Robert Brown calls on Government to stop dithering over Mandatory Tenancy Deposit Scheme

12.00.00am BST (GMT +0100) Fri 20th Jun 2008

"It's time for the Government to move forward on this and agree in principle. It's clear that all this dithering is letting Scotland's tenants down."

Glasgow Liberal Democrat MSP Robert Brown has called on the Scottish Government to stop "going backwards" on the introduction of a mandatory tenancy deposit scheme to protect and insure tenants' deposits against unscrupulous landlords withholding them unreasonably.

The call came during a debate in the Scottish Parliament on tenancy deposit schemes, after a campaign by the National Union of Students, Shelter and Citizens Advice Scotland.

Research by the National Union of Students shows that last year a third of students had their deposit held back unfairly. Complaints of this type are the most common form of grievance received by the student body.

Mr. Brown has been campaigning for the introduction of a mandatory tenancy deposit scheme where the deposit would be held and protected until the end of a tenancy. If there are any disputes over damage, a free arbitration service would resolve the issue and help decide whether the landlord should retain the deposit or not.

Such schemes already operate successfully in England and across Europe and can be funded by the bank interest accumulated from the deposits.

Robert Brown said:

"Sadly, deposits aren't only retained as compensation when a flat or property has been returned damaged or in bad condition.

"From experience, we know that landlords can routinely retain deposits for no good reason or that they overstate the cost of renovation.

"When this happens, it is not compensation, but fraud, and people across Scotland deserve to be protected from this in the way those in England or in Europe are protected.

"Unfortunately, students and the poorest are often hardest hit when this happens, as the money from the deposit is often needed to secure a new tenancy elsewhere.

"It's disappointing that the Scottish Government doesn't recognise this. They really are dragging their feet on the issue.

"I recently asked the Minister questions on this matter at Question Time, and got the very distinct impression that the Government is going backwards on the issue.

"We already have the main legislation necessary to bring this scheme into place - all that is needed is for the SNP Government to promote a straightforward Statutory Instrument.

"However, now the Government seems to be asking whether the scheme should be introduced at all. They seem to be looking for some sort of lesser and token solution.

"Every day, people who can't afford it are being ripped off by unscrupulous landlords. These deposits can run into hundreds of pounds, and people are often plunged into poverty by the financial hole they are left in when their money is not returned.

"The present situation is a contributor to hardship, debt and homelessness problems for young people and others who are in pressing housing need. Those problems will become worse as the mortgage and credit crunches bite.

"Another unpleasant feature is the exploitation of young people. Many tenants are young people-some aged 17 or 18 - are away from home for the first time.

"Often they are unsure of what to do when they find themselves in this situation, they don't always know their rights or where to go for help. Some landlords rely on that and exploit it, which I find distasteful in the extreme.

"The experience in England and Wales and abroad is that Tenancy Deposit Schemes have worked well.

"We have an acknowledged problem and a solution with legislative provision in place, with a comparator south of the border, but still the Government fiddles at the edges and is manifestly reluctant to commit to proper action.

"It's time for the Government to move forward on this and agree in principle. It's clear that all this dithering is letting Scotland's tenants down."

ends