London’s student housing boom could ease pressure on the PRS

Purpose-built student accommodation (PBSA) could be the solution to help London meet housing targets, claims a planning and development consultancy.

Lichfields says a surge in PBSA in the capital will ease pressure on the private rented sector and support the rising number of students.

However, many students prefer to rent from the private sector due to affordability.

According to Save the Student’s National Accommodation Survey 2025, the average monthly rent is £532, compared with £615 for student halls.

PBSA plays a critical role in meeting housing need

According to Lichfields, London has approved more than 26,000 student bedrooms since 2021. The firm claims a recent surge in planning approvals last year, with permissions already surpassing the 3,500 target.

The firm says that, under the Greater London Authority’s methodology, the PBSA rooms in the pipeline are equivalent in housing need terms to more than 10,500 homes.

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 data reveals PBSA planning applications in London up to April 2025 found that, of the 60 schemes approved during this period, 48 aimed to provide on-site affordable student accommodation (ASA), with 33 of these (around 69%) offering at least 35% of their units as affordable.