The importance of knowing how to safeguard tenancy deposits

ARLA Propertymark has undertaken research into the activity of the Housing and Property Chamber First-tier Tribunal for Scotland during December 2019 in relation to applications under Rule 103 (tenancy deposit regulations).

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Tenancy deposits

Since 2011 landlords in Scotland that take a deposit from their tenant have been required, by law, to lodge the deposit with one of three government-approved tenancy deposit schemes within 30 working days of the tenancy commencing. Failure to do so can result in fines of up to three times the deposit value being awarded to the tenant.

The First-tier Tribunal heard 20 cases relating to tenancy deposits in December 2019 alone; in each case, the applicants had been tenants, and the respondents their landlords. The research has found that 85 per cent of applications that related to Rule 103 and tenancy deposits were decided in favour of the applicants, with landlords being ordered to pay a total of over £21,000 to tenants as a result. The sums ordered to be paid ranged from £150 to £4950, averaging £1742 per case.

Since the First-tier Tribunal for Scotland (Housing and Property Chamber) began presiding over these cases on 1 December 2017, there have been 290 cases relating to tenancy deposit protection. During that period £321,609 has been awarded to tenants on these grounds, averaging £1,109 per case.

Propertymark research

Our research found that these cases overwhelmingly involved landlords who had not fully appreciated the requirements placed on them by The Tenancy Deposit Schemes (Scotland) Regulations 2011, rather than those acting to wilfully breach the regulations. The breaches all occurred before The Tenancy Deposit Schemes (Scotland) Amendment Regulations 2019 came into force on 11 November 2019.

Propertymark support

In order to support letting agents and landlords, and protect tenants, ARLA Propertymark has two fact sheets outlining their responsibilities in safeguarding tenant’s deposits:

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