The student accommodation sector continues to suffer from significant under-supply despite the increasing volume of purpose built property, it’s claimed.
The latest UK Student Accommodation Demand Report by the UniHomes platform back up a recent analysis showing a national shortfall of roughly 600,000 student bed spaces; the report highlights the specific cities where landlord investment is needed most.
The report, which analysed three years of student search data alongside Google search volumes, has ranked the top UK cities by projected student searches per property for the upcoming 2026-2027 letting cycle.
The Top 10 Student Rental Hotspots for Landlord Investment:
(Ranked by projected searches per property for 2026-27)
A UniHomes spokesperson says: “Accommodation is just one of many pressures students face, but it’s often the one that, if not sorted, can cause the most stress.
“With over ten years of experience tracking student housing demand nationwide, we see firsthand how timing, preparation and local knowledge can make a difference between a smooth search and a stressful one.”
The firm offers these insights for landlords looking to invest in student rentals:
1. Liverpool: Liverpool takes the top spot as the UK’s most competitive student market, with a staggering 2,525 searches projected per available property. The city’s student population has surged by 28% over the past decade, and searches per property are forecast to more than double by 2030.
For investors looking at traditional student HMOs, Liverpool’s demand for six-bed student homes has jumped 47% year-on-year. Meanwhile, the professional/post-grad student market is also booming, with searches for one-bed properties up 23%.
2. Bath: Bath represents a premium market where strict local planning regulations protect investor yields. The University of Bath saw its student population grow by 18% between 2018 and 2024, yet the city’s UNESCO World Heritage status, Green Belt protections, and city-wide housing shortages mean new developments are severely restricted.
With 1,699 searches per property, landlords who own or acquire HMOs in Oldfield Park, the city centre, and Twerton sit on highly lucrative assets with virtually lower risk of void periods.
3. London: London ranks third with 1,074 searches per property. Crucially for private landlords, the capital has seen a dramatic 23% drop in HMO availability since 2018, amounting to over 40,000 fewer homes on the market.
In addition, the data shows that the student booking cycle is shifting forwards. In Liverpool, for example, peak student demand hit on November 12th, a full week earlier than the previous year, as students try to secure housing ahead of the rush.
The full report can be found at: https://www.unihomes.co.uk/blog/uk-most-in-demand-student-cities-revealed
This article is taken from Landlord Today