The British Property Federation (BPF) has unveiled part of its manifesto for the General Election which outlines plans to address the UK's housing shortage.
Focus areas include student housing, build-to-rent (BTR) targets and private investment.
The new manifesto, 'Building for Generations', highlights the crucial role purpose-built student accommodation (PBSA) plays in supporting the UK's universities.
'Right balance' needs to be found for PBSA
Theo Plowman, the assistant policy director at the British Property Federation, told Accommodation for Students that the 'right balance' needs to be found for PBSA.
He explains: "We cannot underestimate how important high-quality PBSA is to the financial health of our academic institutions.
"There are many places where demand is massively underserved.
"The sector continues to be defined by an acute supply and demand imbalance. CBRE outlined a shortfall of 580,000 beds."
PBSA sector is home to 710,000 students
The BPF says that the PBSA sector is home to 710,000 students and post-graduate researchers and is the popular choice of international students.
Now, the BPF says that to help the UK deliver the vital PBSA accommodation required, there needs to be:
- Needs assessments: A needs assessment for student accommodation would be like housing need evaluations. That would see local authorities having to consider PBSA supply as part of their Local Plans
- Exempt CIL payments: The BPF says that affordable student accommodation should be exempt from Community Infrastructure Levy (CIL) payments, in line with affordable housing, to support delivery at lower price points. CIL payment is a charge by local authorities on new developments to help deliver the infrastructure needed
- Mandate future student accommodation needs: Universities should be made to plan for student accommodation in their growth strategies.
This last point will prove popular with students and parents - and private student landlords - after several years of many university towns and cities struggling to accommodate all of their students.
Projections based on past growth rates
Mr Plowman says that creating needs assessments is crucial and explains: "Predominantly this has been done by using projections based on past growth rates but working with institutions to better establish their recruitment plans would be the preference."
He adds: "It should give a stronger weighting to a 'presumption in favour' of development which should streamline the planning process."
That should give confidence to investors who can drive development in areas of high need.
Mr Plowman also told Accommodation for Students that making it mandatory for universities to plan for its student population should be welcomed.
He said: "This does already occur in some localities, but we want this good practice to be spread more widely.
"Nottingham Trent University and the University of Nottingham both collect and share annually with the city council an agreed and consistent set of student number data to inform the planning process and local plan formulation.
"This joint working forms the basis of our Student Living Strategy, which is about improving the choice and quality of student accommodation."
A role for private student landlords
And, he says, there will be a role for private student landlords in meeting demand: "Small landlords are an important part of the student market and will remain so.
"It is important any market also offers choice.
"There are tremendous pressures on private renting at present though, both through expanding demand, and smaller landlords withdrawing from the market.
"Also, expansion of undergraduate and postgraduate courses and demographics will all drive more demand. All this is creating more necessity for purpose-built accommodation to expand."
BTR market is lagging behind other countries
Recognising that the UK's BTR market is lagging behind other countries, the BPF also proposes a target of 30,000 new BTR homes annually.
There are more than 100,000 BTR homes that have been completed and there’s a pipeline that is 160,000 strong – but that's lower than the US and Australia, among others.
The BPF says more professionally managed homes are needed in the UK – with a range of rents.
The manifesto suggests measures like exempting stamp duty for any development of at least 100 units to create more investment and lower development risk.
There's also a need for Local Plans to consider professionally rented homes.
Plus, the BPF wants to see the PRS Housing Guarantee Scheme being extended to incentivise investment and development.
The recommendations will, the BPF hopes, help ease pressure on the rental market and create a more sustainable housing environment for future generations.
'Positive news for private student landlords'
The managing director of Accommodation for Students, Simon Thompson, said: "While the BPF's 'Building for Generations' manifesto focuses on large-scale PBSA solutions, there's positive news for private student landlords too.
"The proposals for needs assessments and exempting affordable PBSA from CIL payments could lead to a more stable and streamlined planning process."
He added: "Also, a mandated focus on the provision of student accommodation by universities should increase demand in most areas.
"Overall, these recommendations could create a more supportive environment for private student landlords in the long run."
