Consultation is ‘critical moment’ for Edinburgh PBSA market

Edinburgh PBSA
Reading Time: 2 minutes

UK: A consultation on new draft planning guidance for PBSA development in Edinburgh is now open, with comments to be submitted by May 23 2025.

The guidance, though non-statutory, will play a crucial role in shaping the determination of future planning applications for student housing developments in the city.

Over the past 18 to 24 months, the PBSA market has experienced significant activity, with Edinburgh attracting investment due to its world-class higher education institutions and growing student populations.

In response to a rise in PBSA planning applications, local councils have sought to tighten policy requirements to ensure a more balanced approach to PBSA developments. Edinburgh’s City Plan 2030, adopted in November last year, introduced stricter guidelines, including limiting studio apartments to 10 per cent of the total PBSA mix and requiring larger sites to provide a 50/50 split between PBSA and mainstream residential housing, of which 35 per cent must be affordable. These new measures aim to prevent monoculture developments and encourage mixed-tenure communities.

The newly proposed planning guidance further builds on these requirements, introducing key provisions, including:
• Mixed-use developments: Sites larger than 0.25 hectares must allocate at least 50 per cent of the land to mainstream housing, with splitting of sites to circumvent this requirement explicitly discouraged
• Locational considerations: The emphasis has shifted from restricting excessive concentrations of student housing to evaluating the overall character of an area
• Housing allocations: PBSA developments on allocated housing sites must not reduce the number of mainstream residential units originally designated
• Developer contributions: Financial contributions will likely be required for transport, healthcare, and environmental improvements

Recent planning decisions have already demonstrated the implementation of these principles, with developers facing obstacles in securing permission for PBSA on housing-allocated sites and efforts to split sites proving unsuccessful.

Craig Gunderson, associate director at Savills Planning, said: “This draft planning guidance represents a critical moment for the student housing sector in Edinburgh. The city has long grappled with the challenge of balancing PBSA growth with wider housing needs, and these new measures signal a firm shift towards ensuring developments on larger sites contribute meaningfully to mixed-tenure communities. While the guidance introduces new hurdles for developers, it also presents an opportunity for collaborative discussions that will help shape a sustainable future for student housing in Edinburgh.”

Stakeholders are encouraged to participate in the consultation process to help shape the final guidance document. Comments can be submitted until May 23 2025.

 

Be in the know.

Subscribe to our newsletter »