The first compulsory tenancy deposit protection scheme has been approved by the Scottish Government.
The Letting Protection Service Scotland is a spin-off from the Deposit Protection Service which already operates in England and Wales.
Two further schemes are being considered by the Scottish Government, with the aim of starting all three from July 2, although legal requirements to put deposits into a scheme do not come into effect until November.
All the Scottish schemes, unlike in England and Wales, must be ‘custodial’ ones, where tenants’ money is physically banked. Insurance-backed schemes are not allowed.