Scottish tenants will continue to face the danger of having their rent deposits withheld by private landlords, warns leading housing and homelessness charity, Shelter Scotland.

The warning comes as England prepares to launches a new Rent Deposit Protection Scheme this week (Friday, April 6) - which was welcomed by Prime Minister Tony Blair in Parliament recently [1].

While most landlords deal with their tenants' money fairly, the problem of tenancy deposits being withheld is likely to be just as much a problem for Scottish tenants as for their English counterparts. However, there is hope on the horizon for Scottish tenants.

Recent legislation [2] gave a commitment to rent deposits and Scottish ministers have called on the Scottish Executive to consider options for such a scheme. The Executive is currently looking into the possibility of a scheme - but Shelter Scotland thinks action is needed soon.

Archie Stoddart, director of Shelter Scotland, said: 'Having your tenancy deposit withheld is every bit as much a problem for Scottish tenants as for English tenants. We hope that the Scottish ministers will act soon to resolve this inconsistency and make sure that Scottish tenants have the same protection as in England.'

There are over 173,000 households living in the private rented sector in Scotland (seven per cent of all households in Scotland). The average rental deposit is around £550, usually one month's rent. Research in England [3] has shown that 70 per cent of households have paid a deposit - assuming the same level for Scotland that would be almost £50 million of tenants' money being held as a deposit at any one time [4].

A survey in England indicated that thousands of private tenants reported problems of getting their rental deposits back from private landlords, some of whom illegally pocket the cash - and there is no reason to assume the case would be any different in Scotland [5].

Archie Stoddart added: 'Unfair withholding of deposits by landlords causes hardship, misery and insecurity to tenants. In some cases, having a deposit unfairly withheld can create homelessness, as households cannot afford the deposit on a new property.'

Notes to Editors

1. Tony Blair speaking in parliament - 14 March 2007.
2. The Housing (Scotland) Act 2006.
3. Relates to England and Wales. Figures from The Survey of English Housing (2001-2).
4. Shelter Scotland briefing: A Rent Deposit Protection Service for Scotland.
5. Research conducted by Shelter and the Citizens Advice Bureau in England (National Association of Citizens Advice Bureaux, Unsafe Deposit (1998)) showed that 48 per cent of clients had had a deposit unreasonably withheld in the last five years.
6. Shelter believes everyone should have a home and helps 170,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Britain's housing crisis by campaigning for new laws, policies and solutions.
7. Spokespeople are available for interview, telephone the media office on 0844 515 2442.
8. For more information about Shelter visit www.shelter.org.uk