As you may be aware, the Scottish government has introduced legislation which makes it compulsory for landlords and letting agents to submit their tenants’ deposits into a government approved custodial scheme. Computershare Investor Services PLC, the company that runs The Deposit Protection Service in England and Wales (The DPS), also runs a government approved deposit protection scheme in Scotland – The Letting Protection Service Scotland (The LPS Scotland). In fact, The LPS Scotland was the first such scheme to be approved by the Scottish Government.
If you have properties in Scotland, you will need to start protecting the deposits of your tenants for these properties. To make it easier for you, we have developed an online calculator which you can use to work out when each deposit you may have for a Scottish property will need to be protected in order to comply with the new legislation.
Unlike England and Wales, there aren’t any insurance-based schemes to protect Scottish tenancy deposits. Approved providers are operating custodial schemes – like The DPS – where the deposit monies are handed over to the scheme to hold for the duration of the tenancy. The DPS has been running for over five years, and The LPS Scotland is the only provider to be run by a company that has prior experience of running a custodial scheme.
If you would like to find out more about The LPS Scotland and your obligations under the new legislation, you can visit the website or call the team on 0844 472 6666. You can also follow them on twitter @LPS_Scotland.