Matt Burton shares their outlook on the future of UK student accommodation, from evolving demand and investment to affordability, sustainability and student experience.
Market & Demand
The next decade will undoubtedly present new challenges, although I believe the core fundamentals of what is delivered in the purpose-built student accommodation (PBSA) space will remain. For more than a century, students have wanted to leave home, immerse themselves in a university community and experience the personal growth that comes with independent living. I believe those fundamentals remain unchanged. For many years, international student numbers coming to the UK were on the rise, showing that this is not just a defining UK characteristic, but an international one too.
Demographic projections suggest domestic full-time undergraduate numbers may plateau, or even decline slightly after 2030, if participation rates remain static against a shrinking 18-year-old population. Perhaps we will see numbers retreat to early 2020s volumes, which are still significant. Despite a recent decline in international students coming to the UK from record highs, we still have sizable volumes and these are likely to increase again in the longer term. The UK higher education sector is world-leading. We have immense soft power in the world through our system, and we should collectively continue to support it as one of the jewels in our country’s crown.
However, you cannot escape current headlines about the financial challenges facing universities, and the overall system will undoubtedly see more change. We are now seeing some early mergers and it is likely we will see more consolidation, driving back-end cost efficiency and viability for some institutions. The UK has a very high number of universities per capita, so we could look internationally to see where we may land in size and shape. Some universities are exploring commuter offers; perhaps we will see some universities focus there, while others double down on fully immersive and transformational campus experiences.
There is one word that will be a constant: location, location, location. From the feedback I read, student residents value proximity to facilities and fully integrated university communities that create environments where they can thrive academically, socially and personally. Accommodation is often synonymous with the university experience: a place to create new, lifelong friendships, discover oneself and develop into adulthood. UK universities that attract students from across our nations and globally can hugely improve social mobility and support any levelling-up agenda. Student accommodation is not just a by-product of the university experience; it is a strategic recruitment, retention and student success tool.
At UPP, our experience is that on-campus accommodation is about much more than a head on a bed. We support wellbeing, foster communities and enable academic success, within an environment that creates a strong sense of belonging.
Naturally, I believe that proximity to teaching spaces, student services and an integrated campus life will continue to outweigh purely city-centre locations for many students. Purpose-built accommodation that forms part of a wider on-campus ecosystem offers universities an opportunity to strengthen belonging, improve student outcomes and enhance institutional reputation.
One of the biggest changes I have seen is how communal space has evolved. Traditional college bars and common rooms designed to serve everyone are giving way to quieter study environments, flexible ‘black box’ spaces and even areas designed for digital content creation, such as TikTok videos. There continues to be an overwhelming propensity for a fully contained bedroom with an ensuite bathroom, and I think this will stay. I have seen many design competitions and had many discussions around shared bedrooms and, while there may be more space-efficient design of the bedroom ‘cell’, there are limits to what can be done without compromising wellness standards. It is very possible that we will see the end of desks in bedrooms, though.
Strategy and Investment
UPP pioneered the long-term, on-campus partnership model for designing, building, financing and operating university infrastructure, and that long-term perspective continues to shape how we think about investment today. The fundamentals of the student accommodation sector remain strong. Demand for high-quality accommodation continues to outstrip supply in many locations, but today’s investment decisions need to balance commercial returns with creating long-term value for universities, students and investors alike.
For us, the opportunity is not simply about building more beds. It is about investing in the right locations, modernising existing assets and ensuring accommodation continues to meet the changing expectations of both universities and students. Much of the UK’s PBSA was developed over the past two decades and, while fundamentally sound, a significant proportion would benefit from refurbishment, decarbonisation and improvements to communal spaces. That presents a substantial opportunity for investors prepared to take a long-term view.
The current economic environment undoubtedly presents challenges. Construction inflation, financing costs and planning complexity all require careful consideration. At the same time, universities themselves are operating under increasing financial pressure, making trusted, long-term private sector partnerships more important than ever. Organisations that understand universities’ shifting priorities and can invest patiently across the lifecycle of an asset will be best placed to succeed.
Despite current economic pressures, sustainability ambitions have not diminished. ESG considerations are now firmly embedded in investment decisions, with increasing focus on operational carbon, resilience and social impact alongside financial performance. The organisations that combine commercial discipline with long-term stewardship will ultimately create the most resilient portfolios.
Student Experience and Value Proposition
The definition of value has broadened considerably beyond ‘price per week’. Students and families are now weighing price against a much wider set of considerations: safety and security, quality of Wi-Fi and study space, proximity to facilities, community and pastoral support, and increasingly, transparency through clear, fair tenancy agreements and no hidden costs. Student accommodation is often viewed as an extension of the university experience. Well-designed spaces encourage interaction, support independent living and contribute positively to wellbeing and academic success. Equally important is the quality of operational delivery. Responsive maintenance, professional site teams and a genuine sense of community all influence how students feel about where they live.
Providers also have an important role in supporting student wellbeing. As the conversation around student mental health continues to evolve, effective on-campus partnerships are even more important.
Affordability and Regulation
Affordability is one of the defining issues facing higher education today, although it is very personal and there is no one set definition. For some, it influences where they choose to study or whether they can afford to live away from home at all. It is undoubtedly of concern to participation for some groups.
Students and households are experiencing increasing financial pressures, while accommodation providers continue to navigate rising construction, operational and regulatory costs. Balancing these competing demands requires long-term thinking rather than short-term solutions.
Ultimately, the greatest affordability issue sits beyond the accommodation sector itself. The erosion of maintenance support and wider economic pressures have fundamentally changed the financial equation for many students. Addressing affordability requires systemic policy solutions alongside operational efficiencies.
Accommodation providers continue to focus on operational efficiency, intelligent asset management and long-term investment that reduces running costs while maintaining high standards. Energy efficiency, preventative maintenance and digital technologies all have an important role to play in helping to manage costs while continuing to deliver high-quality accommodation and services.
The regulatory environment will continue to evolve. Boards should carefully consider nascent regulation and how best to meet it. Collaboration across the sector can help to ensure that new regulatory approaches are proportionate, practical and consistent. Unless the current Labour government changes course, we will see proposed changes to energy performance requirements by the end of the decade. While PBSA is often carved out of legislation aimed at private renters, operators should continue to plan ahead, embedding sustainability, compliance and good governance into long-term investment strategies.
Sustainability and innovation
The decarbonisation of ageing assets, embodied carbon in new builds and the resilience of buildings to a changing climate are considered at board level.
Modernising and decarbonising existing assets is a huge opportunity for the sector, beyond bed space quantity growth.
Technology is an increasingly powerful enabler. Better use of operational data can improve building performance, enhance resident services, optimise maintenance and reduce energy consumption. Digital tools should ultimately make accommodation more responsive to students’ needs while supporting better decision-making for operators and university partners. The challenge is ensuring technology enhances, rather than replaces, the human experience that remains central to successful student communities. While technology will continue to transform operations, research consistently shows that Generation Z still values genuine human interaction. The best operators will use technology to enhance, not replace, the resident experience.
Renters Reform Act
The Renters Reform Act reflects a broader shift towards greater transparency, fairness and accountability across the housing sector. While PBSA operates within a distinct regulatory framework, the direction of travel is clear. Students increasingly expect the same high standards of service, communication and consumer protection, regardless of tenure.
For boards, the challenge is not simply keeping pace with legislative change but anticipating rising expectations from students, universities and investors. The strongest organisations will view regulation as an opportunity to strengthen governance, enhance the resident experience and build long-term trust, rather than as a compliance exercise alone.
At UPP, our long-term partnerships with universities naturally encourage this approach. With investment horizons measured in decades, decisions are made with a focus on quality, resident wellbeing and continuous long-term performance improvement of our accommodation. As the regulatory landscape continues to evolve, maintaining close collaboration with university partners and remaining responsive to student expectations will continue to be the foundation of successful, sustainable accommodation
Thank you to Matt Burton, Chief Partnerships Officer, UPP, for your insights.
This Q&A is part of a wider campaign featuring insights from senior UK student accommodation leaders. Discover more content from this series.