Question reference: S6W-00501
- Asked by: Mercedes Villalba, MSP for North East Scotland, Scottish Labour
- Date lodged: 7 June 2021 Registered interest
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Current status: Answered by Shona Robison on 17 June 2021
Question
To ask the Scottish Government, in light of reports that some letting agents and landlords are still charging tenants reference fees, despite this practice being prohibited under the Private Rented Housing (Scotland) Act 2011, what action it has taken to enforce the prohibition of charging such fees.
Answer
The Rent (Scotland) Act 1984 made it an offence to charge or receive any premium or require the making of any loan in addition to rent and a refundable deposit of no more than two months’ rent as a condition of the grant, renewal or continuance of a tenancy. This was further amended in 2011 to place beyond any doubt that such fees were illegal premiums. This position is reiterated in the statutory Letting Agent Code of Practice which came into force on 31 January 2018.
Prospective tenants who think they have been charged an illegal premium can refuse to pay, where tenants think they have paid an illegal premium they can raise an action to recover any fee paid through the First-tier Tribunal for Scotland (Housing and Property Chamber), there is no charge for this, or report the matter to Police Scotland.
In addition, where the person charging a fee is a letting agent, tenants can make an application to the Tribunal in relation to a breach of the Code of Practice. Where an agent is found to have breached the Code of Practice the Tribunal can issue a Letting Agent Enforcement Order that could include provision for the return of any prohibited fee.
Letting agents are required to be registered and to comply with the Letting Agents Code of Practice, which sets out the standards on how they manage their business and provide their services. This includes complying with relevant legislation and to have in place a complaints procedure. Concerns about a letting agent can be raised with the Letting Agent Registration team at the Scottish Government.