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Private tenants are to be given more support in disputes with landlords over the repayment of deposits, according to the Scottish government.

Ministers want to reduce the number of delayed and unfairly withheld deposits at the end of a tenancy. 

They also plan to introduce a scheme that will resolve disputes fairly. 

Housing minister Alex Neil said an expert group, including tenants, landlords and consumer groups, would draw up advice on the best way forward. 

He said it was "time to take strong action" to protect tenants. 

Many private landlords insist on tenants paying a month's rental as a returnable deposit. 

They can withhold part or all of the deposit if they believe the conditions of the tenancy have been broken, such as a home being damaged or left uncleaned. 

According to Scottish government estimates, there can be as many as 19,000 such disputes each year, involving up to £6m. 

Disputes often involve student tenancies, as well as lower income households and migrant workers. 

Mr. Neil commented: "When deposits are unfairly withheld, it can cause hardship and misery for the tenant and, in some cases, affect their ability to secure another tenancy. 

"We know that in many cases it is students and vulnerable tenants who are affected, and this is an absolute tragedy. These are the very people who can least afford to be treated this way. We believe it is time to take strong action." 

There was support from campaign group Shelter Scotland and the National Union of Students Scotland. 

NUS president Liam Burns said: "Unfairly withheld deposits are one of the biggest issues for students living in the private rented sector." 

Ian Potter, operations manager for the Association of Residential Letting Agents, said it has long advocated the introduction of a deposit protection scheme in Scotland. 

'Disproportionate' response

However, the Scottish Association of Landlords (SAL), the Scottish Rural Property and Business Association (SRPBA) and the Chartered Institute of Housing Scotland (CIH) said they did not believe a mandatory scheme was needed. 

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." 

Evidence from England and Wales suggests that as many as half of disputes over deposits feature unjustified complaints by tenants. 

Survey evidence for the Scottish government suggests 85% of tenants are satisfied with their landlords. 

The content of this article is general in scope and is not intended to be comprehensive. It is not a substitute for investment advice.

Published on our website on Sept.28, 2009