Student housing boom predicted following landmark Housing Bill

According to commercial property solicitor Darren Lightfoot, a partner at independent Scottish law firm Lindsays, the move is already sparking greater investor confidence and could accelerate the delivery of new student housing and build-to-rent developments across the country.

“The conversations our lawyers are having indicate that this decision has triggered a boost in investor confidence,” Mr Lightfoot said.

“With both build-to-rent properties and student accommodation exempt from rent controls, we could well see a spike in activity.”

The shortage of student accommodation across Scotland has long been recognised, particularly in university cities such as Edinburgh, Glasgow and St Andrews, where demand continues to outstrip supply. This imbalance has driven up rents and kept occupancy levels high, creating strong conditions for investment.

Mr Lightfoot added: “The decision by MSPs to exclude PBSA from the Housing Bill may well prove an important step in redressing that balance.”

Recent market reports from property consultancies, including Knight Frank, show growing national investment in PBSA. Analysts attribute this to the continued rise in student numbers, partly fuelled by a return to in-person teaching post-pandemic, and the sector’s relative resilience compared to other real estate asset classes.

“The growing popularity of PBSA as a stable, long-term investment is attracting a wide range of investors, including overseas institutions, pension funds and private equity firms,” Mr Lightfoot said.

“It has increasingly become the development of choice in Scotland for many investors and developers, keen to meet substantial demand at a time when more traditional property sectors, such as retail and offices, have faced challenges.”

The Housing (Scotland) Bill, which saw MSPs debate nearly 400 amendments before passing, introduces a framework for long-term rent controls, enhanced tenant protections, duties relating to homelessness, and new standards for tackling damp and mould.