In the 2024/2025 academic year, more than 2.9 million students enrolled at UK universities, around one million more than in 2000. The increase highlights why student housing continues to attract interest from developers and buy-to-let landlords.
“Student accommodation can offer strong rental yields, reliable demand, and in some cases, less day-to-day hassle than traditional lets,” explained Ryan Etchells, chief commercial officer at Together. “Whether you're after a hands-off income stream or don't mind rolling up your sleeves, there's a student property strategy to suit your style. Just make sure you do your research, understand the local market, plan ahead for the rules and costs involved and speak to a lender who can support your ambitions.”
Etchells outlined several points for landlords exploring student property:
Steady demand depends on location
With growing numbers of students entering higher education, the pool of potential tenants remains strong. However, landlords must focus on cities with increasing student populations and limited on-campus housing. If enrolment slows or local supply is saturated, filling rooms becomes difficult. Together’s report Cities in focus 2025: Commercial property insights identified Birmingham, Manchester, and Glasgow as cities showing rising demand for student housing.
Purpose-built or HMO
Landlords typically choose between purpose-built student blocks or houses in multiple occupation (HMOs). Purpose-built blocks, often run by management companies, remove some of the burden of maintenance and rent collection. Higher rents are common because of amenities such as gyms, Wi-Fi, and inclusive bills. However, service charges can be substantial, and resale values may not always rise. Etchells advised landlords to request a detailed fee breakdown and calculate net income after expenses.
HMOs, where individual rooms in a house are let to students, can generate higher overall income than a single-family let. They require closer management, including licences, safety checks, and frequent maintenance. Wear and tear is also higher than average. Hiring an experienced letting agent may reduce the pressure for landlords who prefer not to manage properties directly.
Keeping up with rule changes
The Renters’ Rights Bill, delayed until autumn, proposes the removal of fixed-term tenancies in England in favour of a single open-ended tenancy model. This shift could complicate student lets, as students usually prefer contracts aligned with the academic year. Purpose-built blocks may be exempt from the new rules, but landlords are advised to follow developments closely.
Financing considerations
Student housing can present funding challenges. Some lenders decline applications if the property is built with non-standard materials, requires extensive refurbishment, or is above a commercial unit such as a shop or takeaway. While certain high street lenders are reluctant to finance student lets, specialist lenders provide tailored options. According to Etchells, these lenders understand the market and offer flexible solutions for landlords seeking higher yields.
