Insights

Unlocking London’s student housing potential

Driving the future of PBSA delivery

07 Aug 2025
With over 40 higher education institutions and the largest student population in the UK, London plays a crucial role in the ongoing success of Higher Education.
 
London, however, faces a shortage of Purpose-Built Student Accommodation (PBSA) relative to the growing number of full-time students studying in the capital.
 
In October 2018, the GLA published the "Student Population Projections and Accommodation Need for New London Plan 2017" which informed the London Plan 2021. The report identified a requirement for 3,500 bedrooms per year between 2016 and 2041, totalling 88,000 additional student bedrooms.
 
Since 2018 the number of PBSA beds being delivered in London has rarely met this annualised target, piling pressure on the sector to provide more PBSA in the capital. However, with PBSA now proving to be one of the few economically viable housing products in London, is the tide starting to turn in terms of achieving these targets?
 
Planning has a critical role to play in the delivery of PBSA in London. This Insight Focus explores the planning opportunities for PBSA in London, it examines planning policy, patterns of delivery, and development trends, before addressing common planning challenges and potential solutions. It is based on Lichfields’ research and draws upon discussions with key PBSA stakeholders.