London’s ability to deliver 31,500 new purpose-built student bedrooms over the next decade will depend on boroughs applying the Draft London Plan’s new targets flexibly, according to planning and development consultancy Lichfields.
The draft Plan introduces individual purpose-built student accommodation (PBSA) targets for London boroughs for the first time, giving local authorities a clearer role in planning where new schemes should be delivered.
The approach gives PBSA a clearer place within London’s housing strategy, recognising its role in supporting the capital’s universities and easing pressure on the private rented sector.
For the targets to translate into the delivery of new accommodation, boroughs will need to treat them as a basis for delivery rather than a fixed limit, with enough flexibility to respond to changes in student demand, universities’ growth strategies and development viability.
Jonathan Hoban, Associate Director in Lichfields’ London office, said: “The introduction of borough-level targets gives local authorities a much clearer basis on which to plan for student accommodation.
“PBSA is an important part of London’s housing mix, supporting the capital’s universities while reducing the number of students competing for homes in the wider private rented market.
“The key is ensuring that the targets support delivery without becoming an artificial limit. Demand will change over the lifetime of the Plan, so boroughs will need to provide sufficient flexibility to consider suitable schemes where there is clear evidence of demand.”
The Draft London Plan requires boroughs to meet local student accommodation needs and create opportunities for new development. PBSA would also continue to contribute towards general housing delivery, with every 2.5 student bedrooms counted as one home.
Local plans should, however, avoid relying on a limited number of sites allocated specifically for student housing. Allowing PBSA on a wider range of suitable residential sites would give councils and developers more scope to respond to changing demand.
Hoban added: “Student accommodation requirements and development conditions can change more quickly than local plans. A broader approach to site allocation would allow proposals to be assessed against the evidence available at the time, rather than restricting delivery to a fixed list of locations.”
The draft policy states that new schemes should generally be within around 30 minutes’ travel of a university campus and have good access to public transport, services and facilities. Boroughs could also introduce policies to manage concentrations of student housing where these affect mixed and inclusive communities.
The Plan also proposes greater choice over how PBSA developments contribute towards affordable housing. Developers could provide affordable student rooms, combine a reduced proportion of affordable student accommodation with a payment towards conventional affordable housing, or deliver conventional affordable homes.
Hoban said: “The wider choice of affordable housing options is a constructive step. Different sites and operators face different circumstances, and greater flexibility should make it easier to agree an approach that supports delivery and helps meet London’s affordable housing objectives.
“The Draft Plan gives PBSA clearer strategic status. The detail will now be important in helping boroughs turn those targets into new accommodation.”
The consultation on the Draft London Plan closes at 5pm on 15 October 2026.
For more information, visit: https://lichfields.uk/blog/2026/july/27/pbsa-in-london-becoming-a-strategic-housing-target
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