Manchester is witnessing an ongoing surge in the development of purpose-built student accommodation (PBSA), with numerous projects already underway and nearly 10,000 additional bedspaces progressing through the planning system. This ambitious expansion is crucial as Deloitte emphasises that the city will require even more development to cater to future demand and improve affordability for students.
Current Construction and Planning Landscape
The scale of PBSA development in Manchester is significant, with Deloitte’s latest analysis revealing that 2,687 bedspaces are currently under construction along the Oxford Road Corridor. Additionally, there are 9,780 bedspaces at various stages of planning or pre-planning, underscoring the robust activity in this sector, primarily centred around the city’s higher education institutions. This concentrated effort is not merely a response to current needs but is also a proactive approach to anticipate future demand.
Affordability and Rental Trends
Despite this substantial pipeline of new bedspaces, Deloitte’s findings indicate that student rental costs in Manchester are still surpassing inflation rates. This trend points to an urgent requirement for additional supply to ensure that accommodation remains accessible and affordable for students. Some developers have already begun to incorporate affordable PBSA options in anticipation of potential new policies from Manchester City Council’s Local Plan review, reflecting a strategic response to market conditions.
Strategic Development Areas
The ongoing development around the Oxford Road Corridor is particularly noteworthy due to its strategic position near Manchester’s universities and well-established transport links. This area is evolving into a vibrant neighbourhood that aligns with the city’s academic and innovation districts, facilitating a seamless integration of student living with educational and professional opportunities. As part of Manchester’s broader growth strategy, the report from Deloitte supports the notion that a balanced housing market must accommodate various housing types and tenures, ensuring that residents, including students, can access education, employment, and public transport effectively.
Future Implications for PBSA
As Manchester City Council continues to refine its Local Plan, several potential PBSA sites are being assessed to guarantee that there is adequate development capacity through to 2030. While all individual proposals will still undergo consultation and planning approval, the latest research suggests a shift in focus. The discourse in Manchester is moving away from questioning the need for more PBSA towards determining the optimal locations for new developments and how to keep them affordable in light of growing demand.