Scottish Parliament votes to add PBSA to rent control Bill
Comment from the Scottish Property Federation Director David Melhuish:
"The SPF is deeply concerned that amendments to introduce rent controls for Scotland’s purpose-built student accommodation (PBSA) sector, tabled by Scottish Conservative MSP Graham Simpson, have passed with the support of the Green Party and Scottish Labour. These amendments to the Housing (Scotland) Bill threaten to disrupt investment into much needed new student accommodation.
“The PBSA sector plays a critical and growing role in supporting Scotland’s world-class university sector by providing vitally needed accommodation to support students. 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.
“Other provisions in the Bill have already affected other parts of the residential sector in Scotland, particularly the Built-to-Rent sector, where the threat of rent controls has been significant and pronounced – resulting in a halt on new planning applications for new build rental accommodation and the potential loss of some £3bn of investment in Scotland.”
“We will be continuing to engage with MSPs and the Scottish Government as the Bill progresses.”
