Student housing exempted from rent controls in Housing Bill

Student accommodation has been exempted from rent controls in the Government’s Housing Bill after a vote by MSPs.

The Housing (Scotland) Bill proposes to give councils the powers to create rent control zones, capping cost increases at the rate of inflation plus one percentage point.

If passed, the legislation will not cover student housing after MSPs voted to exempt the sector, with Housing Secretary Mairi McAllan saying it was a “significant error” that an amendment was passed at stage two of the Bill’s consideration.

“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,” she said.

“The stage two amendments that were brought forward have caused significant confusion and concern in the sector and this has been reflected clearly in our engagement with student housing providers since stage two.”

A Green amendment to the Bill would have given ministers the power to implement a different rent control scheme on the student sector, with MSP Maggie Chapman saying: “(The amendment) sets out the important principle that students deserve the same protections as everyone else renting the roof over their head.

“The rent controls that we’re seeking to pass in legislation in this Bill are evidence-led, they are locally led, they will give sufficient protection to tenants, but I’ve also been clear on exemptions which I know are critical for investment.”

Ms McAllan earlier this month confirmed that build-to-let and mid-market rent properties would be exempted from the legislation, a provision which looks to have stuck after Green amendments to the Bill fell.

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

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

Scottish Liberal Democrat MSP Willie Rennie took issue with Ms Chapman’s use of the word “weasel” in relation to landlords, urging her to “tone down the language”.

Ms McAllan said: “We cannot support these 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.”

Ms Chapman also sought to create a system of “special rent controls” in hard-hit areas, which would allow rents to be reduced by less than the set amount in the regular controls, frozen altogether or even reduced.

The Green MSP even urged the Government to be prepared to go to court to fight for her amendment.

“The Scottish Government has not been backward about coming forward to go to court to defend policies before now,” she said.

“It stood up for the rights of our trans siblings to be known by their preferred gender and it stood up for the right of Scotland to vote on its future as an independent country.

“I’m asking for it to do the same now – stand up for renters and be prepared to defend their rights not to have exorbitant rent hikes before rent control areas come into force.”

The minister said the Government was determined to tackle “unacceptably high” rents, but that Ms Chapman’s proposals would be “very hard to justify”.

Going to court – a move which would hold up the implementation of the Bill as a whole – “doesn’t serve us in having rent controls operating in the country”.

In an almost seven-hour session on Tuesday, MSPs voted on nearly 200 amendments at the Bill’s third stage, with a similar sitting expected on Wednesday before a final debate next week.

A substantial number of amendments were tabled by the Scottish Greens, who it is understood will back the Bill when it goes to a final vote, but have committed to seek substantial changes before it can be passed.

The addition of the Green group in Holyrood all but guarantees the Bill will be backed by MSPs.

While the Government rejected the bulk of amendments suggested by other parties, Ms McAllan said she would consider changes after the Bill is passed which would exempt properties from the caps if the rent had been “consistently held below market” value or where there has been “investment in improvements to the quality of the rented property”.