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Developers struggle on approvals for London student schemes

Student numbers studying at London’s universities have continued to grow whilst the supply of student accommodation in the capital remains tight.

Drivers Jonas Deloitte’s latest crane survey puts a spotlight on the provision and development of London’s student housing. With over quarter of a million (267,800) full time students studying in London, the research shows that only 19% (50,959) of students are able to obtain purpose-built bed-spaces.

Chris Baldwin, head of student housing at Drivers Jonas Deloitte, said: “From our analysis we believe we are still a long way from filling the supply gap and this level of undersupply looks unlikely to ease anytime soon. This is likely to be made worse by the proposed planning policy as developers struggle to get approval for schemes. Universities and developers need to be acting now. The window of opportunity is beginning to close as office and commercial developments become viable options once again.”

Andrew Gale, planning director at Drivers Jonas Deloitte, said: “We’re seeing several Local Planning Authorities introducing draft polices that if applied rigidly would constrain supply and impact scheme viability. In Hammersmith & Fulham, Islington and Tower Hamlets policymakers are seeking to limit new student accommodation development to specific areas of the borough.

“In Southwark all new student accommodation development could soon be required to contribute to the supply of affordable housing, which would ultimately impact upon its viability. This tightening in planning policy has been reflected in decisions made on individual planning applications over the last 12 months. Nearly 50 per cent of schemes have been refused planning - 11 schemes have been refused at planning committee, three of which have subsequently been dismissed on appeal, compared with only 13 approvals over the same period.”

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