Revealed in Knight Frank’s latest UK Student Accommodation Outlook Report, year-to-date investment now stands at £3.4bn — a 3% increase from the same point in 2024.

Overall, the PBSA sector has grown by £50bn in the past decade.

In terms of rental yield, Knight Frank has found that average rental growth across all room types slowed to 2% in 2025/26, down from a peak of 8.3%.

This moderation signals a return to long-term trends of 2–3% annual growth, aligning with CPI targets and reflecting a more price-sensitive student base.

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Of the 64 locations tracked, 23 recorded rental growth above CPI (+3.8%), while 31 saw sub 4% growth and 10 markets experienced flat or negative growth.

“For the first time in our rental index, university-operated accommodation outperformed private PBSA,” said Katie O’Neill, an associate of global living sectors research at Knight Frank.

“University-owned stock saw rents rise by 4.8%, compared to just 0.3% for private direct-let assets. While it is true that some trends of weaker occupancy emerged again this year, other factors — outside of the real rental levels — that are impacting lease up and retention include brand loyalty and hands on asset management.”