.  The voice of law students shortly to be excluded from Scotland's legal profession because of an unfair change in the funding arrangements was met with overwhelming support in a packed Committee Room 6 in the Scottish Parliament.

The event also included speeches from CFALP's campaign co-ordinator, Tim Haddow, NUS Scotland President, Robin Parker, and GLC's Principal Solicitor, Mike Dailly, who said:

"Scottish law students are not asking for preferential treatment - all they want is the right to borrow the same amount of student loan support that other vocational students can borrow. Architect students can borrow additional student loans for up to six years, while medical and dental students can borrow for their fifth year of study.  Postgraduate trainee teachers also have access to student maintenance loans. Why not law students?"

"There is no logic in the current policy of the Scottish Government.  It is regressive, unfair and against the aspirations that the Scottish Government has for an inclusive and successful Scotland. I hope the Scottish Government will reconsider".

Mike's full contribution is available online here.  

The debate session also heard contributions from Scottish Labour's Sarah Boyack MSP (who advised that Mike Russell MSP had now declined an invitation to convene a summit of all affected and interested parties in Scotland), the Scottish Greens' Alison Johnstone MSP, the Lib-Dems Liam McArthur MSP, Law Society of Scotland President Austin Lafferty and Dr Nick McKerrell of Glasgow Caledonian University. 

No-one disagreed that urgent action was required to prevent law students from less well off backgrounds being excluded from PEAT 1 by reason of socio-economic circumstances. 

Scottish Parliament: consensus for change at the Fair Access to the Legal Profession event

Scottish action on payday loans: update

GLC has been invited to present its Discussion Paper on proposals to help financially vulnerable Scots cope with predatory payday lending practices at a roundtable discussion in the Scottish Parliament next month.

The event is being hosted by Kezia Dugdale MSP, Shadow Youth Employment Minister on Wednesday 24 October 2012, and will bring together a wide range of national consumer, civil society and advice bodies.

GLC believes the Scottish Government can introduce a Fast Track Debt Arrangement Scheme targeted at payday loans under existing powers in the Debt Arrangement and Attachment (Scotland) Act 2002 as amended.

Scottish action on payday loans: update

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

Scottish Parliament Committee hear evidence of employers who “take advantage” of migrant workers

Govanhill Law Centre’s submission to the Scottish Parliament’s Inquiry into Migration and Trafficking has been cited in the Parliament’s final report.

The Inquiry, held by the Equal Opportunities Committee last year, heard evidence from a large number of stakeholders including migrants, local authorities, the voluntary sector, police, academics, journalists, MSPs and the Crown Office. The innovative partnership working approach of the Hub in Govanhill was recognised by the Committee as an example of good practice.

The Inquiry heard evidence on the nature and extent of migration to Scotland and described the lack of migration data, public perceptions about migration and the influence of the media as “key overarching issues“.　 The Committee recognised key challenges in “improving awareness among migrants about public services, and their rights and entitlements“, “employment including exploitative employment practices“, health, education, housing, policing and enforcement.

Govanhill Law Centre Solicitor Lorraine Barrie said “we are pleased that the Committee have recognised the significant barriers many migrants experience when living and working in Scotland in terms of receiving advice and information about their rights and practical barriers to reporting exploitative employers. 　 We are also pleased that the partnership working approach of the Hub in Govanhill, which we are part of, has been recognised as an example of good practice“.  The full story can be read on Govanhill Law Centre's website here.

Scottish Parliament Committee hear evidence of employers who “take advantage” of migrant workers

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

Local Government & Communities Committee backs Property Factors Bill

The Stage 1 Report of the Scottish Parliament's Local Government and Communities Committee has supported the general principles of the Property Factors (Scotland) Bill, which will help pave the way for the Bill's forthcoming Stage 1 debate before the Chamber next month. 

The Committee's report is available here; it makes a number of recommendations to amend the Bill to take on board practical issues which arose during evidence; some of the key conclusions are reproduced below:

"45. The Committee believes that there is clear evidence testifying to the problems encountered by members of the public with property factors and that there is therefore a need to proceed with a statutory framework to regulate property factors. It concurs with those witnesses who stated that a voluntary accreditation scheme would not address the problem of factors that provide a poor service to consumers. While the Committee acknowledges the work already conducted by the Scottish Government’s working group in developing a national voluntary accreditation scheme, it does not consider that there is evidence to suggest that this will be ultimately successful in addressing inadequate factoring services. It therefore supports the approach taken by the Member in Charge of the Bill in proposing a statutory framework for the regulation of property factors.

58. The Committee therefore considers that it is appropriate for housing associations and local authorities to be included within the meaning of “property factor” contained in the Bill.

62. The Committee welcomes the meaning given to “property factors” in the Bill. It considers that it is important for the definition to include the ownership and management or maintenance of land that is available for use by the owners of any adjoining or neighbouring residential properties. The Committee considers that consumers should be entitled to a quality service and that a company should not be able to avoid the provision of this service as a land-owning maintenance company ...

110. The Committee recognises that complaints against property factors can often be very technical and concurs that a homeowner housing panel will provide an effective structure for dealing with such complaints.

 122. The Committee considers that difficulties faced by homeowners in switching property factor represents a major issue, particularly in relation to land-owning maintenance companies. While it recognises that there may be less need for homeowners to switch once the provisions in the Bill raise standards in the sector, it nevertheless believes that a simplification of the process would be of benefit to the consumer. The Committee believes this is an important issue that might require legislation. However, the Committee also recognises it is a very complex issue and therefore calls on the Scottish Government to undertake further research".

Local Government & Communities Committee backs Property Factors Bill

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’

Regulation of property factors in Scotland

The Local Government Committee of the Scottish Parliament has made a call for evidence on the Property Factors (Scotland) Bill (the Bill and accompanying documents were drafted with assistance from GLC's Parliamentary and Policy Unit); for further details please see here.  The Scottish Parliament's Information Centre (SPICe) has published a new research briefing on the Bill, which is available here (opens as a PDF).

The SPICe briefing includes experience from the Republic of Ireland, where the Property Services Regulatory Authority (PRSA) has recently been established on an administrative basis. Legislation, currently before the Oireachtas, is intended to establish the PRSA on a statutory basis and will apply to all Property Services Providers (PSPs). PSPs are defined to include all those involved in the purchase, sale and letting of any land or property as well as those involved in the provision of property management services.

Under the proposed legislation, the functions of the PRSA will include operating a licening system covering all providers of property services; setting and enforcing standards for the grant of licences and provision of services; establishing a system of investigation and adjudication of complaints; promoting increased consumer protection and public awareness; and establishing a compensation fund to compensate parties who lose money as a consequence of the dishonesty of a licensee

The PSRA will have power to sanction a licensee up to and including the revocation of a licence and may also impose fines of up to €250,000 where a PSP is found to have engaged in "improper conduct". The Authority may bring a prosecution against a PSP for failing to comply with his or her statutory obligations or against any person providing a property service without a licence which may result in either a large fine or imprisonment or both. Under the new regulatory regime all PSPs are required to contribute to the "Property Services Compensation Fund". Where a person suffers a loss due to the dishonesty of a PSP the Authority may award compensation from the "Fund".

Regulation of property factors in Scotland

Bill to regulate property factors gets cross party support

Both the Herald, and the Evening Times, report that a bill to curb the power of rogue property factors and strengthen the hand of homeowners has taken a huge step forward by achieving strong cross-party support at Holyrood.

The proposed Property Factors (Scotland) Bill, introduced by the Labour MSP for Glasgow Maryhill, Patricia Ferguson, had to go out to consultation and then pass the normal first hurdle for a Member’s Bill of attracting the support of at least 18 MSPs. In fact, when the deadline passed 45 had signed up and although the bulk were fellow Labour members, the fact that 11 were from other parties indicates a broad enough consensus to suggest the Bill has a real chance of success.

Four MSPs each from the SNP and Liberal Democrats signed up, plus both the Parliament’s Green MSPs and Elizabeth Smith, the Conservative MSP. GLC's Parliamentary Unit has been engaged to draft the Bill. The Herald story is here, and the Evening Times here.

Bill to regulate property factors gets cross party support