Traditionally, most universities offer accommodation on-site for those in their first year, with students moving into privately rented accommodation in subsequent years.

As the traditional rental sector has plateaued, increasing numbers of students have turned towards high specification, community-focused, PBSA schemes.

Rising student numbers, both domestic and international, has driven demand for student accommodation and beds are at a premium in many popular university locations.

Savills data shows that there are 2.7 students for every available bed provided by university or private operators across the top 20 university locations, rising to 3.8 in Glasgow and 3.6 in London.

PBSA schemes have gained immense popularity with students due to several factors. They offer modern, well-equipped living spaces that cater specifically to students' needs, from study areas to social amenities and connectivity needs.

The majority of schemes in build at present will include a mix of studio and cluster rooms to meet the mix in demand but also a wide range of ancillary facilities such as coffee shops, meeting spaces, cinemas, games rooms and spas, along with teaching and training facilities.

Additionally, universities are often located in urban areas where traditional housing options are often limited. PBSA provides a solution by offering conveniently located housing that is typically within walking distance of campuses and city centres.

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While these factors mean that PBSA schemes are seeing increasing popularity, it also means that the rental prices for these schemes are continuing to rise as a result of growing student numbers and a lack of supply within the market.

They are also popular with investors due to their steady income stream and readymade tenant target market.

According to Savills, PBSA investment reached £3.5bn last year, a 13% increase on 2023. Over the past five years, the sector’s annual investment volumes have averaged £4.9bn.

However, PBSA schemes are not without challenges. Much like the rest of the industry, they are still facing hurdles when it comes to the current planning system.

In addition, building costs have risen sharply in the past few years, impacting developer profitability.

These challenges in turn also impacts the end user, as the developer will need to charge students higher rates of rent to make the scheme financially viable.

Another arguably more cost-effective route we’re seeing developers explore is converting older student accommodation and retrofitting them to upgrade the existing facilities, while also making them more sustainable.

While PBSA schemes remain popular with developers and students alike, the rising need for more student accommodation and the ongoing challenges developers face has resulted in a shortfall of accommodation available for students.

This is an issue as an industry we need to overcome, to ensure that students have access to high quality, affordable accommodation while studying.