Tuesday, 25 January 2011

Scottish Government Launches Deposit Scheme To Protect Tenants' Money

The Scottish Government has launched a tenancy deposit scheme, like England, to protect tenants' from landlord and letting agencies wrongfully witholding their deposits following the end of tenancy.

According to Scottish government estimates between 8,000 and 11,000 people have their deposits wrongly withheld in Scotland which amount to about £3.6 Million each year. This move by the Scottish Government is expected to have support from other parties in Holyrood and make it to the statute books by March.

"For some time there has been a rising chorus of disapproval about unfairly withheld tenancy deposits. This Government is taking action to ensure tenants receive a better deal," said Alex Neil, Scotland's Housing Minister. ""The majority of landlords behave responsibly and so it is important that we tackle those landlords who continue to tarnish the image of the private rented sector."

Click here to read more Scottish Government Launches Deposit Scheme To Protect Tenants' Money

NetRent Comment

Whilst we believe that it is everyone's interests that deposits are handled correctly, the evidence from the similar scheme in England and Wales is that the tenant deposit scheme is disliked by landlords and tenants equally. It is the typical sledgehammer to crack a nut.

In our opinion the Scottish Government has missed an opportunity to introduce an innovative scheme that would actually benefit landlords and tenants. The tenant deposit schemes in England and Wales has not benefited the letting industry and equally penalises both landlords and tenants. Simply copying a bad idea will not somehow make it a good idea.

Click here for more information about deposit schemes Deposits and Tenancy Deposit Schemes