Work is set to get underway on a £34.24m scheme of almost 200 student apartments at Kirkstall Road, Leeds, led by developer, Brigade Central

As a new academic year approaches, the continuing growth in demand for student accommodation in Britain’s major cities is creating some significant opportunities for new construction work.

According to construction industry insight guru, Glenigan, in the three months to June of this year, student accommodation starts on site were worth £839m, 78% up on the same period a year ago and equivalent to 8% of all housing starts.

The potential for new work in the sector was underlined last month when Unite Group, the FTSE 100 company that is the largest student landlord, raised £450m from shareholders to invest in additional space.

Positive fundamentals

A series of positive fundamentals are driving activity in the sector.

Unite points to the UK’s globally-recognised higher education sector, a housing shortage, and high demand for university places for 18-25-year-olds.

As well as strong demand from international students, domestic demand is set to rise thanks to a 16% growth in the number of 18 year olds in the UK by 2030.

Unite’s development pipeline has grown to a record £1.5bn in what it says are ‘strong university markets’, including its first joint venture in the sector which it is doing with Newcastle University.

The newly-raised funds will be used to acquire seven student housing units across Bristol, Cardiff, and Liverpool which need work.

Unite is also committing to two new schemes, with planning consent, in Bristol and Glasgow with a development cost of around £200m.

Meanwhile, the funds will also be used for two other student housing developments: a 444-bed, £170m scheme in Southwark due to be ready for the 2027/28 academic year; and another scheme in a ‘prime regional market’ with a development cost of around £110m.

Glenigan data provides details on numerous student accommodation schemes of varying sizes across the country where work is set to get underway.

In Leeds, for example, detailed plans have been granted and work is set to get underway this autumn on a £34.24m scheme of almost 200 student apartments at Kirkstall Road, where Brigade Central is the developer.

The purpose-built scheme of up to 10 storeys will involve over 6,500sq m of space and work is set to run for 20 months.

Moving south to Southampton, work on an £11.85m purpose-built scheme which includes a 5-6-storey building with nearly 250 bed spaces and another building with eight bed spaces is also due to get underway later this year.

The project at 119 High Street is set to run for 13 months.

Meanwhile, in Exeter, work is due to start this autumn on a £15m scheme in the city’s Longbrook Street which will provide accommodation for 97 students.

The project involves a floor area of some 180sq m and will run for 17 months.

Conversion of business space for students

Renovation schemes involving the conversion of existing business space into student accommodation space also offer opportunities for contractors.

In Manchester, detailed plans have been granted for an £80m scheme involving the redevelopment of The Hotspur Press site to provide student accommodation in buildings of up to 37 storeys.

The scheme could potentially start in the new year if delays due to an application for the building to be listed can be overcome.

On a smaller scale, detailed plans have been submitted for a £500,000 conversion of Burlington Arcade in Bournemouth to student halls of residence on a scheme that is set to start early next year.