Student accommodation not protected by rent controls in Housing bill

Student accommodation will not be protected by the rent controls proposed in the Government’s Housing legislation.

The Housing (Scotland) Bill is intended to give councils the powers to create rent control zones, cap cost increases at the rate of inflation plus one percentage point, and strengthen tenants’ rights.

If the legislation is passed, student housing will be exempt from those rent controls after MSPs voted against an amendment on Tuesday night.

“We have always been clear that student tenancies are not part of the mainstream private rented sector and should not be included within rent controls within this Bill”, housing secretary Mairi McAllan said.

She said it was a “significant error” that the Greens amendment was passed at stage two of the Bill’s consideration, and she claimed it had caused “significant confusion and concern in the sector”.

“This has been reflected clearly in our engagement with student housing providers since stage two,” she said.

The Government’s Housing Bill entered the final stage of its journey through Parliament on Tuesday, and MSPs debated the legislation and its many amendments into the night.

The Green amendment would have given ministers the power to implement a different rent control scheme on the student sector.

MSP Maggie Chapman said the amendment “sets out the important principle that students deserve the same protections as everyone else renting the roof over their heads”.

McAllan said the Government “could not support the amendments”.

“It is crucial that we carefully define the scope of our exemptions that we bring forward so that they can serve their intended purpose of balancing those rights of landlords and tenants.”

Other SNP rent control exemptions

It’s not the first rent control exemption that the SNP Government has made to their Bill.

It emerged earlier this week that the housing secretary decided to exempt mid-market rent (MMR) and build-to-rent (BtR) properties from the rent controls in the legislation as well.

The move was criticised by both the tenants’ union Living Rent and by the Scottish Greens, who helped to shape the bill before it was proposed.

Living Rent braned both McAllan and the Scottish Government “cowardly” over the decision.

Speaking on Tuesday, Chapman said: “We do not believe that there should be a wide-ranging scope for exemptions.

“Renters need clarity, landlords should not be able to weasel their way out of rent controls.”

The Legislation will be debated by MSPs again on Wednesday before the final vote.

Despite the number of amendments proposed by the Greens, it is understood they will back the legislation, meaning – barring an SNP rebellion – the Bill will be passed.