Value of construction starts on PBSA schemes up 34% on Q1 2023

The latest Glenigan Construction Review reveals that work starting on site on student accommodation schemes was worth £502m in the first quarter of 2024 alone, a rise of 34% on the period a year ago.

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

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

Glenigan data highlights significant student accommodation projects in the pipeline in cities nationwide.

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 rooms for the 2024/25 academic year

Its rents are set to rise by 6% in the coming academic year.

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

With demand from universities continuing to grow, Unite has also secured agreements for a further 1,000 student bedrooms since March.

In Manchester, plans have been submitted for the redevelopment of the former Hotspur Press complex in Gloucester Street with an £84.4m student scheme involving some 580 units above a ground floor commercial/amenity space.

Meanwhile, in London, detailed plans have recently been approved for a £29.45m student accommodation project in Newham to provide 325 purpose-built units.

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