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Protecting rent deposits
24/09/2009
A national scheme for safeguarding rent deposits is to be introduced in Scotland, Housing and Communities Minister Alex Neil announced today.
The Minister said it was "time to take strong action" to protect tenants, and support the many landlords who do deal with deposits fairly.
An expert group - representing tenants, landlords, agents, consumer groups and housing organisations - reached consenus after full discussion on a compulsory scheme and will advise Ministers on its introduction.
The new scheme will:
- reduce the number of wrongly withheld deposits
- speed up deposit returns
- ensure funds are available at the end of the tenancy
- when there is a dispute, ensure that the amount returned is determined in a fair way
Housing and Communities Minister Alex Neil said:
"When deposits are unfairly withheld, it can cause hardship and misery for the tenant and, in some cases, affect their ability to secure another tenancy.
"We know that in many cases it is students and vulnerable tenants who are affected, and this is an absolute tragedy - these are the very people who can least afford to be treated in this way.
"On the recent evidence we published on the scale and nature of this, we believe it is time to take strong action.
"We have worked with a wide range of stakeholders to maximise consensus on this issue. We will continue to work with them over the next few months to put in place a practical rent deposit scheme that will offer real protection for tenants.
"The scheme will strengthen the reputation of the private rented sector in Scotland, which makes a vital contribution to meeting housing need."
Liam Burns, National Union of Students (NUS) Scotland President said:
"Students across Scotland are delighted that the Scottish Government is acting to protect their tenancy deposits. Unfairly withheld deposits are one of the biggest issues for students living in the private rented sector.
"Alex Neil and the Scottish Government deserve praise for taking this decision, but without the support we've had across the parliament, and the hard work of students and tenants' groups over a number of years, such as Shelter Scotland, this wouldn't have been possible.
"We look forward to continuing our work with the Minister and the stakeholder working group to ensure we get the best possible protection for Scottish tenants."
Ian Potter, Operations Manager for the Association of Residential Letting Agents (ARLA) said:
"Safeguarding tenants and their welfare is paramount to the property sector and we have long advocated the introduction of a deposit protection scheme in Scotland.
"There has been much discussion around this and it is good that talk has translated into action. Today's announcement is a sensible outcome for us and the whole industry."
Graeme Brown, Director of Shelter Scotland, housing and homelessness charity, welcomed the move, saying:
"Shelter Scotland has long campaigned for a tenancy deposit protection scheme in Scotland that also offers a speedy service to resolve any disputes.
"With estimates of the amount of money unfairly withheld each year running into millions, Scotland is clearly in need of a way to protect tenant's deposits.
"We're delighted the Scottish Government has listened to the problems faced by tenants and welcome the chance to help develop an effective scheme."
The tenancy deposits stakeholder group, established by the Scottish Government, includes representatives from the following organisations:
- Association of Residential Letting Agents
- Chartered Institute of Housing
- Citizens Advice Scotland
- Consumer Focus Scotland
- COSLA
- Crisis
- National Association of Estate Agents
- National Union of Students
- Royal Institute of Chartered Surveyors
- Scottish Association of Landlords
- Scottish Council of Single Homeless
- Scottish Rural Property and Business Association
- Shelter Scotland