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The Impact of UK University Rankings on Student Housing Demand in 2025

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5 min read
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Uploaded on
Apr 8, 2025
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Last updated on
Apr 8, 2025
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Last updated on
Apr 8, 2025

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student accommodation market
UK Student Housing in 2025 Gets Competitive

Student housing in the UK is far more than just a place to stay—it’s an essential part of the broader higher education experience. As the UK continues to be a top destination for international students, its student accommodation market is feeling the influence of several key factors, none more significant than university rankings. 

So, what’s happening in 2025, and how are shifts in the QS rankings affecting the student accommodation market? Let’s dive into it.

How QS Rankings Are Shaping Student Choices in 2025

The UK remains a top destination for international students, with 758,855 international students enrolled in 2022-2023, making up 26% of the total student population​. This influx of students continues to shape the landscape of student accommodation in London, Manchester, and Bristol, all of which are home to universities that have seen notable changes in the QS rankings for 2025.

Higher-ranking universities naturally attract more applicants. That means rising demand for quality student housing in cities where top universities are located. The good news? This creates new opportunities for universities, investors, and housing providers to tap into an ever-expanding market.

Ranking Shifts in 2025: A Look at the Movement

The QS World University Rankings 2025 brought with it some exciting shifts that are sure to benefit student housing demand. Take a look:

  • Imperial College London has risen from Rank 6 to Rank 2—that’s a huge jump and a big win for London’s student housing market.

  • Queen Mary University of London climbed from Rank 145 to Rank 120, making East London even more attractive to students looking for top-ranked universities and accommodation nearby.

  • Even with some rankings dipping, like Cambridge (Rank 2 to Rank 5) and Edinburgh (Rank 22 to Rank 27), their global reputation means they’re still attracting a strong student base, ensuring stable housing demand.

This is a clear signal that rising university ranks are fuelling demand for student housing in cities like London, Bristol, and Southampton, while providing new growth opportunities in both established and emerging student cities​.

Housing Demand by City: A Clear Path of Growth

As universities climb in the rankings, cities with these institutions experience a surge in housing demand. And the trends we’re seeing in 2025 point to a future full of growth and opportunity.

  • London remains the flagship of student accommodation demand. Despite the rising rents, the city’s reputation for top universities like UCL, Imperial, and King’s College means that the demand for student housing continues to thrive. A 25% rent increase in 2023 demonstrates the confidence in London’s student accommodation market, though with signs of stabilization in 2024​.
  • Manchester, known for its diverse and dynamic student population, saw 41% rent growth for ensuite rooms in 2023, which is a testament to the increasing attraction of its universities, despite more supply hitting the market in 2024.
  • Bristol, Southampton, and Queen Mary University of London are all seeing rising interest in student housing. These areas are quickly becoming must-haves on students’ lists thanks to universities that have climbed in the rankings.

International Students' Preferences

Despite visa policy changes that led to a 30% drop in student visa applications in 2024, international students remain a cornerstone of the UK’s education system and economy. Contributing over £40 billion annually through tuition fees and living expenses, their presence continues to drive demand for housing. And for them, rankings play a crucial role in choosing where to study and where to live.

Here’s how rankings influence their accommodation choices:

  • Chinese students, who prioritize top universities, tend to book in premium accommodation, with 56.8% opting for options in the £250-£350+ range. They are willing to pay a premium for proximity to top-ranking institutions.

  • On the other hand, Indian and Nigerian students, who are more budget-conscious, are focusing on affordable housing. 71% of Indian students choose accommodation in the £150-£250 range.

But it’s not just the price that’s important—longer stays (50-60 weeks) are becoming increasingly popular for students, especially those from India and Indonesia. For housing providers, this presents an opportunity to cater to both ends of the market by offering a variety of room types, from en-suites to shared apartments and Houses in Multiple Occupation (HMOs).

International Student Enrolment Trend

In the 2022–2023 academic year, a record 758,855 international students were enrolled in UK universities, making up 26% of the total student population. This was a significant achievement, as it marked the tenth consecutive year of record-breaking enrolment for international students​. Of these, 87.4% came from non-EU countries, with India leading the charge at 173,190 students, surpassing China, which had 154,260 students​. However, recent shifts in visa policies have begun to shape the dynamics of international enrolments.

Despite the declines in certain countries, such as India and Nigeria, which are expected to see a drop in enrolments of up to 46% in 2025, emerging markets like Nepal have shown impressive growth. Nepal, for instance, experienced a 16.4% increase in applications compared to the previous year. This shift is also reflected in the changing preferences of students, with those from non-EU countries continuing to drive the growth of international student numbers in the UK.

Investment Opportunities: Where the Market is Going

The UK’s student housing market is on the rise, and it’s attracting more than just students—investors are taking notice. With the sector set to grow from £7.35 billion in 2025 to £9.59 billion by 2030, the future is looking bright for those in the student accommodation market. 

Moreover, with total investments in Purpose-Built Student Accommodation (PBSA) reaching £3.3 billion in Q3 2024, there’s clear evidence that investors are placing their bets on the growing demand driven by university rankings.

  • London, Bristol, and Southampton are seeing positive changes in university rankings, which directly translates to increased rental demand and higher occupancy rates.

  • Cities like Manchester and Glasgow, where universities are climbing in the rankings, are prime spots for investors looking to capitalize on growing demand.

  • Cambridge and Durham, though they’ve seen some ranking slips, still hold strong global appeal, ensuring stable demand for accommodation in these cities.

Conclusion: A Market Full of Potential and Growth

The impact of university rankings on student housing demand is undeniable. Universities with rising rankings, such as Imperial and Queen Mary, are seeing an uptick in housing demand, while those that fall, like Cambridge and Durham, are experiencing a cooling off in both applications and accommodation bookings.

For universities, this means continuing to invest in their global reputation and staying competitive in the rankings race. Housing providers and investors, on the other hand, need to keep a close eye on these rankings to adapt their strategies accordingly. Affordable accommodation, flexible booking terms, and varied housing options will be key to meeting the diverse needs of both domestic and international students.

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The Impact of UK University Rankings on Student Housing Demand in 2025
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