Purpose built student accommodation (PBSA) to be exempt from Private Housing (Tenancies) (Scotland) Bill

Real Estate Update


On 3 February the Scottish Government published their response to the Infrastructure and Capital Investment Committee’s Stage 1 report on the Private Housing (Tenancies) (Scotland) Bill.

The report contains the following statement at paragraph 86.

"The Scottish Government has concluded that such accommodation is not part of the mainstream PRS, and should not be treated as such for the purposes of the Bill. Therefore, it will bring forward an amendment that will have the effect of exempting PBSA premises from the Bill in the same way as applies already to accommodation provided by Higher and Further Education Institutions. Among other things, this will ensure that PBSAs can continue to provide accommodation for students through nomination agreements."

This is very welcome news for the PBSA sector in Scotland. Many of those who responded to the Committee's call for evidence at stage 1 of the Bill expressed serious concerns about the impact that the introduction of "security of tenure" for students under the Bill would have on private investment in new accommodation. We commented on these concerns in greater detail in our November 2015 article on the Bill.

The drafting of the Bill will now be considered in detail during Stage 2, which is scheduled to be completed by 26 February.

Read the Scottish Government's response in full.