Mandatory Tenancy Deposit Scheme

12.00.00am BST (GMT +0100) Wed 21st May 2008

A call for the Scottish Government to commit itself to the introduction of a mandatory tenancy deposit scheme to protect tenants against unscrupulous landlords has come from Glasgow Liberal Democrat MSP Robert Brown.

The previous Liberal Democrat/Labour Scottish Government introduced powers to establish such a scheme under Part 4 of the Housing (Scotland) Act 2004 but Mr. Brown claims that the current SNP Government is backsliding on the idea.

The issue arises when tenants are required to pay over a deposit - usually of about a months' rent - but sometimes of up to 2 months' - to landlords as security against damage to the property during the tenancy. There have been suggestions that around a third of landlords routinely keep the deposit whether or not there has been damage to the flat during the tenancy. This in turn causes financial problems for tenants particularly in paying a deposit for another flat.

Robert Brown said: "In principle, the idea of landlords taking a deposit against loss of equipment or damage to a property during a tenancy is perfectly acceptable. Some tenants do damage property and leave flats like war zones.

However it is quite outrageous if landlords hang on to deposits - which are often of some hundreds of pounds - either when there is no damage or where damage is trivial. There needs to be a more level playing field on this to provide a fair deal to both sides. At present, the balance is too much in the landlord's favour on this issue.

The problem is particularly acute in University cities like Glasgow with a large student or graduate population living in private rented accommodation. This is added to by a significant number of short term tenants, and people in pressing housing circumstances who are forced to rent privately too.

This is often a contributor to hardship, debt and homelessness problems for many young people, and for people in pressing need.

Many people rely on the return of their deposit to fund the rent of the next flat or pay other essential bills. Many of the victims of this sort of practice are young students with little knowledge either of budgeting or of their legal rights.

There are already Tenancy Deposit schemes in England and Wales, and I am disappointed that Scotland is lagging behind in the protection it gives to tenants against unscrupulous action of this kind. Instead we seem to be going backwards on the matter.

The issue for the Minister should no longer be "if" a scheme is to be introduced but "when" and "how".

ENDS