Two of the UK’s largest purpose-built student accommodation (PBSA) operators have reported strong lettings for the upcoming academic year, buoyed by rising domestic acceptances and continued international demand.

Unite Students said that as of 7 September 2025, 94% of its rooms had been sold for the 2025/26 academic year. That compares with 90% on 12 August, shortly after A-level results day, and leaves the group on track to reach its target of at least 97% occupancy.

The company added that lettings were supporting rental growth of 4–5%, while bookings from international and postgraduate students were expected to continue through September. Undergraduate acceptances are up 3% year-on-year, driven by record demand from UK 18-year-olds. Acceptances from non-EU international students rose 5%, with growth from China particularly strong at +16%.

Empiric Student Property also reported improved performance, with occupancy for 2025/26 reaching 84% as of 7 September, up from 77% in mid-August. Like Unite, Empiric is targeting 97% occupancy by year-end and expects to benefit from a long reservation period stretching into January. Its like-for-like rental growth remains on track at around 4%.

The updates point to a sector that continues to attract strong student demand despite wider housing market challenges. Both companies have historically maintained robust occupancy levels: Unite reported 98% occupancy in 2023/24 and 97% in 2022/23, while Empiric’s rates were 96% and 95% respectively in the same years.

Broader housing parallels

The resilience of student housing mirrors broader trends in the housing sector, where developers are increasingly shifting towards models that prioritise rental income and long-term stability over reliance on outright sales.

Vistry, one of the UK’s largest housebuilders, has recently restructured its business around a “partnerships” model. This approach focuses on building mixed-tenure schemes that combine affordable housing, shared ownership, and rental properties. By working closely with housing associations and local authorities, Vistry has sought to de-risk its exposure to the volatile for-sale market while ensuring steady demand from institutional partners.

In many respects, this strategy echoes the PBSA model: both Unite and Empiric align their portfolios with high-demand markets — such as higher-tariff universities — in much the same way Vistry targets areas with strong local authority or housing association demand. Both approaches rely on long-term, predictable occupancy rather than short-term speculative sales.

Analysts note that the common thread is a search for income resilience in uncertain economic conditions. For student landlords, demographic growth and international demand provide stability; for housebuilders like Vistry, the partnerships model guarantees forward sales and ongoing rental streams.

Affordability questions ahead

While investors welcome the strong demand, sector groups caution that the affordability of student housing is becoming an increasing concern. With rental growth in PBSA averaging 4–5% and mainstream rents continuing to rise, pressure is building on students and young renters alike.

Observers say the parallel strategies of PBSA providers and housebuilders reflect a wider rebalancing of the housing market towards models that prioritise certainty — but also raise questions about how rising costs will be absorbed by households already struggling with living expenses.