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23/11/2012

Tenant Surcharges Outlawed

The Scottish government has clarified the law covering the fees letting agents and landlords are allowed to charge private tenants.

Holyrood voted to approve secondary legislation which would outlaw all tenant charges, other than rent and a refundable deposit.

The government feels the Rent (Scotland) Act 1984 has not been clear enough regarding additional charges added by landlords such as reference checks, credit checks and inventory fees.

This new law will clarify the government’s position on the issue. From 30 November, the law will also allow any charges in relation to the UK government’s Green Deal.

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A consultation was launched earlier this year on how to deal with unfair and illegal premiums.

The government estimates there are around 500 letting agent businesses in Scotland involved in around 150,000 private lettings per year.

Minister for Housing and Welfare Margaret Burgess, said: "This Government was determined to end the illegal practice of charges such as holding deposits and reference checks.

"The law is now clear on this matter and will help remove a barrier that will make the private rented sector more accessible for a wide range of individuals and families."

Graeme Brown, Director of Shelter Scotland, says: "Shelter Scotland has been campaigning all year for these fees to be outlawed. Our reclaimyourfees.com web site has proved so popular that already more than a quarter of a million pounds worth of claims against letting agents have been made using our free step-by-step toolkit.

"Moves like this can only strengthen Scotland’s private rented sector and help make it a fairer and more secure place to live for the 270,000 households that now call the sector home."

(IT)

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