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Student housing supply remains tight

Less than a fifth of London’s 268,000 full-time students are able to obtain purpose-built bedspaces, a report shows.

Meanwhile, the pressure on student housing appears to be growing, the report noted. The University and College Admissions Service is reporting a 22 per cent increase in applications for the next academic year.

As student numbers studying at London’s universities continue to grow, the supply of accommodation remains tight, the London Student Housing survey from property consultancy Drivers Jonas Deloitte said.

“From our analysis we believe we are still a long way from filling the supply gap and this level of undersupply looks unlikely to ease anytime soon,” Chris Baldwin, head of student housing at Drivers Jonas Deloitte, said.

“This is likely to be made worse by the proposed planning policy as developers struggle to get approval for schemes. Universities and developers need to be acting now. The window of opportunity is beginning to close as office and commercial developments become viable options once again.” 

The crane survey details all development activity on schemes of 50 or more bedspaces.

The report also details where the existing stock is located, an overview of market trends and the implications of the current planning situation.

There are 11 schemes under construction that will provide 4,078 bedspaces, two-thirds of which are due for completion within this academic year.

There are 24 schemes with planning consent, up from 17 last year. These have the potential to deliver 7,370 bedspaces, up 75 per cent on last year’s total number of units with planning consent.

Since the previous survey, nearly 2,500 bedspaces have completed. 

“We’re seeing several local planning authorities introducing draft polices that if applied rigidly would constrain supply and impact scheme viability,” Andrew Gale, planning director at Drivers Jonas Deloitte, said.

In Hammersmith & Fulham, Islington and Tower Hamlets policymakers are seeking to limit new student accommodation to specific areas of the borough. In Southwark, all new student accommodation development soon could be required to contribute to the supply of affordable housing, which would ultimately impact upon its viability, Gale said.

“This tightening in planning policy has been reflected in decisions made on individual planning applications over the past 12 months. Nearly 50 per cent of schemes have been refused planning - 11 schemes have been refused at planning committee, three of which have subsequently been dismissed on appeal, compared with only 13 approvals over the same period.”

Students studying in London are paying a premium for the privilege,” the report said. Rents in the capital stand at 48 per cent above the UK average -- £134 versus £90 per week.

Rental growth in the capital has outstripped the UK as a whole by 2 per cent over the past year.

Further rental growth within the capital is expected this year, which is positive news for investors and developers, the report said. However, from a student perspective it draws into question the affordability of London when compared to the rest of the UK. 


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