Amber’s Pricing Intel Series: London Snapshot 2025 (Demand, Pricing, Occupancy)

Key Highlights:

• UK PBSA demand stays strong but is shifting due to migration and economic factors.
• Overall, UK market occupancy is 92%; London occupancy dropped to 91%
• London added ~2,500 PBSA beds in AY 2025–26, with 1,800 more expected in AY 2026–27.
• Launch prices rose in the Budget and Mid tiers, but are recommended to decrease slightly next year to improve occupancy.
• The market is expanding quickly, requiring strategic development to avoid oversupply.
• Pricing adjustments should reflect property occupancy relative to the market to optimise bookings.

UK PBSA Market Outlook (End of September ‘25)

The UK market continues to be one of the top global education destinations. The overall current occupancy of the UK market for AY 25-26 stands at 92%. With student behaviour shifts, the UK student housing landscape is gradually evolving. While the demand remains steady, a variety of factors, such as economic uncertainty and post-study employment opportunities, influence student decisions.

Notably, H-1B visa changes in the US may result in an increased interest in the UK. However, due to fewer job prospects in the UK compared to destinations like Canada, Germany, and Australia, students may instead favour these destinations for long-term career pathways.

Approximately 2,500 new beds were added to London’s PBSA market in AY 2025–26, with an additional 1,800 beds expected for AY 2026–27.

London continues to be one of the most dynamic and competitive student housing markets in the world. As we head into the academic year 2026–27 (AY26–27), Amber’s Pricing Intel Series reveals shifts in student demand, pricing strategies, and occupancy trends across the city. From increased supply to changing booking behaviours, here’s a comprehensive look at what’s shaping the purpose-built student accommodation (PBSA) landscape in the UK capital this year.

London PBSA Outlook 2026: Occupancy & Room Types

London’s PBSA occupancy stands at 91% (as of the end of September 2025), reflecting a 6% drop from the 97% recorded last year. 

London has observed a price hike in AY25-26. University students have shown a preference for Studios and Ensuites in London owing to their offerings, convenience, and value.

‍Note: For analysis and detailed comparison, amber has defined the Studio & Ensuite room prices data in 3 room categories, namely, Budget, Mid, and Premium. These classifications are not official market standards, but are differentiated to understand the data better.

• Launch Prices AY25-26: Launch prices saw a price increase for the AY25-26, as compared to AY24-25, primarily in the Budget and Mid categories for both Ensuite and Studio room types, causing the 6% dip in occupancy in AY25 in London.
• Ensuite Rooms: Budget Ensuite prices rose by 3.53% YoY, and Mid Ensuite stayed flat (0.00%).‍
• Studio Rooms: Budget Studio saw a 1.99% YoY increase, and Mid Studio a marginal 0.21% rise.‍
• Premium Tiers: Premium Ensuite and Premium Studios both declined YoY (-1.08% and -2.27% respectively).

London PBSA Ensuites: Budget, Mid & Premium Tiers

Ensuites in London have seen a demand shift towards the Mid category, with students choosing budget and Mid options.

• The average price range for budget Ensuites in AY25 was £264, highlighting a 3.53% YoY change, as compared to AY24.
• For mid-range Ensuites particularly, prices have continued to be relatively flat in AY25, with only a marginal YoY change of 0–0.2%, as compared to AY24.
• The average price range for premium Ensuites is £544 in AY25, reflecting a change of 0.55% YoY, as compared to AY24.

London Studios: Budget, Mid & Premium Tiers

As compared to AY24, this year AY25 has witnessed:

• The average price of Budget Studios stood at £358 in AY25, marking a 1.99% increase since last year.
• The average price of Mid-range Studios stood at £468, marking a 0.21% rise in prices in AY25.
• Premium Studios showed a decline in prices, at £639 as of September ‘25, highlighting a 1.08% drop since last year.
• The average price of Premium Studios in London has decreased by 1.08% in AY25, as compared to last year.
• For mid-range Studios specifically, prices have remained relatively flat in AY25, with only a marginal YoY change of 0–0.2%, as compared to last year. This indicates limited willingness to pay more without additional value.

Pricing Recommendations by amber for AY 26-27

Amber’s Pricing Intel Series for the academic year 2026–27 highlights key considerations for PBSA operators in London. By reflecting on last year’s launch pricing outcomes and analysing current price trends, amber offers strategic guidance to help operators optimise revenue while maintaining strong occupancy throughout the year.

Based on these insights, amber recommends actionable launch prices for AY26–27 in London, taking into account broader market shifts and property-specific factors. These pricing strategies are designed to provide operators with the flexibility to gradually increase rates over the year, aligning pricing with demand while ensuring competitiveness from the outset. As an operator, you can check the following recommendations compared to your current market occupancy levels in London as of October 2025.

• Operators with current London occupancy at the market level of 91% should consider reducing launch prices by approximately 2.18% from current rates to remain competitive.
• Operators with portfolios showing above-market occupancy levels can maintain current prices or apply modest increases.
• Operators with below-market occupancy levels are advised to reduce prices beyond 2.18% relative to this year’s closing rates or pursue additional strategies to drive demand.

Wrapping It Up

As London’s PBSA landscape becomes more mature and competitive, the key to success lies in knowing your audience, pricing wisely, and offering value. Property operators could adapt pricing across categories. Meanwhile, students continue to show strong demand but are increasingly value quality, location, and affordability in equal measure.

amber will continue to track these changes and provide timely insights for operators, students, and investors alike. Stay tuned for more UK city snapshots and pricing intelligence.