Student landlords could face tougher competition as purpose-built student accommodation (PBSA) providers cut rents in several university cities.
Cushman & Wakefield’s 2026 UK Student Accommodation Report puts annual rent growth in the PBSA sector at just 0.52% for the 2026/27 academic year.
Some operators have reduced prices as they focus on filling rooms and respond to changing student demand.
Those cuts come despite a record 518,300 students being accepted through UCAS in 2026, up 1.1% on the previous year.
Student accommodation demand divides
David Feeney, the firm’s head of student accommodation advisory, said: “The sector remains fundamentally resilient, but the era of rising demand lifting all markets equally is over.
“The encouraging news for students is that affordability is beginning to improve as rental growth moderates and the market starts to rebalance.”
He added: “For universities, investors and accommodation providers, future success will depend on delivering the fundamentals.
“The right accommodation, in the right location, and at the right price.”
Student block rents fall
The research shows that Brighton’s PBSA rents fell by 6.7%, while Glasgow saw a 6.1% reduction.
Rents also fell in Swansea, Nottingham and Sheffield, where the falls ranged from 3.7% to 5.5%.
However, Guildford, Belfast, Durham, London and Bristol continued to record rent growth.
Across the PBSA market, studio rents were broadly unchanged, following a period in which rents across private student accommodation rose by almost 20% between 2022/23 and 2024/25.
Cheaper private student rooms
Students can now find private sector en-suite accommodation for less than the university equivalent in 31 UK markets.
In nine markets, the average university-managed bed costs more than an equivalent private sector room.
Meanwhile, sponsored study visas totalled 231,600 between January and August 2026, down 22% on the same period last year.
The report identifies Leeds, Sheffield, Leicester, Swansea and Edinburgh as locations where international student numbers have declined.
However, Birmingham and Bristol recorded growth during the most recent academic year.
Student accommodation investment
The report also highlights UK PBSA transactions totalling £2.45bn so far this year, with more than £1bn under offer and annual volumes forecast to reach around £3.2bn.
Investment and lending are increasingly concentrated in university markets with the strongest demand and long-term growth prospects.
Russell Hefferan, the firm’s head of student accommodation capital markets, said: “With the era of ultra-low interest rates behind us, future returns will be driven by income growth rather than yield compression.
“As a result, investors are focusing on assets with resilient occupancy, sustainable rental growth and proven operational performance.”
He added: “In the next phase of the market cycle, competitive advantage will come not from simply owning PBSA, but from owning the right PBSA assets.”
Fewer beds planned
The UK’s PBSA development pipeline has fallen by 9,000 beds over the past year to 165,000.
Planning applications covering just 10,500 beds were submitted in the first eight months of 2026, one of the lowest totals for that period in recent years.
More than 42,000 beds are under construction across the country, Cushman & Wakefield says.
However, rising construction costs, financing pressures and building safety requirements continue to constrain future development, despite demand in many major university markets.
Record student admissions for landlords
Simon Thompson, the managing director of Accommodation for Students, said: “It appears that record student admissions offer student landlords little reassurance when nearby demand is weakening.
“It’s always worth checking competing accommodation prices before setting next year’s rent, particularly where operators have cut charges.”
He added: “And as I regularly say, landlords must consider whether location, space or shared living gives prospective tenants compelling reasons to choose your house.
“I would add that the student accommodation sector should budget cautiously because a national growth in student numbers cannot guarantee local occupancy.”
