Student Housing Student Housing in in

Tower HamletsTower Hamlets

Manmohan DayalManmohan DayalL.B.Tower HamletsL.B.Tower Hamlets

3030thth June 2008 June 2008

Student Housing-Policies

• National– The Future of Higher Education, 2003

• Increase number of students in HE to 50% by 2010– PPS 3: Housing, 2006

• Identify accommodation requirements of the population• Regional

– Draft London Housing Strategy• Housing of all tenures for multiple needs of population• Opportunity of choice and mobility• Counts towards overall housing provision• Not considered for Social Housing

– Consolidated London Plan, 2008• Adds to overall provision• No obligation for social housing

– London Plan SPG: Housing• Temporary • Not considered as social housing

Student Housing – Local Plan

• UDP, 1996– Encourage housing for residents with special needs &

students in certain locations– No loss of permanent housing

• Interim Guidance: Core Strategy, 2006– Preferred locations in QMUL campus & near LMU– Not a preferred housing use– Makes no contribution towards meeting housing need– Supports family homes – Supports retention of HMOs

Opportunities

• Uncertain times; steady market• Higher rental increases for pvt halls &

HMOs– 5%-7% p.a. vs 2% in pvt housing sector

• Exempt from obligations for social housing• Tax benefits • Permitted on Sui generis uses• Increased paying capacity of students-

– Loans– International students

Demand:2007/08

Core demand:1st yrs + Foreign students=25% of FTS

London• 251K FT students; Core demand of 60K• Increase in Foreign students by 9% p.a.• Increase in FT students by 3% p.a.Tower Hamlets• 21K FT students; Core demand of 5K• Demand from QMUL, LMU + univs in other

areas

Existing Supply

Borough Bed spaces F.T. Students Core demand

Newham 1180 10,781 2,700

City 1132 26,645 (10.61%)

6,660

Tower Hamlets 3635 (70% of CD)

20,785 (8%) 5,200

Total for NE 5967 (41% of C.D)

58,211(23%) 14,550

Total for North

8316 (27%) 124,139 (50%)

31,000

All London 48,279 (77% of C.D)

251,035 62,758

Supply:

London: Supply of 48k bed spaces; shortfall of 12KSub-Regional:5147+ 2000 (in pipeline); shortfall of

7kTower Hamlets• Supply 3635 bed spaces + 2000 approved/under

construction; shortfall is nil• Increase in SH by 150% in 5 years (2312 to 3635

bs) • Increase in en-suite rooms by >50% p.a.• Trend towards studio apts: £150-200/ week; or• 56% of FT students staying in all student HHs

Location: Tower Hamlets

Student Housing: Locations Type of sites • Warehouse/ storage (B8)• Light industrial (B1)• Car parks• Service YardsLocations• Close to Railway lines• With vehicular constraints• Lower amenity value: Industrial area

Issues for Tower Hamlets • Spill over of demand from North into NE

– Higher land values– Less profitable in North unless

• Higher end (studio) student accommodation• Higher rentals, smaller tenures

• Studentification of areas • Loss of family homes• No net increase in housing capacity• Affordability of student accommodation

Recommendations: Policy

• Major role for Pvt providers– Agreements between Providers & HEIs

• Collaborative programme with boroughs• Sustainable Locations:

– Within close proximity of HEIs (1 mile radius)– Good transport Links– Safe locations

• Affordability: – length of tenancy – affordable rooms for students from Low income Hhs– (BUT HOW- Conditions???)

• Conversion to HMOs

Recommendations: Design

• Provide quality development: open spaces etc

• Accommodation mix of studio & en-suite• Cycle parking, service parking• No loss of amenity of existing residents• Standards for room sizes

Finally……

Thank you

Any Questions?