Scottish Labour has launched a campaign to overhaul the property factoring system across Scotland, calling it a “racket” that leaves homeowners overcharged and underserved. The party is pushing for legislative reform that would make it easier to remove underperforming property factors and open up the market to more accountable, community-led alternatives.
For anyone who owns or manages leasehold properties in Scotland — whether single flats or larger blocks — this could be a major turning point. Property factoring is often seen as a background service, but it plays a huge role in resident satisfaction, building maintenance and long-term asset value.
In this article, we break down what’s being proposed, why it matters, and what steps property professionals should consider next.
What’s the Problem With the Current System?
Property factors, also known as managing agents, are responsible for maintaining shared spaces in blocks of flats or developments — think stairwells, roofs, car parks, green spaces and lifts. In Scotland, factoring arrangements are often tied into title deeds, which can make switching providers incredibly difficult.
This has led to a number of complaints. Homeowners have reported poor service, unclear invoices, inflated charges, and a lack of transparency around how funds are used. More critically, many feel trapped in long-term agreements with factors who are unresponsive or unaccountable.
Scottish Labour argues that the current system, based on the 2011 Property Factors Act, simply doesn’t give homeowners enough control. Under that legislation, factors must be registered and follow a code of conduct, but the process for removing them is still time-consuming and, in many cases, legally complex.
The Woodilee Case and Growing Public Pressure
This push for reform didn’t come out of nowhere. It has been building over time, fuelled by high-profile disputes like the one at Woodilee Village, a large residential development outside Glasgow. There, homeowners attempted to remove their property factor due to years of dissatisfaction. Despite widespread resident support, the legal hurdles involved have dragged out the process, turning it into a cautionary tale for other communities.
The Woodilee Residents Association took their case to court, arguing that the factor had failed to maintain the development to acceptable standards and that costs were poorly justified. While they’ve made some progress, their efforts have exposed how difficult it is to make changes — even when there is strong resident consensus.
Scottish Labour has cited this case and others like it in their argument for reform. The party wants to make it easier for homeowners to switch providers, promote alternative models like co-operatives or community ownership, and strengthen oversight so that poor service can’t continue unchecked.
Why This Matters for Property Business Owners
You may not be a factor yourself, but if you own flats, invest in leasehold properties or manage buy-to-let portfolios within factored developments, this reform could affect you. Here’s how:
1. Resident Experience Directly Impacts Asset Value
Unhappy residents often translate into harder sales, lower rents and more management headaches. Poor maintenance of shared areas can drag down the kerb appeal of entire blocks, which affects resale values and lets. If factoring reform puts pressure on underperforming agents, the overall quality of property management could improve — and that benefits landlords and investors too.