Complaints about property factors have more than doubled in six years, fuelling calls for a crackdown on rogue operators.
Figures show a sharp increase in homeowners turning to Scotland’s property disputes tribunal to settle bitter factoring wrangles.
Almost 1,600 complaints were logged by the First-tier Tribunal (Housing and Property Chamber) over claims including high fees and botched repairs between 2019 and 2025.
Another 1,337 cases were also reviewed by Scotland’s Upper Tribunal appeals court during the period.
Data shows just 12 dodgy dealers have been struck off the property factor register since the Act was passed in 2011.
Critics say the figures are just the tip of the iceberg, with many disgruntled homeowners unaware they can escalate disputes to the HPC and others put off by the pace and sheer complexity of the complaints process, which can leave cases dragging on for years.
They claim 15 years after the Property Factors (Scotland) Act was introduced to clean up the industry, it still resembles a regulatory “Wild West”, where weak oversight, toothless enforcement and minimal sanctions have failed to stamp out poor practice.
Even when complaints are upheld, property factors typically face slap-on-the-wrist compensation orders that do little to deter repeat offending or improve standards.
SNP Ministers are now under increasing pressure to reform the sector, with opposition parties, charities, the Law Society of Scotland and the industry’s own trade body among those joining the push for change.
Scottish Labour housing spokesperson Mark Griffin said: “Property factoring in Scotland has long been a source of frustration for homeowners.
“While the Property Factors Act 2011 was a step forward, the system still overwhelmingly favours the interests of large management companies over those of ordinary homeowners.
Mr Griffin added: “For over a decade homeowners have been left to deal with expensive and often opaque factoring arrangements while meaningful reform has been repeatedly delayed.
“All of Scottish Labour’s attempts to bring changes to support homeowners and reform factoring in the Housing Bill were rejected by the SNP government.
“The SNP must urgently take action to address this growing problem and support homeowners in Scotland.”
Tim Eagle MSP, Scottish Conservative housing spokesperson, called on the SNP to act to strengthen regulatory powers.
He said: “Homeowners deserve transparency and a property factoring system that works for them.
“Instead, too many feel trapped by poor service, questionable charges and a complaints process that lacks real teeth.
“Fifteen years on from the legislation being introduced, it’s clear the current system isn’t delivering the accountability homeowners were promised.
“The Scottish Government should review the framework to ensure property factors are properly held to account and that homeowners have greater transparency over the fees they are being asked to pay.
Scotland’s factoring sector comprises around 306 registered firms managing more than 678,000 properties across Scotland, with a significant share of the market concentrated among a small number of major groups.
Critics insist weak regulation leaves property factors free to set their own charges and management fees, with no price cap or dedicated watchdog to rein them in.
Rebecca Fagan, welfare and benefits expert at Advice Direct Scotland, said the main issues raised about property factors include concerns over extremely high bills, unclear charges and high management fees.
She said: “The cases that make it to the Housing and Property Chamber of the tribunal could be the tip of the iceberg.
“We typically hear from customers who cannot follow the factor’s complaints process or are not aware of the process at all.
“Homeowners are increasingly reporting their disputes with building factors to us. We dealt with more than 130 cases about factors last year with issues identified from Aberdeen to Ayrshire.
“Homeowners can raise complaints via the First-tier Tribunal for Scotland but awareness and accessibility about this remains limited.”
Graeme Hartley, executive director for Scotland at The Property Institute – the trade body for residential property managers and factors – also said reforms were needed to rebuild trust in the sector.
He said: “We need a system that gives residents greater confidence in how their buildings are managed and how their money is used.
“That starts with stronger professional standards, which is why we’re pushing for mandatory qualifications for all factors so everyone managing Scotland’s homes is properly trained.
“We’re also urging government to strengthen the legislation.”
Gail Watt, Convener of the Law Society of Scotland’s Property and Land Law Reform Sub-Committee agreed Scotland’s property factors system remains “contentious”.
She said: We have engaged constructively with the Scottish Parliament and Government on issues with the system, and will provide our legal expertise to assist as further reforms are pursued.”
A Scottish Government spokesperson said: “To support homeowners facing issues with the property factoring system, we have introduced measures to make it easier for owners to dismiss a property manager and appoint someone else.
“We keep the operation of the property factor system under review. Future work will take account of stakeholder views across the system, including homeowners and factors.”
