MSPs urged to drop plan for rent controls on PBSA – Daily Business

A Scottish property leader has warned that extending rent controls to purpose built student accommodation could deter investment in the sector.

Parliament has supported amendments tabled by Conservative MSP Graham Simpson, with the support of the Labour and Green parties.

The Scottish Property Federation (SPF) is hoping the amendments will be revoked, saying they will have a “chilling effect” on investment and further reduce supply.

David Melhuish, chief executive of the SPF, said: “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.” 

Mr Melhuish added: “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.” 

A Scottish Conservative spokesperson said: “These amendments were minor changes to the rent control provisions. We remain opposed to rent controls and have submitted amendments to remove them from the Bill.

“The Scottish Conservatives do not support an expansion of rent controls and will vote to stop these plans from going through.”