15th March 2016
Scotland’s student accommodation sector is tipped to receive a boost in interest as a new report rules that purpose built student accommodation is to be exempt from the Private Housing (Tenancies) (Scotland) Bill.
The Private Housing (Tenancies) (Scotland) Bill was originally introduced in the Scottish Parliament in October 2015. It laid out plans for the ‘private residential tenancy’ as a replacement of the assured tenancy. Essentially, the new tenancy introduced uncertainty that students would be required to vacate their rooms at the end of the summer term, when their 10 month contract (running from September to June) expired.
For investors, this meant an inability to confidently advertise their properties as summer lets, as they could not be certain that their student tenant would vacate the property in time for a summer tenant to move in. This was an issue particularly in Edinburgh, when festival accommodation can fetch premium returns for investors over the summer period.
Now, the Scottish government has confirmed that purpose built student accommodation is exempt from the Private Housing (Tenancies) (Scotland) Bill and should not be treated in the same way as mainstream private rented accommodation.
“Investor confidence is extremely important for a thriving student accommodation sector in Scotland and the Scottish government’s amendment to the Private Housing (Tenancies) (Scotland) Bill should serve to reinvigorate investment in this essential market.”
It is sites such as Gateway Apartments in Edinburgh that will be impacted by the change. They will now be afforded the same status as accommodation provided by Scotland’s Higher and Further Education Institutions, returning welcome certainty to Scotland’s booming student accommodation sector once more.
For more information visit services.collegiate-ac.com or contact Collegiate on 01235 250 140.