The Scottish government has brought in new legislation after concerns that some landlords unduly withheld deposits from their tenants. The new scheme will safeguard tenant’s deposits across Scotland and will now see Scotland inline with other parts of the UK.
Currently in England and Wales landlords and letting agents must place all deposits on a scheme within 30 days.
The Tenancy Deposit Scheme is provided by a standalone third party for the reason of safeguarding deposits until they are due to be repaid. It is free for all landlords and letting agents to partake in.
From 2nd July 2013 every landlord and letting agent in Scotland will be required to protect the deposits received from their tenants and must submit the deposit to a protection scheme within 30 days of the tenancy beginning. This will apply to both current and new deposits. In Scotland, any deposit received since October 2, 2012, must also go on protection within 30 days.
Use of the scheme shall become compulsory from between November 2012 and May 2013; this will depend upon the date the tenancy started.
The current percentage of rented accommodation in Scotland is 37%, one of the highest in the UK. A study carried out by my deposits Scotland has shown that 63% of tenants who rent property in Scotland are unaware of the new Deposit Protection Law.
To summarise landlords will be required to:
- Pay all deposits to an approved tenancy deposit scheme.
- Provide tenants with vital information about their tenancy and their deposit