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Student accommodation added to Scottish government’s rent controls
MSPs have voted to include student accommodation in the Scottish government’s planned rent control legislation.
MSPs have voted to include student accommodation in the Scottish government’s planned rent control legislation #UKhousingCross-party MSPs on the Scottish parliament’s Local Government, Housing and Planning Committee have backed amendments to the Housing (Scotland) Bill that would extend rent control powers to include purpose-built student accommodation (PBSA) and university-owned halls of residence.
Currently, under the Private Housing (Tenancies) (Scotland) Act 2016, halls and PBSA are exempt from standard private tenancy rules, so students living in these accommodations are not covered by rent controls or notice-to-leave protections, as in other private tenancies.
MSPs argued that students deserved the same protections as other tenants, but developers reacted with concern.
The Scottish Property Federation (SPF), which represents the country’s real estate industry, said the amendments could disrupt investment into new student accommodation.
It said the bill had already affected the build-to-rent sector, where rent controls have resulted in a halt on new planning applications for new-build rental homes and the potential loss of £3bn of investment in Scotland.
Inside Housing reported last month that the Scottish government proposed a rent-cap exemption for build-to-rent and mid-market rent homes.
David Melhuish, director at the SPF, said: “PBSA also takes pressure off the wider rented sector in our cities by reducing competition between students and other residents.
“Student accommodation has different needs and demands to the wider private rented sector, and PBSA operators and universities have specific tenancy demands driven by the academic year.
“The amendment, unless revoked later in the bill’s journey, will have a chilling effect on investment in this key sector and will further reduce the supply of accommodation available to students.
“It also leaves many unanswered questions about how rent controls could work in practice for PBSA.”
Although the amendments were passed, Paul McLennan, Scotland’s minister for housing, had opposed them. He argued that student accommodation operates differently to the wider private rented sector because it aligns with the academic year.
The committee’s vote cited rising student homelessness, extortionate PBSA rents and inflexible tenancy terms which do not accommodate withdrawing students.
The committee passed three key amendments. Amendment 51 extends the definition of “relevant tenancies” to include student accommodation, and amendments 52 and 53 require student tenancies to join local authority data reporting and rent control decisions.
This is in addition to amendments 144 to 146, which strengthen local authority power by requiring ministers to act on rent control recommendations, including student tenancies.
Ross Greer, Scottish Green Party MSP, said: “Students deserve the same protections as other renters. Their halls are their home, but in many cases, the costs are simply out of control and what they get for their money is extremely poor.
“Private providers, the likes of Unite and Student Roost, account for over three-quarters of purpose-built student accommodation. Their high rates are leaving many students reliant on food banks.”
Inside Housing reported last week that more diverse student accommodation is needed to account for fast-growing demand from low-income students.
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