What Are the Trends in Purpose-Built Student Accommodation in UK University Towns?

In the thriving student accommodation market, Purpose-Built Student Accommodation (PBSA) plays an integral role. The focus of this article is to delve into the trends and growth of PBSA in UK university towns. We will explore how the dynamics of student housing are shifting, the growth in PBSA, the impact of international students, and the changing demands of the sector.

The Changing Landscape of Student Housing in the UK

In the past, student housing was synonymous with shared rented accommodation in private housing. However, over the years, this scenario has dramatically changed. Today, the face of student accommodation is transforming at a rapid pace. In the academic year 2024, more students are opting for PBSA – accommodations that are specifically designed for student living.

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This shift in preference can be attributed to several factors. Firstly, universities are struggling to meet the demand for student accommodation due to increasing student numbers. Furthermore, these PBSAs offer a variety of amenities that cater to the modern student’s needs, such as study rooms, gyms, and communal spaces, which traditional private housing does not typically provide.

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Additionally, the growing number of international students in the UK has also influenced this trend. These students, who often have no knowledge of the local rental market, are likely to opt for PBSA for its convenience and comfort.

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Expanding Growth of PBSA Sector

Over the years, the PBSA market has witnessed remarkable growth. According to reports from property experts, the supply of PBSA in the UK has risen by approximately 25% in the past five years. This suggests a flourishing market that shows no signs of slowing down.

Investors are increasingly attracted to the PBSA sector, thanks to its resilience even amidst market uncertainties like the COVID-19 pandemic. Despite the decrease in the number of international students during the initial stages of the pandemic, the demand for PBSA remained robust, demonstrating the resilience of this sector.

Various universities are also partnering with private companies to build PBSAs, recognising the need to provide quality accommodation for their students. This collaboration further propels the growth of the PBSA market.

Influence of International Students on PBSA Market

International students have become a significant driving force behind the demand for PBSA. With the UK being one of the top destinations for higher education, the number of international students has been steadily increasing year on year.

These students, unfamiliar with the UK’s rental market, often choose PBSAs for their convenience. Moreover, these accommodations offer a sense of community and security that can help international students feel more at home. This trend is expected to continue, and the PBSA market is likely to benefit from the steady influx of international students in the UK.

The Evolving Demands of the PBSA Sector

As the PBSA sector grows, so too does the demand and expectations of students. Today’s students seek more than just a place to sleep and study. They demand a living experience that supports their academic and social needs.

This has led to a shift in PBSA design, with a focus on creating spaces that encourage collaboration and social interaction. Common rooms, study spaces, gyms, and even cinema rooms are becoming standard features in PBSAs. Additionally, with the rise of online learning, there is an increasing demand for spaces that facilitate virtual learning.

Moreover, students are becoming more conscious of their environmental impact. Consequently, there is a growing demand for sustainable living options in PBSAs. Many developers are now incorporating green design elements, such as energy-efficient appliances and recycling facilities, in their PBSA projects.

In the ever-changing landscape of student accommodation, PBSAs have carved a niche for themselves in UK university towns. As student numbers grow and demands evolve, the PBSA sector is poised to continue its upward trajectory in the years to come.

The Role of Real Estate and Rental Growth in the PBSA Market

The growing demand for PBSA is having significant implications on the real estate and rental market in the UK. The increased interest from students in this type of accommodation is fueling rental growth, making PBSA a lucrative asset class for investors.

Recognizing the potential of this sector, property developers have been quick to expand their portfolios to include PBSAs. As a result, the market size of the PBSA sector has seen substantial growth in recent years. According to property experts Cushman & Wakefield, the total value of the PBSA sector in the UK is now estimated to be over £50 billion.

The rental growth seen in the PBSA sector has been driven by several factors. The high student numbers, particularly of international students, create a consistent demand for accommodation. Furthermore, the convenience, amenities, and community offered by PBSAs are often more appealing to students than traditional private housing options.

This trend is not just limited to larger university towns. Smaller towns with universities are also experiencing a surge in PBSA development. This not only caters to the full-time student population, but also helps to alleviate housing pressure on local communities.

The continued growth and investment in the PBSA sector signify its established place within the UK’s real estate landscape. With student numbers continuing to rise, the future looks promising for the PBSA market.

Conclusion: The Future of PBSA in the United Kingdom

The PBSA trend in the UK shows no signs of slowing down. As the higher education sector continues to attract both domestic and international students, the demand for suitable, convenient, and comfortable student accommodation will continue to grow.

The steady rise in student numbers each academic year and the changing expectations of students for their living spaces, create a robust and resilient demand for PBSA. Coupled with the increasing interest from real estate investors and developers, PBSA is set to have a significant role in the UK housing landscape.

Understanding the trends in the PBSA sector is crucial not just for developers and investors, but also for universities and local authorities. As the accommodation needs of the student age group evolve, so too should the strategies and policies aimed at providing them with desirable and suitable living options.

In the future, we may see even more innovative designs and facilities in PBSAs, from environmentally-friendly features to spaces that accommodate the changing nature of learning and socializing. The trends indicate that PBSA is not just a passing phase, but a long-term shift in student accommodation preferences.

Cushman & Wakefield’s report further underlines this point by stating that Purpose Built Student Accommodation (PBSA) is now a recognised asset class, attracting significant investment, and is likely to remain a key component in the UK’s accommodation market for the foreseeable future.