Housing for whom? The battle over student accommodation in the Capital

The rise of private student halls in 'the UK's second smartest city'

Vita Student accommodation at Fountainbridge

Student accommodation it seems is springing up everywhere in Edinburgh.

By the docks in Leith, old industrial buildings on Baltic Street are being converted into the city’s biggest single student accommodation complex, which will house more than 600. In Chesser, the old cattle mart-turned-World of Football is being demolished to make way for development including accommodation for 400 students.

From the Waverley Valley to Leith Walk, Fountainbridge to Abbeyhill, builders are busy constructing Purpose Built Student Accommodation (PBSA).

More appears to be on its way, despite councillors seriously considering introducing a moratorium earlier this year on further PBSA, amid fears it is squeezing out affordable house building.

The old Scottish Widows headquarters on Dalkeith Road could be next, after The Inquirer revealed yesterday it is being bought by student accommodation operators Vita Student.

Tomorrow, councillors rule on plans for the old Royal Bank of Scotland offices on Dundas Street, which include student accommodation for almost 600.

Despite signs of housebuilding starting to pick up again after almost grinding to a halt, student accommodation continues to drive much of the development in the city.

Should we be worried? With overseas student numbers falling across Scotland could the student accommodation boom be a bubble about to burst? Or does the city need more of it almost as much as it needs more affordable homes?

27,000 students in shared flats

To understand the continuing appetite among developers for building student accommodation you have to appreciate the scale of the potential demand.

There are more than 62,000 students in full-time, higher education across the city, making students a major demographic in Edinburgh. Like everyone else, most are looking for decent places to live, at a decent price.

The growth of PBSA in recent years means it can house about half of them. An updated Student Living report published by Edinburgh’s four universities (Edinburgh, Napier, Heriot-Watt and Queen Margaret) in June found approximately 27,000 students still live in shared flats, or other Houses in Multiple Occupation (HMO) properties, across the city. That puts a significant strain on the already struggling housing market.

After the first year of their degree, students lose their priority status for accommodation provided through their universities and most move into an HMO property, instead of private accommodation.

Reasons for that are often related to costs and location – HMO flats can be closer to campus and far cheaper than a room or studio in private accommodation. To compare, a room in a shared flat share will usually cost students between £650 - £700 monthly, while a room or studio in private halls usually start at £800 - £1000 per month.

That can rise as high as £22,000 a year over a typical 44-week academic contract for some of the most high-end accommodation such as studios in the Ultimate Vita complex at Fountainbridge.

Those shared flats also have the added appeal of living together with friends in a place that feels like a real home. A home that many other professionals and families in the city also looking to find and afford.

In theory at least, building more dedicated student accommodation would ease the city’s affordable housing crisis, freeing up more tenement flats and other shared homes. However, the cost of staying in private halls may have to fall for that to be an attractive option for many students.