The demand for additional student accommodation in Scotland is no new issue: In 2022, we heard how students at the University of Glasgow were told to consider withdrawing from their studies if they hadn’t found a place to live by enrolment, underlining the severity of the issue.
Unfortunately, the problem remains. A recent report from Savills highlighted that Glasgow still has the largest supply imbalance in the UK. It estimates that the city requires a staggering 22,000 additional beds to meet the needs of its student population: a student-to-bed-ratio of 3.8, significantly higher than the desired figure of 1.5.
How long can this imbalance continue before Glasgow risks losing its world-class reputation for education? Glasgow has six well-respected universities, including the Glasgow School of Art and the Royal Conservatoire of Scotland, three "super" colleges, and 185,000 students from 140 countries. However, competition from other cities is fierce, and it is essential students can live in Glasgow.
It’s no surprise that in response to this, developers have realised the opportunities within the sector with an influx of planning applications made to Glasgow City Council to deliver purpose-built student accommodation (PBSA). There is a strong pipeline of student housing that has the potential to transform Glasgow’s current student housing landscape and help to breathe life back into the city centre.
Before the Scottish Government tabled rent caps and the proposed Housing (Scotland) Bill, developers were eying build-to-rent (BTR) opportunities, helping to alleviate the massive shortage of rented housing.
However, the legislation has created apprehension amongst developers and investors, evidenced by no major BTR schemes having broken ground in the last two years. Instead, the demand and financial viability offered by PBSA has prompted developers to pivot and chase opportunities of this tenure instead.
Whilst this should be welcomed as the demand for student homes continues to spiral, the abundance of PBSA planning applications in Glasgow has come under criticism because of the sudden spike in proposals, with concerns that student housing is favoured over private and social housing.
PBSA operators are diversifying their schemes to be less insular and are exploring ideas like opening up ground floor areas to the community for shared amenities such as coffee shops, co-working spaces and retail outlets.
We see this already at The Social Hub in Candleriggs Square, where hotel residents, students and the public integrate within one space. There is the opportunity for food, retail, workspace conferences and community events, providing additional revenue streams.
GRAHAM is delivering a 551-bed student accommodation development on Bath Street, Glasgow. I am optimistic that we’ll continue to see more high-quality schemes secure planning consent, driving footfall into the city centre and aiding economic growth.
These new developments address the critical housing shortage and rejuvenate the city centre by increasing footfall and supporting economic growth. As developers and contractors continue to deliver high-quality student housing, there is optimism that Glasgow will strengthen its reputation as a top educational destination while enhancing the vibrancy and appeal of its city centre.
Alistair Leith is Head of Submissions at GRAHAM
Agenda is a column for outside contributors. Contact: agenda@theherald.co.uk
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