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25/09/2009

Concerns On Tenancy Deposit Scheme Plans

Opposition is mounting to the introduction of a national mandatory tenancy deposit scheme.

The Scottish Association of Landlords (SAL), the Scottish Rural Property and Business Association (SRPBA) and the Chartered Institute of Housing Scotland (CIH) have expressed their disappointment that, despite continued opposition from their organisations, the Minister for Housing and Communities has announced that a national mandatory tenancy deposit scheme is to be introduced.

John Blackwood, Director of SAL, said: "We continue to feel that the introduction of a scheme is disproportionate to the level of problem which exists.

"We are not denying that tenancy deposits are unlawfully withheld in some cases, just as in some cases the deposit does not cover the costs of repairing damage caused by the tenant.

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"We have maintained our opposition to the introduction of the scheme throughout the working group discussions, and although we tried hard to get other members to consider alternative methods of addressing the problem, we acknowledge we were fighting a losing battle," he said.

The SRPBA share SAL's position and Sarah-Jane Laing, SRPBA's Acting Head of Policy added: "We are naturally disappointed that further regulation is being placed on the sector, despite our best efforts to get other stakeholders to consider addressing the tenancy deposit issue through other routes, such as the Private Rented Housing Panel (PRHP).

"It would be very easy to walk away from the working group process as a result, but we are committed to working with the Scottish Government to develop the details of the scheme, and ensuring that landlords' interests are at least considered."

Sue Shone, Policy and Practice Officer with CIH Scotland said the organisation is concerned that Scotland will follow England's approach of a mandatory scheme which has yet to be evaluated for effectiveness and value for money.

"In a time of great financial pressure and the unprecedented commitment to end homelessness it seems bizarre that the Scottish Government is willing to invest in a system that may provide barriers to private landlords entering the market but is not proven to be the most effective way to protect tenancy deposits," she said.

(GK/BMcc)

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