News14.08.25by Zainab Hussain
The number of student homes approved in London has risen 474% in two years and is forecast to grow further this year, a report has found.
Urbanest student accommodation in Kings Cross, London. Between 2021 and the first quarter of 2025, 106 planning applications for PBSA schemes were submitted in London (picture: Alamy)
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The number of student homes approved in London has risen 474% in two years and is forecast to grow further this year #UKhousing
The number of student beds approved in the capital rose from 2,621 in 2022 to 15,041 in 2024, according to planning consultancy Lichfields.
That is a rise of 474% in two years, and well above the Greater London Authority’s (GLA) delivery target of 3,500 beds per year set in 2022.
Student bed approvals are forecast to hit 17,172 in 2025, the consultancy said, which would be a 555% increase over three years. There are currently 41 live planning applications for more than 19,600 student beds in London.
The report was based on research conducted by Lichfields and discussions with professionals from the purpose-built student accommodation (PBSA) sector.
The economic pressures of delivering other self-contained housing in London have also made PBSA an attractive investment opportunity.
Flexible policies around location, bedroom sizes and amenity sizes within the GLA’s London Plan published in 2021 have also allowed PBSA developers and operators to adapt to the market.
The majority of London PBSA schemes (97%) provide at least 35% affordable housing, either through affordable student accommodation, on-site self-contained affordable housing, a payment in lieu towards affordable housing or a combination.
Between 2021 and the first quarter of 2025, 106 planning applications for PBSA schemes were submitted in London – 57% were approved, 5% were refused and 39% have not been determined.
A lack of on-site affordable housing, quality of the internal accommodation and amenity space were common reasons for application refusal.
Applications within inner London accounted for 63%, while applications for outer London accounted for 37%.
Since the London Plan was introduced in 2021, 43% of local authorities have not approved any PBSA schemes. Of the approved schemes, 70% were with local authorities hosting higher education providers.
Southwark Council approved the largest number of student beds with 3,758 purpose-built beds, followed by the London Legacy Development Cooperation with 3,203 purpose-built beds, and Ealing Council with 2,762 purpose-built beds.
Most local authorities also had additional planning requirements – such as being in growth areas or town centres.
Brent, Kensington and Chelsea, Westminster, Waltham Forest and Southwark had the most up-to-date supportive policies around PBSA schemes. Schemes also ranged from 27 student beds to 943 student beds, with the average being 413 student beds.
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Picture: Alamy