Tenancy deposit scheme introduced in Scotland

Scotland is soon to introduce the tenancy deposit protection scheme, which ensures that landlords protect tenant deposits.

The tenancy deposit scheme will be similar to the tenancy deposit protection scheme introduced in England & Wales in 2007. 

Provisions outlined in the Scottish tenancy deposit scheme draft regulations, published last week, outline the differences between the Scottish and English tenancy deposit schemes. These are as follows:

  • Scotland is only going to have a custodial tenancy deposit protection scheme. The regulations don't make provision for any insurance-backed schemes (such as TDS and My Deposits schemes)

  • The landlord/agent will have 30 days to register the deposit rather than 14 days in England & Wales

  • Unlike in England & Wales, the tenancy deposit protection scheme in Scotland will apply to all residential tenancies, not just Short Assured Tenancies (SATs). This means that the tenancy deposit protection scheme will also include lettings to companies

  • Landlords are not prevented from evicting tenants until the deposit has been protected (unlike in England & Wales where landlords cannot obtain possession with a Section 21 Notice)

The approver of Lawpack's tenancy agreements - tenancy experts PainSmith Solicitors - discusses the tenancy deposit scheme in Scotland in more detail. Read their views on the introduction of the tenancy deposit scheme in Scotland.

The Tenancy Deposit Protection (TDP) legislation proposed for Scotland has been criticised by the NLA.

The National Landlords Association has criticised the government for attempting to introduce such ambitious reforms before clarifying and improving private landlord registration processes in the country.

A statement by the NLA also notes that tenancy deposit protection differing markedly from the rest of the UK "would also increase administration and operating costs significantly for those landlords active in both market places".

Other provisions included in the Tenancy Deposit Protection (TDP) legislation is the requirement for Scottish tenancy deposit schemes to offer their services to tenants and landlords for free, including dispute resolution services provided at no extra cost.

  • Landlord and Tenancy News from Lawpack: Give tenants the right information concerning their tenancy deposit protection with our Section 213 Notice.

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Published on: February 8, 2011

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