Our recent survey of landlords and tenants in the UK shows that over 70% of tenants will challenge their landlord if their deposit is not protected and a massive 84% feel safer knowing their deposit is held independently as a result of tenancy deposit protection legislation. The legislation proved popular with landlords and agents as well, with over a third reporting that the introduction of tenancy deposit protection in England and Wales in 2007 has had a positive impact on the lettings industry.
This year, it will become compulsory for landlords and letting agents in Scotland to protect tenants’ deposits with an approved third-party scheme and the results of our survey demonstrate how the introduction of legislation will benefit both landlords and tenants. It also highlights that communication between tenants and landlords is key to the success of the scheme – with over 70% of tenants learning about the legislation from their own landlord.
As the operator of the only UK-based custodial deposit protection scheme our experience has taught us that by placing the deposit with a third party, tenants and landlords will be secure in the knowledge that the deposit is protected throughout the duration of the tenancy.
The new Tenancy Deposit Schemes (Scotland) Regulations 2011 became law in March 2011, and proposals to protect tenancy deposits are currently awaiting Government approval – The LPS Scotland is one of the proposed providers. Further details of the deposit protection schemes will be announced in the near future, following which every landlord that receives a deposit must comply with the regulations.
The introduction of this legislation is a positive step forward in Scotland. It’s now important that those in the private rented sector don’t fall foul of this legislation and take appropriate steps to ensure that they are prepared for its introduction.
You can find out more about protecting deposits at www.lettingprotectionscotland.com.