PBSA in 2024: Strategic Insights to Reshape UK Student Housing

The Purpose-Built Student Accommodation (PBSA) sector in the UK is at a turning point. A growing structural undersupply, coupled with shifting demographics and rising economic pressures, has made the need for strategic innovation more urgent than ever.

To address the emerging climate, JLL and QX Global Group have collaborated on a report that delves into the future challenges for student housing and also sets out some options for change.

Where Next for Student Housing?

To explore the full findings and recommendations, download the complete report.

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A Sector Under Pressure

As demand for PBSA continues to outstrip supply, the report highlights the widening gap in the sector. With core demand accounting for 61% of the UK’s full-time student population and supply struggling to keep pace, universities are increasingly turning to private providers to meet accommodation needs. However, escalating build costs and regulatory challenges are hindering the delivery of new beds.

David Tymms, Strategic Advisor at QX Global Group, states: “The UK’s PBSA market is at a crossroads. While demand remains strong, the sector must adopt innovative approaches to ensure it meets the needs of a rapidly evolving student population. Our report offers insight into the challenges ahead and puts forward ideas for how these might be overcome.”

Key Findings

The report provides an in-depth analysis of critical trends shaping the PBSA landscape, including:

• Rising Participation from Lower-Income Groups: A significant increase in students from lower-income households is reshaping demand dynamics, requiring more affordable accommodation options.
• International Demand Fluctuations: Changes in visa policies and global economic conditions are impacting international student numbers, introducing new challenges for PBSA providers.
• The Viability Challenge: With construction costs rising faster than rental growth, developing affordable PBSA is becoming increasingly difficult outside of premium markets.
• Student Preferences: Cluster flats remain the most popular choice among students, but affordability remains a key concern, particularly for those in lower-income segments.

Solutions for the Future

The report outlines potential strategies to address these challenges, including university partnerships to de-risk occupancy and exploring alternative design models to improve affordability. These ideas aim to promote debate between stakeholders in changing Higher Education and student housing demand environments.

This collaboration between JLL and QX Global Group underscores a shared commitment to driving innovation and addressing critical challenges in the PBSA sector. To learn more about the report and how its insights can transform your strategy, reach out to us or download your copy today.

Originally published Nov 19, 2024 09:11:02, updated Nov 29 2024

Topics: QX Insights