Property sector warns of impact on investment
MSPs have voted to include student accommodation in the rent control plans set out in the Housing (Scotland) Bill.
The devolved parliament’s Local Government, Housing and Planning Committee passed an amendment to the bill, which was tabled by Scottish Conservative MSP Graham Simpson and backed by the Scottish Green Party and Scottish Labour.
Scotland’s housing minister, Paul Maclennan, had previously argued that student accommodation operated on a different basis to the wider private rented sector because it aligned with academic years.
But NUS Scotland had criticised the omission of protections for student tenants.
The amendments mean that both university-owned halls and purpose-built student accommodation will be included in the measures.
After the vote, Scottish Green MPS Ross Greer said that students “deserve the same rights as other renters” and criticised private providers for “leaving many students reliant on food banks”.
However, Scottish Property Federation director David Melhuish said his organisation was “deeply concerned” about the amendment, arguing that they “threaten to disrupt investment into much needed new student accommodation”.
“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,” he said.
“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.”
The property sector had previously called for further exemptions to be included in the bills, for instance the build-to-rent sector, while housing associations had raised concerns about the impact of rent controls on investment in mid-market rent.
Earlier this week, first minister John Swinney published his programme for government 2025/26, which included a range of measures relevant to housing, including some soft reassurances on the Housing (Scotland) Bill.
Though he stopped short of committing to exemptions, he said the government would act on feedback from a consultation on “how Scottish Ministers could use powers in the Housing (Scotland) Bill to allow for exemption from rent control, in certain circumstances, including new property built exclusively for rent and mid-market rent”.
Swinney committed to delivering 8,000 affordable homes, including social and mid-market rent, and to removing barriers on stalled building sites to deliver up to 20,000 new homes.
The government will assess regulatory controls on housing and publish a plan “designed to make it easier to do business”.
It also committed to consult on mechanisms to accelerate housebuilding, including “land assembly, build out rates and fiscal measures that stimulate access to land with planning permission where building has not started”.
The government has also promised to deliver an equivalent of Awaab’s law in Scotland through secondary legislation.
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