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Tenancy deposit scheme regulations laid before Parliament

24 January 2011

Regulations governing the approval of a national Tenancy Deposit Scheme are expected to become law in March after they were laid in the Scottish Parliament today.

Once operational, the scheme will provide access to a free and independent dispute resolution service, where landlord and tenant cannot reach agreement over the return of a deposit. Tenants will no longer have to take legal action to seek recovery of a wrongly withheld deposit.

The Scottish Government estimates that between 8,000 and 11,000 tenants annually have £3.6m of their deposits wrongly withheld. The scheme will be free for landlords and letting agents to participate in.

Resolution

Housing and Communities Minister Alex Neil said: "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."

Mr Neil added: "The new regulations are streamlined with the emphasis on creating a cost effective approach to safeguarding tenancy deposits."

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