A new levy due to be imposed by Newcastle City Council could put an end to the increasing number of student blocks being built in the city.

The proposed 'Community Infrastructure Levy' will mean that any private developers will pay a charge on new developments that will then go toward funding public projects in the city.

Bill Lynn, director at LSH's Newcastle office said that the levy is the council's way of putting the brakes on student accommodation develoipment: "It could be a moratorium on student accommodation by stealth. Will developers be prepared to pay a levy if it's per square foot, per bed or per unit? Possibly not. They [the council] will want the money they can get from it - and it's also a way of putting the brakes on some developments. It's a way of putting an anchor on something that many people think we have enough of here."

The levy would target all developments and developers, but could be varied by location, allowing the council to discourage schemes in certain areas.

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