The demand for student housing in the UK is outstripping current supply, with the 20 largest student cities facing a shortage of approximately 230,000 beds. London, in particular, requires an additional 100,000 beds to meet current demand levels. This analysis, conducted by property consultancy Savills, highlights the need for expanded purpose-built student accommodation (PBSA) across the country’s major student hubs.
The student-to-bed ratio, which measures the balance between supply and demand in student housing, reveals a significant shortfall. With 1.3 million full-time students across the 20 cities surveyed, but only half a million PBSA beds available, the ratio stands at 2.7 students per bed on average. Cities like Glasgow have even higher ratios, indicating a pressing need for more accommodation options.
Savills suggests that a target ratio of 1.5 would provide students with adequate housing options without oversaturating the PBSA market. However, with current enrolment levels, an additional 234,000 PBSA beds are needed across the surveyed cities to approach this target. London’s requirement alone underscores the magnitude of the housing shortage in the UK’s major student centers.
The analysis also highlights ongoing PBSA developments, which form part of the short-term pipeline to address the housing gap. By tracking the projected student-to-bed ratios once these developments are completed, Savills provides insights into the progress needed to achieve a more balanced supply-demand scenario in the student housing market.
- Demand exceeds supply: The 20 largest student cities in the UK face a shortage of around 230,000 beds to meet current demand levels, with London needing an additional 100,000 beds alone.
- Student-to-bed ratio: The ratio of full-time students to available beds stands at 2.7 on average across the surveyed cities, indicating a significant shortfall in supply.
- Regional disparities: Cities like Glasgow have even higher student-to-bed ratios, with four others, including London and Bristol, also above 3.0.
- Target ratio: Savills suggests a target ratio of 1.5, which would provide students with sufficient housing options without oversaturating the market.
- Housing shortfall: To approach the target ratio, an additional 234,000 PBSA beds are needed across the surveyed cities, highlighting the scale of the housing shortage in major student centers.
- Short-term pipeline: The analysis includes ongoing PBSA developments, offering insights into progress toward addressing the housing gap.