A sharp fall in studio bookings for purpose-built student accommodation (PBSA) has grabbed the headlines this spring, yet seasoned landlords can still spy opportunity in the turmoil. According to fresh data unveiled at StuRents’ London summit, studio booking velocity slipped to 44.2 per cent, down from 58 per cent a year earlier – a chunky 14-point drop. Even so, the picture is anything but uniform: top-performing cities are already half-let, while the stragglers sit below 30 per cent. What, then, should landlords make of these mixed signals?
HMO lettings lead the pack
Numbers tell a clear tale. While PBSA studios pause for breath, 77 per cent of British students still choose the traditional house-share (HMO) route, pushing average HMO rents more than 5 per cent higher and, in some London boroughs, by a striking 9 per cent year-on-year.
For landlords already holding licensed HMOs – or contemplating a switch – that uplift translates straight to the bottom line, particularly where demand from second- and third-year students remains sticky.
Investors agree. Maslow Capital’s Sky Mapson was blunt on the summit stage: “The past two years have spoiled us with pent-up demand, so we need to recalibrate, and operators will have to work harder to let their buildings.” He added that his firm has doubled its exposure to PBSA debt – up from 15 per cent to 40 per cent – precisely because well-located beds still deliver reliable income.
Smart data, smarter returns
If there’s a mantra for 2025, it is measure twice, build once. StuRents’ head of research Richard Ward cautioned delegates that “the same market could show four completely different supply and demand conclusions depending on the methodology used.” He highlighted Nottingham, where one popular student-to-bed ratio screams undersupply at 1.7, yet StuRents’ “core demand” lens shows supply already outpacing demand. Landlords armed with granular data – and the analytical nous to interpret it – are therefore primed to cherry-pick assets in micro-locations where genuine shortage persists.
Those insights are echoed in the wider market. By late March, only 36 per cent of PBSA beds nationwide had been reserved, down ten points on the same stage last year and miles off the 2023 high. Yet resilient cities such as Leicester or Liverpool continue to clear stock at speed, reminding investors that “location, location, location” is more than an estate-agent cliché.
Regulation reshapes the calendar
Change is coming on the legislative front, too. The Renters’ Rights Bill, now entering its final parliamentary laps, is tipped to go live between October 2025 and January 2026. “Section 21 evictions will be abolished and all ASTs will become periodic,” notes Goodlord’s briefing to letting agents.
For HMO landlords, the headline is Ground 4A – an exemption that still allows student HMOs to regain possession in line with the academic year. PBSA operators, meanwhile, may enjoy an earlier shot at marketing to domestic students if HMO tenancies drift later under the new rules.
Will regulation dim landlord appetite? Unlikely. Live polling at the StuRents summit found 80 per cent of attendees actively hunting fresh deals, buoyed by positive demographics and the prospect of deeper market segmentation. Backed by better data and buoyant HMO yields, landlords who stay nimble look set to ride the next cycle rather than be rolled by it.
In short: student housing is evolving, not evaporating. Landlords who blend forensic data with on-the-ground savvy can still lock in attractive yields – whether through high-spec PBSA in undersupplied hubs or well-run HMOs that meet domestic demand. The policy tide may be turning, but for agile investors the current is still flowing their way.
