​Deposit scheme proves a success

A third sector scheme designed to protect deposits paid by tenants to private landlords has secured 60% of all advanced rent payments in Scotland in just two years.

SafeDeposits Scotland is now the country’s leading tenancy deposit scheme.

Backed by the Scottish Council for Voluntary Organisations, NUS Scotland and the Scottish Association of Landlords, the scheme is designed to ensure that tenancy deposits are securely held and protected, and that disputes about their return are resolved quickly.

It is free to use, open to all landlords and their agents and is funded entirely from the interest earned on deposits held.

Neither landlords, tenants, nor agents have to pay any fees to take part in the scheme.

The rapid success of the scheme shows how effective the third sector has been in managing these kinds of initiatives - John Ferguson

Jennifer Paice, chief executive of SafeDeposit Scotland said: “With a unique position as the only scheme which is not-for-profit and based in Scotland, I am delighted that we have received such support from the private rented sector that we are now the country’s leading tenancy deposit scheme.

“Feedback since our launch has been that SafeDeposits is easy to use for landlords, letting agents and tenants, and our alternative dispute resolution service has relieved the pressure if there is a dispute at the end of the tenancy, by providing an independent third party who will decide how any disputed amounts should be awarded.

While SafeDeposits was introduced to safeguard tenancy deposits and to provide an independent adjudication service, the organisation said its aim was also to improve the reputation of the private rented sector in Scotland.

“As the only not-for-profit scheme, we want to continue improving standards through the launch of our related charity, the SafeDeposits Scotland Trust,” she added.

John Ferguson, director of development at SCVO added: “The rapid success of the scheme shows how effective the third sector has been in managing these kinds of initiatives,” he said.

“Tenants now enjoy greater security in Scotland and landlords signing up to SafeDeposists can rest assured knowing it’s not-for-profit credentials give them the reassurance of ethical working practices.”