Against a background of a mixed outlook for new housing work generally, the April edition of the Glenigan Construction Review notes that work starting on site on student accommodation schemes was worth £502 million in the first quarter alone, a rise of 34% on the period a year ago.

Overall, student accommodation now accounts for a 5% share of total housing starts.

Student numbers, domestic and particularly from overseas, continue to climb; up by 4% in total during 2022/23.

Despite budget challenges across the higher education sector, the building programme for new student housing at universities and colleges is gathering pace.

The upturn in activity in the sector is in keeping with the latest Glenigan Construction Industry Forecast 2024-25, published in November 2023, which predicts a 16% increase in student accommodation starts in 2024, followed by a further 10% upturn in 2025.

The mood at Unite Group, the country’s largest owner and developer of student accommodation, is positive.

Earlier this month, the group said that it was seeing continued strong demand for student space and that it had sold 86% of its ‘bedrooms’ for the 2024/25 academic year. Its rents are set to rise by 6% in the coming academic year.

Today, Unite is progressing a £1.3 billion development pipeline and it has recently secured planning approvals for major student schemes involving 1,450 new bedrooms in London and Bristol.