EXCLUSIVE: Glasgow’s Student Housing Boom - Are Residents Paying the Price?
Residents Warn: Explosion In PBSA Pushing Services to Breaking Point
EXCLUSIVE
By Gary Fanning
Glasgow’s rapid expansion of student accommodation is sparking fears that long-term residents could face cuts to essential services, as concerns grow over the financial strain on the city’s infrastructure.
With students exempt from council tax and landlords avoiding domestic business rates, locals fear refuse collection, schooling, and healthcare will buckle under the pressure—leaving permanent residents to bear the cost of an overstretched system.
The Fight for Finnieston and Yorkhill
Residents in Finnieston and Yorkhill are voicing frustration over the influx of student flats, with high-rise developments springing up at an alarming rate.
Many argue these projects are being pushed through despite strong community opposition, overriding initial plans for a balanced mix of accommodation.
At last week’s Yorkhill and Kelvingrove Community Council meeting, one community councillor said: “More people are being squeezed into an already densely populated area. Any objection we put through gets ignored.”
Another frustrated resident asked: “How does the council assess infrastructure when they approve these developments?
“They say they want to attract families, but where are the schools? Where are the doctors?
“Some people have to go to Paisley just to see a dentist. If you build more homes, you need services to support them. Right now, it feels like families are being pushed out.”
Ward councillor Angus Millar admitted the concerns are valid but explained that planning laws make them difficult to address.
He said: “The way the system works, social infrastructure follows population growth, not the other way around.
“A lack of schools or doctors isn’t a valid reason for rejecting a planning application.”
Residents continue to express concerns, noting the absence of a secondary school in Yorkhill and Kelvingrove, while nearby Hillhead Secondary is already operating at full capacity.
One resident added: “Where will they build a new school? Every available piece of land is being turned into flats. There hasn’t been social housing built in this area for decades.”
Councillor Millar acknowledged the challenge, adding: “We need funding for a new school. Sites have been considered, including just south of the Clyde.”
On the issue of healthcare, Councillor Miller said he is working with developers and healthcare providers to secure more medical facilities within proposed student accommodation sites in the city centre.
Housing for Who?
The ongoing debate about the balance between student accommodation and family housing has become a central issue for many residents.
Developers claim purpose-built student flats will free up private rentals, but locals challenge that assertion.
One resident asked: “Has the council researched whether student flats free up HMOs (houses in multiple occupation) for families? Landlords can make £2,000 per month from student lets. Why would they switch to private renting with rent caps and higher taxes?
“There is no incentive for landlords to give up their HMO licences and stop renting to students.”
Councillor Millar admitted that data is lacking and added: “We need figures on how many HMOs are converting back into family homes. In theory, purpose-built student accommodation should ease pressure on the private market. I will ask the question.”
“Enough is Enough” – Student Accommodation Saturation
With developments mushrooming across the city—including sites at the former Lorne Hotel in Sauchiehall Street, Gilbert Street, the ex-Cranstonhill Police Station, and the former Citroën Garage on Finnieston Street—residents are questioning how much more the area can take.
The 391-flat development at Minerva Way, on the Nuffield Health gym was approved last week despite a 2,100-strong petition against the development.
Approved: How the Minerva Way development will look
A recent report, co-authored by the University of Glasgow published last September suggests the city could soon face a surplus of student accommodation.
It found that the current shortfall in student housing is 6,093 beds—far lower than the 22,000 previously suggested by real estate consultancy Savills.
Currently, Glasgow offers 20,049 beds in purpose-built student accommodation (PBSA) and student halls of residence. However, many students continue to seek affordable housing, as PBSA rents can reach up to £1,500 per month, making them unaffordable for most.
Councillor Millar acknowledged concerns about overdevelopment, adding: “The market is overwhelmingly offering student accommodation. One reason is that the national rent cap doesn’t apply to student accommodation, making it a safer investment. At some point, we will reach saturation.”
Who Pays for the Burden?
Beyond housing, the financial impact of student accommodation is a major concern. With students exempt from council tax, residents fear essential services will suffer.
One resident asked: “Who is paying for all of this? The council still has to collect bins, clean streets, and maintain public services—but they aren’t getting any money from these student blocks. Will we, the long-term residents, be left covering the cost?”
Some residents have called for student landlords to pay business rates, arguing that multinational investors profit while locals foot the bill.
One said: “Can Glasgow City Council put pressure on COSLA to push the government to change the legislation? These landlords make huge profits, yet hedge funds and investors send much of it offshore.”
Councillor Millar supports the idea but says it would require national legislative change: “I personally believe student landlords should pay business rates, but any change would have to come from the Scottish Government.”
Glasgow City Council's Housing Strategy: Supporting Growth and Affordability
Glasgow City Council does not directly build council houses. However, the council plays a key role in shaping housing investment through its Local Housing Strategy (LHS) and Strategic Housing Investment Plan (SHIP).
The overarching aim is to support the development of 13,000 new homes (6,500 affordable and 6,500 private) between 2023 and 2028.
A council spokesman said increasing housing supply across all tenures will help alleviate pressures.
The council's SHIP outlines priorities for housing development in the city, including the delivery of 6,637 affordable homes over the next five years, requiring approximately £1.081 billion in grant funding.
Solutions
1. Introduce a Student Landlord Levy or Business Rates
Proposal: The Scottish Government could introduce a levy on Purpose-Built Student Accommodation (PBSA) or require student landlords to pay business rates.
Impact: This would generate revenue to fund local services like waste collection, schools, and healthcare.
2. Infrastructure-Linked Planning Approvals
Proposal: Require all major developments (including PBSA) to contribute to local infrastructure, such as healthcare centres or schools, before approval.
Impact: This ensures essential services grow in parallel with the population rather than lagging behind.
3. Convert Unsustainable PBSA into General Housing
Proposal: Introduce policies that require new student developments to be easily convertible into standard residential housing.
Impact: If demand for PBSA drops, these buildings could be repurposed to provide affordable homes for families.
4. Enforce Balanced Development in Planning Policies
Proposal: Strengthen regulations to ensure a mix of PBSA, affordable housing, and family homes in new developments.
Impact: Prevents overconcentration of student flats and protects community diversity.
5. University-Led Housing Initiatives
Proposal: Require universities to take more responsibility for student accommodation, such as investing in on-campus housing or supporting affordable rents.
Impact: Reduces pressure on the private rental market and promotes more sustainable student housing.
Future Considerations
The rapid expansion of Purpose-Built Student Accommodation (PBSA) is raising concerns among Glasgow residents. While PBSA is expected to free up mainstream housing, residents worry about the strain on local services.
As community tensions rise, residents and policymakers must navigate the challenges of balancing development with sustainable infrastructure planning.
What’s your view? Send your thoughts to news@glasgowsplash.com.
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Councillors and Councillor Millar should be reminded that when voters have had enough they can dump those who fail the community.