As the student housing sector enters a pivotal planning cycle, nine senior leaders from across the PBSA industry came together to discuss the strategic imperatives, challenges, and best practices shaping the academic year ahead. Their insights reflect a sector in transformation – and a community committed to learning from each other to drive performance, resilience, and innovation.
In an industry-first gathering hosted by Lavanda and chaired by leading industry consultant Ross Halliday, senior decision-makers collectively representing over 150,000 student beds across the UK and Europe convened on 1 July for a virtual roundtable to exchange perspectives on strategy and budgeting for Academic Year (AY) 2025–26.
Participants included:
- Ross Halliday (Chair), PBSA Consultant – RH Consulting
- Tracy Stanton, Vice President of Operations, UK & Ireland – Yugo
- Richard Murphy, Director of Revenue Management & Partnerships – IQ Student Accommodation
- Scott Blakeway, Director of Asset Management & Operations – MYS Living
- Linsey Cullen, Head of Operations (North & Ireland) – Fresh
- Tariq Akbar, Director of Operations – Downing
- Paul Watson, Managing Director – NOW Student Living (Generation Partners)
- Fred Lerche-Lerchenborg, Chief Executive Officer – Lavanda
Held under Chatham House rules, the discussion allowed for frank and open dialogue between peers without individual attribution. What emerged was a timely and candid conversation about the realities of planning in a volatile macroeconomic, political, and demand environment. While the specific market positions of participants varied, the collective picture painted was one of operational agility, scenario-driven forecasting, and closer-than-ever investor engagement.
Budgeting with uncertainty: a new norm
Perhaps the clearest message to emerge was that the days of static, linear budgeting cycles are over. Faced with inconsistent booking patterns, late enrolment decisions, and pricing pressure in key markets, operators are now relying on multi-scenario forecasting as standard.
“Scenario planning has become essential,” one participant explained. “We have to build base, stretch, and downside cases as a matter of course. Cities like Sheffield are proving particularly tough to read this year.”
The underlying challenge is occupancy. While some assets remain oversubscribed, others are struggling to fill. Many UK and international students are delaying decisions in hopes of late-cycle discounts – putting revenue assumptions under strain well into summer.
Utility volatility looms large
A pressing operational concern is utilities pricing. Some providers are facing a cliff edge on 31 March 2025, when hedging contracts expire. With energy prices volatile and consumption tied closely to occupancy, several roundtable participants noted that new tender processes are already under way – and require closer involvement from asset owners.
“Investors are more engaged in hedging decisions than ever before,” one participant observed. “Post-Ukraine, they want to understand the cost structure intimately.”
Utilities now sit alongside staffing and international agent commissions as one of the largest, and least predictable, budget items. The knock-on effect for Net Operating Income (NOI) is significant.
Bottom-up budgeting and longer timelines
One operator shared their “Budget Kick Off” approach, starting with property-level input from on-site managers and building upwards. This bottom-up model, mirrored by a number of others in the group, has helped strengthen accuracy and frontline engagement.
At the same time, timelines are stretching. Rent-setting is now beginning up to 24 months ahead of intake, requiring better forecasting tools and early marketing spend. Participants noted this makes the long-term cost of sales harder to predict, especially when paired with dynamic pricing strategies that are increasingly prevalent across the sector.
Tenancy models are evolving
Traditional 44- and 51-week tenancy models are being re-evaluated in light of both market demand and policy shifts. Several participants reported growing appetite for semester-based stays, January-to-January bookings, and more flexible contract lengths.
Legislation in Ireland, allowing students to break leases with just 28 days’ notice, was cited as a case study in how regulation can reshape operational planning overnight.
To mitigate disruption and protect margins, operators are beginning to pre-emptively “segregate” building blocks or floors based on tenancy type, making it easier to manage summer transitions, utility usage, and even council tax liabilities.
Short-stay letting comes of age
Once treated as a reactive measure to offset voids, short-stay letting is now firmly part of forward planning. Participants said investors increasingly recognise the value of short-term income – provided it is well-managed and tax-compliant.
“We’re seeing operators bring in revenue managers from hotel backgrounds to manage short-stay inventory more dynamically,” noted one attendee. “But VAT and REIT status implications still require careful planning.”
The challenge, several agreed, is integrating short-stay strategy into long-term leasing plans, rather than treating it as a post hoc solution.
Regulatory uncertainty requires agility
With the UK’s Renters’ Rights Bill still under debate, participants acknowledged the difficulties of planning for an uncertain legal environment. Proposed changes to tenancy security could reshape the legal foundations of the PBSA model, though most expect a transitional period extending into late 2025.
Operators stressed the importance of remaining nimble, both in contract structuring and investor communication. Meanwhile, building safety compliance and increasing health and safety obligations – particularly in the wake of Grenfell – continue to place upward pressure on operational costs.
Investor engagement: more frequent, more transparent
If one operational change became universal post-COVID, it’s this: investor relationships have grown deeper and more data-driven.
Owners and capital partners are no longer content with annual reviews or top-line metrics. In today’s market, they expect near-real-time updates on velocity trends, market sentiment, and competitor activity.
This shift has forced operators to become more transparent, more collaborative, and – at times – more honest about when and why a business plan might fall short.
“You need to be able to go back to your investor and say: here’s what we forecasted, here’s what changed, and here’s how we’re adjusting. If you don’t, you lose trust,” one leader said.
The student experience remains key priority
Amid the commercial pressures of pricing, budgeting, and legislative change, the roundtable underscored the enduring importance of the student experience.
Operators spoke of the need for integrity and consistency: from communicating event calendars in advance and delivering on them, to offering value-added services like mental health helplines and move-in support.
What’s more, a growing number are turning to tech to help maintain quality – whether through smart maintenance ticketing, payment automation, or hybrid staffing models that keep headcount lean without degrading service levels.
What success looks like in 2025–26
As the discussion closed, participants reflected on what success looks like in the academic year ahead. Several priorities stood out:
- Achieving full (or near-full) occupancy in all markets
- Managing utility exposure through effective hedging and forecasting
- Embedding flexibility into pricing, leases, and operations
- Maintaining CapEx alignment with safety, compliance, and brand promises
- Keeping investor confidence high through data-rich, proactive communication
Above all, the tone of the discussion was pragmatic but positive. The sector continues to face headwinds – but it’s also maturing rapidly in how it adapts, innovates and collaborates.
This article was informed by the PBSA Strategy & Budgeting Roundtable hosted by Lavanda on July 1, 2025. The discussion was conducted under Chatham House rules, and no individual comments are attributed.
