Proposed amendment to Renters’ Rights Bill could boost PBSA sector

Reform of the private rented sector is now around the corner, with the Renters’ Rights Bill currently being scrutinised by the House of Lords and expected to become law before Parliament’s summer recess in July.

A common-sense amendment proposed by the Lords this week has given hope to developers and operators within the purpose-built student accommodation (PBSA) sector, by proposing to exempt code-compliant PBSA from local authority licensing regimes.

PBSA providers already adhere to strict government-approved codes ensuring high standards of safety, management and service, which are far superior to most of the private rented sector. Removing the need for them to duplicate this process by also meeting local authority licensing rules could save PBSA providers hundreds of thousands of pounds per scheme, supporting the viability of projects at a time when more dedicated student housing is desperately needed.

Tom Donnachie said, “The current licensing regime has, in many cases, become an expensive box-ticking exercise that delivers little added value for students while stalling investment and delaying much-needed new supply.

“Let’s be clear: the PBSA sector is already subject to rigorous national codes that govern everything from safety standards to management practices. Local licensing, where applied to code-compliant schemes, has largely duplicated these protections while adding significant costs — sometimes running into hundreds of thousands of pounds per scheme. That’s money which could and should be going into building more student homes, not into bureaucracy.

“This amendment sends a clear message that policymakers are finally recognising the difference between professionally managed PBSA and the broader, more fragmented private student rental sector. It reflects the reality that PBSA operates to far higher standards than much of the market and shouldn’t be penalised for it.

“In terms of investor sentiment, the impact could be significant. International and institutional capital is watching closely, and one of the biggest concerns is unpredictable or inconsistent regulation. Removing unnecessary barriers like licensing not only improves scheme viability but helps restore confidence that the UK remains a safe and sensible place to invest in student accommodation.”

The Committee Stage runs to 6th May, after which the Bill will move onto the Report Stage whereby the House of Commons reviews the proposed amendments before it proceeds to its Third Reading.

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