AN investigation is to be launched into the way factors look after residents' roofs, stairs and gardens in tenement buildings.
The inquiry by the Office of Fair Trading will affect thousands of city residents and could change the way Scottish flats are run forever.
It follows criticism by the Scottish Consumer Council (SCC), which found that three in five residents with p
rivate sector factors lodged complaints last year, with 92 per cent of those unhappy with the way their case was then handled.
The OFT investigation will look at the quality and cost of factors, how much choice and information is available to homeowners, and what their options are when things go wrong.
The OFT said it has already received evidence from the SCC which highlighted "potential consumer harm".
SCC chairman Douglas Sinclair said: "The SCC has expressed concerns about the current system of Scottish property factoring and welcomes the OFT's announcement today."
The study will report back by the end of the year and will involve gathering evidence from homeowners and suppliers operating in the sector.
OFT senior director of infrastructure Heather Clayton said: "This study will take a detailed look at Scottish property management services."
The investigation will be run in line with the Enterprise Act 2002, which allow a market-wide evaluation of both the competition and consumer issues. It is due to conclude by the end of the year.
The umbrella body for private sector factors, the Property Managers Association Scotland (PMAS), said it would be "happy to take part in the proposed study by the OFT".
More than one in three Scottish homes are in tenements and many of those have factors to take care of the upkeep of communal areas.
Jamie Millar, of the PMAS, whose members manage more than 150,000 homes, said: "We have met the Scottish Consumer Council and the OFT to discuss the property management industry. We were aware that OFT was taking an interest in this area."
Solicitor Mike Dailly has been working with Patricia Ferguson MSP in a campaign to tighten up the rules governing factors.
He said: "For many it's a racket, in that they are operating in an unregulated market."
Tory councillor Joanna Mowat, who represents the city centre, said: "When you look at registered social landlords, affordable housing can become unaffordable when you factor in the factors."
The full article contains 401 words and appears in Edinburgh Evening News newspaper.
