Savills respond to major Edinburgh PBSA consultation

Savills said stakeholders are encouraged to participate in the consultation process to help shape the final guidance document.

Craig Gunderson, Associate Director - Planning, Savills | PBSA News
Craig Gunderson, Associate Director - Planning, Savills.

A consultation on new draft planning guidance for purpose-built student accommodation (PBSA) in Edinburgh, Scotland is now open, with comments to be submitted by next month.

By Craig Gunderson, Associate Director – Planning, Savills

The guidance, though non-statutory, will play a crucial role in shaping the determination of future planning applications for student housing developments in the city.

Over the past 18–24 months, the PBSA market has experienced significant activity, particularly from a planning perspective. Edinburgh, alongside Glasgow, continues to attract investment due to its world-class higher education institutions and growing student populations. However, both cities have faced well-documented challenges in meeting demand for student accommodation, prompting a surge in applications from developers.

In response to this influx, local councils have sought to tighten policy requirements to ensure a more balanced approach to PBSA developments. Edinburgh’s City Plan 2030, adopted in November last year, introduced stricter guidelines, including limiting studio apartments to 10% of the total PBSA mix and requiring larger sites to provide a 50/50 split between PBSA and mainstream residential housing – of which 35% must be affordable. These new measures aim to prevent monoculture developments and encourage mixed-tenure communities.

The newly proposed planning guidance further builds on these requirements, introducing key provisions such as:

  • Mixed-use developments: Sites larger than 0.25 hectares must allocate at least 50% of the land to mainstream housing, with splitting of sites to circumvent this requirement explicitly discouraged.
  • Locational considerations: The emphasis has shifted from restricting excessive concentrations of student housing to evaluating the overall character of an area.
  • Housing allocations: PBSA developments on allocated housing sites must not reduce the number of mainstream residential units originally designated.
  • Developer contributions: Financial contributions will likely be required for transport, healthcare, and environmental improvements

Recent planning decisions have already demonstrated the implementation of these principles, with developers facing obstacles in securing permission for PBSA on housing-allocated sites and efforts to split sites proving unsuccessful. As planning regulations become more complex, developers will need to navigate these challenges carefully.

This draft planning guidance represents a critical moment for the student housing sector in Edinburgh. The city has long grappled with the challenge of balancing PBSA growth with wider housing needs, and these new measures signal a firm shift towards ensuring developments on larger sites contribute meaningfully to mixed-tenure communities.

While the guidance introduces new hurdles for developers, it also presents an opportunity for collaborative discussions that will help shape a sustainable future for student housing in Edinburgh.

Stakeholders are encouraged to participate in the consultation process to help shape the final guidance document. Comments can be submitted until 23 May 2025.