"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"
- Jonathan Hoban - Lichfields
London has granted planning permission for more than 26,000 student bedrooms since 2021, according to new figures from national planning and development consultancy Lichfields. A marked rise in approvals during 2024 and the first quarter of 2025 is being viewed as a positive sign after years of shortfalls against the capital’s purpose-built student accommodation (PBSA) delivery targets.
Under the Greater London Authority’s assessment framework, the PBSA rooms in the pipeline equate to more than 10,500 conventional homes in terms of meeting housing need. Although not counted directly within affordable housing totals, Lichfields’ research notes an increasing share of PBSA applications are incorporating affordable provision.
Rising student enrolments, a limited rental market, and conventional housing permissions at a decade-long low have positioned PBSA as one of the few financially viable forms of residential development currently advancing. This growth offers scope to ease pressure on the private rented sector while contributing to London’s broader housing objectives.
The research also finds that the Greater London Authority’s support for PBSA has been reflected in borough-level planning decisions, with a flexible policy stance enabling schemes to move forward. While there is no dedicated design-led planning framework for PBSA, most projects follow similar patterns for space, amenities and layout, though preferred locations differ among developers and operators. This market-led model is helping to maintain investor and provider interest.
“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,” said Jonathan Hoban, Associate Director in Lichfields’ London office.
“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.”
The report concludes that sustaining current progress will depend on the next London Plan, scheduled for 2027, continuing to promote a flexible approach and advocate for PBSA delivery.
“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,” Hoban added.
