The excitement of Scottish university semesters starting in recent weeks is dampened by one pressing issue for new students. Recent articles in The Herald and elsewhere, following a report by the Scottish Parliament Cross-Party Group on Housing, have highlighted the challenge of finding affordable and suitable housing.

Scotland’s student housing crisis, driven by a rapidly growing student population and insufficient housing supply, has reached a critical point, especially in major cities like Edinburgh and Glasgow. Edinburgh alone has seen a 30% rise in its student population over the past five years, yet the pipeline of new beds is just not keeping up. This growing gap between supply and demand is worsened by developers’ focus on high-end Purpose-Built Student Accommodation (PBSA).

Last year’s Savills report showed a rise in UCAS acceptances, with non-EU student growth offsetting the post-Brexit decline in EU students. However, in the past 12 months, fewer international students have enrolled, freeing up spaces for domestic students. While this benefits local students academically, it worsens the housing crisis. International students can typically afford high-end PBSA units, but domestic students often cannot, leaving the accommodation gap unresolved.

The focus on high-end PBSA developments is resulting in a significant shortage of mid- to low-cost student housing entering the market. Meanwhile, the number of private landlords is decreasing due to regulatory changes aimed at rogue landlords, forcing many to sell. Rising interest rates have compounded the problem, with mortgage costs now often exceeding rental income. As private landlords exit, the burden shifts to commercial developers, who are also under financial pressure.

These issues are made worse by the high cost of land, particularly in city centres where student housing is most needed. Additionally, planning delays and rejections - often due to concerns over the density of student populations in certain areas - further complicate the development of affordable student housing. Together, these factors make a difficult environment that hinders the creation of affordable options for students.

Potential solutions to this growing problem include developers building PBSAs in more off-pitch locations, refurbishing existing properties instead of rebuilding, or repurposing outdated private rental buildings. A growing trend involves student housing developers buying older housing stock and upgrading it to improve quality and value.

Indeed, the real opportunity for affordable PBSA lies in retrofitting. With the Scottish office market shifting towards state-of-the-art, ESG-focused grade A spaces, many former office buildings are no longer suitable for commercial use. This creates an opportunity to repurpose these buildings for student housing, if the locations are suitable.

In a recent Herald column, Marissa MacWhirter urged local authorities to “put their foot down” and require developers to include a minimum number of affordable units. While this would be a positive step, it could push developers away from expensive city centres. This could be beneficial, however, in encouraging developers to explore more off-pitch areas, opening up new opportunities for affordable housing.

These solutions remain viable ways to increase affordable student accommodation, but it is becoming clear that meaningful change will require political intervention - either locally or nationally. Until then, the gap in affordable housing will likely continue to grow, particularly in Scotland’s major university cities.

Jonathan Seddon is a partner in MFMac’s Infrastructure & Capital Projects Team

Agenda is a column for outside contributors. Contact: agenda@theherald.co.uk