Investment in Scotland’s student accommodation risks damage from potential changes to the non-domestic rates bill, according to The Scottish Property Federation.
Student housing is currently exempt from business rates, as a form of domestic premises.
However, an amendment to the existing bill, introduced at the second stage of the parliamentary scrutiny process, would bring student housing into the scope of rates.
The SPF said that it has been “working across political parties to urge Holyrood to consider the damage this amendment could cause” ahead of the bill’s stage three debate.
David Melhuish, Scottish Property Federation director, said: “Business rates are not designed for properties in which people live for any significant period of time.
“Inflicting an additional charge on student accommodation providers, who already pay business rates on their commercial spaces, will have a significant impact on the high quality accommodation that this sector provides.
“Business rates would strike a significant blow to this sector, deterring further investment at a time when government is seeking to support all housing tenures to alleviate growing housing pressure in Scottish university cities and towns.
“This new legislation will ultimately harm Scotland’s world class higher education system, and the students who call this accommodation their home.”
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