The UK student accommodation market is facing a crisis with rents continuing to soar, demand increasing, and supply falling behind.
Research from StuRents' 2023 Annual Report shows that student rents are now up more than 10% year-on-year, while maintenance loans have increased by only 2.8%. The average price for a bedroom in a shared student house has reached £122 per week, while a room in purpose-built student accommodation (PBSA) now costs £184 per week, which is 50% more expensive.
The student lettings cycle for 2024-25 has already begun in some cities, demonstrating the acute shortage of student accommodation. The supply-demand imbalance is set to worsen in the coming years, with a shortfall of 490,000 beds predicted by 2026.
Head of Research, Richard Ward, states, 'Supply and demand fundamentals at a national level remain extremely bullish for operators.'
'These dynamics are driving unprecedented rental growth. All the early indicators suggest further substantial hikes for 2024-25.'