Residents to benefit as council increases developer contributions from student blocks

Southwark Council is set to approve a major uplift in the funding developers must contribute towards local infrastructure, following a long-running Liberal Democrat campaign. 

The change will see developers of purpose-built student accommodation (PBSA) pay a fairer share through the Community Infrastructure Levy (CIL). CIL is charged by councils to ensure new developments contribute to local facilities, public spaces, and transport improvements for the existing community. 

The Liberal Democrats had previously successfully campaigned for the council to release £15 million of funds that the council had been sitting on for years, unlocking investment in long-delayed local projects. 

The CIL rate varies depending on the type of development – with residential, office, and retail spaces all having different rates per square metre. Under the new plans, the rate for student blocks will rise from £148 to £250 per square metre, potentially generating millions more to invest in projects that benefit residents across the borough.  

The uplift, a 70% increase, comes after sustained pressure from Southwark Liberal Democrats, who have repeatedly challenged the Labour-run council to make sure developers pay their fair share.  

This comes as thousands of student blocks are coming down the planning pipeline, especially in the north of the borough. Borough and Bankside ward is expected to have 3,000 new student beds due for planning approval over the next year, including 2,000 at Bankside House. 

Commenting, Liberal Democrat Councillor for Borough and Bankside David Watson said:  

“This is a massive win off the back of our campaign to release the CIL funds the council had already collected to date. Making sure that our residents are able to have the huge amount of disruption they’re experiencing mitigated is an absolute priority – whether the development is for student blocks or regular housing shouldn’t impact on how much cash developers should be expected to hand over.  

Liberal Democrats will always put their local communities first, and we’ll continue to stand up for residents in our wards and across Southwark.” 

NOTES 

• Council report found here