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Some small letting agents to fold

July 8, 2013

Why have O’Neill letting agency in Edinburgh and Glasgow illegally decided not to pay any deposits into the approved schemes?

This article offers a possibility.

Whilst this change shouldn’t affect well managed rental firms, John Blackwood, Director of the Scottish Association of Landlords, said he was concerned that some small firms that are used to dipping into the deposit cash they hold may suddenly find they don’t have the cash flow to carry on trading.

He said: “Unlike in England, the law in Scotland is retrospective. If letting agencies don’t have that money tucked away then agents may suddenly disappear off into the night and fold.”

“We suspect that a lot of small agents will simply disappear because they haven’t been able to make sufficient provisions for the deposit scheme.”

This change could affect both private tenants and their landlords. If the letting agencies cannot stump up the cash for the deposit protection schemes and subsequently fold, it is highly likely that it is that the landlords themselves who will be pursued through the courts for the return of their tenants’ deposits.

And Mr Blackwood agreed that this financial pressure on firms could well be compounded by the fact that more and more tenants are attempting to claim back their fees.

http://news.stv.tv/east-central/102843-letting-firms-under-pressure-after-tenants-claim-for-thousands-of-pounds/

Does anyone know why Ralph Weir was disqualified for six years? Wrongful trading (trading while insolvent) is one reason why a disqualification can be imposed under the 1986 Act.
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