A new lease of life: - CentreForum

A New Lease of LifeCase study 6: Scottish managing agentsThe Property Factors (Scotland) Act 2011 radically changedthe relationship between managing agents (factors) andresidents. 75 It introduced:::Compulsory registration for all managing agents(factors);::A code of conduct, to be followed as a condition ofregistration;::A more accessible dispute resolution service.The Act states that “any person who is, or intends to become,a property factor” (managing agent) must be registered, andonce they are registered are liable to a fine or removal fromthe register for poor service. It pledges to create a code ofconduct “setting out minimum standards of practice” forall managing agents. It also creates a homeowner housingpanel and committee which can determine whether amanaging agent has failed to either carry out their duties orto comply with the code of conduct. The committee has thepower to order both a compensatory award and a refund. Inthis way, the act is able to both ensure a minimum standardfor managing agents and also offer more accessible redressto residents.Right To ManageRTM is a useful tool allowing leaseholders to assume control ofmanagement without having to purchase anything from thefreeholders. But hundreds of thousands of units are ineligible, whilethose that are eligible can face difficulties in applying. BecauseRTM is only available to flats, 600,000 leasehold houses are noteligible for RTM. Neither are leaseholders with local housingauthority freeholders, nor those in properties with more than 25 percent commercial floorspace, which is a common feature of manymodern developments. This requirement also means that flatsabove shops are not eligible for RTM. Other social considerationsmean that planning permission in property developments generallyrequire any new builds with more than ten units to offer 30 per centof their units as social housing or mixed tenure. This is problematicbecause mixed ownership units do not qualify for RTM.75 See the Property Factors (Scotland) Act 2011.42