Assessment of Plymouth's demand for student Houses of Multiple Occupation (HMOs) and Purpose Built Student Accommodation (PBSA) in the context of de-studentification and Article 4 direction

This study assesses the impacts of the growing number of purpose-built student accommodation blocks (PBSA) in Plymouth, UK during a time of decreased student numbers and restrictions on the creation of Houses of Multiple Occupation (HMOs) on the student housing market. Plymouth City Council are keen for HMOs to go back to being household dwellings, enabling mixed communities and assist their target of a five-year land supply in the city. The growth of PBSA in the city at a time when student numbers are in decline is unprecedented and there is very little literature explaining such a phenomenon. This study assesses what is happening within the market by interviewing key stakeholders within Plymouth, such as a student estate agent, student landlords, landlord groups (associations), University of Plymouth, Plymouth City Council, and local councillors. The findings of this study are that PBSA is a key factor in giving students more choice within the student accommodation market, but will find it difficult to persuade second and third year students to give up their HMOs. Secondly the process by which PBSA will displace HMOs is not entirely straightforward, the process whereby a HMO turns back to residential is beset with issues around conversion costs and the fact that former HMO property used as a dwelling will not only fall in value, but will lose its use-class and may struggle to regain it subsequently due to Article 4 Direction restrictions. The impact of Article 4 Direction is not greatly researched and this document attempts to open up discussion about the benefits and limitations of such restrictions.