Insights

Designing sustainable, student-centred living spaces

Student accommodation is evolving, with high-quality accommodation and wellness amenities now the norm. Private investment is driving change, but university-owned projects are also innovating. Meeting sustainability demands within strict time, cost and labour limitations is the challenge, as Jim Gillen, Jody Wilkinson and Benjamin Stroud report.

 

Both private capital and universities are investing in and building student accommodation. In the private market, developers typically build and finance projects, holding the asset for several years before selling it on to an institutional investor, such as a pension fund. Private investors may also buy multiple student units across branded residential sites. Universities, meanwhile, tend to develop on land they already own, often in collaboration with private investors and developers.

These investors are driving high specifications. University-funded projects must meet high environmental standards to meet academic institutions’ stringent corporate social responsibilities across their real estate portfolios. Pension funds, meanwhile, require high build quality and a sustainability accreditation to match their long-term investment requirements. Their assets must perform reliably for many decades, and also match pension funds’ growing mandate to invest in sustainable, low-carbon assets.   

According to property consultants Knight Frank, nearly £575 million was invested in the UK purpose-built student accommodation (PBSA) market in the final quarter of 2024, taking annual investment to £3.87 billion. Annual investment rose 14 per cent; UK student accommodation is a healthy, enticing market for investors. However, construction costs, stricter safety regulations, and an increased emphasis on wellness and sustainability present design challenges for developers.  

 

Design considerations  

PBSA developments should ensure that students have access to safe, secure, and comfortable living conditions. These accommodations are typically equipped with modern amenities and facilities such as high-speed internet, study areas, recreational spaces, laundry facilities, and 24/7 security. 

Living in purpose-built managed student accommodation provides students with the opportunity to engage with colleagues from various backgrounds. This develops a wider sense of community which facilitates networking, collaboration, and personal growth. 

For many residents, it will be their first time living away from home. Design considerations tend to focus on student well-being, considering aspects such as mental health support, social spaces, and communal areas which can promote a balanced lifestyle. PBSA developments should consider providing additional support services such as on-site management, study support, and social activities, which can enhance their overall university experience. 

New developments must consider student accommodation preferences, and include varied room options to suit different needs and budgets. Accommodation types should generally enable students to share common spaces, or to live individually.  Games rooms, a cinema, on-site bars and cafes, and event spaces are now all common features, as are gyms. As with other public spaces, designing for accessibility is important. 

A shift towards more self-contained, hotel-style room design reflects changing demands of these buildings. Newbuild student accommodation is often expected to serve double or even triple duty: as housing for students in term time, leisure and travel accommodation in the university holidays, and as occasional event spaces, hosting, for example, out-of-town guests visiting academic and business conferences. This means the quality and finish of such accommodation must be high.

 

Managing heat, airflow and efficiency

Student accommodation typically has high occupancy levels, and as such has intensive power, heating, cooling, and water demands. In addition, student buildings also often incorporate high-speed internet, smart home systems and technology enabled amenities like digital fitness classes and online study resources. Sophisticated digital door entry, security and alarm systems allowing only permitted people to enter student buildings is another common feature.  

As high-density, resource-and-technology-intensive living spaces, creating the conditions for a flexible, comfortable environment which provides appropriate and reliable heating, cooling and ventilation is a challenge. Factors to consider include: 

  • Minimising internal heat generation through energy efficient design 
  • Reducing the amount of heat entering the building in summer 
  • Use of thermal mass to manage heat within the building 
  • Passive ventilation 
  • Mechanical ventilation 

 

Passivhaus as the new benchmark

Passivhaus is emerging as the go-to standard for sustainability in the UK, following on from its well-established popularity in northern Europe. It requires only a small number of targets and requirements to be met.  

Key considerations for Passivhaus student accommodation, as with other building types, includes thermal bridge-free design, ‘energy positive’ windows, ventilation and heat recovery systems, and high-quality insulation.  

In Canary Wharf, London, one development currently under construction is set to become Europe’s largest Passivhaus student accommodation. Three buildings, ranging between 28 and 48 storeys, will provide 1,672 student beds. It incorporates a McDonald’s drive thru at ground level and a yoga studio, cinema and games rooms on a skybridge.  

 

A street scene in London showing two buildings
The Palmerston Court development, located on Battersea Park Road in south London, includes the largest Passivhaus facilities in the UK. It comprises three student accommodation buildings built to the Passivhaus Standard, with a total area of 22,841m². Source: James Santer / AHMM

 

The future: Communities — not just beds — must be built  

Concerns are starting to be raised about the impact of large-scale, student-only accommodation on demographics, spending and behaviour in city centres. 

As these mega-projects spring up, their proliferation is in sharp contrast to the crisis of low availability in the wider housing sector. Given the lack of affordable housing in the UK, and sluggish housebuilding levels outside of student accommodation, investors and developers may find themselves answering questions about their focus on this sector. We anticipate that project teams will increasingly be tasked with positively assimilating these buildings into their local communities. 

Despite the challenges, UK student accommodation is now firmly established as a standard asset class for institutional investors. With this, however, comes high sustainability expectations to meet the requirements of their portfolios and investment criteria: buildings need to be future-proofed to prevent becoming stranded assets. We also expect that given the increasingly global nature of university-level education, international students’ needs and expectations will remain a key driver and influence on this fast-growing sector. 

 

Our student accommodation cost model focuses on a student accommodation project designed to Passivhaus standards. Our hypothetical project is based on a new purpose built managed student accommodation development (PBMSA) scheme of 16,300m² GIA and 485 beds in a regional UK location built to Passivhaus Classic standard.  

To access the full cost model and breakdown of the cost considerations associated with student accommodation, click here to read the full article published in Building.