Edinburgh has always been a resilient PBSA market and is once again showing its true colours as a stable market given the many constraints on supply. In this respect Edinburgh is perhaps best compared with Bristol.
Published pipeline figures for Edinburgh PBSA are highly misleading. Close analysis reveals that the real pipeline is around 2,500 beds rather than the published figure of c.7,500 beds. Many sites are in tertiary locations and unlikely ever to be built out, stuck in Appeal or constrained by site issues.
Compared to any other Russell Group city in the UK, this pipeline is tiny. Bristol has a pipeline of c.9,600 beds with significant growth coming from large new clusters.
Dundee Terrace, Edinburgh
The pipeline of “prime” PBSA in Edinburgh has dropped considerably to the point that there are only 811 prime PBSA beds under construction, 206 consented and a further 276 on hold (Planning Appeal or with development issues). Prime PBSA principally, but not exclusively, serves the 35,420 students at The University of Edinburgh (Edinburgh’s total student population is 69,185 across five higher education institutions).
Whilst “prime” is open to interpretation, the number of PBSA beds in “secondary” locations is also restricted with 714 under construction, 1,205 consented, but not on site (many have viability issues), and 781 in planning or at Appeal. The vast majority of schemes are Cluster led (due to the Edinburgh planning policy requirement for a maximum of 10% studios).
Supply of studio beds is being further diminished by The City of Edinburgh Council who have acquired (or are in the process of acquiring) c.500 studio beds across 3 schemes, with more to come, under their Housing Emergency policy to re-house those in Temporary Accommodation. Given the scarcity of studio beds (due to the max 10% policy) this is positive news for those retaining and operating studio bed schemes.
Lower Gilmore Place, Edinburgh
In Edinburgh, unlike most other cities, it is simply not possible to rapidly increase supply. Multiple constraints include planning policy, limited land supply (particularly in prime locations), UNESCO World Heritage status and competing land uses. This should give investors a high level of confidence.
For full analysis of Edinburgh’s PBSA pipeline please get in touch.
