The Trowers & Hamlins Living Team has been digesting the new Draft London Plan, published today. More in-depth analysis will follow, but here are our initial thoughts across three key sectors:
Purpose-Built Student Accommodation (PBSA)
PBSA has a firm place on the agenda in the Draft London Plan, with a target of 31,549 new student bedspaces across London over the next decade. Key takeaways include:
- Boroughs are expected to plan positively for PBSA, including through site allocations in Local Plans, creating a more predictable development pipeline.
- PBSA will count towards borough housing targets, giving local authorities a tangible incentive to support well-located schemes.
- Location remains central: new schemes should generally be within a 30-minute walk, cycle, or public transport journey of a higher education institution.
- The affordable housing approach is more flexible, with 'payment in lieu' options offering developers greater flexibility in meeting their obligations.
- PBSA is recognised as a catalyst for regeneration, with the potential to unlock mixed-use developments and support phased delivery.
- Growth will not be unchecked - boroughs are encouraged to manage concentrations of PBSA to maintain balanced, mixed communities.
More broadly, the Plan acknowledges PBSA's strategic role in supporting London's universities while helping to ease pressure on the private rented sector.
Older Persons Housing (OPH)
The Draft Plan takes a borough-by-borough approach to older persons housing need. Our headline observations:
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The headline figure of 22,805 units represents a minimum - it focuses on supported housing and does not capture demand in the private sale or rental market. Boroughs will need to look beyond this to local evidence.
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Whilst the Plan acknowledges the breadth of typologies and price points in this market, the target numbers are weighted towards supported housing provision.
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There is welcome emphasis on locating OPH in areas with strong infrastructure connections.
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Importantly, each bedroom in non-self-contained OPH will count towards housing targets. This makes needs-based specialist housing an efficient means of meeting targets, but risks skewing incentives away from purpose-built, self-contained OPH that could free up family homes and support independent living.
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LPAs are encouraged to consider site allocations for OPH, but explicit requirements for such provision remain limited.
Build to Rent (BTR)
BTR receives clear strategic endorsement in the Draft Plan, positioned as a leading contributor to London's housing market. Key points:
- Boroughs are expected to plan positively for BTR - an important planning policy lever for operators and a signal of institutional support for the sector.
- Reduced affordable housing thresholds remain available to BTR operators - a structurally significant concession when modelling return assumptions.
- BTR homes must be secured for a minimum of 15 years via a covenant regime embedded in s106 Agreements.
- Development proposals are expected to give careful consideration to service charge costs at the design stage - a practical requirement that will need to be factored in early.
We will be sharing more detailed analysis in the coming days. In the meantime, if you have any questions or would like to discuss what the Draft London Plan means for your projects, please do get in touch.
