Planning issues The spotlight on affordability continues to present a challenge to the viability of new PBSA schemes. The PBSA policy for London, set out in the London Plan 2021, presents developers and investors with several constraints (like requirements for nominations agreements with universities and delivery of affordable units). We anticipate similar policies emerging in other parts of the UK impacting on the development pipeline of new stock. But this will accelerate opportunities for closer collaboration with higher education providers and revisiting of old stock. It may also create added impetus for the development of innovative design and delivery models that generate new investment opportunities, aligned with the aspirations of policy makers, in the relatively untapped market for affordable PBSA. Increasing regulation Regulatory changes that impact on income security and operational costs continue to escalate. The Tenant Fees Act 2019 places restrictions on the amounts of reservation fees and tenancy deposits that can be secured and prohibits certain charges being imposed during and at the end of tenancies. HMO licensing designations increasingly capture PBSA and impact on operating costs. The lack of consistency between policies of local authorities means HMO licensing costs and requirements need to be considered on a case-by-case basis – and the differential impact upon comparable schemes can be significant. Horizon scanning to anticipate further regulatory reform is an important component of any investment strategy. 33 Purpose built student accomodation