16^th Apr 2018

Recent findings from one of the three registered safety deposit schemes in Scotland, shows an increase of more than 430% of English landlords registering tenancy deposits for BTL properties, which already increased by 226% in this year alone.

Just over five years ago in 2012, 260 landlords living in England registered deposits in Scotland and by 2017 this had risen to 1,388.

Victoria Smith, operations manager at SafeDeposits Scotland, explained: “SafeDeposits Scotland now holds over 3,300 deposits from English landlords on Scottish properties.

“Scotland has different deposit protection legislation in Scotland from England, and landlords, wherever they are, must ensure that they are using the scheme where their rented property is located.

“We saw a dramatic rise in registrations in 2017, with 1,388 new registrations, which could be down to a number of contributing factors. For example, variations in rates of Stamp Duty in England and Land and Buildings Transaction Tax in Scotland may make investing more attractive in the north.

“It’s interesting to note that the most significant landlord prosecution for non-compliance was a landlord living in St Albans who failed to protect her Edinburgh tenants’ deposits.

“Seeing that the legislation has teeth may have spurred other English landlords to make sure they weren’t breaking the law.

“The landlords’ legal representative at the time (2016) explained she was as ‘an amateur landlady’, but the sheriff described her as being ‘dilatory in attending to her obligations’.

Smith continued: “In Scotland, the private rented sector accounts for 15% of the overall housing stock, growing from 5% before the turn of the millennium.

“While the sector expands and interest from landlords from outside Scotland increases, it is important that they understand the legal framework in which they are operating.

“For example, navigating deposit protection regulation and private residential tenancy legislation is vital to managing tenancies successfully in Scotland.”

Hayley Cowburn, Brand and Marketing Manager:" This is interesting to hear as there are other stories that landlords will be quitting Scotland because of the tax changes. We'd be interested in hearing any comments on how it is in Scotland, as apparently there has been a surge in rent increases north of the Border."

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