Students Crave Affordable, Secure Housing with Top-Notch Wellbeing Support

A new report reveals that 65% of university applicants consider the availability of suitable accommodation when choosing where to study. This highlights a golden opportunity for landlords and property investors to cater to the growing demand for student housing.

Affordability Crisis Drives Demand for Purpose-Built Student Accommodation

With the cost of living soaring, affordability is the top concern for students. 69% are drawn to Purpose-Built Student Accommodation (PBSA) as a more cost-effective option compared to traditional private rentals.

The Knight Frank Student Accommodation Survey, conducted in partnership with UCAS, is the largest of its kind in the UK. It provides invaluable insights into the preferences of prospective and current university students, offering a roadmap for investors looking to capitalise on the booming student housing market.

Essential Amenities Trump Luxury Features

While luxury amenities like cinemas and swimming pools might seem appealing, the report reveals that students prioritise practical features that enhance their daily lives. High-speed WiFi, 24/7 security, and on-site laundry facilities are considered essential.

Wellbeing Support: A Must-Have for Student Accommodation

Interestingly, the survey highlights a growing emphasis on mental health and wellbeing. 78% of current students stated that their accommodation provider’s commitment to mental health support was a significant factor in their housing choice.

Rent Rises Squeeze Students’ Budgets

PBSA rents have seen a 7.6% increase in 2024, exacerbating affordability concerns. A significant 44% of students reported that accommodation costs negatively impacted their university experience, while 88% expressed worries about rising living costs. Many students are now relying on additional income sources or financial support from family to cover their expenses.

Collaboration Key to Meeting Future Demand

The report underscores the need for closer collaboration between universities and the private sector to address the growing mismatch between PBSA supply and student demand.

Investment Opportunities Abound

By the end of the decade, PBSA is projected to house the majority of second and third-year students, presenting an opportunity for investors and developers. The report emphasises the importance of delivering value for money while adapting to evolving student expectations, particularly regarding affordability and wellbeing services.

Key Takeaways for Investors:

• Affordability is Paramount: Students are actively seeking cost-effective housing options.
• Practicality over Luxury: Essential amenities like fast WiFi and security are more desirable than extravagant features.
• Wellbeing is Crucial: Invest in on-site support services to attract and retain student tenants.
• Collaborate with Universities: Partner with universities to understand student demographics and future accommodation needs.
• Future-Proof Your Investment: Adapt to evolving student expectations and focus on delivering value for money.

The student housing market presents a compelling investment opportunity for those willing to adapt to the changing needs of students. By prioritising affordability, practicality, and wellbeing, investors can secure a profitable and sustainable future in this thriving sector.