In partnership with the Universities and Colleges Admissions Service (UCAS), global property consultancy Knight Frank has released its annual Student Accommodation Survey – believed to be the biggest survey of university applicants and current university undergraduate and postgraduate students into accommodation choices in the UK.
Now in its fifth year, the survey captures the perspectives of prospective and current students from across the UK. As universities, developers, and investors navigate rising costs and supply constraints, the report reveals key trends that are reshaping the purpose-built student accommodation (PBSA) sector.
A significant 65% of first-time university applicants said the availability of suitable accommodation influenced their choice of institution, according to Knight Frank. This underscores the importance for developers and operators to ensure adequate, high-quality housing options appeal to the next generation of students.
The report also points out that affordability remains the leading concern, with 69% of students indicating that PBSA offers a more appealing choice, particularly in light of rising living costs.
“It’s clear that accommodation plays a critical role in students’ decision-making, both before and during their studies. Purpose-built accommodation not only enhances the student experience, but also helps students manage their living expenses more effectively, especially as utility costs and rents continue to rise.”
Neil Armstrong, Joint Head of Student Property, Knight Frank
The 2024 findings show a growing preference among students for amenities that deliver tangible benefits. Fast WiFi, 24-hour security, and on-site laundrettes were ranked as essential features.
Interestingly, the survey revealed that students are increasingly prioritising wellbeing services over luxury amenities. Some 78% of current students noted that their accommodation provider’s commitment to supporting mental health was important to their housing choice.
“This year’s survey reinforces the need for student accommodation providers to focus on the essentials that impact students’ day-to-day lives. While amenities like cinema rooms and swimming pools are nice-to-haves, students overwhelmingly prefer practical, well-managed facilities. This extends to pastoral support – on-site wellbeing services are increasingly seen as indispensable.”
Merelina Sykes, Joint Head of Student Property, Knight Frank
With rents for PBSA rising by 7.6% in 2024, affordability remains a pressing issue. The Knight Frank survey revealed that 44% of students said accommodation costs had negatively impacted their university experience.
Furthermore, 88% expressed concerns about rising living costs, with many students seeking additional sources of income or support from parents and guardians to cover their rent and living expenses.
“The affordability gap continues to widen, placing additional strain on students and their families. For investors, developers and operators, this means delivering the best possible value while also adapting to evolving student expectations, particularly around cost and support services.”
Katie O’Neill, Head of Student Accommodation Research, Knight Frank
As the UK continues to experience a mismatch between the supply of PBSA and student demand, Knight Frank’s report urges universities and the private sector to collaborate more closely on developing new accommodation.
“Collaboration between the public and private sector will be crucial in planning for growth. Universities are at the centre of this, they have the data on the demographics and requirements of projected intakes that will enable conclusions to be made on future requirements.
“Ultimately, at a time where so many universities find themselves in precarious financial positions, insufficient or unsuitable accommodation is a real risk to a university’s reputation.”
Katie O’Neill, Head of Student Accommodation Research, Knight Frank
Knight Frank’s report estimates that by the end of the decade, PBSA will accommodate the majority of second and third-year students, offering significant opportunities for investors and developers.
This report comes as the 2024 Student Living Monitor Survey was revealed. The Class Foundation’s 2024 Student Living Monitor (SLM) has revealed critical insights into the impact of housing on student wellbeing across Europe.
