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Chamber

Plenary, 18 Jun 2008

18 Jun 2008 · S3 · Plenary

Item of business

Tenancy Deposit Protection Scheme

Simpson, Dr Richard Lab Mid Scotland and Fife Watch on SPTV

I congratulate Claire Baker on securing this important debate. I was president of the Scottish Union of Students almost 40 years ago and failure to return deposits was an issue even then. The issue is not new, but it now requires to be resolved.

We know that about 10 per cent of households are in the private rented sector and that roughly 70 per cent of tenants in that sector have to pay a deposit. As Claire Baker said, it is estimated that between £50 million and £80 million is now being held in deposits. The Housing (Scotland) Act 2006 allows the introduction of a deposit protection scheme. It is important that we now move forward.

The evidence from NUS Scotland that 33 per cent of students reported unfair deductions from their deposits or delays in their return is borne out by anecdotal evidence of which I am aware. Some 15 years ago, a member of my family was a resident in privately rented accommodation. At the end of one year, their £800 deposit was withheld in its entirety, until I intervened and threatened to take the gentleman concerned to court over the issue, at which point he said in exasperation, "But I've always kept the deposit." I hope that not many landlords still have that attitude today. As Robert Brown said, legislation is required to deal with the issue, because some landlords do not play fair.

The evidence from the NUS shows that in many cases there were unfair delays in the return of deposits as landlords held on to the money unnecessarily. Many of the students concerned will require to move on into other privately rented accommodation, for which they will have to pay another deposit. They cannot afford to delay their move.

Research by the University of St Andrews students association reports that about a quarter of students there experienced unjustifiable deductions or delays.

The minister could say that deposits should be returned with speed and that disputes about deductions could go to a form of mediation. I am sure that good landlords would welcome that, because there are occasions on which such disputes arise in the natural course of things, and it is only reasonable that a form of mediation should be available.

I think that Robert Brown said that we need to strike a balance between those who are engaged in the private rented sector, which is an important part of housing provision, and those who rent. At the moment, I suggest that we have not struck that balance.

We already have a scheme in England and Wales, which, with the caveats that Jamie McGrigor has expressed about its introduction, seems to be working extremely well. I can see absolutely no reason why Scotland should be any different in that respect. We have the opportunity to learn from England. We should grasp the nettle and the Government should introduce a scheme with considerable rapidity.