The private rented sector is waiting with baited breath for the first deposit scheme to be approved in Scotland.   So who’s in the running?  At present there are two potential providers; SafeDeposits Scotland and the Letting Protection Service Scotland.

 Option 1 – SafeDeposits Scotland

• a not-for-profit limited company registered in Scotland.
• headed up by the Dispute Service which is already operating in England.
• It is joined by amongst others The Scottish Council for Voluntary Organisations, the Scottish Association of Landlords and Citizens Advice Scotland amongst others.
• based in Scotland with an office in Glasgow.

Option 2 – Letting Protection Service (LPS)

• a subsidiary of Computershare Investor Services plc, a company registered in England and Wales.
• already operating an English deposit scheme
• the base of operations for the LPS is Bristol.

Because the regulations governing the operation of a Scottish TDS are fairly strict, there is not much difference between the terms and conditions proposed by both applicants. Some common themes are as follows:-

• Both will be completely free to use
• Both offer online payment of deposits as well as by post
• Both will offer call centres for members queries
• Both offer a dispute resolution service with independent adjudicators

The differences appear to arise in the way in which the dispute resolution service will operate. For example, in cases where the landlord does not respond to requests by the LPS for evidence when proceeding to dispute resolution, the LPS will simply return the deposit to the tenant. However, SafeDeposits Scotland in that situation would proceed to the adjudicator regardless. It is therefore important that landlords take the time to read over the terms and conditions for both schemes to make a decision as to which one they may choose, if and when they become approved. At present, approval is not expected any earlier than April 2012.

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