Dear landlords,have you often heard complaints like this recently: "My child went to study in the UK, but not only is rent expensive, suitable housing is snapped up immediately"? This is no coincidence. According to an in-depth report prepared by Oxford Economics for the Berkeley Group, the UK—especially London—is facing a significant housing supply shortage. Behind the rental difficulties faced by countless families lies an ever-expanding market gap. Should one continue paying soaring rents, or instead become a landlord, securing both asset appreciation and stable rental income? Letukhome is here to provide insights into these trends.
Statistics show that England has about 70 fewer housing units per 1,000 people compared to the EU average, amounting to a shortage of roughly 4.2 million units. Notably, among London’s 33 boroughs, 23 had no new private residential starts in Q1 2025. Meanwhile, student numbers continue to rise. The report predicts that by the 2027/28 academic year, the number of non-UK students will exceed 614,000, with international students in London rising from 34% to 37%. Combined with an expected increase of 180,000 local 15–24-year-olds over the next five years, housing demand from students is expanding rapidly.
However, supply remains insufficient. Purpose-built student accommodation (PBSA) has failed to meet the annual target of 3,800 new units for nine consecutive years. Nationwide, there is a shortage of 620,000 student beds, and only 50,000 are expected to be added over the next five years—far short of demand. As a result, the supply-demand imbalance drives up rents. In 2024/25, the average PBSA rent in England reached £13,895 per year, up 9.4%. In London, a studio can exceed £19,500 annually. As many investors note, "Renting is an expense, buying can be an asset," particularly evident in the student housing market.
The report also calculates: assuming a child studies a four-year undergraduate program in London, the total rent would cost about £62,800, increasing yearly. Buying a property at £564,000 (30% down) could result in £37,000 net equity after four years, with expected property appreciation of nearly £100,000—making the total cost lower than pure renting. Flexibility is added through exit options: owners can sell after graduation (London property leads UK long-term growth) or convert to rental assets—UK rental growth has maintained 6% in recent years (US only 1%), providing stable returns.
Key market features include:
• Strong counter-cyclical property: in university hubs like London, Manchester, and Glasgow, demand comes globally and is relatively stable;
• Favorable exchange rates: GBP remains stable against SGD and RMB, lowering the barrier for international buyers;
• Outstanding holding value: saves rental expenses during children’s education while gaining asset appreciation and rental returns.
Currently is a clear window for UK student housing. Whether for children’s accommodation needs or long-term asset allocation, investing now is a rational and forward-looking choice.
For UK property rental needs, contact Letukhome for one-stop services. With years of experience, we make the process worry-free. Landlords and tenants can consult us directly in the backend. As a UK-focused property agency, we offer full-service management to help landlords handle challenges and assist tenants in finding ideal homes, making property rental in the UK more convenient and reliable.
Buy a property in the UK with a team of professionals who know the UK property market best｜ Lansha Group
Founded in 2014 and headquartered in Paddington, London, Lansha Group has become one of the top 100 seafarers in the industry in the past 10 years, providing one-stop services for international property. We have many years of professional experience in dealing with all aspects of the property market, from choosing a property to opening a home, loans, solicitors, tenancy management and second-hand property sales. We provide 24-hour real-time service to our global clients, assisting them in dealing with the cumbersome formalities of property purchase and home inspection, so that they can move into their homes or invest in them with peace of mind. If you are looking to invest in the UK, Lansha Group has a professional investment team to assist you in selecting the best properties, analysing the housing information and regional development, and making a comprehensive assessment to choose the ideal home. Visit Lansha Group's website now to view our selection of properties and choose your dream home!
If you have any questions about buying a property in the UK, please feel free to contact us directly.
