Projected 620,000 student bed deficit across the UK by 2026

StuRents' latest data projects that the existing imbalance between the supply and demand of purpose-built student accommodation (PBSA) is expected to worsen until 2026. The study indicates that by 2026, a deficit of over 620,000 student beds will be evident across the UK, highlighting a substantial shift from a 5,000-bed shortage in 2018. The PBSA sector's struggle to meet demand is underpinned by a range of factors, including decreased planning application activity since its peak in 2016, heightened competition from other land uses, and rising construction and financing costs.

As Richard Ward, Head of Research at StuRents, points out, this challenge extends to both student housing and the broader residential sector. The scarcity of suitable student housing in vital university cities is influencing rent increases and intensifying the ongoing housing crisis. As the number of planning applications in this sector has drastically declined by 75% this year, the PBSA market's momentum is expected to persist, driving up rents in prime locations and positioning student housing as an attractive investment in the face of prevailing economic uncertainties.

https://pbsanews.co.uk/2023/08/16/new-data-from-sturents-shows-pbsa-supply-demand-imbalance-to-worsen/" target="_blank">Read more about the student housing supply vs demand challenges currently facing the industry.