2023 Student Accommodation Report

David Feeney of Cushman and Wakefield joined the AFS webinar on the 16th of November and discussed some of the key trends in the student accommodation sector.

Demand and supply

In the session, David discussed the continued increase in demand for student accommodation, particularly in certain cities and the slowdown in the construction of Purpose Built Student Accommodation (PBSA). David pointed out that the number of new beds available in PBSA caters for just 13% of the demand pool.

Within this overall trend, David demonstrated the difference between major student cities, highlighting that some cities remained relatively oversupplied with PBSA.

Affordability

David discussed affordability in detail, highlighting continued increases in rent and the use of dynamic pricing. Research indicates that in some markets PBSA operators had overestimated the ability to increase rent, resulting in under occupancy.

During the session this led to a discussion, given that student funding was not increasing in line with rental increases, while parental contributions were squeezed by a cost of living crisis. At the same time, the potential is for a reduction in the available HMO stock making accommodation less affordable.

You can access a copy of the slides here

If you are interested in viewing the full report you can access it from the Cushman and Wakefield website here https://www.cushmanwakefield.com/en/united-kingdom/insights/uk-student-accommodation-report