StuRents, the UK’s largest student accommodation portal and data provider, has launched its annual report showing double-digit percentage rental growth for student accommodation in some UK cities, with rising demand from Indian and Chinese students, and the highest occupancy levels seen in years.

Key findings from the report include:
◆ The student lettings cycle for 2024-25 season has already started in some cities - the earliest StuRents has ever seen - reflecting the acute shortage of accommodation across the country.
◆ Student rents are now up more than 10% year-on-year. This is against a backdrop of 6.7% inflation (current figure as of 1 November), and a rise of just 2.8% in student maintenance loans for the 2023-24 academic year.
◆ The average price for a bedroom in a shared student house is now £122 per week. In purpose-built student accommodation, the average price per bedroom is £184 per week, which is 50% more expensive.
◆ Student search budgets grew on average by 7.3% in 2023-24 to £152 per week.
◆ The cost of accommodation and affordability will become a greater challenge for students in the coming years, according to the report.
◆ The delivery of new purpose-built student halls continues to slow, with ~12,000 beds ready in time for 2023-24, down from >36,000 in 2019.
◆ Private rental vs Institutional student housing split: Private operators manage almost 80% of all student beds.
◆ The supply vs demand imbalance is likely to worsen in the coming years, with the delivery of beds not matching the growth in demand. StuRents estimates a shortfall of 490,000 beds by 2026.

Richard Ward, head of research at StuRents, said: “Supply and demand fundamentals at a national level remain extremely bullish for operators. These dynamics are driving unprecedented rental growth. All the early indicators suggest further substantial hikes for 2024- 25. In the short term, this is great news for existing owners as (operating expenditure) remains comparatively high and this growth will be welcomed.”