Better protection for tenancy deposits
20 Sep 05
Executive proposes scheme to ensure proper refunds
Better protection for tenancy deposits, and a simpler way of resolving disputes over refunds, are proposed under an amendment to the Housing Bill put forward by the Scottish Executive.
The amendment will allow for a range of options, from voluntary arrangements to a tenant deposit scheme which holds deposits centrally. Powers will regulate how deposits should be handled, give tenants and landlords a clear way of resolving disputes and speed up the process of returning deposits.
Communities Minister Malcolm Chisholm said that the Executive wanted to provide a way for landlords and tenants to resolve a dispute over the return of a deposit without having to resort to court action.
He added: "Landlords can decide how much deposit to charge (but no more than two months' rent), but there are no regulations on how or where to hold it, when to return it and who benefits from any interest received."
Approximately 173,000 households currently rent their homes from a private landlord in Scotland. It has been estimated that around £45 million is held in tenancy deposits in Scotland and as much as £1 million may be unreasonably withheld every year.