London has approved more than 26,000 student bedrooms since 2021, according to new research from national planning and development consultancy Lichfields. A recent surge in planning approvals during 2024 and the first quarter of 2025 is providing cause for optimism after several years of under-delivery against the capital’s purpose-built student accommodation (PBSA) targets.
Under the Greater London Authority’s methodology, the PBSA rooms in the pipeline are equivalent in housing need terms to more than 10,500 conventional homes. While not directly an affordable housing total, Lichfields’ analysis shows a growing trend of new PBSA applications incorporating affordable housing provision.
With student numbers rising, a constrained rental market and permissions for conventional housing at a ten-year low, PBSA has emerged as one of the few economically viable types of residential development currently coming forward. This growth offers an opportunity to ease pressure on the private rented sector and support London’s wider housing needs.
Lichfields’ research also finds that the Greater London Authority’s broad policy support for PBSA has filtered down to borough level, with a flexible approach proving key to enabling schemes to progress. Although there is no set design-led planning framework for PBSA, most schemes follow similar patterns for space, amenity and layout, while preferred locations vary between developers and operators. This market-led approach is helping PBSA remain attractive to investors and providers.
Jonathan Hoban, Associate Director in Lichfields’ London office, said: “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.
“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 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.
Jonathan Hoban added: “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.”
The full report is available at: https://lichfields.uk/content/insights/unlocking-london-s-student-housing-potential
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