Future Cities Forum's 'Student Cities' discussion event 2026
- Heather Fearfield
- 3 hours ago
- 11 min read
Image: courtesy of Sheppard Robson, student housing, University of York
Future Cities Forum will be holding its student housing discussion event this February looking at best practice in planning and design, and how new UK government rules may affect investment appetite in the sector. Some real estate advisers believe that student housing is still a major sector for developers but what impact will the Renters' Rights Bill have this year?
In February 2025 the FT reported that 'real estate developers were piling into UK student housing despite a decline in international student numbers'. Savills has said that respondents to its 2025 OpRE Investor Survey from March 2025 placed Purpose Built Student Accommodation (PBSA) at the top of their list of priority sectors', stating that 'over the past decade, appetite has been driven by growth in student numbers, which outpaced new delivery to drive strong rental growth'.
It continued:
'But 2025 saw concerns around occupancy levels surface in some markets. Two of the largest providers in the UK reported that reservations were below their level at the same point in previous years in recent trading updates. It is no coincidence that around 150 providers failed to meet international recruitment targets for the 2025/26 academic year. As a result, despite 2025 having the strongest third quarter of investment on record, pricing softened by 25 basis points through the first nine months of 2025.
'Looking forward, investors will need to ensure thoughtful underwriting of locations. That will include a tighter focus on the financial strength and growth potential of individual institutions. It will also mean that selecting the right operating partner will be crucial.'
Future impact of The Renters Rights Bill
Amber Student, the global student accommodation platform, has also been commenting on the newly introduced Renters Rights Bill (due to come into effect later this year) stating that:
'Private landlords play a crucial role in the student housing market, offering diverse accommodation options. The Renters Rights Bill introduces several challenges for this group: Transitioning to periodic tenancies requires landlords to adapt their operational models, potentially leading to increased administrative burdens and financial unpredictability. Faced with heightened regulations and perceived risks, some landlords may choose to exit the student rental market, reducing the overall housing supply and potentially driving up competition and rental prices
'Universities and colleges must consider the bill's implications on student welfare and accommodation strategies: Institutions that guarantee housing for first-year students may need to reassess their capacity and partnerships with private landlords to ensure commitments are met under the new tenancy structures. Enhanced support may be necessary to assist students in navigating the changed rental landscape, particularly international students who may face additional hurdles due to the cap on advance rent payments.'
How does the growth of the UK higher education sector affect the domestic economy?
Student accommodation will remain a keen topic for investor discussion as universities continue to make a significant impact on the economy and shape of their host cities.
London Economics analysed the impact of the UK higher education (HE) sector’s teaching, research, and innovation activities on the UK economy, focusing on the 2021-22 academic year.
The latest figures show the UK higher education sector’s teaching, research and innovation activities had an economic impact of £158 billion. When combined with previous London Economics analysis of the direct spending by the sector and the economic benefit of international students, the total impact across UK HE in 2021/22 was £265 billion. Comparing against the public cost of these activities, London Economics found a cost to benefit ratio of 14 to 1. This means for every £1 of public money invested into UK universities, £14 of economic benefit is generated.
Commissioned by Universities UK, which represents 141 universities, the report focuses on the just under one million (906,000) domestic students who started higher education in 2021-22.
It also shows huge positive returns to the public purse of funding students’ higher education, with the Treasury seeing a benefit of £75,000 per graduate, even when considering the cost of subsidising their education through loans and grants.
Image: student residences at the University of York, courtesy of Sheppard Robson
University student projects
Given the continued interest in young people going to university, what kind of projects are UK architects focussed on?
Sheppard Robson has described a major development for the University of York 'creating serene, waterside student residences, forming a gateway between two previously disparate campuses.
'For the University of York, working for Graham Group with Equitix, the scheme creates 1,480 student residences as well as a mix of social spaces that create a “front door” into the accommodation. These spaces are housed within two newly created residential colleges – named after key LGBTQ+ figures, Anne Lister and David Kato – which collectively form a new gateway into the Heslington East Campus.
'The colleges are a key addition to the University’s masterplan, which combines a long-established ambition to create a neighbourhood campus with a drive to modernise facilities with sustainability, wellness and innovation at their heart.
Our design arranges 18 residential blocks around a series of interlocking landscaped courtyards. Connection to nature is reinforced by the massing, which reduces from four to three storeys towards the waterside, protecting existing vistas enjoyed by the local community and integrating the buildings into the site’s established ecology.
'The development had to comply with strict planning parameters around maximum building height, the amount of built area and the established ecosystem.
'Wellbeing is also promoted by the college’s student hub, which fosters community in the campus. The hub’s entrance is brought to the fore with a bold canopy overhang and landscaped plaza. The double-height social spaces within encourage interaction and create an energetic frontage, as well as being a central hub for LGBTQ+ events and resources across the university. The interiors tell the stories of Lister and Kato’s lives with wall graphics within their respective hubs.
'Natalia Maximova, associate partner at Sheppard Robson, said: “Right from our early engagement with them, the university made it clear that they wanted to maximise the connectivity between students’ rooms and their social spaces, in order for them to get the most out of both. Because of this, we introduced the idea of integrated hubs; our brief effectively became to allow students to get to the hub from their bedroom ‘in their slippers’”.
'The project has a holistic wellness strategy, with student experience and welfare of the utmost importance. Semi-private courtyards, designed to be sheltered from the prevailing wind, create inviting places to relax and covered walkways further enhance the connection to the outdoors.
'The project is socially embedded within the community, with local people enjoying the landscape for walking and cycling as well as a programme of festivals for the summer that are open to everyone.
'In order to optimise energy performance and air quality, the residential blocks are naturally ventilated and benefit from the thermal retention properties of the exposed concrete soffits. A low-tech approach, in combination with a considerable thermal mass, will reduce energy consumption throughout the year.
'Landscape and external space are also designed to maximise on sustainability, using SuDS, swales, reintroduction of native planting and the creation of new habitats using cast-in hollow bricks and bird nests. Access to the water’s edge is designed to avoid unnecessary disturbance to the natural habitat, while providing ample opportunity for visual amenities, recreation, and mental recharge.
'Working with Graham, we utilised innovative Modern Methods of Construction (MMC) including cross-wall prefabrications, with integrated brick finishes, windows, internal walls, and prefabricated bathroom pods all enhancing quality while significantly reducing construction waste and time. Through MMC, the team were able to achieve a level of airtightness close to Passivhaus standard, leading to significantly reduced heat loss, improved acoustics, enhanced fire safety, robustness and durability. Furthermore, due to the use of prefabrication, parts of the scheme were delivered ahead of time.
Corstophine & Wright has been speaking about the topping out of Fusion Manchester which it believes marks a major milestone in the delivery of this landmark development in the heart of Deansgate, Manchester:
'Designed as a 28-storey purpose-built student accommodation (PBSA) scheme for our longstanding client Fusion Students, the project reflects our commitment to creating vibrant, student living environments. Once complete, Fusion Manchester will provide over 500 bedrooms alongside an exceptional suite of amenities designed to support student wellbeing, community.
'This mix of spaces ensures students have access to both quiet areas for study and social hubs for connection, all within a thoughtfully designed environment. The topping out ceremony represents a significant step forward for the project, and we congratulate the entire team on driving this exciting and striking scheme. We look forward to seeing Fusion Manchester continue to progress as it moves towards completion in 2026.'
Meanwhile CSP architects has been talking about the topping out of its redevelopment of No. 15 Foss Islands Road, York:
'Lovely to mark the topping out of our latest PBSA project in York. The design regenerates a brownfield site, respecting York’s historic walls while targeting BREEAM ‘Excellent’. Partnering with GMI Construction, we’re delivering 133 high-quality student beds that enhance the local streetscape and urban grain along Foss Islands Road.
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'This redevelopment presents a unique opportunity to create a high-quality, sustainable, and contextually sensitive student accommodation complex that enhances the urban fabric of York while providing a valuable resource for the city's student population.
'By carefully considering the site's context, integrating innovative design solutions, and prioritizing the well-being of both residents and the surrounding community, this project sets a new standard for student accommodation in York.
The existing property, characterized by poor architectural quality and a fragmented townscape, is replaced with a modern, purpose-designed building offering a range of comfortable and functional living spaces for students.
'This proposal responds to the site's challenges, repairing the townscape and integrating comfortably within the surrounding context. The design respects the character of the setting, particularly the adjacent conservation area and the historic city walls, to improve the visual appearance of the site. It contributes positively to the streetscape of Foss Islands Road and Elvington Terrace and regenerates the disjointed urban grain by creating well-defined frontages and incorporating landscaped courtyards.'
The investor view
In September 2025 UPP, the leading provider of on-campus student accommodation infrastructure in the UK, reached financial close with the University of Exeter on the new West Park development – a large-scale, innovative Passivhaus scheme.
UPP reported:
'UPP is the UK’s only multi-discipline, full-service Design, Build, Fund and Operate (DBFO) company that is dedicated to the Higher Education sector. With over 25 years of experience operating in the sector and having invested over £3.5bn, UPP has a strong track record of delivering next generation campuses at scale.
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UPP has worked in partnership with the University of Exeter since 2009 and currently operates 4,130 beds across three existing schemes on the Streatham Campus. The new development at West Park will provide 1,849 new and refurbished beds.
'Elaine Hewitt, UPP CEO said:
“We are delighted to reach financial close on such an innovative project with the University of Exeter. This sustainable development represents the future of student accommodation, providing new homes for over 1800 students.
“West Park is the next step in our partnership with the University and is testament to the strength of our relationship and of the excellent work our site team continue to do there supporting student residents.”
'Mike Shore-Nye, Senior Vice-President and Registrar and Secretary at the University of Exeter, said:
“Achieving financial close with our partners UPP is a significant and exciting milestone and I look forward to seeing the planning come to life as construction starts on new student residences on our Streatham Campus. When complete, the additional bedrooms will allow more of our students to enjoy a modern, purpose-built, on-campus living experience.
“Building to Passivhaus standards, the new accommodation supports our ambitious aims to increase energy efficiency and carbon neutrality on campus and leads the way for university accommodation across the country.”
This West Park development will see UPP design, build, finance and operate the new residences through creating new accommodation in the existing Clydesdale and Nash area of the Streatham Campus and by converting existing accommodation at Birks Grange village. Bouygues UK have been appointed as the contractor.
'The first tranche of students will be welcomed into the new accommodation in September 2027, with full occupation by September 2028.
'Willmore Iles Architects and Architype have designed the West Park scheme to be Passivhaus certified (an internationally recognised and exemplary standard of energy efficiency, carbon reduction and occupant comfort) with hot water produced by heat pumps and the new development being completely gas-free. It is also accredited to the WELL Community Standard, meaning the design is certified as having a positive impact on the health and wellbeing of residents across seven key wellbeing aspects.'
Catering for senior talent and key workers
Universities have also been considering the issue and investment needed post Covid to attract and retain senior academics as well as key workers. One of the most successful interventions into creating a new district for a city has been by the University of Cambridge at Eddington. The University has developed a unique housing concept that has attracted global interest. Its aim is to provide homes for staff who work for the university and it describes the vision as creating:
'a place that is sustainable, long-lasting and ambitious, offering a high quality of life to enhance both the City and University of Cambridge....Eddington and the wider North West Cambridge Development seeks to secure the University’s long-term future and contribute to the City’s growth by providing homes for key workers, students and the public in a vibrant place to live.
Matt Johnson, Head of Development, North West Cambridge, University of Cambridge Estates Division, described the approach to Future Cities Forum in 2024::
'Eddington was conceived as a way to attract and retain university talent within a competitive world. It is for those post doctoral researchers who are taking their first steps into the world of work at the university. It is a young community, primarily not for students although we do have post graduate housing and this fills the gap that the colleges do not provide as they cater for undergraduates. We also provide housing for key workers which makes up fifty per cent. We want it to be seen as an urban extension to the city, not just for the university. We have turned our backs on closed courtyards and want to draw people in from the wider Cambridge area.
'The driver in design was the quality that could be provided. We are acting in a different way from the market housing developer and our aim in attracting and retaining staff needs to be long-lasting. Therefore we have a one hundred year design line and it is inspired by many places around the world. It is of itself however and an explicit message for the university and city.
'The population that we serve is very much 'fleet of foot' and so we offer rentals of five years maximum. In reality it turns out to be about three years, since researchers are usually off to their next post by then or they have chosen to settle elsewhere in the city. We like to get to re-use the housing and at the same time we are building three-hundred build to rent homes as well.
'Water is a concern but I think we are coming out of the back end of that conversation with interventions coming along. There has been failure to invest in infrastructure ahead of time in Cambridge but the Environment Agency has brought that issue to the fore. There are now intelligent planning interventions coming forward removing blockers and the idea of water credits is really interesting. Where we can make improvements in sustainability in our historic buildings at the university is helpful, in order to use those savings for innovations in our new stock.
'We need to house people in Cambridge - there is a crisis. Lots of workers move into the city to work in various industries, so we need housing to come forward rapidly. There has been so much interest in Eddington as a site and we are attracting people from around the world. The housing supply is key and we shouldn't be block that provision on subjective design ideas.'
Join us for this debate next month with developers, universities, architects and planners.
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