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Guide
The Rise of Student Lettings: Capitalise on the Student Housing Surge
A practical guide for property investors, landlords, and developers navigating the student housing market.
Introduction
The UK continues to lead as the educational hub for students across the globe with its premier universities, rich cultural heritage, and unparalleled academic opportunities. From the historic halls of Oxford and Cambridge to leading institutions in London, Manchester, and Edinburgh, the UK brings a blend of tradition and innovation to its students and their educational experience.
The UK also offers its global students standout research facilities, short-term educational programs and a great chance to network with international students and markets. The graduate route visa also allows students to work for up to three years after successfully completing their degree, making the UK an ideal education destination for students.
What Does the Data Say About Incoming Students?
| Metric | Q1 2024 | Q1 2025 | Year-on-year change |
|---|---|---|---|
| UK study visa applications (main applicants) | 35,412 | 46,907 | +32% |
| UK study visas issued (main applicants) | 38,026 | 48,263 | +27% |
- Q1 2025 applications: nearly 47,000 main applicants (+32% vs Q1 2024)
- Q1 2025 issuances: over 48,000 students issued visas (+27% vs Q1 2024)
- Strong approval rates: 88% issuance rate maintained in both quarters
- Broad-based recovery: 14 out of 22 major source countries showed growth
Source: HEPI analysis and UK Home Office Immigration Statistics
According to a data analysis done by UK independent think tank HEPI, there is a recovery rate in Q1 2025, and it’s off to a stronger start than 2024, with nearly 32% increase in application and a 27% increase in visas granted in 2025. The issuance rate in both of these quarters was 88%, meaning the increased number of issued visas reflects stronger demand rather than changes in approval rates.
Cities that students prefer
- London attracts the highest number of international students, including Imperial College London, University College London (UCL), King’s College London, and the London School of Economics and Political Science (LSE)
- Manchester attracts close to 40,000 students at the University of Manchester
- Birmingham is another city students prefer for multiple universities and excellent transportation links
- Cities like Nottingham, Bristol, and Leeds also remain some of the top choices for students, offering specialised programs and a vibrant student life
Supply and demand in student housing
While the UK is expecting an increased number of international students in the coming August–September, student-ready accommodations are still catching up to demand. According to Knight Frank data, the supply shortage caused rents to rise by 8% in 2024.
Many properties in prime student areas suffer due to poor furnishings, outdated appliances, or the lack of modern amenities students require. It also presents an opportunity for landlords who understand the student-market demands and invest in professional presentation. Properties that deliver on student expectations consistently outperform, with faster lettings and command premium rents.
According to research done by Savills, UK PBSA (Purpose-built student accommodation) investment reached £3.5 billion in 2024 — a 13% increase compared to 2023. The sector will continue to see this growth in 2025/26.
Properties that put the right focus needed for student accommodation can command rental premiums of 15–25% compared to standard furnished properties, with faster lettings and minimum void periods.
What Students & Their Families Expect Today
Today’s international students and their families make substantial educational investments, which can often exceed up to £30,000 annually in tuition fees. Families and students are looking for accommodation that matches up to the quality: a space that is comfortable, functional, tech-equipped, and supports their academic and personal needs.
Role of international parents in picking accommodation
International parents play an important role in selecting and researching properties for students, focusing on factors like proximity to institutions, safety, functionality, and immediate usability of the space. Premium rents can be seen as an important investment for their children’s educational journey, given the property demonstrates attention to detail and care needed for their children. This creates an opportunity for landlords who understand the importance of meeting parents expectations, which can help them with meeting the steady demand and premium pricing.
Must-have amenities at student accommodations
Furnishing checklist
- High-quality bedframe and mattress
- Ample storage including wardrobe
- Study table and ergonomic chair in a dedicated study area
- Proper window dressing for privacy and control lighting
Kitchen checklist
- Modern appliances like microwave, refrigerator, cooker, etc.
- Storage for dining
- Easy-to-clean surfaces
Other important checklist
- High-speed internet connection
- Ample lighting throughout the space
- Sufficient modern electrical outlets near study areas and beds
- Heating systems
Why Furnishing Matters for Landlords and Investors
The student accommodation market has a set cycle, with most lettings starting in the month of September as the new semester starts. The time leading up — that is the summer months — become crucial for landlords and investors securing quality tenants, and reducing void periods.
85%
Of InStyle Direct furnished student properties let within one week during peak August–September intake season
15–25%
Higher rental returns for furnished properties compared to unfurnished
- Faster letting: 85% of InStyle Direct’s furnished student properties let within one week during the peak August–September intake season
- Higher rental returns: Furnished properties yield 15–25% more rental returns compared to unfurnished properties
- Reduced void periods: Furnished properties are always move-in ready and stay appealing, which significantly reduces the turnaround time between tenants
- Attracts premium tenants: International students and families are more likely to choose and willing to pay for properties that are move-in ready
- Increased appeal: Professionally furnished spaces photograph better for online listings, create stronger experiences, and attract affluent tenants
Tailored Student Furniture Packs: The Smart Solution
Furnishing your student accommodation doesn't have to be slow, DIY, or stressful if you collaborate with the right partner. InStyle Direct’s tailored student accommodation furniture packages ensure a seamless setup journey for landlords and investors.
What you get
Faster turnaround
- Most properties are furnished within 24–48 hours (depending on stock availability), appropriate for landlords dealing with tight timelines
Student-focused designs
- Furniture that is durable, easy-maintenance, and practical for a student’s lifestyle
Complete support
- Handling full installation to the ethical waste removal process
Flexible options
- Starting at £3,395+VAT, our design-led furniture packages provide complete solutions for student housings
Case Studies
Here's a snapshot of a few case studies followed by real testimonials from happy clients showcasing some of our projects that resulted in quick lettings.
Case study
Three lets secured in one week
Our client needed to furnish three adjacent units to achieve a rapid turnaround on lettings despite marketing efforts beginning before furniture installation. With our intervention the void periods were reduced and three units were let by high-calibre clients within a week.
“If a swift let is desired, the furniture package from InStyle Direct is the way to go.” — The estate agency that rented the units
Case study
Effortless transformation within a week
An overseas short-let property client required a seamless, stress-free service that would allow the refurbishment and interior design to be performed remotely. Her property needed updates to meet rental standards: from the bathroom, bedroom, and the kitchen, along with additional updates around the property. The property was transformed within a week and was let shortly thereafter.
“I found them to be extremely professional and competent. The whole process ran very smoothly.” — Client
“All the people from InStyle that I had dealings with were very capable,” she said, reinforcing her confidence in trusting us to manage the project.
Case study
41% rent boost in just one week in SW7
When a two-bedroom flat in SW7 needed a quick uplift, InStyle Direct delivered smart cosmetic refurbishments and design-led furnishings in under one week — reviving joinery, updating finishes, improving lighting, and installing tailored FF&E. The transformation resulted in the very first viewer agreeing to rent at the new rate: a stunning jump from £3,400 to £4,800 — a 41% increase in rent achieved within days and virtually no void period.
“This was a fast-paced project with no room for delays. By combining light refurbishment with smart furnishing choices, we were able to completely shift the rental potential of the property in under a week.” — Amar Tufail, Associate Director, InStyle Direct
Tips to Attract Student Tenants
1
Location still reigns
Proximity to universities, transport links, supermarkets, and social spots significantly increases appeal — highlight these in your listings.
2
Offer flexible lease terms
Many students prefer 9- or 12-month contracts to match academic calendars. Consider including flexibility for early or mid-year intakes.
3
Keep it clutter-free
Students want functional, low-maintenance spaces. Avoid over-styling and focus on clean layouts with just the essentials.
4
Respond quickly to maintenance
Fast, reliable maintenance is a top priority for students and parents. A responsive landlord builds trust and reduces complaints.
5
Make safety a selling point
Install secure locks, smoke alarms, carbon monoxide detectors, and if possible, a video intercom. Reassurance matters.
6
Include bills in rent where possible
Bundled bills (utilities, internet) simplify budgeting for students and make your listing stand out from the rest.
7
Showcase in good light
Professional photos and virtual tours — ideally taken in natural light — go a long way in attracting student enquiries, especially for overseas tenants.
8
Highlight study-friendly features
If your property has quiet zones, good sound insulation, or blackout curtains — shout about it. These small details matter to student tenants.
9
Petite touches = big impact
Wall hooks, bedside shelves, or USB plug sockets can make a space feel more student-friendly without major cost.
10
Don’t do it alone
If you’re short on time or unsure how to make your property student-ready, working with a furnishing partner like InStyle Direct can help you get it let faster — with tailored solutions, fast turnarounds, and stress-free setup.
How InStyle Direct Can Help
The student accommodation market is steadily going on an upward trajectory, and it presents exceptional opportunities for landlords and investors. With the 2025 academic year fast approaching, immediate action is required to capture this peak letting season demand.
Professional furnishings help your property stand out in this market. For over 20+ years, InStyle Direct has specialised in transforming properties for landlords, investors, and developers. We understand the unique market dynamics of student-led accommodations, with a deep understanding of overseas clients.
Partner with us to get your property student-ready — on time, on trend, and with zero hassle.
Ready to capitalise on the student housing surge? Contact us today and discuss how we can help transform your property and help you capture this exceptional opportunity.
Head Office: Studio 13, The Courtyard, 100 Villiers Road, London NW2 5PJ
Tel: +44 (0) 20 8964 1966
Email: sales@instyledirect.co.uk
Head Office: Studio 13, The Courtyard, 100 Villiers Road, London NW2 5PJ
Tel: +44 (0) 20 8964 1966
Email: sales@instyledirect.co.uk