PBSA approvals boost London housing delivery, research finds

PBSA approvals
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UK: London has seen a sharp rise in student bedrooms approvals during 2024 and early 2025, helping to reverse years of under-delivery against the capital’s purpose-built student accommodation (PBSA) targets.

Since 2021 London has approved more than 26,000 student bedrooms, according to new research from planning and development consultancy Lichfields.

Under the Greater London Authority’s methodology, the PBSA rooms in the pipeline equate to more than 10,500 conventional homes in housing need terms.

Lichfields notes a growing trend for new PBSA applications to include affordable housing provision.

With student numbers climbing, a tight rental market and permissions for conventional housing at a decade low, PBSA is one of the few viable residential development types currently moving forward.

Lichfields says this growth could ease pressure on the private rented sector and support London’s wider housing needs.

The report finds the GLA’s broad policy support for PBSA has filtered down to borough level, with flexibility in approach helping schemes progress.

While there is no fixed design-led planning framework, most projects follow similar layouts and amenity standards, and location preferences vary by developer and operator—keeping the sector attractive to investors.

Jonathan Hoban, associate director in Lichfields’ London office, said: “Purpose-built student accommodation plays a critical role in meeting housing need and supporting London’s global education offer. The research identifies a healthy pipeline of schemes with approval which should translate into deliveries.

“Against the poor backdrop for conventional housing in London, the provision of PBSA not only ensures London remains a leading destination for higher education but it could help deliver more affordable homes. It could be a win-win situation for London.

“This is a real opportunity to bring forward the delivery of much-needed homes across the capital. By maintaining a flexible approach in the next London Plan and continuing to champion well-designed PBSA, we can ensure more schemes continue to come forward, helping to meet both student demand and the wider housing needs of London.”

The study concludes that maintaining the current momentum will require the next London Plan, due in 2027, to continue fostering this flexible approach and advocating for new PBSA.

Highlights:

– London has approved more than 26,000 student bedrooms since 2021.

– The PBSA pipeline equates to over 10,500 conventional homes.

– PBSA applications increasingly include affordable housing.

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