The transformative impact of international students on the UK's higher education and student accommodation sectors has been revealed in a report from JLL.
With their numbers soaring by 51% to more than 730,000 between 2018/19 and 2023/24, these students are not only boosting university finances but also intensifying demand for purpose-built student accommodation (PBSA).
The firm's Global Student Mobility in UK Higher Education report highlights those overseas students contributed nearly £3bn to UK universities, with their fees making up two-fifths of total income - a sharp rise from just over a quarter in 2017/18.
In contrast, teaching domestic students resulted in a £1.4bn loss.
This financial reliance underscores the sector's dependence on international enrolment, particularly as the UK remains a top destination, attracting 12% of the world's overseas students.
Student fees help UK universities
Marcus Dixon, JLL's head of UK residential valuation, said: "Overseas students have become increasingly important in UK higher education, with increases in their numbers helping to alleviate some of the more acute financial pressures facing universities."
However, he cautioned that the post-pandemic surge in student numbers has subsided, with universities needing to tap into emerging markets like East Africa and other Asian nations.
Mr Dixon added: "Current tariff uncertainty and redrawing of the relationships between the US and other trading partners could lead to some re-assessing their choices.
"The UK, boasting a number of high-ranking universities is well placed to benefit, but we need to ensure we remain welcoming to new students and that our university estates adapt to ensure we meet the needs of a changing student body."
Welcoming overseas students
JLL's report underlines the UK's strengths for overseas students including a prestigious education system, strong post-study prospects and a welcoming environment.
It says that the influx of students is reshaping housing markets, particularly in key cities where demand for PBSA is surging.
This trend, while creating opportunities, also strains private rental markets and requires careful planning to balance diverse student needs.
The report advocates for government policies that maintain openness to international applicants, especially as the UK's ageing population and declining birth rate heighten reliance on overseas talent.
The UK is an education leader
Universities are encouraged to explore satellite campuses abroad to attract students drawn to the UK's educational reputation.
As growth in student numbers normalises, the report stresses the need for a targeted approach to recruitment and adaptation to a shifting student demographic.
And, with the higher education sector's economic, social and cultural significance at stake, the report concludes that championing openness is critical.
It states: "Given the importance of the sector to the UK economically, socially and culturally – it is imperative that higher education policy maintains openness to a diverse and changing cohort of students."
Doing so, it adds, will reinforce the UK's reputation as a global education leader.
Student landlords will benefit
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords in the UK, the surge in international students presents a lucrative opportunity amidst a changing landscape.
"The JLL report underscores that the 51% rise in overseas students has fuelled unprecedented demand for purpose-built student accommodation, particularly in key university cities.
"This trend, driven by the financial muscle of international fees, is unlikely to wane soon, but landlords must adapt to evolving needs."
He added: "Not every overseas student will be wanting to live in PBSA units which means landlords with quality student properties will benefit also."
