A new analysis of student renting suggests that the Houses in Multiple Occupation sector demonstrates particularly robust fundamentals.

Data from portal StuRents shows that some 77% of British students choose HMO accommodation over Purpose Built Student Accommodation with the HMO sector achieving rental growth above 5%.

It has benefited from the addition of 160,000 UK undergraduates since 2016, creating a substantial and growing domestic market. 

With HMO rents showing consistent upward trends, the sector offers stronger rental growth prospects.

StuRent’s data reveals that domestic demand drivers are strong with positive long-term demographic trends supporting continued demand, while additional affordable supply remains constrained. 

The platform says the student sector is preparing for regulatory change forced upon it by the Renters Rights Bill.

A gathering of student accommodation experts organised by StuRents considered that the Bill could “profoundly shift the seasonality in the HMO market” and might enable PBSA developments to “specifically target domestic demand” displaced from traditional HMO booking windows. 

But they suggest the price gap between PBSA and HMOs is still wide, with the former not catering to the average domestic student’s search budget.

Despite market challenges, some 80% of attendees at the event were actively seeking new investment opportunities and 48% reporting that international student demand hasn’t changed for their portfolios in 2025 so far.

They suggest the demographic outlook remains positive, with international student demand expected to continue supporting the sector, particularly in markets with strong university partnerships and appropriate pricing strategies.