UK: The City of Edinburgh Council is considering new restrictions on the development of purpose-built student accommodation (PBSA) in response to mounting concerns over housing shortages and affordability.
Proposals under review include a licensing scheme and planning policy reforms aimed at limiting the volume of PBSA in certain neighbourhoods.
The measures come amid sustained growth in student numbers and rising pressure on the local housing market.
According to the council, Edinburgh has received more than £260 million in PBSA investment over the past two years, with a significant proportion concentrated in central and south-east areas of the city.
Some councillors say the expansion has contributed to the displacement of local residents and increased rental pressures.
As part of the new measures, the council is assessing the potential to ban or restrict new student accommodation in areas with a high concentration of existing PBSA. A formal consultation is expected to take place later this year.
Neil Gardiner, convener of the council’s planning committee, said: “We are looking at a licensing system which will give us the ability to control how much student accommodation is built in a particular area. This is about ensuring a better balance between student housing and homes for families.”
The proposed changes build on earlier planning guidance introduced in 2023, which required new PBSA schemes to include a mix of residential uses and provide at least 35 per cent affordable housing.
Developers have expressed concern over the potential for further regulation. Firethorn Trust, a UK real estate investment manager currently delivering a 316-bed PBSA scheme in Edinburgh, warned that overly restrictive policy could discourage investment and slow delivery of much-needed accommodation.
In parallel with the proposed restrictions, the council has temporarily paused allocations of some council-owned housing, instead prioritising the use of vacant homes for emergency and temporary accommodation. Officials are also exploring the acquisition of existing PBSA buildings to convert into general housing stock.
The policy shift comes as Edinburgh navigates the dual pressures of a growing student population and a city-wide housing emergency declared in November 2023.
A final decision on the new PBSA rules is expected before the end of 2025.
Highlights:
– Edinburgh Council plans new restrictions on PBSA
– The city has £260 million worth of PBSA in pipeline
– The proposed licensing scheme aims to limit PBSA in high-density areas
