Deloitte Report: UK Student Housing Sparks Urban Transformation

A recent report by Deloitte highlights a significant surge in student accommodation development across key UK regional cities. This marks a notable transformation in the UK's urban landscapes. According to Deloitte’s latest regional crane survey, conducted in Belfast, Birmingham, Leeds, and Manchester, there was a remarkable 40% increase in student accommodation in UK construction in 2023 compared to 2022. 

As per the UK student housing news, the report reveals that nearly 8,200 student bedrooms were under construction in these cities, with Birmingham experiencing the most dramatic growth. Birmingham witnessed a staggering 15-fold increase from approximately 100-bed spaces in 2022 to over 1,500 in 2023. Manchester also set a record with the highest number of student residence projects in the survey’s 24-year history, with construction beginning on three schemes totalling 2,153 new bed spaces. 

John Cooper, Deloitte’s real assets advisory partner, said, “Construction is one of the barometers for economic health. The industry has continued to show resilience despite macroeconomic challenges and higher borrowing costs.”

While the residential sector led development in all four cities, with 87 schemes under construction and 28 breaking ground, the other sectors also contributed significantly to urban revitalization. Belfast saw a tenfold increase in housing activity, with 950 homes underway, and Birmingham’s city centre saw a 36% increase in housing output.

Over the past six years, the cumulative output across all sectors has been remarkable, with the completion of 55,000 homes, 6,700 hotel rooms, and 11 million sq. ft. of educational space, highlights the UK student housing news. 

Cooper further commented, “This is truly transformative to see developers and investors working in partnership with local authorities and city planners to create vibrant communities to live and work in.”

“We can see new neighbourhoods emerging and continuing to take shape. Whilst there is still much to do, the last few years have paved the way for quality place-based regeneration and positive change across our regional cities. Looking ahead, there is a healthy development pipeline to match demand too.”

Looking ahead, the development pipeline remains robust, with projects like Manchester University’s £400m plan to build 3,000 new student homes and the Upper Brook Street masterplan on the line. This includes two major life sciences buildings, further bolstering growth prospects.

The UK office sector has not experienced a comparable boom. In 2023, the combined commercial space recorded in the four UK cities remained consistent with previous years, totalling 3.4 million sq. ft. Despite this, Leeds achieved a remarkable milestone, with nearly 700,000 sq. ft. of completions across three schemes. Meanwhile, Manchester led in terms of space under construction, boasting 2.2  million sq. ft. 

The dynamic urban landscape of the UK reflects a blend of residential growth and evolving office sector dynamics, setting the stage for continued transformation for UK student housing. You can also read about the investor’s interest in the UK PBSA market. Stay updated on more such student housing-related news with amber news.