Robert Brown calls for mandatory tenancy deposit scheme

12.00.00am GMT Mon 7th Jan 2008

A call for the introduction of a compulsory Tenancy Deposit Protection Scheme, similar to the new scheme running in England has come from Glasgow Liberal Democrat MSP Robert Brown.

The call follows the release of Brick by Brick: the state of student housing in Scotland 2007 which highlighted that complaints from students regarding landlords withholding deposits was the most common type of housing complaint received by the National Union of Students in Scotland.

The report, by NUS Scotland, details concerns about tenancy deposits which often run into hundreds of pounds, being wrongly retained after the letting period is over by unscrupulous landlords.

Both College and University students are often the victims when landlords choose not to refund deposits, leading to unnecessary financial pressure and possibly homelessness.

Robert Brown said:

"I have heard many anecdotal accounts of this over the years, but the recent report by NUS Scotland suggested that around a third of students in private lets feel their deposit has been unreasonably withheld by their landlord at the end of the lease. If these figures are anything like correct, then they are totally scandalous.

"Most landlords require a deposit of one month's rent as a security against damage to the property by the tenant. In itself, this is not unreasonable, but some unscrupulous landlords routinely hang on to the deposit when the tenancy ends, claiming damage which does not exist.

"Sometimes the deposit is held back because of general wear and tear, but this is clearly not acceptable either.

"Many students in Glasgow, particuarly those who have moved away from home for the first time, are very vulnerable to this, as often they feel they have no where to go to complain. Often they will rely heavily on and budget for the return of the deposit and this leaves a huge gap in personal finance when it is withheld.

"Part of the answer is to encourage higher professional standards by landlords and letting agents. However I think it is high time that Scotland introduced a compulsory Tenancy Deposit Protection Scheme along the lines of the scheme already existing in England.

"The scheme works by guaranteeing the deposit will be paid back to the tenant in the event of no damage, and if there is damage to the property and subsequently a dispute around the amount to be withheld, then the tenancy deposit protection scheme will offer a free arbitration service to help resolve disputes.

"Initially, when the deposit is first paid, the landlord can either pay it straight into the scheme, which will keep it until the end of the tenancy, or keep the deposit themselves but pay insurance premiums to ensure that in the event of dispute, the deposit is insured.

"Such a scheme would help many students and other young people as well as private sector tenants generally. Often the student relies on the return of the deposit to start him or her off in a new flat, and the loss of the deposit can literally mean people being forced to sleep on other people's couches, or lead to unnecessary financial pressures. With average rents around £306 month in the student sector, this is a vital issue and it must be addressed."

Robert Brown has taken the matter up with Scottish Ministers.

Ends

Notes for Editors

Brick by Brick: the state of student housing in Scotland 2007 Can be downloaded here: http://www.scotlandsfuture.com/edit/housing_report.pdf