Earliest ever ‘panic buying’ start to student lettings season

A student lettings business claims the cycle of booking accommodation for the 2024-25 academic year has already started in some cities.

The business - StuRents - says this is the earliest it has ever seen and reflects the acute shortage of accommodation across the country. 

Student rents are now up more than 10 per cent year-on-year. This is against a backdrop of 6.7 per cent general inflation and a rise of just 2.8 per cent in student maintenance loans for the 2023-24 academic year.

The average price for a bedroom in a shared student house is now £122 per week. In purpose-built student accommodation; the average price per bedroom is £184 per week, which is 50 per cent more expensive.

Student search budgets grew on average by 7.3 per cent in 2023-24 to £152 per week.

StuRents says the delivery of new purpose-built student halls continues to slow, with some 12,000 beds ready in time for 2023-24, down from 36,000 in 2019.

The business predicts the supply vs demand imbalance is likely to worsen in the coming years, with the delivery of beds not matching the growth in demand. StuRents estimates a shortfall of 490,000 beds by 2026.

Its research head Richard Ward says: “Supply and demand fundamentals at a national level remain extremely bullish for operators. These dynamics are driving unprecedented rental growth. All the early indicators suggest further substantial hikes for 2024-25.“