The Scottish Government is currently consulting on a proposed ‘tenancy deposit scheme’ for residential leases. It is common practice in the private rented sector for landlords and agents to require a tenant to pay a returnable deposit at the start of a new tenancy, all or part of which may be legitimately withheld at the end of the tenancy if the tenant has failed to meet their obligations under the tenancy agreement. The consultation has been prompted following the Review of the Private Rented Sector (published in 2009) which showed that a significant minority of tenants may have had their deposits unfairly withheld. The main objective of the Government’s proposal is to safeguard tenancy deposits by reducing the number of unfairly withheld deposits and ensuring that funds are available when a tenancy ends. The consultation seeks views and feedback on the proposed regulations in order to implement the most effective framework for approved schemes to operate within.

You can view the consultation document here and provide an online response here.