Most universities focus on quantity, quality, location, a rent ladder, a consolidated estate, and efficient operations To generalise, most universities are seeking the following from their residential estates: • The right quantity of beds: enough to meet demand, but not so many to risk under- occupancy. The right balance will vary according to what else is in the market: rural universities at a distance from cities may need to be more self- sufficient, while those in locations well-supplied with PBSA can rely more (or completely) on the private sector. • The right quality of beds. Few universities seek the kind of luxury product that high-end developers have been delivering, but all will aspire to a minimum level of quality. Unfortunately, this is often not met: we explore this in more detail in Section 2. • Beds in the right location . On-campus is generally always the gold standard, although there are many students who will prefer a city centre location if the campus is within reach. For universities in cities where development has been constrained, such as London, then some degree of travel to campus is unavoidable, so other factors also become important: good transport connections, social and study amenities, and economies of scale. • Closely connected to quality, a ladder of rents . Students’ needs are not homogeneous, and universities want to offer a range of price points that suit every budget. Nearly every university is concerned about affordability, in a climate where the cost of living is for some prospective students a barrier to engaging in Higher Education; but many also report that there is finite demand for the very cheapest accommodation. • A consolidated residential estate rather than a dispersed one, in order to foster thriving communities and reduce operating costs. Generally, a smaller number of larger halls in fewer locations is far better than many smaller scattered ones. There are exceptions to the rule: e.g. some postgraduates will be perfectly happy with smaller quieter options. • Efficient and high-quality operations that maximise the student experience. A Student First Group research report | April 2026 | Page 9