Amber’s Market Snaps: UK PBSA Sector Intel (Aug’25 Update)

Key Highlights

• Undergraduate applications surged by +6% in 2025 vs 2024, while total acceptances remained strong at +5.0%, showing consistent demand for higher education in UK
• Turkey and Nigeria exceeded +23% YoY increases in UCAS applications
• The UK issued 188,500 student visas (Jan-Jul 2025)—a 10.95% YoY rise, with 177,800 main applicants (+13.39%), despite an -18.32% decline in dependents due to policy shifts.
• Overall UK keyword search volume for PBSA rose +16.55% from June to July 2025, led by London (+26.72%) and Coventry (+19.56%)
• UK PBSA average weekly rents increased +4.13% YoY (2024 vs 2025), with en-suite rooms up +4.34% and studios up +3.02%, though price-sensitive students shift toward shared configurations.
• Post-UCAS UK overall occupancy surged by +12.99%, jumping from 76.85% to 89.84%.
• UK cities with highest percentage increases were observed by Leeds (+21.14%), Nottingham (+19.50%), and Coventry (+19.92%); Manchester occupancy at 94.44% by end-August 2025
• Amber Occupancy Index projects that UK PBSA occupancy could approach 94–97% by end of peak booking AY2025-26 season

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1. What are the 3 Levers of the PBSA Sector?

The UK PBSA sector continues to be a cornerstone of the higher education ecosystem, catering to the growing and diverse population of domestic and international students.

As universities attract learners from across the globe, PBSA sector has moved beyond being a basic housing solution to becoming a competitive market driven by quality, convenience, and student-focused amenities.

With student mobility rebounding and application numbers showing renewed growth in 2025, the sector faces both opportunities and challenges in meeting this rising demand.

At the core of the UK PBSA sector, three critical factors directly influence performance and profitability:

• Demand: Tracking application trends, enrolment rates, and student mobility patterns to anticipate occupancy needs.
• Pricing: Setting competitive yet profitable rent levels, balancing market growth with affordability concerns.
• Occupancy: Monitoring how effectively properties are filled, factoring in shifts in student preferences, economic conditions, and supply levels.

Understanding how these drivers interact is essential for property developers, managers, and investors to stay ahead as demand for student accommodation surges post-UCAS results. This analysis by amber reflects data up to July and August 2025, with September positioned as a critical month for the UK PBSA market.

2. Demand Trends: The Student Application Surge

The UK higher education sector has seen a strong rebound in undergraduate demand in 2025, marking a 6% overall increase in applications compared to last year. Total acceptances in June 2025 remained robust at +5.0%, matching the growth seen in both 2023 and 2024.

This consistency reflects the capacity of universities to accommodate rising demand and indicates a stable intake pipeline for the 2025-26 academic year.

This growth is fueled by both domestic and international interest, reflecting a renewed appetite for UK university education.

• Domestic Students: Domestic undergraduate applications rose by 1.02% in June 2025, reversing the 1.57% decline recorded in 2024. This turnaround suggests that more UK-based students are choosing to pursue higher education despite cost-of-living pressures and a competitive job market, likely valuing the long-term career and skill benefits of a degree.
• UCAS International Students: International demand also strengthened, with applications climbing 2.2% year-on-year. This came after a 1.9% drop in 2024, indicating a recovery in overseas student interest, supported by the UK’s global reputation for academic quality, diverse study options, and attractive post-study work opportunities.

Overall, the surge in both domestic and international undergraduate interest underscores a sustained demand for UK higher education, which directly supports the growth of the PBSA sector by expanding the pool of students seeking quality accommodation.

3. Country-Level Demand Shifts

The UCAS June 2025 application data shows a mixed picture for international student demand in the UK, with a few source countries driving strong growth. This highlights geopolitical, economic, and policy factors shaping the UK’s higher education recruitment landscape.

Overall, international demand remains resilient, with significant increases from select emerging and mature markets. The largest growth is concentrated in non-traditional, high-potential markets such as Turkey and Nigeria, both exceeding +23% growth year-on-year.

Key Global Student Sending Market Highlights:

• Turkey & Nigeria: Turkey leads with +23.6% growth, with rising demand for internationally recognised qualifications amid domestic economic uncertainty. Nigeria follows closely at +23.3%, reflecting interest in overseas education despite economic pressures, with strong alumni networks in the UK.
• Ireland: Ireland posts a solid +14.6%, underpinned by cultural ties, geographical proximity, and attractive post-study work opportunities.
• United States: The US recorded +13.9%, boosted by transatlantic academic partnerships and the UK’s relative fee competitiveness for select programmes.‍
• China & India: China remains a key source market with a +9.8% growth, though students are increasingly opting for lower-priced room types compared to previous years due to reduced spending capacity. India also remained a major driver of overall volumes, though showing some adjustments in demand as policy and economic factors play out.‍
• Other markets: Malaysia (−8.2%), Hong Kong (−5.9%), Singapore (−3.8%) and the UAE (−2.9%) showed slowing trends, influenced by currency depreciation, visa policy changes, and competition from alternative destinations.

These variations suggest that while overall international demand for UK higher education remains strong, recruitment strategies will need to be market-specific, doubling down on high-growth regions like Turkey, Nigeria, and North America, while addressing policy and cost concerns in declining markets such as India and Malaysia.

4. UK Sponsored Study Visa Clearance: Application Patterns

The first half of 2025 has shown a noticeable shift in the timing of UK student visa applications, with demand peaking earlier than in previous years. In January to July 2025, 177,800 main student visa applicants and 10,700 dependents, totalling 188,500 student visas, were granted.

This is a notable increase from 2024, when there were 156,800 main applicants and 13,100 dependents, with a total of 169,900 student visas. Year-on-year, this reflects a 13.39% rise in main applicants (+21,000 visas) but an 18.32% decline in dependents (-2400 visas). The overall total still grew by 10.95%, underscoring the strength of the UK’s appeal to prospective students, even amidst tighter immigration rules for accompanying family members. The dependent visa decline is almost certainly linked to the government’s policy changes restricting eligibility, while the jump in main applicants highlights continued strong demand for UK education.

When looking specifically at July 2025 versus July 2024, the trends reveal subtle seasonal shifts. In July 2024, there were 69,500 main applicants and 2,000 dependents, compared with 73,500 main applicants and 2,800 dependents in July 2025. This translates to a slight increase 5.76% in main applicants (+4,000 visas) and a 40% increase in dependents (+800 visas). July marks the highest level of applications so far this year, with an even stronger surge anticipated in August. The broader annual increase in main applicants suggests that the UK’s higher education sector is entering the next intake season with strong momentum, even as dependent visa numbers adjust to policy changes.

The sustained rise in main applicants points to robust demand for accommodation, particularly for the 2025-26 academic year. Seasonal stability in application trends also suggests that demand for purpose-built student accommodation (PBSA) will remain predictable, giving operators and investors confidence in occupancy planning.

5. UK City-Wise Demand Trends

Keyword search volumes for the UK PBSA market remained strong in Q2 2025, with a total quarterly increase of +1.42% compared to 2024. Notably, June 2025 saw a +5.08% year-on-year rise, highlighting a clear uptick in student housing demand ahead of the academic year. This aligns closely with UCAS acceptance and visa approval trends, reinforcing the robust underlying demand and signalling continued momentum in the student housing market.

For operators, this pattern signifies the surge in demand for student accommodation and further highlights the importance of competitive early pricing to lock in tenants, followed by strategic adjustments in the summer peak when demand surges.

The latest keyword search volume trends (till July 2025) suggest notable demand shifts across major UK student cities.

• Nottingham (+13.92%) and Liverpool (+11.20%) show the sharpest quarterly gains, indicating strong interest in upcoming intakes.
• Manchester, Leeds, and Glasgow also show steady upward momentum, while London maintains moderate but consistent growth.
• On the other hand, Birmingham records one of the steepest declines, followed by slight dips in cities like Cardiff, Coventry, and Bristol, where demand remains relatively stable but subdued.
• Plymouth and Newcastle present a mixed picture with monthly gains but small quarterly drops, reflecting fluctuating market interest.

Top UK Cities Demand Analysis (Keyword Search Volumes)

From June to July 2025, overall UK keyword demand surged by 16.55%, indicating a strong seasonal uplift. London (+26.72%) led the growth, reflecting renewed momentum in the capital. Other high performers included Coventry (+19.56%), Newcastle (+15.65%), Liverpool (+13.44%), and Nottingham (+13.63%), all showing double-digit gains. Manchester (+11.29%) and Sheffield (+9.03%) also contributed to steady growth. In contrast, Birmingham (+17.32%) showed recovery compared to June but remains down year-on-year. Leicester (+6.15%) and Leeds (+4.92%) posted more modest rises, with Leeds still trailing sharply on a YoY basis.

6. UK City Price Trends (2024 vs 2025)

The UK’s PBSA sector’s student housing rent continues to see steady growth, with average weekly prices rising +4.13% YoY between 2024 and 2025. En-suites recorded the sharpest increase at +4.34%, while studio rent saw the smallest rise at +3.02%.

Price-sensitive students may gravitate toward more affordable shared options, impacting occupancy trends, as higher rents push more students toward budget-friendly configurations.

In 2025, rental pricing remained remarkably stable in the early part of the year, holding between £242-£243 from January through May, before a modest uptick in June and July. By contrast, 2024 experienced greater volatility, dipping to £228.53 in May before climbing again in the summer months.

As of 25 August 2025, prices remain stable without any major price hikes in UK cities. Property operators are also offering cashbacks and discounts to students to boost occupancy and fill vacancies.

Key Highlights of PBSA Price Trends Across Top UK Cities:

• In 2025, PBSA rents saw the sharpest increases in London, Manchester, and Birmingham.
• London recorded the highest jump, with ensuite rent increasing +14.86% and studios up +8.66%.
• Manchester saw standout growth in studio rent at +12.12%
• Birmingham followed with a +9.10% rise in ensuite rent.
• In contrast, Sheffield and Plymouth emerged as the most affordable PBSA markets, with ensuite rents dropping -8.59% and -6.00% respectively.

7. Current Booking Occupancy Trends by Top UK Cities

Booking occupancy trends are influenced by shifting student demand in top UK cities. It provides an overall picture of the occupancy index based on the total available PBSA beds and the current availability. After UCAS results were announced on August 14, 2025, occupancy saw a rise. Here’s an analysis of pre-UCAS and post-UCAS occupancies:

• According to the Amber Occupancy Index (as of 31st August 2025), the overall UK PBSA occupancy surged from 76.85% to 89.84%, marking a strong 12.99% increase.
• The sharpest gains were seen in Leeds (+21.14%), Nottingham (+19.50%), and Coventry (+19.92%)‍
• Birmingham (+15.47%), Sheffield (+11.38%), London (+10.00%), and Manchester (+7.99%) also recorded notable growth.‍
• Liverpool and Newcastle reach ~90% booking occupancy, while Manchester stands at 94.44%.

8. Key Takeaways for PBSA Stakeholders

The August 2025 Amber Occupancy Index records UK PBSA market occupancy at 89.84%. Strong underlying demand suggests significant potential for acceleration in the upcoming months, with projections indicating that occupancy could approach 94–97% by the academic year’s peak. This momentum highlights opportunities for stakeholders to strengthen performance by focusing on three strategic levers:

#1 Align Pricing with Affordability

Rent growth in the PBSA sector has outpaced student budget increases in several cities. While premium configurations like studios maintain appeal, the fastest-growing demand segment is budget-friendly en-suites.

#2 Target High-Growth International Markets

Certain regions are contributing a disproportionate share of applications, particularly countries with strong visa approval rates and consistent outbound student mobility. Building partnerships with recruitment agents, universities, and local marketing platforms in these countries can help convert interest into bookings faster. Localised campaigns and language-specific marketing can also improve engagement in these target markets.

#3 Plan Marketing Around Peak Demand Windows

Historical booking patterns show clear peaks around university offer releases, visa decision timelines, and pre-departure months (July-September). Aligning advertising, referral incentives, and flash discounts with these periods can significantly improve conversion rates.

By combining competitive pricing strategies, targeted international outreach, and data-driven marketing timing, developers and managers can bridge the current demand-occupancy gap and protect yields in an increasingly competitive PBSA sector.

9. The Road Ahead for UK PBSA Sector

In 2025, the PBSA sector in the UK remains well-positioned for long-term growth, driven by sustained international student demand, evolving accommodation preferences, and the resilience of the purpose-built model.

However, rising rental prices, shifting city-level trends, and increased competition mean that success will hinge on balanced pricing strategies, precise audience targeting, and timely marketing aligned with seasonal demand peaks. Stakeholders who adapt quickly to affordability pressures, tap into high-growth student markets, and leverage occupancy data for strategic planning will be best placed to capture market share and maintain profitability.

For detailed city-level insights and customised recommendations, contact supply-operations@amberstudent.com or list your property with amber for maximum visibility to your property portfolio for the 2025-26 peak intake season.