As uncertainty continues to shape the UK Purpose-Built Student Accommodation (PBSA) sector, strategic agility and collaboration are more essential than ever. Our Director of Operations, Scott Blakeway, recently took part in a digital roundtable event hosted by Lavanda, which brought together operators, investors, and service providers to explore the challenges and opportunities shaping the 2025/26 academic cycle.

The session, featured in PBSA News, offered a deep dive into the most pressing issues currently facing the PBSA sector. Here are the key themes:

Budgeting in an Unpredictable Market

Static, linear budgeting is out. Today’s PBSA operators are adopting multi-scenario forecasting models to prepare for fluctuating booking patterns, delayed student decisions, and increased pricing pressure in competitive cities like Sheffield. With occupancy uncertainty looming large, flexibility is no longer optional — it’s foundational.

“Scenario planning has become essential,” one participant noted. “We build base, stretch, and downside cases as standard.”

Utilities Volatility and Investor Engagement

The upcoming expiration of energy hedging contracts (notably by 31 March 2025) poses a significant financial risk. Volatile prices and shifting occupancy levels are forcing PBSA providers to rethink procurement, with investors now actively involved in utility planning and cost management — a trend accelerated post-Ukraine.

Bottom-Up Budgeting & Extended Planning Horizons

A more granular approach to budgeting has emerged, with operators starting at the property level and working upwards. Combined with rent-setting timelines extending up to 24 months in advance, this method supports greater forecast accuracy and empowers on-site teams — though it also makes digital marketing spend and pricing strategy harder to predict.

Navigating Regulatory Uncertainty

The pending Renters’ Rights Bill and post-Grenfell compliance mandates are adding complexity to an already strained operational landscape. The message from the roundtable was clear: agility in contracting, investor relations, and safety compliance will define successful operators in 2025/26.

Transparency and Real-Time Investor Reporting

Gone are the days of annual reports and static dashboards. Today’s investors demand real-time data on leasing velocity, market sentiment, and operational performance. Operators must be ready to communicate proactively — even when forecasts fall short — to preserve trust.

Student Experience Still Takes Centre Stage

Despite rising costs and operational pressures, the student experience remains the cornerstone of long-term success. From mental health support and responsive maintenance to tech-driven service automation, PBSA providers are balancing leaner teams with enhanced service delivery.

A Word from Scott Blakeway

Reflecting on the event, our Director of Operations shared:

“It was a great opportunity to connect with peers across the industry. Open, honest conversations like these are essential as we prepare for another demanding (but exciting) year in PBSA. Many thanks to Lavanda for hosting the digital event.”

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