Is the UK student-housing party over? Singapore players face divergent prospects in PBSA market
Shrinking demand and new supply are leading to lower occupancies and falling rental growth in the UK PBSA sector
[SINGAPORE] A boom that lifted all boats in the UK student housing sector is slowly fizzling out, with growth fading in a market where several Singapore players have made major bets.
After years of broad-based expansion stemming from an undersupplied market, the purpose-built student accommodation (PBSA) sector is entering a more selective phase. Persistent bed shortages continue to support rents and occupancy in some cities, while affordability pressures, softer demand and new supply are posing a challenge in others.
The shift comes as overall student demand begins to normalise after a post-pandemic surge, at a time when new supply from market players expanding is coming on stream.
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