Property Factors
(
Written Evidence
from Govanhill Law Centre
Govanhill Law Centre is a
free and confidential legal resource for the Govanhill community. We are a charity and employ qualified solicitors
(charity no. SCO30193). We are a branch office of Govan Law Centre and through the legal practice Dailly and Co. Solicitors we undertake expert legal advice, court and tribunal
representation in
We have been asked to submit written
evidence on two issues: Firstly, evidence concerning a large property factor on
behalf of two of our clients, “client A” and “client T” and secondly, evidence
on factors obtained through a survey carried out by Govanhill Residents Group
and Govanhill Law Centre. We would like
to point out that the evidence of “client A” and “client T” and the evidence of
Govanhill Residents Group relate to separate issues and are given independently
of each other.
Evidence
from “Client A”, “Client T” and Govanhill law Centre
“Client A” and “client T” are both owner
occupiers living in block of flats in
Govanhill. The
block of flats is factored by a large property factor (“large property
factor”). The names of our clients and
the factor in question have been anonymised due to the sensitive nature
of this evidence and the possibility of criminal proceedings.
A “large property factor”carried
out improvement works between October 2008 and July 2009. “Client A”, “client T” and other owner
occupiers have been in a dispute with “large property factor” ever since.
They have
attended several meetings but their list of complaints seems to grow after each
meeting. “Client A” is a former
accountant and, having gone through the relevant figures, has calculated that
"site preliminary works and head office overheads" have been charged
at between 58% and 80% of the works complete, which she believes is excessive
and far higher than the industry norm.
In
addition, “client A” believes from her analysis of the figures that “large
property factor” are not applying VAT correctly. “client A” believes “large
property factor” may be using the VAT as a balancing figure. A bill which has recently been reduced as a
result of amendments, shows a VAT increase. In one of the bills VAT has
been calculated at 18.6%.
Our clients believe that
they are the victims of their factor’s serious financial mismanagement and that
their factor has broken the law. Our clients have prepared a detailed breakdown of the bills received to
demonstrate their claims and welcome the opportunity to present these to the Parliament,
in the hope that the future companies like “large property factor” are regulated
in a way that prevents this from happening.
Evidence from Govanhill
Residents Group and Govanhill Law Centre
Govanhill Residents Group has
regular monthly meeting which are attended by around 50 people. They have a mailing list
of around 200 residents.
The residents group is very active in the organising positive activities
such as voluntary gardening and pushing for change in the community.
Govanhill has a particularly high
number of private landlords and there are concerns over the state of repair of
several properties owned by some private landlords. There is also concern over the accountability
of “absentee landlords” in respect of communal repairs.
Earlier this year Govanhill Resident’s Group and Govanhill Law
Centre jointly carried out a survey of local residents. We are
still collating replies but of 33 responses obtained in one day 85% of
respondents said they would like to see factors regulated and 66.7% did not
feel their factoring service was good value for money. Both Govanhill Law Centre and Govanhill residents group welcome the opportunity to share the full results
of the survey to assist with consideration of the bill.