Student Property

One of the most in-demand types of property investment

Purpose-built student accommodation (PBSA) is one of the most in-demand types of property investments available, thanks to a severe lack of supply and record demand.

What was once a new product competing with university-owned halls has become the most popular choice for both domestic and international students, with 69% of them choosing PBSA over traditional halls of residence.

Knight Frank estimates that the market is worth £89bn. This would represent growth of more than 20% in the last five years, illustrating the scale of growth in the sector that investors can look forward to.

£104bn
Size of the UK PBSA market by the end of 2028
580,000
Shortfall of more than half a million student beds
69%
Percentage of students who prefer PBSA over traditional halls of residence
8%
Rise in PBSA rents anticipated in 2025
620,000
Projected shortfall of beds by 2029
2.8m
Number of students in the UK

What makes student property a good investment?

Student property has become a popular investment class, which is bought as both an alternative to residential property and as a complement to it, depending on the needs and requirements of each investor.

Its appeal is broad, and many unique benefits make the student sector appealing to investors of all types.

620,000
Shortfall of student beds projected by 2029

The Student Property property market

Projected House Price Growth (2024 - 2029)
Projected Rental Growth (2024 - 2029)
*Projections based on Savills property market forecasts (2025)

"The University’s housing service advertises just 1,300 beds annually, leaving a shortfall of over 18,000 students who need to be accommodated elsewhere."

University of Huddersfield

The student property market now and in the future

The student accommodation sector in the UK is based on one fundamental fact - that there is a major imbalance between supply and demand. In the past, universities supplied the vast majority of student accommodation, but they have not been able to keep up.

The latest Knight Frank NextGen report lays out the scale of the shortage:

260,000 - New student beds added since 2012

470,00 - New full-time students per year since 2012

210,000 - Current shortage of beds per year

2.8m
Number of students in the UK
Award-Winning Property Investment Advisory.
Request your free 2025 Student Property Investment Guide.

Are you looking to invest in Student Property? Request your Student Property property investment guide today and one of our Investment Advisors will be in touch with available opportunities.

Valid number

Thank you!

Thank you! Your submission has been received!
You can check submitted datas from "Project Settings".
Oops! Something went wrong while submitting the form.