The report of the Strategic Director (Growth & Development) is enclosed.

A report by the Strategic Director, Growth and Development, explained changes in the student accommodation market in the city. The report set out the context for consideration to be given to a review of the policies relating to purpose built student accommodation (PBSA). That review would be on an interim basis in advance of a review of Core Strategy Policy H12: “Purpose Built Student Accommodation”, as part of an update of the Core Strategy.

Manchester has one of the largest student populations in Europe, with over 90,000 students at Greater Manchester’s five universities, and over 380,000 students at the 22 Higher Education Institutions (HEIs) within an hour’s drive. There were 74,164 students enrolled at one of Manchester’s three HEIs in 2017/18, of which 48,393 had a term-time address in Manchester. Of the remaining c.25,000 students, a significant proportion live at home with their families across Greater Manchester and beyond.

Policy H12 of the city’s Core Strategy was adopted in 2012 and had been developed with the objective of managing the supply of student accommodation in the city. It set out the criteria to be used to guide planning applications for student accommodation and to manage the appropriate delivery of PBSA. The policy had helped ensure that housing had been developed in the city centre, prevented an oversupply of PBSA, and created a dynamic residential market. The Council, working with partners, had used Policy H12 to manage the controlled delivery of a limited but sustainable supply of new PBSA, in response to increasing student demand for accommodation in the city centre. A small amount of PBSA has also been developed in the south of the city, including the University of Manchester’s plans in Fallowfield.

The report explained that whilst Policy H12 remained relevant, changes in the student accommodation market had created the need to review the interpretation and application of the policy. This primarily related to affordability challenges and the need to locate accommodation in close proximity to the HEIs.

The report described in detail the changes in the market and the pressures that were arising across the city. It explained the background and context that a review of the policy would need to take into consideration.

The meeting was addressed by Councillor Davies, a councillor in the Deansgate ward. She said that students were welcome and spoke of the valuable contribution that students make to the city. However, student accommodation demands and pressures could have a detrimental effect on other longer-term domestic residents. In particular she said that student numbers correlated strongly with more use of delivery companies for packages and food, and that increased traffic was putting pressure on neighbourhoods. She hoped that the Executive, in approving the report, would ensure that city centre residents were a key stakeholder in the proposed consultation.

It was proposed that there should now be consultation with key stakeholders on the changing market context, with a view that the conclusions of that could be taken into account in determining planning applications, in advance of a full review of Policy H12. Following this interim step the implementation of the student accommodation policy would be considered and consulted on as part of the development of the revised Local Plan. That proposal was supported.

Decisions

1.         To note the significant changes that have taken place in the student accommodation sector, and the impact this has had on the city centre context and adjoining communities.

2.         To request that the Strategic Director (Growth & Development) undertakes an appropriate consultation process with key stakeholders on this changing context, and brings a report back to the Executive on the outcomes of the consultation.

3.         Subject to the outcome of the consultation, to request that the Planning and Highways Committee takes these market changes into account as a material consideration when dealing with future planning applications for student accommodation.

4.         To note the start of a review, consultation and revision of Policy H12 as part of the Local Plan process, to enable an updated approach to the provision of student accommodation in the city, based on the prevailing market context, the principles set out in this report, in particular the location of new student accommodation in close proximity to the University campuses, and in line with the Council’s wider place making and growth objectives.

5.         To support the longer term regeneration and growth objectives of the Council and partners on the Student Strategy Partnership and Oxford Road Corridor Board.