Introduction
Today’s students aren’t just looking for a bed. They’re looking for the full experience, and that includes service, convenience, community, and value for money.
Affordability isn’t just a nice-to-have; it has real consequences. According to the NUS, a third of students struggle with housing costs, and Save the Student found 40% have considered dropping out due to the cost of rent. These pressures are influencing how students search, what they prioritise and ultimately, where they choose to live.
For PBSA providers, simply meeting the demand for accommodation is no longer enough. Staying competitive means understanding what drives student decisions and how those expectations are changing.
Rising numbers, rising expectations
As student numbers continue to climb, that growth is being felt across the accommodation sector. Due to strong demand, around one-third of all buildings are fully booked by 1st July, well before the academic year begins, and rents are rising. Between 2024/25 and 2025/26, launch rents for each tenancy increased by an average of 8% year-on-year.
This means that outside London, the typical weekly rent in PBSA now sits between £120 and £209 including bills, while a room in an HMO averages £90 - £140 excluding bills. Other private rental options, such as co-living or build-to-rent (BTR) schemes, tend to range between £150 and £300, often without utilities included.
This rising demand presents clear opportunities. But as rents go up, students are making more deliberate decisions, driven by not only price but also value. They’re comparing options, reading reviews and looking for the best overall experience.
The disconnect between budget and availability
So, what does this mean in practice?
Fig. 1 shows that almost half of all students (45%) are searching for accommodation between £90 and £269 per week. But there’s demand at every level, including the top end, with 10% of students actively searching in the £300+ bracket.
Fig.1. Search budgets by continent of origin
We can also see how search preferences differ between domestic and international students:
- Domestic students are the most price sensitive: 65% search within the £90 to £269 range and 42% focus tightly on £90–£209.
- Students from Asia are more evenly spread across bands. 20% start at £90 - £209, another 12% go up to £239, and a further 12% fall between £240 - £269 with many continuing beyond that.
- Students from Africa tend to cluster more heavily in the £90–£179 range.
- The Americas and Oceania lean towards higher price points, often £240 and above.
But this is only half the story. When we overlay this with actual availability (Fig. 2.), the gap becomes clearer.
Fig. 2. Supply across price bands
This shows supply is concentrated mostly in the £120 - £209 range, with relatively little availability in the lower bands where domestic and African demand is strongest, or the higher bands where students from Asia, Oceania and the Americas are searching.
This creates a disconnect between what students are searching for and what’s actually available which is particularly pronounced in high-demand cities like London. In the capital, 60% of students search for rooms under £240 per week, but just 36% of beds fall within that bracket.
What students are looking for
It’s no surprise that students are price-conscious, but our review and sentiment data show that value for money isn’t just about cost, but takes into account features, convenience and the complete experience.
The single biggest influence on experience, for both domestic and international students, is the other people in the building. But beyond that, certain features consistently stand out as adding real value.
- For domestic students, these are lifestyle, social integration and study support. Well-used study and social spaces come out on top while personal laundry facilities and other ‘luxuries’ like a café, gym, or cinema are considered less important.
- International students place practicalities and convenience much higher up, with a TV license and bed linen ranking joint first, followed by a gym, study area, a TV in their room and laundry facilities.
When it comes to satisfaction scores, maintenance issues are the biggest driver, especially related to laundry facilities. Data also shows that safety is a pressing concern for those in London compared to the rest of the UK, with mentions 30% higher and sentiment scores 10% lower.
Across the board, students link poor service to poor value, regardless of what they’re paying. This matters because their reviews and peer-to-peer conversations affect a building’s reputation and influence future students.
Meeting the needs of students
Across every budget and building type, it’s clear that students are making more intentional decisions. They’re influenced by local pricing, perceived value, and the day-to-day experience of living in a building. That makes micro-location insight essential.
Getting the offer right means understanding what students in a specific area want, what they can afford, and what will make them stay.
And as more students consider alternative models like co-living and BTR, attracted by the flexibility and experience they offer, the message for PBSA providers is clear – success depends on knowing what matters.
Ultimately, students aren’t just looking for a place to stay. They want a place where they can feel at home. Those who understand that, and who act on the detail, are the ones who’ll be in the strongest position for the years ahead.
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