Tenancy Deposits
105. Sections 120 to 122 deal with schemes to safeguard tenancy deposits. Ministers are given powers to make regulations setting out conditions that must be met by a tenancy deposit scheme and powers to approve such schemes. Schemes could help to protect vulnerable tenants and provide increased confidence in the private rented sector as a reliable form of accommodation. Schemes may provide methods of dispute resolution, though these will be developed with regard to any changes that might take place in the civil justice arena. Landlord registration may also impact on the concerns regarding tenancy deposits and this is something the Executive will be monitoring. However, Ministers have made clear that they would not introduce a scheme for which the costs were disproportionate.
Scottish Executive approach
106. This aspect of the Act will be taken forward by staff within the Housing and Regeneration Group of the Scottish Executive.
107. The key steps in implementation will be
- consultation and research on options and implications
- Regulatory Impact Assessment and consultation on draft regulations
- making regulations
- development of schemes
- consultation on proposed schemes
- approval of schemes
- information for tenants and landlords.
108. Our provisional estimate is that arrangements could be operational by mid-2008.
Local authority role
109. If a tenancy deposit scheme or schemes were introduced, a local authority should include information on it in general advice they provide to private sector landlords and tenants and should consider breaches in connection with landlord registration.