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Sharp rise in new purpose-built student accommodation developments

There has been a significant increase in the number of students living in purpose-built student accommodation across Britain, making it harder for some traditional student landlords to fill their once sought-after properties.

Figures provided by Knight Frank earlier this year suggest that the number of students living in purpose-built properties has more than doubled during the last ten years. As such, it is one of the few asset classes to deliver positive rental growth in every year during the last decade.

The growth in university maintained accommodation is making it harder for some private landlords to compete with the rising market of purpose-built student accommodation.


According to recent research by Savills’, Bath is the UK’s top hotspot for student accommodation development, because of strong demand characteristics, high occupancy levels, strong rents and good prospects for rental growth.

In second position is Birmingham followed by Brighton, Bristol, Edinburgh and Exeter. This year saw three new places moved up to the top ten, including Exeter, Guildford and Leeds.

Savills Student Housing Development League 2017

University Town/City











Jeremy Robinson, managing director of Housing Hand, which provides a guarantor service for students and working professionals, commented: Just this month, the University of Brighton was granted planning permission for a new student accommodation project for £60-80 million, which will see the development of 804 rooms in two towers, with construction due to be completed by September 2019.

“These new developments are popping up all over the UK and are good news for students.  Historically, many have found it difficult to find affordable accommodation close to universities and have had to opt for purpose built student accommodation.” 

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