Is Scotland reaching student accommodation saturation point?
The Scottish Green Party has called for a temporary suspension of new purpose-built student accommodation (PBSA) in Glasgow, but has the supply and demand imbalance really shifted that much?
Green MSP Iris Duane suggested a moratorium after a briefing note by Glasgow City Council identified 21,655 operational student beds across the city, with another 18,213 in the development pipeline; potentially taking the total provision to 40,000 bed spaces.
“A lot has changed since 2017, the lack of joined-up thinking towards where we build PBSAs and who they are for is tearing apart local communities,” said Duane. “We need to assess where PBSAs are being built and how that will impact local residents and businesses – too often transnational corporations, who have never walked our streets, are plonking them down with little regard for those who already live there.
“International student numbers are continuing to fall, so it is hard to see the justification for continuing to build more and more PBSAs when existing ones are not at capacity,” she added. “When speaking to students, they often feel as though their PBSAs were not good value for money, proving that the only people benefiting here are those who are profiting.”
Michael Scanlan, director of Clark Contracts, with David Campbell, chief executive of Alumno – credit: Alexander Thomas
Earlier this week, Alumno reached the topping-out point in the construction of its six-storey, 262-bed student accommodation development Woodlands Point on St George’s Road in Glasgow.
David Campbell, founder and chief executive of the developer, admitted that that the pool for overseas students coming to the UK has got “more refined and smaller in certain markets”, but he continued that there is “still considerable interest for many coming from overseas to experience the UK and its educational system”.
He argued that this means international students are becoming more discerning when selecting where they study and ultimately where they choose to live, “so there has been, and needs to be, a realignment to address this change”.
Campbell was unsurprisingly bullish on the state of student accommodation development in the UK, stating: “We remain convinced and confident in the sector’s core fundamentals and ability to reinvent itself and drive more and wider options for students and young people.
“At its heart is the ability to invigorate brownfield and transitional environments and create new communities, mainly within city centres.”
Lismore director Colin Finlayson
Colin Finlayson, director of Lismore Real Estate Advisors, said that the Scottish market specifically continues to perform well, with “good” occupancy levels in most of the main university cities.
“A significant proportion of students in the 2025/26 intake are from the UK, which provides a degree of stability to demand,” he pointed out, while accepting that there has been some adjustment in the market recently as universities assess the changing overseas student landscape and consider the implications for future intake and course provision.
“While demand remains robust, there is a degree of caution around new development and capital expenditure, with universities and investors taking time to assess how the market settles,” said Finlayson.
“For investors, the focus is likely to be on the right opportunities rather than simply increasing exposure to the sector, and affordability is becoming increasingly important, with demand strongest for well-located accommodation that provides students with what they need without the additional cost of unnecessary amenities.”
One of the biggest stories this year has been funding crises – and resulting job and course cuts – across several Scottish universities, with many blaming lower numbers of fee-paying students from outside of Scotland.
Finlayson said this has “prompted some reassessment across the sector”, although applications from UK students to Scottish universities appear to be holding up well.
“There is a growing domestic 18-year-old population which is expected to support undergraduate demand through the rest of the decade, peaking in the 2031/2032 academic year, so demographics are favourable for universities and accommodation which appeal to domestic students,” he added.
As a result, investors are likely to be more selective, with a greater emphasis on the location and fundamentals of any property.
“Overall, there is a degree of caution around the sector at present,” concluded Finlayson. “The market is adjusting to the changing university and overseas student landscape – the focus is increasingly on sustainable, affordable accommodation that meets the core needs of students.”
