Tenancy Deposit Scheme Update - October

There has been little mention of this topic since it was launched a year ago by the Scottish Housing Minister, Alex Neil, at last year’s Scottish Association of Landlords annual conference.

The Tenancy Deposit Schemes (Scotland) Regulations 2011 became law on 7 March 2011. This law set out the requirements that any prospective scheme would need to meet in order for it to be approved by the Scottish government.

Once a scheme has been approved and is fully in place then all landlords and agents would need to move, within six months, any deposit funds already held into the scheme.  Any new deposits taken would also need to be placed into the scheme within 30 days of the start of the tenancy.

To date, only three schemes have been presented to the government by companies looking to operate Tenancy Deposit Schemes in Scotland. One has only just been received, but the first two are currently being assessed and will then be given to ministers for review. This will then be followed by a consultation period of around six weeks during which time the terms of the scheme will be considered by all stakeholders who will be affected by the introduction of the schemes.

The findings of the consultation will then be analysed and recommendations given to ministers before a complete proposal can be presented for approval by the government.

This all takes time and it is likely to be spring 2012 before any scheme has actually been approved to the point where it can begin operating. The company would then need to set up their offices and systems before any funds could be placed under their control.  This is likely to be in summer 2012.

This all assumes that the schemes will be able to work through the approval process and that the companies concerned will be willing to adopt any changes required by the government. Given that the profit from running such a scheme has to come from the bank interest received on the funds held, and taking into account that interest rates are at an all time low, then it could well be some time before we see any TDS up and running in Scotland.

Watch this space!

Edinburgh - The Glass is Half Full

With all the negative press and documentaries focusing on Edinburgh recently, it is important to focus on the positives of the City.

Take for example the tram situation; there have been numerous articles claiming how the project has been a disaster from start to, well rather than 'finish', to now. 

However, it appears that the project is now 'back on track' (parden the pun) and once finished; Edinburgh will be provided with a fantastic tram system that will allow people to get around the City easily. 

In addition, there has always been an issue with traffic congestion and the trams are another way of reducing this problem.

Another positive to come out of a disaster is the recognition of Edinburgh's excellence in the financial industry.  While this sector has taken a particular thrashing in terms of cutbacks and loss of staff, there is a light at the end of the tunnel; Tesco Bank and Virgin Money.

Both these companies are setting up financial headquarters in Edinburgh and this will most certainly have a positive impact on the employment levels, as well as the subsequent expenditure and investment in the City. 

Perhaps Edinburgh isn't such a bad place to be afterall.

Student Buy to Let market still going strong

The Herald published an article this week confirming that the student buy to let market is performing well for investors, with Edinburgh’s yields ranked fourth in the UK.

If owning a buy to let property with a high performing yield is something that you would be interested in, we have a number of investment properties that are currently on our website at www.cullenproperty.com/properties_to_buy.asp.  Alternatively contact Steve@cullenproperty.com or Malcolm@cullenproperty.com.

http://www.heraldscotland.com/mobile/news/home-news/best-returns-on-student-property-1.1127183