In the last decade student numbers have grown significantly and Purpose Built Student Accommodation (PBSA) - housing specifically designed and developed for students, offering a range of amenities and services tailored to their needs - has become an increasingly important form of development, delivering not only homes for students but also significant economic benefits to the country. Despite this, PBSA completions have been falling in recent years due to market challenges and difficulties in securing planning permission.

According to HESA, there were nearly 3m students in the UK in 2023/24. Furthermore, UCAS reports a 4.7% increase in undergraduate acceptances for 2025-26. Much of the demand for PBSA is driven by first year undergraduates and international students. For the remainder, accommodation is largely provided by the private rented sector (PRS), with second and third year students often living in shared houses or HMOs. These are typically more affordable but add pressure to the already stretched PRS.

The GLA’s 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 and expected to receive Royal Assent in the autumn, is predicted to raise costs in the PRS further, if, as anticipated, many landlords leave the sector. This would increase demand for PBSA at precisely the point where delivery has slowed, creating further pressures for students.

Balancing competing demands for land
One of the most significant challenges when securing planning permission for PBSA is not simply design or delivery but the use itself. This is particularly difficult when balancing the need for PBSA
against competing pressures, most notably conventional housing.