Purpose-built student accommodation (“PBSA”) operates as a distinct subdivision within the private rented sector in Scotland.
What constitutes PBSA?
It is a tenancy whereby the purpose of the let is to provide the tenant the right to occupy a property while the tenant is a student and where:
(a) planning permission for the building (or part of the building) was given on the basis that the let property would be used predominantly for housing students, and
(b) the landlord is an institutional provider of student accommodation.
A landlord is an institutional provider of student accommodation if —
(a) the landlord lets, or is entitled to let, other properties in the same building or complex as the let property,
(b) the let property and the other properties together include at least 30 bedrooms, and
(c) the landlord uses, or intends to use, the other properties predominantly for the purpose of housing students.
Where property meets the above criteria, the tenancy cannot be a PRT, regardless of its duration, the rent charged, or the identity of the landlord.
In practice, PBSA tenancies are almost invariably fixed-term agreements, aligned to the academic year and governed almost entirely by the common-law albeit there is some statutory overlap. For instance, the repairing standard applies to such tenancies as do the tenancy deposit protection provisions. Student tenants in these circumstances will have recourse to the FTT for non-compliance, including financial penalties where applicable.
By contrast, the FTT does not have jurisdiction over possession or termination of PBSA tenancies, which remains a matter for the sheriff court.
Future regulation-making powers — potential but not operative
PBSA is not included in the new rent control framework under the Housing (Scotland) Act 2025. However, the 2025 Act gives Ministers powers to enable tenants to bring such tenancies to an end. Ministers are required to consult persons that represent the interests of tenants and landlords under student residential tenancies, before progressing regulations to give effect to this provision.
If you have questions about purpose-built student accommodation or other private rented sector matters, get in touch with the expert team at prs@tcyoung.co.uk or visit tcyoung.co.uk.
