Student Accommodation Trends: What Landlords Should Know?

A recent study, the Knight Frank/UCAS Student Accommodation Survey, shows how students’ preferences regarding their accommodation are changing and outlines the need for student landlords, developers, investors, and educational institutions to adapt.

The report predicts that by the end of this decade, more second- and third-year students will prefer living in Purpose-Built Student Accommodation (PBSA) rather than other options.

One of the main reasons for this growing preference is the higher satisfaction rates among students already living in PBSA. For instance, 69% of PBSA residents who participated in the aforementioned survey rated their current accommodation as "excellent" and "good."

Supply and Demand Imbalances

Despite the growing attraction to PBSA, the sector seems to be grappling with an imbalance between supply and demand. The number of new beds is not keeping up with the growing student population.

Only 258,000 new beds have been added in the UK’s PBSA sector since 2012. However, 470,000 individuals entered the student population in the same period. This significant gap shows the ongoing pressure on the already undersupplied market, especially with the potential consequences of the Renters' Reform Bill on the student rental market.

What Factors Should Landlords Consider Attracting Student Accommodation?

Students’ choice of housing depends on several factors. These are the factors that landlords catering to students or hoping to attract students to their property should also consider:

• Quality
• Affordability
• Location
• Fast Wi-Fi service
• Valuable amenities

Conclusion

In conclusion, the changing preferences of students regarding their accommodation, particularly the growing demand for Purpose-Built Student Accommodation (PBSA), present both opportunities and challenges for landlords, developers, and educational institutions. With rising living costs, an undersupply of PBSA beds, and increasing expectations for quality, affordability, and amenities, stakeholders must adapt to meet the evolving needs of students.