The Housing and Property Chamber has released its summary of work of the Housing and Property Chamber for the financial year 2022-23. The Chamber received the highest number of applications seen in a single year, totalling 4596 applications. We know our members and readers of our blog will be interested in the outcome of Factoring cases dealt with by the Chamber. There are over 709,000 Factored homeowners in Scotland, and these complaints have been escalated by Factored homeowners for the year 2022-23.

Factoring Cases

The Chamber received 254 factoring applications, accounting for 6% of all applications for the year. This showed a 28% increase in applications compared to the previous year which can partly be attributed to the rise in number of multiple applications relating to the same development. The majority of applications (97%) involved commercial property factors while the remaining 3% involved housing associations. The majority of applications (83%) also involved residential factoring, while the remaining 17% concerned land management complaints. This is increased from previous years (3% in 2021-22 and 7% in 2020-21) which can be attributed to a group of 20 land management complaints.

The most common category of complaints was as follows:

• Communication and consultation (61% of all applications)
• Repairs and maintenance (52%)
• Complaints resolution (50%)

As has been the case with previous years, the majority of applications (68%) mentioned that the property factor had failed to carry out their property factor’s duties under the 2011 Act. Two thirds of applications were found to be group applications with 66 groups of multiple applications from different homeowners within a development or tenement being received. Aside from one group of 20 applications, the remaining groups numbered between 3 and 7 applications.

If possible, the Chamber will group multiple applications together and hear them on the same day by the same tribunal to ensure efficiency, but this can result in a longer and more complex hearing.

Case Outcomes

We know that our members and factors who read our blog will be interested in seeing the outcomes of the aforementioned complaints.

Of the 254 cases investigated by the Chamber, 205 applications were closed and/or decided by the tribunal during the year.

• 25 applications were rejected (12%)
• 65 applications were withdrawn by the applicant (32%); no reason was stated for 45 of these withdrawals but 20 were withdrawn as the matter had been resolved.
• 115 applications were decided by the tribunal.

In 74% of 115 decided applications, the tribunal found that the property factor had failed to comply with the code and/or property factor’s duties. In 20 applications (17%), the tribunal found that the property factor had complied with the code and/or duties. This was similar to the previous year where this finding was present in 18% of applications. In four cases, after careful consideration of legal submissions on the issue, the tribunal decided that it was outwith their jurisdiction. Eight applications were dismissed by the tribunal, four due to the failure by a party to co-operate, and four because the tribunal concluded that it had no jurisdiction.

• 75 Property Factor Enforcement Orders (PFEOs) were issues. 77% of these related to group applications across 15 different groups.
• The tribunal found that there had been compliance in more than two thirds of these (77%).
• The tribunal found that there had been failure to comply with the PFEO in 11 cases.

We are pleased to announce that this shows a relatively high rate of compliance by Scottish property factors and is a positive outcome for these complaints. To read the entire summary, click here. We hope that the work of the Chamber continues to help maintain the high standards of property factoring in Scotland, and if you have any questions, please do not hesitate to contact us.