How Purpose-Built Student Accommodation is Shaping the Future of University Living

As the student housing market evolves, one trend is reshaping university cities across the UK, and nowhere is this more evident than in Manchester: the rise of Purpose-Built Student Accommodation (PBSA). Offering a range of modern amenities and services, PBSA has become the accommodation of choice for students looking to escape traditional rental housing. While this shift may concern private landlords, it also presents opportunities for those willing to adapt and evolve.

In this article, we’ll explore how PBSA is redefining the student experience, its impact on the private rental market, and what landlords in Manchester can do to remain competitive in this changing landscape.

1. The Growth of PBSA in Manchester

Manchester, home to over 100,000 students across institutions like the University of Manchester and Manchester Metropolitan University, is a hotspot for PBSA development. The demand for high-quality student accommodation has skyrocketed, fueled by increasing student numbers and the desire for modern, hassle-free living.

Luxury PBSA offerings in Manchester boast features such as on-site gyms, study lounges, rooftop terraces, and 24-hour security, positioning them as highly attractive to both domestic and international students. With rental prices for PBSA often surpassing £200 per week for premium studios, these properties have become a significant player in the Manchester student housing market.

Key takeaway for landlords: The growth of PBSA in Manchester reflects broader national trends, and landlords should keep an eye on the development of these properties, especially in areas like Fallowfield, Oxford Road, and the city centre, which remain prime locations for both PBSA and traditional student rentals.

2. Why Students are Choosing PBSA

PBSA offers students several advantages over private rentals:

• All-inclusive rent (covering utilities, internet, and maintenance) simplifies budgeting.
• Modern amenities like study rooms, social spaces, and gyms provide a more comfortable living experience.
• Pastoral care and well-being support on-site, which is increasingly important to students seeking mental health support during their studies.
• Convenient locations often near university campuses, eliminating the need for long commutes.

A recent survey by Knight Frank found that 78% of students consider mental health and well-being support important when choosing accommodation. This level of service, combined with modern conveniences, helps PBSA to stand out against older, sometimes poorly maintained private rental properties.

Key takeaway for landlords: The rise of PBSA is rooted in offering a stress-free, student-centered experience. If private landlords want to compete, they should focus on improving the condition of their properties and offering flexible, all-inclusive rent packages.

3. The Impact of PBSA on Private Rentals

As PBSA continues to expand, landlords in Manchester are seeing increased competition, especially in areas historically popular with students like Fallowfield and Rusholme. PBSA’s appeal to second- and third-year students — who traditionally moved into shared houses — is particularly significant. This shift may reduce demand for older private rental properties that lack the modern amenities students now expect.

Moreover, the maintenance issues commonly associated with older private rentals, such as damp, outdated furnishings, and unreliable heating, are pushing students toward PBSA, where professional management teams ensure quick fixes and regular upkeep.

Key takeaway for landlords: While PBSA is taking a growing share of the market, there is still demand for private rentals, particularly among budget-conscious students. Landlords should consider upgrading their properties and investing in modern appliances, better insulation, and high-speed internet to attract students looking for good value.

4. Opportunities for Landlords in Manchester

Rather than seeing PBSA as a threat, landlords can explore opportunities to adapt. Here are some strategies to consider:

• Refurbishment and Modernisation: Upgrading properties with modern kitchens, bathrooms, and communal spaces can help narrow the gap between PBSA and private rentals. Offering high-speed broadband and reliable heating systems is now an expectation rather than an extra.
• All-Inclusive Rental Packages: Including bills (such as utilities, internet, and even Netflix subscriptions) in the rent can help landlords appeal to students who value simplicity and predictability when budgeting. We've made this easy by partnering with Uni Homes, who offer packages suited to students and sharers that group utilities and services together in one easy weekly package.
• Flexible Leases: PBSA operators often allow students to stay beyond the typical academic year, which can be attractive to international students or those taking summer courses. Offering flexibility in leases can make private rentals more appealing.
• Target Niche Markets: Not every student can afford the premium prices of PBSA. Landlords with well-located but affordable properties can still find a market among students who need cheaper accommodation. Consider focusing on large shared houses for groups of students, which can offer more space and lower costs per person compared to PBSA.
• Student Support Services: Taking inspiration from PBSA, private landlords could consider partnering with local student support services or universities to offer additional care and assistance to tenants. Offering resources or a point of contact for maintenance issues and student well-being can provide a competitive edge.

5. Is PBSA Here to Stay?

PBSA is more than a passing trend; it’s quickly becoming the standard for student accommodation in cities like Manchester. With more students prioritizing comfort, security, and convenience, the demand for high-quality accommodation is likely to increase. By the end of the decade, a majority of students are expected to opt for PBSA over traditional rentals, according to recent studies.

However, the private rental market is not disappearing. Many students still seek more affordable alternatives, and savvy landlords can continue to thrive by updating their properties and staying attuned to the changing needs of students.

Key takeaway for landlords: While PBSA might dominate headlines, there’s still room in the market for well-managed, cost-effective private rentals, especially for students who prioritize affordability over luxury.

Conclusion

Purpose-Built Student Accommodation is transforming the student housing market, particularly in major university cities like Manchester. However, for landlords, this shift also brings opportunities. By modernizing properties, offering competitive amenities, and providing flexible, student-friendly rental options, private landlords can continue to attract tenants in this evolving landscape.

The student accommodation market is becoming more diverse, and while PBSA might dominate the high end, private landlords who adapt can still play a crucial role in offering affordable, quality housing to Manchester’s growing student population.