This month there’s been some positive news for Scottish tenants, which – in the long run – is also good for landlords.
According to a study of tenancy deposits carried out by The Letting Protection Service Scotland (LPSS), the average Scottish tenant pays around £100 less than their English and Welsh counterparts at the start of a tenancy.
The research found that between June 2015 and May this year the average deposit in Scotland was £794, £102 or 11% cheaper than the England and Wales average of £897.
Tenants in Falkirk – not far from West Lothian where Letting Solutions are based – pay a typical deposit of £744, around £50 lower than the national average.
It may come as no surprise that the most expensive deposits were charged in Edinburgh, at an average of over £900 in the city’s EH postcode.
The cheapest deposits in whole of the UK over the last year were found in Kirkwall’s KW postcode, averaging £441.
The lowest average deposit in England and Wales was recorded in Liverpool at £445.
Tenants in Kingston-upon-Thames’ ‘KT’ postcode pay a whopping £1,715 at the beginning of a tenancy, showing just how good a deal a lot of Scottish tenants are getting compared to their counterparts in the South of England.
This is good news for both tenants and landlords in West Lothian – as if tenants are not having to spend as much on deposits then there’s a higher chance they won’t fall in to rent arrears, which reached a six-month low in March.
What’s more, if tenants are aware that deposits are relatively low – this will help keep demand for rental homes high, something which will help Scottish landlords to fill their properties quicker and reduce the chances of lengthy void periods.
Tenancy deposits are an extremely important part of the rental process for both sides of the transaction.
Landlords are required to protect any deposits they receive with one of three schemes: LPSS, Safedeposits Scotland or My|deposits Scotland.
They must also provide tenants with key information about the deposit at the start of a tenancy, which you can read more about here.
Breaching these regulations is a serious offence and we’ve previously covered this in further detail here.
If you require more information on tenancy deposits, please get in touch with Letting Solutions on: 01506 496006.
You can also get an instant rental valuation for your property here.