OFT launches Scottish property probe

Tuesday, 17, Jun 2008 09:44

The Office of Fair Trading (OFT) has announced it is to launch a study into property management services for common and shared residential property in Scotland.

Residents in tenements and other collective residential properties in Scotland use property managers - known as factors - to manage common and shared property - for example roofs, staircases, entrances and gardens.

The study will consider issues such as how much choice and information is available to homeowners, how property managers are selected, the quality and costs of the services provided, how homeowners can effectively manage services.

It will also examine whether homeowners have access to redress when things go wrong.

"This study will take a detailed look at Scottish property management services, consider how well they are working for homeowners, and take a view on any recommendations which might bring positive outcomes for consumers in Scotland," said Heather Clayton, OFT senior director of infrastructure.

The market study follows evidence submitted to the OFT by the Scottish Consumer Council (SCC), which highlighted potential consumer harm in this area.

"The SCC has expressed concerns about the current system of Scottish property factoring and welcomes the OFT's announcement today," said Douglas Sinclair, chair of the SCC.

"We look forward to working with the OFT as it looks in more detail at this important area for Scottish consumers."

The study will report back by the end of the year and will involve gathering and analysing evidence from homeowners, suppliers operating in the sector, and other key parties as well as co-operation with the Scottish government and the SCC.

Chris O'Toole