QX Global Group and CBRE unveil groundbreaking report

QX Global Group and CBRE have unveiled a groundbreaking report on purpose-built student accommodation (PBSA) under the London Plan.

QX Global Group and CBRE's report - London Plan Three Years On | PBSA News

QX Global Group, in collaboration with CBRE, hosted a panel discussion to launch its latest report, ‘The London Plan Three Years On: What’s been the impact on PBSA?’ The report delves into the development of PBSA under the London Plan and evaluates its effectiveness since its adoption in March 2021.

The event gathered key stakeholders from the industry, including developers, policymakers, and educational institutions, who shared their experiences and insights on the progress and obstacles faced in the development of PBSA. The discussion focused on the persistent challenges in meeting the growing demand for student housing in London.

David Tymms, Strategic Advisor at QX Global Group, emphasised the significance of the London Plan in addressing the housing needs of the UK’s largest full-time student population.

“London’s student housing market is at a critical juncture. With over 500,000 full-time students and a slow development pipeline, the demand-supply gap in PBSA is a pressing issue. The London Plan set ambitious targets, but delivery has fallen far short of what the capital’s students and universities require.”

David Tymms, Strategic Advisor, QX Global Group

Report insights

QX Global Group and CBRE’s report, ‘The London Plan Three Years On’, provides a comprehensive analysis of the current state of PBSA in London. It covers various aspects, including the impact of Policy H15, which mandates that 35% of new PBSA units must be affordable.

Despite the policy’s good intentions, the report highlights the challenges developers face in meeting these requirements, particularly in high-cost areas central London boroughs.

Key findings from the report include:

  • Supply and pipeline: Since the adoption of the London Plan, only 12,000 PBSA beds have received planning consent, including 3,100 affordable beds.
  • Geographical disparities: The distribution of new PBSA developments is uneven, with central boroughs like Westminster and Camden seeing minimal growth. This uneven distribution exacerbates the accommodation crisis in high-demand areas.
  • Challenges in development: The report identifies multiple hurdles in PBSA development, such as complex local planning requirements, financial viability issues due to capped rents, and the need for university support in securing development approvals.

The event and report underline the need for the Greater London Authority (GLA) to adopt a range of stakeholder measures proposed in its recent London Plan Guidance consultation, which will help ease the development logjam.

For further information, please email David Tymms, QX Global Group’s Strategic Advisor at David.Tymms@qxglobalgroup.com.

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