In the last decade student numbers have grown significantly and Purpose Built Student Accommodation (PBSA) has become an increasingly important form of development, which delivers significant economic benefits to the country. Despite this, PBSA completions have been falling in recent years due to various market challenges, as well as the challenges securing planning permission.

There were nearly 3m students in 2022/23 according to the HESA. Much of the demand is driven by first year undergraduate students and international students. The remaining demand is predominantly accommodated within the private rented sector (PRS), with many second and third year students across the country living in shared houses and HMOs, typically a more affordable product.

The GLA’s newly adopted PBSA Guidance highlights that a lack of supply across London is resulting in higher rents in the PRS: “current indications suggest a lack of PBSA supply relative to growing numbers of students; this is instead contributing to competition and higher rents in the private rental market, especially as this is facing other constraints”.

The Renters’ Rights Bill, which is making its way through Parliament at speed, is predicted to raise costs in the PRS further, if, as predicted, many landlords choose to leave the PRS. This would further increase demand for PBSA.

Despite the anticipated demand, one of the key challenges when securing planning permission for PBSA is securing the use itself, especially when balancing the need for PBSA against competing demands.