Alex Neil, the Housing and Communities Minister, said it was “time to take strong action” to protect tenants, and support the many landlords who do deal with deposits fairly.
An expert group - representing tenants, landlords, agents, consumer groups and housing organisations – is backing the compulsory scheme and will advise Ministers on its introduction.
The new scheme will:
- reduce the number of wrongly withheld deposits;
- speed up deposit returns;
- ensure funds are available at the end of the tenancy ;
- when there is a dispute, ensure that the amount returned is determined in a fair way.
Speaking on the announcement Liam Burns, NUS Scotland President, said:
"Students across Scotland are delighted that the Scottish Government is acting to protect their tenancy deposits. Unfairly withheld deposits are one of the biggest issues for students living in the private rented sector.
"Although we recognise that the majority of landlords maintain high standards, £6m is currently being lost by some of the most vulnerable people in society. The introduction of a tenancy deposit scheme in Scotland is the only way to combat deposits being unfairly withheld by a minority of unscrupulous landlords.
"Alex Neil and the Scottish Government deserve praise for taking this decision, but without the support we've had across the parliament, and the hard work of students and tenants' groups over a number of years, such as Shelter Scotland, this wouldn't have been possible.
"I'm very pleased with this announcement, and look forward to continuing our work with the Minister and the stakeholder working group to ensure we get the best possible protection for Scottish tenants, working in the best possible way."
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