PBSA approvals boost London housing delivery, research finds

PBSA approvals
Reading Time: 2 minutes

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 capitalโ€™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 Authorityโ€™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 Londonโ€™s wider housing needs.

The report finds the GLAโ€™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 operatorโ€”keeping the sector attractive to investors.

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

โ€œAgainst 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.

โ€œThis 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.โ€

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.

Be in the know.

Subscribe to our newsletter ยป