Analysis of London Plan 2021: Falling Short of Targets for PBSA
![Analysis of London Plan 2021: Falling Short of Targets for PBSA](https://cdn.prod.website-files.com/61367e26c54d25084178c74d/6602d776e2dbd0fb0c630355_pexels-pixabay-460672%20(1).jpg)
UK News
Key Points:
1. The London Plan 2021, which was initiated around March 2021, was aimed to address the affordability of London student accommodation by recognising the importance of Purpose Built Student Accommodation (PBSA).
2. It included allocating at least 35% of the rooms, keeping affordability and capped rents a priority.
3. With over 500,000 full-time students in London, only 12,000 beds have been approved, out of which only 3,100 are affordable. This falls short of the targets mentioned in the London Plan 2021.
4. Lack of support from the universities and modification in the boroughs have resulted in a hindrance in PBSA development in London.
5. The scarcity of Houses in Multiple Occupation (HMOs) and increased occupation of Build-to-Rent (BTR) housing by students exacerbate the housing crisis, while proposed legislation may further strain the rental market.
In this comprehensive analysis presented by David Tymms, Strategic Advisor at QX Global Group and Former Director of Residences at LSE, the London Plan 2021 seems to have fallen short of targets. The question has arisen as to whether this PBSA real estate has achieved its objective. Introduced in March of 2021, the London Plan 2021 projected targets to build affordable PBSA student accommodation. Although, three years into action, the targets set have not been achieved as the UK undergoes a severe student accommodation crisis.
According to Policy H15, the major pillar of the plan mandated that out of the total PBSA sector, 35% of the rooms available should be marked affordable. Additionally, a majority of beds were to be allocated through nomination agreements with universities. With over 500,000 full-time students enrolled in London, the demand for student accommodation far outstrips the available supply of 100,000 PBSA beds.
The analysis reflects a contrasting reality, with only 12,000 beds being approved for PBSA student accommodation. Out of this, only 3,100 fall under the affordable category. This project has seen a stark year-on-year shortfall of the Greater London Authority’s target, particularly in areas like Westminster and Camden. Universities have promised over 111,000 students with guaranteed accommodation although this number surpasses the available bed spaces.
Various modifications to the Plan by different boroughs and the requirement for university support have posed significant hurdles to PBSA sector development. Viability issues, exacerbated by rent control regulations, especially in central London, further deter developers. The lack of support from many institutions, aside from a select few with substantial financial resources, compounds the problem. A rising occupation of Build-to-Rent (BTR) and a low supply of Houses in Multiple Occupation (HMOs) have exacerbated the student housing crisis.
TL;DR
The GLA (Greater London Authority) has delayed the London Plan 2021 guidance making it difficult for the project to proceed further. This has resulted in a lingering uncertainty over the London student accommodation market. Urgent revisions informed by stakeholder feedback are imperative to address the critical housing needs of London's student population and ensure the city's status as a premier education destination. According to Policy H15, the major pillar of the plan mandated that out of the total PBSA sector, 35% of the rooms available should be marked affordable. However, only 12,000 beds are being approved for PBSA student accommodation. Out of this, only 3,100 fall under the affordable category.
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