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Jan 24, 2026

Student-visa growth masks headwinds for UK purpose-built student housing

Student-visa growth masks headwinds for UK purpose-built student housing
Home Office data show student-visa grants reached 426,300 in 2025 – a 4.5 % rise on 2024 – but Purpose-Built Student Accommodation (PBSA) operators may struggle in 2026. An analysis published by Global Student Living on 23 January highlights a sharp drop in applications at the end of 2025: December submissions fell 16.8 % year-on-year, the weakest month since the pandemic. (gslglobal.com)

For international students worried about meeting the UK’s tougher compliance rules, visa-processing platforms such as VisaHQ can streamline the entire application. The service offers real-time tracking, document checking and personalised guidance for Tier 4 and Graduate Route visas, helping applicants avoid costly refusals while supporting universities in hitting the Home Office’s new thresholds (https://www.visahq.com/united-kingdom/).

Student-visa growth masks headwinds for UK purpose-built student housing


Universities are front-loading Confirmation of Acceptance for Studies (CAS) earlier in the cycle to meet stricter Basic Compliance Assessment thresholds introduced last September. Institutions now need a 95 % enrolment rate and a visa-refusal rate below 5 %; many have cut recruitment from countries with lower grant rates, such as Bangladesh and Pakistan, and refocused on India and Nepal. The changed timing means PBSA occupancy that once surged in January is now dispersed, leaving more mid-year voids. (gslglobal.com)

Demand is further dampened by the government’s decision to shorten the Graduate Route from 24 to 18 months for cohorts finishing after December 2026. Students beginning one-year master’s programmes this month risk losing six months of post-study work, weakening the UK’s competitive edge versus Australia and Canada. (gslglobal.com)

PBSA owners face a triple squeeze: softer demand, higher financing costs and tighter planning rules aimed at curbing “studentification” in some cities. Operators are pivoting to flexible leasing, targeting domestic post-graduates and exploring mixed-use schemes. Universities with strong BCA metrics may be able to negotiate rent guarantees, but secondary assets in oversupplied markets like the North-East could see occupancy dip below 80 %. (gslglobal.com)
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