Meeting of the Parliament 23 September 2025 [Draft]
I want to discuss drawing purpose-built student accommodation into the rent control measures. I attended the Local Government, Housing and Planning Committee when that issue was being discussed. It was an important example of clear communications from Government ministers being essential in giving the committee confidence and avoiding frustration that leads to decisions that have a knock-on effect on not only the purpose-built student accommodation sector but the wider housing sector. I am glad that the cabinet secretary has given absolute clarity, as her predecessor did, on the Government’s policy on purpose-built student accommodation. Trust in the Government on housing was slowly being restored after quite a few rocky years, but lack of clarity in the direction of travel of not only the Government but the Parliament knocked the confidence of the PBSA sector and the wider housing sector.
Having clarity from, and trust in, the Government is essential if people who are planning to invest are to follow through on investment decisions. Overnight, investors decided to put projects on hold as a result of one vote in the committee that day. Therefore, I am pleased that we have clarity that purpose-built student accommodation should not be subject to rent controls, because that sector is very different. It is institutionally managed, and the accommodation is purpose built, with wraparound services and enhanced safety and security.
Throughout discussion on the bill, I have been clear that we can have the best standards in the world but, if we do not have people to build the houses, we will not have houses for people to live in. We can cast our minds back a couple of years, when there was a crisis in student accommodation. People at the University of St Andrews were living in Dundee, and people at the University of Glasgow were unable to get a home near that institution. We cannot afford to go back to that position, but we cannot do this by ourselves. We must have the support of the private sector, as well as the state providers of accommodation, if we are to deal with the housing emergency. That is why I am in favour of having a regime that builds confidence among investors and that sets good standards for tenants, whether they are students or private tenants.