Scotland Shared Housing Deposit Rules Explained

Sharing a home in Scotland often means paying a deposit, but understanding your rights and deposit rules under Scottish law is crucial. Whether you live in a House in Multiple Occupation (HMO), a shared flat, or as a lodger, knowing how deposits are protected helps prevent disputes and ensures a fair return at the end of your tenancy. This article covers the essential deposit rules for renters in shared housing, including official procedures and support resources.

Shared Housing Deposits: The Basics

In Scotland, landlords who take a deposit are required by law to protect it in a government-approved deposit scheme. This applies to most shared housing arrangements, including HMOs and many lodger situations, provided you have a tenancy or occupancy agreement.

• The deposit must be registered with a tenancy deposit scheme within 30 working days of your tenancy starting.
• You should receive specific information about where your deposit is held and how to get it back.
• The maximum deposit in Scotland is two months' rent.

For a shared house or HMO, each tenant’s deposit should be protected individually—even if everyone pays together.

What Is a House in Multiple Occupation (HMO)?

An HMO is a property rented by three or more unrelated people who share facilities like a kitchen or bathroom. HMOs must be licensed by the council, which also protects renter safety and standards.

How Deposit Protection Works

Scottish law requires all landlords to use one of three approved schemes:

• The DPS (Deposit Protection Service Scotland)
• SafeDeposits Scotland
• MyDeposits Scotland

Within 30 days of your tenancy starting, your landlord or letting agent must:

• Register your deposit with an approved scheme
• Provide written confirmation (Prescribed Information), including the scheme’s details and the amount protected

If this doesn’t happen, you can apply to the First-tier Tribunal for Scotland (Housing and Property Chamber), which can penalise the landlord and order repayment.

Getting Your Deposit Back

When your tenancy ends, you must formally apply through the scheme to have your deposit returned. Deductions are only allowed for specific reasons, such as unpaid rent or damage beyond fair wear and tear.

• If there is a dispute: The deposit scheme provides a free dispute resolution process, and your money stays protected until it’s resolved.
• All housemates should agree: In shared homes, make sure everyone agrees on how the deposit is divided before starting the return process, as the scheme might require consensus or resolve disputes individually if separate agreements exist.

Relevant Official Forms and How to Use Them

• Deposit Repayment Request (Each Scheme)
  When and how: After your tenancy ends, log into your deposit scheme account and use their online repayment form. Example: You’ve moved out and believe there are no damages, so you request repayment on the scheme’s website.
  Get your deposit back: official guidance
• Application to the First-tier Tribunal for Scotland (Housing and Property Chamber)
  When and how: Use the "Application under Rule 103: Failure to comply with deposit regulations" form if your landlord fails to protect your deposit or provide information. Example: If your landlord didn’t use a deposit scheme within 30 days, submit this form to the tribunal.
  First-tier Tribunal (Housing and Property Chamber) official site

Your Rights Under Scottish Law

The main laws covering deposits, shared housing, and HMOs are the Tenancy Deposit Schemes (Scotland) Regulations 2011, the Private Housing (Tenancies) (Scotland) Act 2016, and for HMOs, the Housing (Scotland) Act 2006¹.

These laws guarantee:

• Secure deposit protection for nearly all renters, even in shared homes
• Specific processes for returning your deposit or raising a dispute
• Access to the First-tier Tribunal for formal resolutions

FAQs: Shared Housing Deposits in Scotland

1. Does my landlord have to protect my deposit if I live in a shared flat or HMO in Scotland?
   Yes. Most landlords in Scotland must protect deposits in government-approved schemes, including in shared homes and HMOs.
2. What if my landlord hasn't put my deposit in a scheme?
   You can apply to the First-tier Tribunal (Housing and Property Chamber), which can order your landlord to pay up to three times the deposit amount as a penalty.
3. How do I get my deposit back from shared housing?
   At the end of your tenancy, submit a repayment request through your deposit scheme. Make sure all joint tenants agree on the return and division to avoid disputes.
4. What can be deducted from my deposit?
   Only legitimate costs, such as rent arrears or damage beyond normal wear and tear, may be deducted.
5. What if I disagree with deductions?
   Use your scheme's dispute process, which is free and impartial. If unresolved, the First-tier Tribunal can make a final decision.

Key Takeaways

• All shared housing deposits in Scotland must be protected in an approved scheme.
• You have the right to clear information and a free dispute process.
• If something goes wrong, the First-tier Tribunal (Housing and Property Chamber) can help enforce your rights.

Need Help? Resources for Renters

• First-tier Tribunal for Scotland (Housing and Property Chamber): Handles tenancy deposit disputes and landlord non-compliance.
• mygov.scot tenancy deposit schemes overview: Official Scottish Government guidance on deposits and schemes.
• Citizens Advice Scotland renting advice: Practical help, support services, and template letters for renters.

---

1. Tenancy Deposit Schemes (Scotland) Regulations 2011; Private Housing (Tenancies) (Scotland) Act 2016; Housing (Scotland) Act 2006

Categories

Tenant Rights & Responsibilities Rent, Deposits & Increases Tenancy Types & Agreements Moving In & Out Procedures Repairs, Maintenance & Housing Standards Eviction Notices & Repossessions Shared Housing, HMOs & Lodgers Discrimination, Harassment & Accessibility Utilities, Bills & Council Tax Affordable Housing, Social Housing & Benefits Dispute Resolution & Housing Tribunals Health, Safety & Fire Regulations Privacy, Landlord Entry & Surveillance Unusual & Special Tenancy Situations Renters’ Insurance & Liability Homelessness Support & Post-Eviction Help Landlord Duties, Licensing & Penalties Housing Law, Legal Updates & Case Studies Mental Health, Disability & Vulnerable Renters’ Rights Rent Repayment Orders & Compensation