Tenancy Deposit Scheme in Scotland
There has been some confusion over the Tenancy Deposit Scheme being planned for Scotland, mainly relating to whether it is part of the new Housing (Scotland) Act relating to the Private Rented Sector. Actually, Part 4 of the Housing (Scotland) Act 2006 gave Ministers powers to bring forward regulations for the approval of tenancy deposit schemes in Scotland without the need for further primary legislation.
Unlike the national authorities in England and Wales, Scottish Ministers have no statutory responsibility to secure a tenancy deposit scheme. However, Alex Neil, Minister for Housing and Communities, announced in 2009 that a national mandatory scheme to safeguard tenancy deposits would be introduced in Scotland.
Tenancy deposit regulations will provide a framework for the approval and subsequent operation of tenancy deposit schemes in Scotland to tackle what is seen as the problem of unfairly withheld deposits. This is despite the fact that research on this was included in the Scottish Governments own Review of the Private Rented Sector carried out over the last few years.
It is intended to ensure that deposits are safeguarded throughout the duration of the tenancy and that deposits are returned quickly and fairly, particularly where there is a dispute over the return of the deposit, or a proportion of it.
Draft regulations were laid before parliament and regulations are expected to come into force in March 2011. Potential schemes are invited to submit proposals.
