Scotland’s student accommodation shortage shows no signs of easing. University cities including Aberdeen, Edinburgh and Glasgow are facing significant shortfalls, forcing students to live increasingly further away from their studies as demand continues to outstrip supply.

The pressure extends beyond student housing alone. With widely reported strain across Scotland’s entire housing sector and the recent declaration of a housing emergency, purpose-built student accommodation (PBSA) has emerged as a vital component in addressing these challenges.

The latest CBRE UK Real Estate Market Outlook predicts strong PBSA demand in the coming year, with Scotland hoping to secure its share of investment. Major projects including Fusion Student’s New Town Quarter in Edinburgh and Valeo’s Carrick Street development in Glasgow demonstrate the sector’s potential for growth.

PBSA has attracted significant attention recently, becoming the subject of an ongoing Scottish Government review. Last December, PBSA Review Group’s recommendations were accepted by the Government in full.

These recommendations included developing model terms and conditions for the sector, consulting on notice period regulations and “cooling off” periods for tenants, creating comprehensive tenant information packs outlining complaint routes, and establishing standardised complaint procedures. The Government has also committed to convening roundtables to explore improvements ensuring student housing needs are properly met.

However, the Housing (Scotland) Bill’s progress through Parliament has brought unexpected complications that could reshape the sector’s future.

The Bill’s Stage 2 proceedings completed in early June 2025 following an extended committee stage. Originally, the legislation proposed designated rent control areas with caps of CPI+1% (maximum 6%) for affected residential tenancies, but PBSA was deliberately excluded from these controls.

That changed dramatically on 6 May 2025 when the Stage 2 Committee voted 4-3 in favour of including student residential tenancies within the rent control scope. The amendment, proposed by Conservative MSP Graham Simpson—whose party has consistently opposed rent controls and the Bill itself—sent immediate shockwaves through both private and public sectors.

The move was particularly surprising given the Conservative Party’s established anti-rent control position. Subsequent party communications have confirmed their stance remains unchanged, whilst the Scottish Government has made clear through chamber statements and written correspondence that it does not support this amendment. Private sector developers have expressed similar concerns about the potential impact on investment.

Stage 3 of the Bill, expected by October, offers the chance to reverse this amendment. Cross-party opposition suggests PBSA will likely be removed from rent control scope, which would boost investor confidence.

Cabinet Secretary Shirley-Anne Somerville has confirmed plans to introduce 28-day notice periods for student tenancies in specific circumstances, following consultation with both the sector and student representatives.

Change is coming. By working collaboratively with developers, providers and student representatives, the Government can chart a course enabling PBSA to grow and deliver the accommodation Scotland’s university cities desperately need.