Scottish Government
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Improving property management standards
An industry-led accreditation scheme will be established to give home owners peace of mind when choosing a property manager or land maintenance company.
A public consultation on the voluntary scheme was launched today.
Property managers administer communal areas, roofs and stairwells in an estimated 225,000 flats and tenements across Scotland. Land maintenance companies look after the common green space on many house estates.
To join the scheme, property managers will be expected to show clear and transparent accounting and billing systems and to provide clear, written contracts and an explicit and robust complaints procedure.
Those who fail to meet the standards set out in the proposed scheme would have their accreditation taken away. The Scottish Government has pledged to consider tougher, legal reforms if problems persist.
The scheme has been developed in response to an Office of Fair Trading (OFT) investigation which reported last year. The OFT recommended that the Scottish Government take the lead in ensuring implementation of a self-regulatory scheme.
Minister for Housing and Communities Alex Neil, said:
"There is broad consensus in Parliament that improved service for the consumer should be a priority. The Scottish Government wants to explore every potential means of improving standards in this area.
"Property managers have a vital role to play in maintaining and improving housing stock condition. It is therefore important that homeowners have access to good quality and cost effective property management services.
"I continue to take a keen interest in the passage of the Member's Bill being promoted by Patricia Ferguson MSP in this area. I support the outcomes it seeks to achieve.
"We will consider further statutory regulation if the voluntary scheme does not produce the results that we need."
Vice President of the Property Managers Association Scotland (PMAS), Lorraine MacDonald said:
"The PMAS is pleased to have played a pivotal role developing the scheme and we fully endorse the standards now offered for consultation.
"PMAS is enthusiastic regarding the benefits to be derived by both consumers and accredited managers from the widespread adoption throughout Scotland of the accreditation scheme."
Douglas Sinclair, Chair of Consumer Focus Scotland, said:
"We have campaigned for the establishment of an accreditation scheme for property managers for a number of years and welcome today's consultation launch as a significant step forward.
"We believe that the accreditation scheme will assist owners in making informed choices about the property managers that they use, driving up standards in the industry.
"The new independent redress process will also benefit owners who remain dissatisfied with the service they receive. We urge home owners to respond to the consultation to ensure that the standards are focused on their needs."
Kyla Brand, OFT Representative for Scotland said:
"The OFT's report into Scottish factors found that a third of tenants were unhappy with the performance of their property management firm. We are pleased that the Scottish Government has accepted our recommendation to press ahead with voluntary self-regulation and we welcome the launch of today's consultation."
Ministers first announced their support for the establishment of a voluntary accreditation scheme in July 2008 and since that time they have made it clear that they will consider stronger statutory measures if accreditation does not prove effective in raising standards within the industry.
Since March 2009, the Scottish Government has been working in partnership with representatives of the property management industry and other key stakeholders to develop a national, voluntary accreditation scheme.