Question reference: S6W-01701
- Asked by: Craig Hoy, MSP for South Scotland, Scottish Conservative and Unionist Party
- Date lodged: 22 July 2021
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Current status: Answered by Shona Robison on 16 August 2021
Question
To ask the Scottish Government whether it plans to broaden the remit of the First-tier Tribunal for Scotland housing and property chamber to consider whether the fee charged by a property factor is (a) excessive, or (b) otherwise unjustified.
Answer
The Code of Conduct for Property Factors sets out minimum standards of practice and encourages transparency, while ensuring that homeowners know what to expect from their property factors. A revised Code of Conduct for Property Factors was approved by resolution of the Scottish Parliament in March 2021. This brought the Code of Conduct up to date, clarified and strengthened it, ensuring that all registered property factors operate consistently and to the appropriate standards, while also giving homeowners confidence in what their factor is offering them. The responses from homeowners to the public consultation for a revised Code of Conduct for Property Factors did not suggest that excessive or unjustified management fees was an area of concern. The consultation opened on 6 October 2017 and closed on 15 January 2018. You can find details of the consultation, an analysis of responses and view submitted responses at:
A property factor must provide each homeowner with a comprehensible written statement of services that sets out, in a simple, structured way, the terms and service delivery standards of the arrangement in place between them and the homeowner. This includes a requirement to set out the management fee charged by the property factor and the property factor’s policy for reviewing and increasing or decreasing this management fee. The revised Code will come into force on 16 August 2021.
While the Scottish Government has no plans to make changes that affect the remit of the First-tier Tribunal for Scotland (Housing and Property Chamber) at present, it is our intention to review the existing legislation to identify areas for consideration to strengthen and support the improved operation of the regulatory regime for property factors. We hope to undertake this work in the latter half of this operational year with the intention of including any proposed changes in a suitable legislative vehicle thereafter.