Tag: SafeDeposits Scotland

Edinburgh tenants could cash-in on share of six figure windfall

  • Edinburgh residents could be due share of £210,776
  • The capital city has the largest number of unclaimed deposits – with one worth £3,484
  • More than 1,000 long-standing tenancies in Scotland have an EH postcode
  • One city resident reunited with deposit seven months after moving, thanks to SafeDeposits Scotland

SafeDeposits Scotland has revealed that tenants in Edinburgh could be due a share of £210,776, after failing to claim back deposits at the end of their tenancies.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing. When a tenancy ends and all parties agree to repayment, the scheme will then release the funds back to the tenant.

Currently, the EH postcode has 700 unclaimed deposits with a combined value of £210,776, with one individual claim worth £3,484 – the highest in Scotland. In total across Scotland, there are 2,513 unclaimed deposits, amounting to £690,383.

One Edinburgh resident, Fraser Hamilton, was recently contacted by SafeDeposits Scotland about his unclaimed deposit after he left his property seven months ago.

Fraser said: “I moved out of my flat near Fountain Park just before lockdown and I completely forgot about the deposit. A part of me just assumed that my landlord would have my details and send it to me when it was ready. Between that and the moving process itself, it just slipped to the back of my mind.

“Obviously, this isn’t how the process works so when I received the call from SafeDeposits Scotland, it was great to hear I’d be getting this money back. It was as simple as sharing my bank details and soon enough, my deposit was back in my account. It’s a great boost, especially just before Christmas, and I’d urge anyone else moving to remember to claim their deposit back.”

In 2020 to date, SafeDeposits Scotland has tracked down 1,093 tenants across the country that had forgotten to claim their deposits back. The not-for-profit organisation has so far managed to return £416,887 from the scheme to these tenants this year.

Research carried out by SafeDeposits Scotland also looked at the quantity of deposits the scheme holds for longer-standing tenancies. The average tenure length for tenancies with deposits protected by SafeDeposits Scotland is just over 2.5 years, however the scheme found over 4,500 active deposit accounts for tenancies of 10 years or more.

There are more than 1,000 long-standing tenancies in the EH postcode area alone, with a deposit for one tenancy in Peebles starting in 1976. While many of these tenancies will still be active, there may be some cases where a tenancy has ended and none of the parties have ever instigated the repayment process.

Mike Smith, operations manager at SafeDeposits Scotland, said: “Edinburgh has the largest amount of private rented sector homes in Scotland with 62,000 currently in the market*. And it’s our job to make sure deposits are kept safe, and that both landlords and tenants have access to our dispute resolution service should there be any disagreement once the tenancy ends.

“The private rented sector in Edinburgh accounts for 25% of the capital’s entire housing market, and with the city recently awarded the top UK place for millennials to live, we predict the sector to continue growing as more people, especially young adults, chose to work and live in Edinburgh.

“Our research revealed that 700 people who lived in or around Edinburgh have left their homes without claiming back their deposit. This figure relates to where the landlord has instructed for the deposit to be repaid to the tenant, but the tenant hasn’t completed the process to receive their funds.

“We know moving home can be quite hectic but there’s no reason why a tenant shouldn’t claim what money they’re entitled to when they leave.”

Any surpluses generated by SafeDeposits Scotland are donated to its related charity, the SafeDeposits Scotland Charitable Trust.

Among the organisations to have received funding from the Trust this year is Edinburgh-based Deaf Action which, with a grant of £20,000, is developing a project to support Scottish landlords and tenants affected by hearing loss.

If tenants in Scotland think they have left a deposit with SafeDeposits Scotland unclaimed from a previous tenancy, they should enquire with the scheme on 03333 213 136.

Landlords encouraged to look forward to new academic year

SafeDeposits Scotland is working with landlords who provide student accommodation to help overcome challenges brought on by Covid-19, as the number of overseas students returning to the UK drops.  

During lockdown, the not-for-profit organisation reached out to landlords and tenants to provide advice and information around changes to the sector due to the pandemic. It works closely with all landlords including those that have been impacted by the decrease in students enrolling this academic year.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing.

As the sector continues to work towards pre-Covid-19 levels of activity, SafeDeposits Scotland is urging landlords to focus on providing the best renting experience for current tenants, while considering options to diversify their future tenant base.

Mike Smith, operations manager at SafeDeposits Scotland, said: “UK universities expect to see a £2.6 billion shortfall in the next academic year due to the pandemic, with 20% of domestic students not returning to university, and 75% of overseas students not enrolling this September.

“Pre-lockdown, demand for student accommodation in Scotland was notably high. Boasting some of the UK’s top universities, it’s no surprise areas including Aberdeen, Dundee, St Andrews, Glasgow and Edinburgh experienced an influx of students each year looking for housing.

But despite the drop in numbers of students expected to enrol this year, it’s evident there’s faith in the resilience of the sector, with a number of high-profile developments announced in the past month alone.

“Two recent Edinburgh examples of long-term growth within the sector include the new 120-bed purpose built student accommodation complex set to be built at Haymarket, while Unite Student has confirmed plans for a £24 million build of student flats at Meadowbank.”

To understand the concerns of landlords in the private rented sector during these unprecedented times more clearly, SafeDeposits Scotland carried out research to find out how they have coped during lockdown and how they feel about leasing property in the new academic year. 

Mike explained: “We’re confident demand for student housing will return, whether it is in the private rented sector or for purpose-built accommodation. However, until we have a clearer picture of what future academic enrolment figures are like, landlords could consider alternative ways to lease properties.

A good example is renting to young professionals that are looking to move away from home for the first time. The demands of these tenants are similar to students in the private rented sector, and it can be a way of keeping properties occupied until we know more about the future of higher education. 

“We recently carried out research with our landlords that are renting to students. This revealed that almost half (43%) secured new tenancies during lockdown while almost three quarters (73%) of this group expressed concerns around what this academic year will look like for them. 

“To alleviate concerns, we’ve been working closely with landlords to ensure the tenants they do have in place now have the best experience. To support, we’ve moved our face-to-face workshops online to offer free advice and information. Our Charitable Trust has also recently announced its funding towards research being carried out by the University of Stirling. This research is exploring the benefits of allowing tenants more flexibility to make a house a home.

“We believe having happy tenants leads to longer tenancies, creating more vibrant communities where people want to live. This boosts local economies and helps increase demand for rental property in that area.

“The property sector has been resilient during past economic challenges, but the full impact of the pandemic is yet to be seen. We know the government is working hard to support international students hoping to return to Scotland to continue their higher education studies. This will have a hugely positive impact for our landlords who rely on overseas students to rent their properties, and hopefully we will see the results of this work.

“In the short term, we urge landlords to implement safety guidance from the Scottish Government and manage risk wherever possible, while tenants adhere to the measures put in place.”