Chamber
Meeting of the Parliament 04 June 2013
04 Jun 2013 · S4 · Meeting of the Parliament
Item of business
Private Rentals (Deposits)
I congratulate Patrick Harvie on lodging an important motion on protection of tenants’ deposits. It has become an increasingly important issue over the past 10 years as the number of people in the private rented sector has doubled, and it will become even more important in the next 10 years, as many more people will use the private rented sector, either from choice or from necessity. Of course, many of those people are living on the edge of poverty, if not in poverty, so security about their deposit is important for them.
We have heard many examples of malpractice; briefings for the debate give more examples, and the one from Citizens Advice Scotland is particularly good in that regard. We should pay tribute to CAS for the great work that it does in this area. However, I notice that, in a recent report, it highlighted that a substantial number of cases have come to it—especially from younger tenants—in which there have been distressing accounts of landlords who have made unreasonable requests for payment relating to general wear and tear. Often, those cases involve entire deposits going unrepaid due to on-going disputes.
It was that kind of case and misuse of the system that led to the legislation on tenancy deposit schemes in the Housing (Scotland), Act 2006, which was—if I may be permitted to mention the fact—piloted through Parliament by Johann Lamont and me. Of course, the scheme was implemented only in 2012. There is no doubt that the scheme can work well. In principle, it is an excellent system that protects the rights of tenants and avoids the sometimes complex legal cases that have, on occasion, resulted from disputes over deposits.
However, the fact of the matter is that many thousands of landlords have not registered. In a sense, that is the main reason for this debate. What can be done about that? First, tenants must be aware of their rights—in particular, the right to report their landlord’s not having enrolled in one of the three schemes. Safe Deposits Scotland tells us that 55 per cent of tenants are not aware that money from deposits must, by law, be placed in a tenancy deposit scheme. It seems that there are some problems around practical implementation. It is not even clear—perhaps the minister can tell us in her closing speech—to whom, precisely, tenants are supposed to report their landlord.
It also concerns me that tenants cannot find out whether their landlord is registered in a tenancy deposit scheme before they take on a tenancy. That would be useful information for a prospective tenant and might well influence their decision whether to take on a tenancy.
We clearly have to focus on landlords, as well. I assume that they are all aware of the law, but some may plead ignorance. Perhaps a short high-profile campaign by the Scottish Government would remove any doubts about that. I imagine, however, that landlords are all aware of the law—the key issue seems to be enforcement. What is to happen if a tenant has reported their landlord to whomever they should report the landlord? There should be strict sanctions on the landlord. I suggest that landlords’ registration could be removed if they fail to register with a scheme, or registration with a landlord scheme could be dependent on registration with a tenancy deposit scheme. I would like the landlord registration scheme to be linked better to the tenancy deposit arrangements.
Of course, other issues are mentioned in the motion, including regulation of letting agents. Illegal fees are being charged. Two weeks ago, we heard about another issue in the private rented sector in relation to electrical safety. On all those issues, we must take a hard line against rogue agencies and private landlords who abuse the system and their tenants. We would do an immense disservice to many families and individuals—who might rent privately through necessity or choice—if we do not take a tough line.
Tenants’ rights must be protected, which is why I am happy to support the motion in Patrick Harvie’s name.
17:32
We have heard many examples of malpractice; briefings for the debate give more examples, and the one from Citizens Advice Scotland is particularly good in that regard. We should pay tribute to CAS for the great work that it does in this area. However, I notice that, in a recent report, it highlighted that a substantial number of cases have come to it—especially from younger tenants—in which there have been distressing accounts of landlords who have made unreasonable requests for payment relating to general wear and tear. Often, those cases involve entire deposits going unrepaid due to on-going disputes.
It was that kind of case and misuse of the system that led to the legislation on tenancy deposit schemes in the Housing (Scotland), Act 2006, which was—if I may be permitted to mention the fact—piloted through Parliament by Johann Lamont and me. Of course, the scheme was implemented only in 2012. There is no doubt that the scheme can work well. In principle, it is an excellent system that protects the rights of tenants and avoids the sometimes complex legal cases that have, on occasion, resulted from disputes over deposits.
However, the fact of the matter is that many thousands of landlords have not registered. In a sense, that is the main reason for this debate. What can be done about that? First, tenants must be aware of their rights—in particular, the right to report their landlord’s not having enrolled in one of the three schemes. Safe Deposits Scotland tells us that 55 per cent of tenants are not aware that money from deposits must, by law, be placed in a tenancy deposit scheme. It seems that there are some problems around practical implementation. It is not even clear—perhaps the minister can tell us in her closing speech—to whom, precisely, tenants are supposed to report their landlord.
It also concerns me that tenants cannot find out whether their landlord is registered in a tenancy deposit scheme before they take on a tenancy. That would be useful information for a prospective tenant and might well influence their decision whether to take on a tenancy.
We clearly have to focus on landlords, as well. I assume that they are all aware of the law, but some may plead ignorance. Perhaps a short high-profile campaign by the Scottish Government would remove any doubts about that. I imagine, however, that landlords are all aware of the law—the key issue seems to be enforcement. What is to happen if a tenant has reported their landlord to whomever they should report the landlord? There should be strict sanctions on the landlord. I suggest that landlords’ registration could be removed if they fail to register with a scheme, or registration with a landlord scheme could be dependent on registration with a tenancy deposit scheme. I would like the landlord registration scheme to be linked better to the tenancy deposit arrangements.
Of course, other issues are mentioned in the motion, including regulation of letting agents. Illegal fees are being charged. Two weeks ago, we heard about another issue in the private rented sector in relation to electrical safety. On all those issues, we must take a hard line against rogue agencies and private landlords who abuse the system and their tenants. We would do an immense disservice to many families and individuals—who might rent privately through necessity or choice—if we do not take a tough line.
Tenants’ rights must be protected, which is why I am happy to support the motion in Patrick Harvie’s name.
17:32
In the same item of business
The Deputy Presiding Officer (Elaine Smith)
Lab
The final item of business is a members’ business debate on motion S4M-06681, in the name of Patrick Harvie, on protecting tenants’ deposits. The debate will...
Patrick Harvie (Glasgow) (Green)
Green
I put on record my thanks to the 27 MSPs who have added their names in support of the motion, representing four political parties and independents who repres...
Alex Johnstone (North East Scotland) (Con)
Con
I welcome the opportunity to contribute to such an important debate, and I congratulate Patrick Harvie on securing it and bringing the issue to the chamber.T...
Patrick Harvie
Green
Will Alex Johnstone give way?
Alex Johnstone
Con
I am actually over my time and should be stopping. However, I am sure that the opportunity will come along.Effective enforcement can do a great deal more tha...
The Deputy Presiding Officer
Lab
Mr Johnstone has advised me that he has to leave the debate early because he has parliamentary business to attend to.17:15
Anne McTaggart (Glasgow) (Lab)
Lab
I am delighted to contribute to this debate on the subject of protecting tenants’ deposits. I thank Patrick Harvie for recognising the growing importance of ...
Marco Biagi (Edinburgh Central) (SNP)
SNP
I welcome the chance to debate the matter because, in my constituency, 41 per cent of households now live in the private rented sector. I do not know what th...
Elaine Murray (Dumfriesshire) (Lab)
Lab
I, too, congratulate Patrick Harvie on securing the debate, as the failure of many landlords to comply with the regulations by the required date last month i...
Malcolm Chisholm (Edinburgh Northern and Leith) (Lab)
Lab
I congratulate Patrick Harvie on lodging an important motion on protection of tenants’ deposits. It has become an increasingly important issue over the past ...
Kezia Dugdale (Lothian) (Lab)
Lab
I congratulate Patrick Harvie on bringing the issue to the chamber. My first job out of university was as a welfare adviser at Edinburgh University Students ...
The Minister for Housing and Welfare (Margaret Burgess)
SNP
I, too, thank Patrick Harvie for bringing the issue to the chamber for debate. It is clearly important to all of us. I have listened carefully to what has be...
Patrick Harvie
Green
Would the minister consider ensuring that no landlord has any legal justification for withholding a deposit that has not been lodged with an approved scheme?
Margaret Burgess
SNP
Landlords must lodge deposits with an approved scheme—that is why the schemes were set up and those are the rules of the schemes. If a landlord does not do t...
Marco Biagi
SNP
We are all interested in the enforcement working. What conversations has the Government had with local authorities on the difficulties and challenges that th...
Margaret Burgess
SNP
We have set up a working group. The strategy makes it clear that we will work with the Convention of Scottish Local Authorities, given that local authorities...