The Housing (Scotland) Bill was initially introduced in March 2024 and sets out enhanced rights for tenants and affects social and private landlords. The reforms include the designation of rent control areas and further conditions around eviction of tenants. As originally introduced, purpose-built student accommodation (PBSA) and university-owned halls were specifically excluded from the proposed rules.
Stage 2 of the Housing (Scotland) Bill is currently underway. It is at this stage MSPs propose amendments to the Bill and members of the appropriate committee decide by vote whether the proposed amendments should be made. In a recent development, the Local Government, Housing and Planning Committee voted in favour of an amendment to the definition of “relevant tenancies” - a move which will bring both PBSA and university-owned halls into the scope of the proposed rent control legislation.
A key focus of the Bill is the prevention of homelessness. It introduces an "ask and act" duty, requiring social landlords and public bodies to inquire about individuals' housing situations and take action to prevent homelessness and MSPs’ arguments in favour of bringing student renters into the protected framework centred around this key focus.
The debate largely turned on the current legal distinction between traditional private rentals and student accommodation rentals (per paragraph 5 of schedule 1 to the Private Housing (Tenancies) (Scotland) Act 2016, which exempts halls from the definition of private residential tenancies). As a consequence of the current exclusion, student tenants do not have the benefit of many of the protections enjoyed by other private tenants, including controls of rent increases and right to terminate tenancies if their circumstances change during the academic year.
The extension of the relevant tenancies definition to include student accommodation is a significant change that will, if the Bill is passed, have an impact on how rents are set in the PBSA sector. It is important to note that extension of the definition does not expand all aspects of the Bill to student accommodation. Not all relationships will be considered a relevant tenancy, and the Bill does not go as far as to make student accommodation equivalent in law to a Private Residential Tenancy. The changes so far apply only to rent controls.
The proposed changes to the Bill mean that each local authority will be subject to a duty requiring it to assess rent conditions relating to (i) the level of rent and (ii) rent increases under relevant tenancies. These assessments will inform mandatory reports that are to be submitted to the Scottish Ministers in 5 yearly intervals, and will take account of guidance by the Scottish Ministers to assess rent conditions. The reports will be required to set out the information gathered under the assessments regardless of whether the specific local authority imposes rent controls. In addition to the mandatory 5 yearly reports, a local authority may (either of its own accord or by request from the Scottish Ministers) publish an interim report and assessment if they consider there has been a significant change in rents or rent increases since the previous report. Following these assessments, local authorities can require the Scottish Ministers to impose rent controls wherever it is seen as necessary to protect the social and economic interests of tenants in the area, subject to a consultation period to gather the views of persons who represent the interests of affected tenants and landlords.
The current proposal under the Bill is for private rent increases to be limited to CPI plus 1%, up to a maximum of 6% per year.
The Scottish Property Federation (SPF) has expressed concerns that unless revoked these amendments will have a “chilling effect” on investment in much needed new student accommodation , which will in turn limit the availability of accommodation for students. The SPF has committed to continue engaging with MSPs and the Scottish Government as the Bill progresses.
It is worth noting that Stage 2 proceedings have not concluded yet, so a full Bill as amended has not been published. The second meeting of the Local Government, Housing and Planning Committee is scheduled for Tuesday 13 May.
For further general information on the Housing (Scotland) Bill please see.
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