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Chamber

Plenary, 18 Jun 2008

18 Jun 2008 · S3 · Plenary

Item of business

Tenancy Deposit Protection Scheme

McGrigor, Jamie Con Highlands and Islands Watch on SPTV

I, too, must apologise for having to leave before the end of the debate.

I congratulate Claire Baker on securing tonight's debate. Scottish Conservatives fully acknowledge that many tenants rely on the return of their deposit in order to pay the up-front deposit on their new property. We also acknowledge that delays in the return of deposits can lead to difficulty and hardship. Claire Baker is correct to say in her motion that Scottish ministers have the power, under the Housing (Scotland) Act 2006 to introduce a tenancy deposit scheme if they wish to do so. However, it seems to us premature of ministers to embark on such a course without having sound evidence for so doing. We should await the outcome of the Government's surveys of private tenants and landlords. Particular issues relating to students' deposits certainly need to be tackled.

Having consulted a number of private sector landlords and landlords organisations in preparation for tonight's debate, I would like to raise a few points. If a property is managed properly, if an inventory is made up and if tenants are given a chance to comment on the inventory at the commencement of a lease, the number of difficulties at the end of the lease will be reduced. The motion refers to the "successful introduction" of tenancy protection in England and Wales, but one landlords organisation put it to me that the Westminster Government made a complete mess of the introduction of that scheme. If ministers here intend to go ahead with such a scheme, they should try to learn from what happened in England and Wales.

Despite what I have said about the introduction of the scheme in England and Wales, I understand that its operation has since proceeded relatively smoothly. Indeed, the latest figures show that less than 2 per cent of tenancies have ended with a dispute over the deposit.

A more general concern is over the need for politicians fully to comprehend the impact of extra regulations on the private sector. Scottish Conservatives are well aware of that impact, and we will not support regulations that will have a negative impact on costs and on business. Scottish landlords and agents are still trying to deal with the complexities of the landlord registration scheme and the regulations on hard-wired smoke detectors, and energy performance certificates are looming in January. Ministers should always exhaust all other options, such as the raising of awareness of good practice, before resorting to the imposition of regulations. Regulations must be proportionate.

The landlord accreditation scheme, which has been developed by the Scottish Association of Landlords and the Scottish Rural Property and Business Association, has the potential to drive up standards and to be a really positive thing for the rented sector. The Royal Institution of Chartered Surveyors operates a voluntary deposit scheme, too.