A number of providers of purpose-built student accommodation (PBSA), often targeting more affluent students, have encountered financial difficulties. This has left some students in unexpected situations, such as Nathalie Sriwiboonrattan, a fourth-year Abertay University student, who had to quickly find new housing after her Scottish studio flat owner went bust in late July.
The wider student housing market is grappling with several challenges, including a decline in international student numbers, the ongoing cost of living crisis, and increased borrowing and build costs. These factors are impacting the viability of some high-end student housing schemes, with some sitting half empty and several having gone bust.
For British students, the rapid increase in PBSA rents, which have outpaced maintenance loan growth, has made these accommodations financially out of reach. The national average rent for PBSA, excluding London, is £191 per week including bills, according to StuRents. In contrast, the average British student outside London is reportedly paying around £160 a week for rent.
Occupancy rates in PBSA tower blocks varied in August, with Glasgow at 71.3%, Coventry at 69.9%, Bristol at 89.7%, and Exeter at 95.3%. Some cities, such as Coventry, Leeds, and Nottingham, are experiencing an oversupply of upmarket student accommodation, while London still sees demand for it.