brand_logo
search_icon
Search
AccommodationNewsroomContact UsContact UsLogoutLogin
Search
Search
£20 cashback on the app!
4.5/5
180K+ Downloads
Download App
Log in or sign up
Please provide a valid email address
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Enter code sent on your email
test@test.com
Change
Please provide a valid OTP
Haven’t received the OTP
Resend (15s)
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
or
By signing in you agree to our Privacy Policy and Terms & Conditions

How the UK Student Housing Market is Poised for a £9.59 Billion Boom by 2030

News
5 min read
|
Uploaded on
Mar 21, 2025
|
Last updated on
Mar 21, 2025
Uploaded on
Mar 21, 2025
|
Last updated on
Mar 21, 2025

Share :

Copy Link

Link Copied

Share on Facebook

Share on Twitter

Share on LinkedIn

UK student housing market
The £9.59B Rise

Student housing is no longer just a niche segment; it has evolved into a critical component of the UK's economic fabric. International students alone contribute over £40B annually to the UK economy through tuition fees, living costs, and other expenditures. 

Beyond the financial impact, they bring diverse perspectives that enrich the country's academic community and cultural fabric. The UK remains a global hotspot for international students, consistently securing its position as a sought-after destination globally.

Market Growth Overview: Projected Increase to £9.59 Billion by 2030

The UK student housing market is on a robust growth trajectory. We're looking at a jump from £7.35 billion in 2025 to a whopping £9.59 billion by 2030. That's a solid Compound Annual Growth Rate (CAGR) of 5.45% – a clear indicator of the sector's strength and continued appeal. 

This growth trajectory reflects several positive factors, including the UK's continued attractiveness to international students, ongoing investments in purpose-built student accommodation, and the overall resilience of the higher education sector. It's a clear signal that the UK student housing market is a key player in the country’s economic landscape, with the potential for continued expansion and development.

Factors Driving Growth: International Students, Investments, and more

The UK student housing market's expansion is fuelled by a combination of interconnected factors. Understanding these drivers is crucial for grasping the market's dynamics and potential.

The Pull of International Students 

The UK has long been a magnet for students seeking a world-class education. This influx of international students is a primary driver of growth in the student housing sector. These students contribute significantly to the UK economy, not only through tuition fees but also through their spending on living expenses, goods, and services. In fact, international students UK housing needs are a major market driver, with over £40 billion injected annually into the economy, highlighting their immense economic importance.

Investment in Purpose-Built Student Accommodation (PBSA)

There's a notable trend of investment in the UK's Purpose-Built Student Accommodation (PBSA) sector. In Q3 2024 alone, PBSA investment surged to £3.3 billion, marking the strongest quarter since 2022. This influx of capital reflects growing confidence in student accommodation as a stable and rewarding asset class.

Opportunities in Expanding Housing Market

While the supply of new PBSA beds is growing, the projected 17,500 new beds for the 2024-25 academic year, representing a modest 0.6% increase, indicates steady progress. The total pipeline of student beds, currently at approximately 160,000 with 22% under construction, shows active development. The need to address the estimated demand for around 600,000 spaces highlights ongoing market dynamism and potential. The student-to-bed ratio, such as 3.8:1 in Glasgow, underscores the continued demand for quality student accommodation.

This overall supply gap presents a major opportunity for developers, universities, and housing operators to innovate and expand their offerings, ensuring students have access to high-quality, affordable accommodation.

Impact of International Students: Contribution to the UK Economy and Housing Demand

International students play a pivotal role in the UK student housing market, both as a significant source of demand and as key contributors to the broader UK economy. Their economic impact is undeniable, with over £40 billion injected annually through tuition fees, living costs, and other expenditures.  Beyond the financial contributions, international students bring diverse perspectives, enriching the academic and cultural fabric of the UK.    

However, recent shifts in government policies and global trends are creating a more complex landscape for international student enrolment:

  1. The Impact of Policy Changes: The UK government has implemented several policy changes in recent years, including stricter visa requirements, increased financial thresholds for student visas, and changes to post-study work visa pathways. While these changes have influenced international student enrolment—showing a 16% fall in UK student visa applications from July 2023 to July 2024—they also present opportunities for universities to adapt their recruitment strategies and enhance their appeal to prospective students.
  2. Evolving Student Preferences: Alongside policy changes, student preferences and behaviours are also evolving. Affordability is becoming an increasingly important factor in students' accommodation choices. There's a growing trend toward students opting for more budget-friendly housing options, such as Houses in Multiple Occupation (HMOs). Data indicates a shift in student housing preferences, with HMO listing views rising significantly for both domestic and international students. This demand for varied housing options opens the door to innovative solutions and flexible accommodations.

Emerging Trends in Student Housing: Cities at the Forefront

1. London's Resilience: Student housing in London has seen consistent increases in rental prices, reaching a peak of approximately 25% in 2023.  However, the market has shown signs of correction and stabilization in 2024.  2. The Dynamics of Other Major Cities: Other major cities across the UK are also experiencing significant activity in the student housing sector, though with varying trends.

  • Manchester: This city witnessed a surge in rental prices in 2023, driven by strong demand. However, the Manchester student accommodation market has seen a correction in 2024, likely due to increased supply.  
  • Birmingham: Rental price growth in Birmingham student accommodation peaked in 2023 but has decreased significantly in 2024.  
  • Sheffield: This city has experienced steady rental price growth, with a slight drop in 2024, indicating a more stable market.  
  • Edinburgh and Glasgow: These Scottish cities saw substantial rental price increases in 2023, fuelled by high demand and limited supply. However, they have also experienced a sharp correction in 2024, with rental growth slowing.

Capitalizing on Opportunities: Navigating the Future

While the market outlook remains strong, shifting government policies and economic trends require strategic adaptation. Stricter visa requirements and financial thresholds for student visas have led to a 16% drop in applications from July 2023 to July 2024. Postgraduate applications have been particularly affected, with a notable 55% decline.

However, the UK’s longstanding reputation for quality education and the continued investment in student housing indicates that the sector remains well-positioned for long-term success. Stakeholders who adapt to evolving student preferences, offer diverse housing solutions and engage with policymakers will play a crucial role in shaping the future of student accommodation in the UK.

Conclusion: A Sector with Enduring Potential

The UK student housing market is at an exciting juncture. As it gears up to reach £9.59 billion by 2030, it presents immense opportunities for investors, developers, and universities. By positioning themselves as authorities in student housing and embracing innovation, affordability, and student-centric solutions, stakeholders can navigate these complexities and ensure that this vibrant sector continues to thrive.

Frequently Asked Questions

Unlock your free flight ticket

Your ideal student home & a flight ticket awaits

Claim now
Housing

Follow us on :

share-insta-icon

Instagram

Facebook

share-tw-icon

Twitter

share-linkedIn-icon

LinkedIn

Copy Link

Share on Facebook

Twitter-share

Share on Twitter

LinkedIn-share

Share on LinkedIn

copy-icon

Share

Share Now:

Copy Link

Link Copied

Facebook

Twitter

LinkedIn

cta
cta

Related Posts

News

Connect With amber

June 27, 2024
|
2 min
Get access to exclusive deals
Only the best deals reach your inbox
Thank you for subscribing to Amber's Updates
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
London
United Kingdom
Dublin
Ireland
Melbourne
Australia
New York City
United States
Frankfurt
Germany
Barcelona
Spain
Toronto
Canada
Birmingham
United Kingdom
Brisbane
Australia
Chicago
United States
Cork
Ireland
Hamburg
Germany
Montreal
Canada
Leicester
United Kingdom
Sydney
Australia
Austin
United States
Vancouver
Canada
Nottingham
United Kingdom
Adelaide
Australia
Houston
United States
Liverpool
United Kingdom
Perth
Australia
San Francisco
United States
Coventry
United Kingdom
Canberra
Australia
Boston
United States
Sheffield
United Kingdom
Gold Coast
Australia
Dallas
United States
Leeds
United Kingdom
Coffs Harbour
Australia
Washington DC
United States
Newcastle Upon Tyne
United Kingdom
Philadelphia
United States
Manchester
United Kingdom
College Station
United States
Cardiff
United Kingdom
Los Angeles
United States
Swansea
United Kingdom
Lubbock
United States
arrow
How the UK Student Housing Market is Poised for a £9.59 Billion Boom by 2030
5 min read
You'll love these as well
Similar
arrow
student accommodation market
The Impact of UK University Rankings on Student Housing Demand in 2025
Apr 8, 2025
|
News
|
5 min read
Connect with amber
Connect With amber
Dec 20, 2023
|
News
|
2 min
Tab 1
Tab 2
Tab 3
Tab 4
Tab 5
Tab 6
Tab 7

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by students

Trustpilot
Get the app
Payment Options
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact Us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by Students

Trustpilot
Get the app
Payment Options:
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!Site Map
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by Students

Trustpilot
Get the app
Payment Options:
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!Site Map
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:
Download the amber app
Start your journey from here!
More than 1.25 million beds available in 600 cities
Scan The QR to download the App
app QR
You can directly download from
play storeapp store
100% Verified Listings
Quick and Easy Bookings
Price Match Guarantee
24x7 Personal Assistance
£20 cashback on the app!
Scan to Download App
4.5/5
180K+ Downloads
Download from
Share