Lewisham Council is set to consult on new planning guidance that will generally discourage the development of further purpose-built student accommodation (PBSA) in the borough, citing concerns over oversupply and the impact on conventional housing.
The decision was made at a Mayor and Cabinet meeting on Wednesday 4 November 2026, where councillors agreed to consult on a draft planning position statement. This statement clarifies how the council will apply existing planning policy regarding student accommodation, which requires it to meet a real need without compromising housing targets or causing harmful overconcentration.
A technical study indicated that while there is a current need for PBSA, Lewisham already has a significant pipeline of approved and pre-application schemes. This raises concerns about the displacement of conventional housing, potential overprovision, and localised spatial overconcentration in specific neighbourhoods.
Student Numbers and Oversupply Concerns
In the 2023/24 academic year, Lewisham had 14,940 full-time students. When students living with a parent or guardian are excluded, the current student-to-bed ratio (SBR) stands at 4.5:1. The draft London Plan proposes a target of 878 PBSA bed spaces for Lewisham between 2027/28 and 2036/37. However, the council has already approved 2,865 PBSA bed spaces expected to become available during that period, which is more than triple the projected figure.
The displacement analysis finds that replacing conventional C3 housing with PBSA can become more difficult as a wider pipeline of schemes comes forward. In such scenarios, the pressure on the borough's capacity to deliver conventional C3 housing increases, making it harder to address through existing Local Plan flexibility. Furthermore, the study notes that there is limited evidence that PBSA results in former student Houses in Multiple Occupation (HMOs) reverting to family housing, as HMO properties may remain in the shared housing market due to higher rental yields.
Areas at Risk of Overconcentration
The technical study indicates that the most significant spatial effects of PBSA are likely to be felt at the micro-neighbourhood level rather than across whole wards. Specifically, areas such as Deptford Creekside, Lewisham Town Centre, and parts of North Deptford are projected to exceed the student population share threshold of concern.
Future PBSA Proposals
The planning position statement will not ban student accommodation outright. Instead, it will signal that further schemes will generally be discouraged at the pre-application stage unless applicants can demonstrate exceptional wider public benefits and a strong, evidenced case for their proposals.
Councillor Daniel Dream, Cabinet Member for Inclusive Regeneration, Planning and Housing Delivery, explained that the statement clarifies how existing policy will be applied. David Syme, Head of Place Making and Strategic Planning, noted that concerns about overconcentration in specific areas and the price point of some PBSA have been raised.
Syme, added that the council wants to scrutinise any further PBSA proposals, discouraging them through the pre-application process but considering schemes that offer significant public benefit, such as intergenerational projects. Exceptional wider public benefits may arise where a proposal would secure the long-term viability, improvement or continued operation of a cultural or community facility of strategic or borough-wide importance. The applicant would need to demonstrate that the proposed PBSA is necessary to deliver those benefits and that the benefits are sufficient to outweigh any identified harm and the oversupply of PBSA.
Consultation Process
The consultation on the Lewisham PBSA Planning Position Statement will run from November to December 2026. A final version is expected to be reported to Mayor and Cabinet for adoption in June 2027. The council will continue to monitor changes in local PBSA supply and pipeline delivery, including whether consented schemes are implemented, amended, lapse or do not proceed. The demand analysis is scenario-led, considering both no-growth and growth scenarios for full-time student numbers, and tests different supply definitions (excluding or including pre-application schemes). This approach aims to provide a balanced view of future need and potential oversupply.
Residents, higher education providers, developers, and other stakeholders are invited to participate in the consultation.