Student occupancy in build-to-rent reaches 40%

StuRents Annual Student Accommodation Report 2024 reported that student occupancy in build-to-rent (BTR) schemes has reached 40%, providing real competition for the PBSA and HMO markets for the first time.

In the past year, PBSA rents have increased by 8.1% and HMO rents have increased by 5.3%. BTR accommodation offers a cost-effective alternative for students. 

BTR properties also typically offer larger living spaces, making them a better value accommodation choice. 

Taking Leeds as an example, traditional metrics imply that PBSA demand is outstripping supply, with 12,000 additional students entering the market versus only 7,000 new beds. However, when you consider new BTR units, the supply increase rises to 15,000, outstripping the 12,000 new students. This places more pressure on PBSA operators. 

‘Competition from BTR is reshaping the market, particularly in cities with large student populations,’ says Richard Ward, Head of Research at StuRents.

Read the full story on Green Street News.