Rents in purpose-built student accommodation (PBSA) continue to outpace HMOs, with foreign students particularly bolstering their growth.  

Student accommodation platform StuRents reports that in Manchester, PBSA costs an average of £255 a week compared with £150 for a room in an HMO, while in Birmingham, average PBSA rents have jumped from £180 a week to £220 in the last four years.

It analysed the latest UCAS application and acceptance data and found that contracts signed by Chinese students typically average £230 per week, compared with British students who spend about £160 a week for their digs.

University applications increase

This year shows another increase in overall applicants to university, after a downward trend between 2021 and 2023.

The overall increase is driven by non-EU applications - up 3.1% year-on-year - while applications from China dwarf those from other countries, with numbers up by 8.9% year-on-year in a second consecutive year of growth.

However, applications don’t always lead to acceptances. Non-EU acceptances have been steadily declining for the past few years and dropped to 47% this year, down from 51% in 2019.

“This aligns with anecdotal evidence of international students applying to multiple destinations; if this trend continues, we may see overall acceptances from international students stabilise or decline in the coming years, despite strong applicant figures,” it reports.

Unite Students has previously reported that private HMO landlords leaving the sector are creating a shortage of student housing.

The UK’s largest student home provider announced 8% rental growth last year and said that although new PBSA supply is still 60% below pre-pandemic levels, it has a committed pipeline of £1.2 billion of traditional development close to campuses.

StuRents reports that some of the biggest PBSA planning applications are for 897 beds in Vauxhall, London, and a 430-bed scheme on Elliot Street, Glasgow.

Recently, a 707-bed scheme on Newport Road, Cardiff, was granted permission along with 160 beds on Glen Fern Road, Bournemouth.

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