Safeguarding Tenants’ Money

7th November 2012

Landlords have deposited millions of pounds into a scheme that aims to safeguard rent deposits for households in Scotland.

Since July, the Tenancy Deposit Schemes have taken over 35,000 deposits with a value in excess of £23 million.

The schemes are free for landlords and tenants and a free dispute resolution service is also available.

Tenants will have a quicker and cheaper alternative to taking legal action through a sheriff court to recover unfairly withheld deposits.

Approved schemes - SafeDeposits Scotland, Letting Protection Service Scotland and Mydeposits Scotland - are taking deposits from landlords or their agents for safekeeping.

By law, landlords will need to submit deposits to an approved scheme from between November 2012 to May 2013, depending on when the deposit was received.

Housing Minister Margaret Burgess said:“It is estimated that between 8000 and 11,000 people have up to £3.6 million wrongly withheld deposits each year.

“This new legislation protects tenants and also the reputation of good landlords who are to be praised for depositing millions in the new schemes.

“Rogue landlords who withhold cash on spurious grounds tarnish the image of the private rented sector and exploit tenants

“The Tenancy Deposit Schemes are just one of many measures being implemented by the Scottish Government to improve quality for tenants in the private rented sector. “