Page 4 | SFG | Meeting demand for modernised university-owned accommodation disrupted by the unpredictable impact of the Renters Rights Act, and by an increasing number of students commuting from their own or their parents’ homes. Our estimate is more restrained than others, which means that we also think the gap between demand and delivery is smaller. Despite all the pressures on viability, c. 23,750 new-build beds are predicted to be available for 2026/27. We estimate that the annual rate would only need to increase to c. 27,700 in each of the following three years in order to close the demand gap described above and replace all university beds in Quality D by 2029/30. However, some of this demand for additional or replacement beds is in markets where rents are not yet strong enough to support viability, and so the actual rate of delivery may be well below this. Universities have a palette of funding options available to make this happen. Only a very small proportion are likely to use their own capital. Partnership projects will continue to be prevalent, leveraging the inherent value locked up in UK universities’ freehold residential estates, which we estimate at c. £25 billion . We discuss the different partnership structures that are currently in the market, and the aspects that are most important to universities when considering them: the experience of the partner, the length of the deal, the options for exit, the level of control over rents, the control and flexibility over operations, and the impact on universities’ balance sheets. Universities must also consider internal and external procurement regulations. While the accommodation challenges that universities face are considerable, our analysis suggests that they are not insurmountable , and that closer partnership working between universities, funders, operators and developers ought to make significant inroads to improving the student experience across the UK, and supporting one of its most important sectors: Higher Education.