Earlier this month, the Parliament’s Local Government, Housing and Planning Committee voted to force the Scottish Government to include student tenancies in its planned rent control legislation.

Cross-party MSPs backed amendments to the Housing (Scotland) Bill that would extend rent control powers to include student accommodation – both purpose-built student accommodation (PBSA) and university-owned halls.

Firethorn has active investment in the Scottish PBSA sector, with one of its portfolio assets being Edinburgh’s Leith Walk, set for completion next year.

Marcus Weeks, director and head of Firethorn Living, has argued that the inclusion of student housing in Scotland’s rent control framework threatens to stall much-needed investment in an already strained housing market.

“Recent years have seen Edinburgh consistently ranked as a prime city for residential investment,” Weeks told SHN. “We are proud to be supporting its growth with our Leith Walk development, in an area that is already the focus of significant regeneration. However, the recent amendment to include student accommodation within Scotland’s rent control framework raises real concerns for developers like us, who are actively investing in the city.”

Weeks pointed to a recent report by the Scottish Property Federation and Savills, which highlighted a nearly 30% year-on-year decline in Build to Rent (BTR) housing delivery in Scotland, an effect many attribute to earlier iterations of rent control. He warned that the same uncertainty now looms over the PBSA sector.

“While markets always adapt, the potential reduction in development will likely limit supply, which I expect will ultimately drive up rents across the remaining stock, counteracting the affordability that rent controls aim to achieve,” Weeks said. “As such, we would urge legislators to reconsider the amendment during Stage 3 of the Bill and ensure the development efforts needed to address Edinburgh’s accommodation shortages are not hindered.”

In addition to the broader economic implications, Weeks also outlined the operational uncertainty developers are now facing. “For both projects under construction, like our Leith Walk development, and operational assets, there will be an immediate focus on working with operators to determine what these changes mean and how to incorporate them into business plans,” he explained.

Weeks added that clarity is critical at this stage of the legislative process, noting that land sales and asset transactions may slow until the full implications of the Bill are understood. “As investors, we require certainty to make informed decisions,” he said.

Despite these challenges, Firethorn Living said it remains committed to its long-term vision. “We maintain our commitment to responsible investment in what is a world-class city,” Weeks affirmed, while calling on policymakers to work collaboratively with the sector to ensure housing targets and economic growth are not unintentionally compromised.

The debate over the Bill’s future is expected to continue as it moves into Stage 3.