Scottish PBSA and university halls WILL be subject to rent controls

The Scottish Parliament's Local Government, Housing and Planning Committee has mandated that the Housing (Scotland) Bill should include purpose-built student accommodation (PBSA) and university-owned halls for planned rent control measures.

The move, supported by a coalition of MSPs from the Scottish Conservatives, Scottish Labour and Scottish Greens, comes after the Bill had previously omitted PBSA tenancies.

That left them outside the private residential tenancy framework - but it did include private student tenancies.

The exclusion also denied those students tenancy termination protections that will be enjoyed by other private tenants.

The move was driven by concerns over rising student homelessness, high PBSA rents and rigid tenancy agreements.

However, while the committee's amendments address this disparity, there's no guarantee they will make it into the legislation.

Student accommodation provision

The debate hinged on paragraph 5 of Schedule 1 of the 2016 Private Housing (Tenancies) Act, which exempts PBSA and halls from standard tenancy regulations.

Housing Minister Paul McLennan defended the exclusion, stating: "Student accommodation provision operates on a different basis [to] the wider private rented sector" due to its alignment with academic calendars.

However, the committee overruled his stance, passing amendments to integrate student tenancies into the Bill's scope.

Key changes include Amendment 51, which broadens the definition of 'relevant tenancies' to cover student housing.

Also, Amendments 52 and 53, which now mandate local authorities to include student tenancies in data reporting and rent control decisions.

Amendments 144–146 further empower local authorities by compelling ministers to implement rent control recommendations which now explicitly cover student accommodation.

Rent controls will hit investment

However, the decision has sparked concern among property agents in Scotland with David Melhuish, a director of the Scottish Property Federation, hitting out.

He said: "These amendments to the Housing (Scotland) Bill threaten to disrupt investment into much needed new student accommodation."

Mr Melhuish argues that PBSA supports Scotland's universities by easing pressure on the broader rental market but rent controls could deter investors and reduce available housing.

He added: "The amendment, unless revoked later in the Bill's journey, will have a chilling effect on investment in this key sector."

Student housing ‘wild west’

Scottish Greens MSP Maggie Chapman hailed the move, describing the student housing market in Scotland as 'an unregulated wild west'.

She said: "PBSA providers, companies who often provide just the bare minimum to students, often snatch up potential sites that should be used for family homes and community facilities too.

"We desperately need regulation of this sector.

"We've been listening to students and housing campaigners, and they've been clear: the market is broken."

Scotland's PBSA sector

The managing director of Accommodation for Students, Simon Thompson, welcomed the amendments for levelling the playing field between Scotland's PBSA sector and private student rentals.

He said: "Bringing both markets under the same rent control and tenancy protections should be welcomed because the politicians obviously realise that student tenancies should be dealt with as a separate issue.

"This also extends to the Renters' Rights Bill which will bring in periodic tenancies in England.

"If politicians can see a problem for PBSA, then that problem also affects private student accommodation in Scotland."

He adds: "If it doesn't, we should be told why so that private landlords aren't at a disadvantage when it comes to planned rent controls."