Why we can’t Ignore PBSA anymore

When conversations turn to student accommodation, London often takes centre stage. Yet, across the rest of Britain, a quiet revolution is under way... purpose‑built student halls are sprouting in city after city, as universities expand, investors circle, and a generation of students seeks homes that blend community with creature comforts.

Britain’s higher‑education sector now enrols more than 2.3 million full‑time undergraduates and postgraduates, roughly 60 per cent of whom must find somewhere new to live each term. Yet while developers delivered close to 16,500 new beds in 2024, that falls well short of the 25,000‑plus annual highs seen during the late 2010s, and nowhere near enough to keep up with almost half a million fresh faces who entered UK campuses since 2012. The result has been a gaping shortage, with pressure mounting most keenly outside London, where councils and universities scramble to plug the hole.

Much of the UK’s existing private student housing predates the London Olympics. But in cities such as Liverpool and Edinburgh, sleek towers and gorgeous conversions have recently redefined the skyline. These developments are less about bedsits and social housing and more about lifestyle tailored to modern creature comforts.

Communal study pods, gyms stocked with treadmills, cinema rooms complete with popcorn machines, even rooftop terraces for summer barbecues. Students expect privacy – often in the form of studio flats – yet seek the chance to mix with housemates in cluster apartments that resemble boutique shared‑living communities.

Nearly £4 billion flowed into UK schemes last year, much of it in cities beyond the M25. Pension funds, overseas capital and specialist property platforms have joined the fray, backing both completed blocks and forward‑funded projects.

Manchester remains the undisputed champion of regional student arenas, home to more than 100,000 scholars and a pipeline exceeding 12,000 beds. Birmingham trails close behind, boasting Britain’s largest purpose‑built scheme roster outside the capital. Leeds, too, has charted impressive growth, as universities convert brownfield sites into gleaming new halls.

Meanwhile, Liverpool is carving out a reputation of its own. With some 70,000 students across three major institutions, the city has seen outward investment from operators such as Unite, Downing and Vita Student.

Yet supply still lags demand, and many developments are fully booked months before the academic year begins. Further south lies Stoke‑on‑Trent, a quieter market with fewer halls, but one that is beginning to attract attention for its affordability and proximity to Staffordshire and Keele universities. Here, developers are experimenting with modern designs, keen to prove that student accommodation does not need to be the poor relation of mainstream apartment blocks.

Across these cities, rents are climbing at rates that outstrip inflation. In Manchester, average weekly PBSA bills jumped by more than 20 per cent in 2023; Liverpool, too, saw double‑digit hikes.

The outcome is a mixed market. In places like Manchester and Birmingham, the race is on to satisfy a tide of new applicants; in Liverpool and Edinburgh, a persistent shortage sustains premium rents; in emerging centres such as Stoke‑on‑Trent, modest pipelines hint at some serious future growth. For investors, these regional hubs offer a compelling blend of yield and resilience. For students, the promise of community‑driven, design‑led accommodation is increasingly part of the university experience.

As higher education continues to change gears with digital learning, international mobility and shifting demographics; the PBSA landscape will likewise transform. Cities outside London may no longer be content as runners-up in the student‑housing stakes. Instead, they are staking their own claim, creating purpose‑built campuses in the heart of Britain’s great university towns, and reshaping the way a generation lives and learns.

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