Caithness Map :: Links to Site Map Great value Unlimited Broadband from an award winning provider  

 

New Scheme To Protect Tenants' Millions

7th April 2012

A compulsory scheme to safeguard millions of pounds in deposits paid by tenants renting properties in Scotland has been approved by Housing Minister Keith Brown.

Annually, tenancy deposits amount to over £74 million in the majority of the 273,000 households that make up the private rented sector in Scotland. It is estimated that up to 11,000 tenants have £3.6 million of their deposits wrongly withheld each year.

The first tenancy deposit scheme to be approved is the Letting Protection Service Scotland.

The scheme also aims to protect the reputation of the majority of private rented sector landlords who act professionally and responsibly.

Once in place landlords or their agents must pay deposits to an approved scheme and provide key information about the tenancy, the deposit, and the scheme which is protecting it, to the tenant.

The scheme will be free for landlords and letting agents to participate in and will provide access to a free and independent dispute resolution service, where agreement over the return of a deposit cannot be agreed by the tenant and landlord.

Two further schemes are being considered with the intention of starting all three schemes, which will operate across Scotland from July 2, 2012. In order to provide landlords time to prepare, the legal requirements to submit deposits into a scheme will come into effect from November this year.

Keith Brown said:"Up to 11,000 tenants annually have £3.6 million of their deposits wrongly withheld, which is why this Government is taking action to ensure tenants receive a fair deal.

"It is important to stress that the majority of landlords act responsibly. This scheme is aimed at those landlords who continue to tarnish the image of the private rented sector.

"The new regulations that allow the scheme to operate are also deliberately streamlined with the emphasis on creating a cost effective approach to safeguarding tenancy deposits."

Kevin Firth, Director of The LPS Scotland commented:"With 5 years of custodial deposit protection experience under our belts, we are delighted to be approved by the Scottish Government to operate a scheme in Scotland. I encourage landlords and tenants to make sure that they understand the legislation and take appropriate action to ensure they are covered.

"It will be compulsory for landlords and letting agents in Scotland to protect their deposits with a Government approved scheme as soon as the legislation launches. It is crucial that those in the private rented sector don't fall foul of this legislation and take the appropriate steps to ensure that they are prepared for its introduction."

Graeme Brown, Director of Shelter Scotland, said:"Each year millions of pounds from deposits are unfairly withheld by landlords and agents in Scotland, causing hardship to tenants and the very real threat of homelessness due to a lack of funds to secure their next property.

"At the same time too many landlords are uncertain about the grounds on which they can legitimately withhold a deposit. The introduction of a compulsory scheme to safeguard deposits is a step in the right direction towards protecting tenants, landlords and agents.

"Against a backdrop of increasing financial hardship and a growing private rented sector we hope the tenancy deposit scheme achieves a transparent and fair system for all."

Sue Hopson, Brand Standards Director at Martin & Co commented:"I am extremely pleased that the Scottish Government has chosen to back a single type of scheme being custodial. In the eyes of the consumer the rules will be so much easier to understand as every agent and Landlord will be following the same rules, processes and timescales via a transparent custodial method."

"I am sure that the Landlords and Tenants in Scotland will find the scheme as beneficial and as easy to work as we have. Hopefully due to the existing legislation in England and Wales and a more prominent consultation period in Scotland the introduction of Tenancy Deposit Protection will be welcomed by Scotland and not come into fruition quite so quickly as it did for England and Wales 5 years ago.

"There will be a lead in time for educating Landlords, Tenants and Agents with a generous period of time before all deposits need to be protected"

Letting Protection Service Scotland web site
www.lettingprotectionscotland.com

 

Related Businesses

 

Related Articles

13/12/2024
Highland Council Financial Update
Members have considered an update on the Council's medium term financial plan and the impact of the UK and Scottish Governments’ budgets on the coming year’s funding settlement.   The position is currently looking more positive than initially planned for, however more detail needs to be worked through.  
10/12/2024
Highland Visitor Levy Scheme Consultation Period ExtendedThumbnail for article : Highland Visitor Levy Scheme Consultation Period Extended
In November, The Highland Council launched a public statutory consultation to seek views on the proposed introduction of a Visitor Levy scheme across the Highlands.   The Council has announced an extension to this consultation period, which will now give businesses, visitors and communities until 31 March 2025, an additional seven weeks, to take part and have their say.  
5/12/2024
Tell us more - Highland Council launches budget engagement
In the light of the financial forecast for 2025-26, Highland Council is inviting you to tell us more in the budget preparation for the coming financial year.   The budget engagement builds on extensive budget participation which took place in the winter of 2023-24.  
2/12/2024
Highland Winter Road Conditions Report - Monday 2 December 2024
The information provided is a summary of reports from operational staff and is intended to give a general indication of typical conditions in each area at a point in time.   It is not intended to imply that any individual route is entirely snow and ice free and drivers must be aware that conditions can change rapidly and make their own assessment of conditions for travelling.  
29/11/2024
Council Seeks Tenants Views On Rent For 2025/26
Every year Highland Council invites all tenants to have their say on the rent levels for the following year.   The Council encourages everyone that lives in a council house to take this chance to have their say.  
28/11/2024
Highland Council Approach To Local Child Poverty
Communities and Place Committee met yesterday (Wednesday 27 November 2024) and Members agreed the Highland Local Child Poverty Action Report which includes actions for delivery in 2024/25.   Reducing child poverty is a priority for the Council and its partners.  
28/11/2024
Highland Winter Road Conditions Report - Thursday 28 November 2024
The information provided is a summary of reports from operational staff and is intended to give a general indication of typical conditions in each area at a point in time.   It is not intended to imply that any individual route is entirely snow and ice free and drivers must be aware that conditions can change rapidly and make their own assessment of conditions for travelling.  
28/11/2024
Highland Council Committee Confirms Public Conveniences Action Plan
Members of the Highland Council's Community and Place Committee have given their support to an action plan focusing on the operating of public conveniences over the next 10 years.   Whilst not a statutory function, the Council is the main provider of public conveniences located throughout Highland, operating 74 sites.  
28/11/2024
2024 State Of Local Government Finance In Scotland
A report published on 27 November 2024 by LGIU (Local Government Information Unit) looks at the state of funding for councils by the Scottish Government.   Confidence in the sustainability of council finances is critically low.  
27/11/2024
Waste management long term strategic direction
At today's (Wednesday 27 November 2024) Communities & Place Committee, Members agreed the most appropriate long-term strategic direction for residual waste management is to continue to utilise a merchant provider solution.   Communities & Place Committee Chair, Cllr Graham MacKenzie said: "After careful consideration and analysis it has been agreed that a merchant provider solution is considered the most appropriate long term solution to our statutory waste management obligations, and that an energy-from- waste facility within the Highlands is not considered to be a suitable course of action.