QX Global Group, in collaboration with JLL, has unveiled its latest report, Where Next for Student Housing? The report examines emerging opportunities and challenges in the UK PBSA sector, examining the contradictions caused by viability and affordability.
David Tymms, Strategic Advisor at QX Global Group highlighted the scale of the challenge and the imperative for action.
“The UK’s PBSA sector is at a critical juncture. With demand consistently outstripping supply and rising costs challenging the viability of new developments, do we need to rethink traditional design models?
“This report cautions against a ‘more of the same’ approach whilst also highlighting the challenges of delivering alternative models”.
David Tymms, Strategic Advisor, QX Global Group
Report insights
The Where Next for Student Housing? report by JLL and QX Global Group delivers a summary analysis of the UK PBSA landscape, setting out some key issues including:
- Structural undersupply: With core demand now accounting for 61% of the UK’s full-time student population, PBSA supply is failing to keep pace.
- Affordability challenges: Rising construction costs and regulatory hurdles are making it increasingly difficult to deliver affordable PBSA, particularly in non-premium markets.
- Shifting demographics: The growth in students from lower-income households, both domestic and international, highlights the need for more cost-effective housing options.
- University partnerships: The challenges for financially constrained universities working with private providers to bridge the gap in available PBSA.
Key findings
The report reveals that PBSA provision is projected to meet just 50% of core demand by 2030, reflecting a widening gap between supply and demand. It also highlights how demographic changes, such as increased participation from lower-income households, are reshaping the market. Geographic disparities and the lack of affordable options are particularly concerning for regions like London, where demand continues to outstrip supply.
The analysis stresses the need for collaboration between universities and private developers. Innovative approaches, such as larger cluster flats and partnerships with educational institutions, are highlighted as potential solutions to address affordability and development viability.
A call to action
This report emphasises that addressing the challenges facing PBSA requires a coordinated effort from stakeholders across the sector. Universities must collaborate with private developers to create sustainable housing solutions and operators should embrace innovative designs to meet the evolving financial needs of students.
As highlighted in the report, the PBSA sector faces a ‘near-perfect storm’ of challenges, but with bold, strategic action, these obstacles can be overcome. Stakeholders must act now to ensure the sustainability of the sector and to support the needs of a growing and diverse student population.
Download the full report here to explore actionable strategies for the PBSA sector.
