Student Lets in Norwich: A Market Nearing Saturation?

In recent years, Norwich has seen a significant increase in the delivery of purpose-built student accommodation (PBSA), particularly in and around the city centre. However, with more student units sitting empty and some traditional lets struggling to fill, concerns are growing that supply may now be outpacing demand.

According to Norwich City Council’s Draft Supplementary Planning Document on PBSA (April 2025), which is currently under consultation, the evidence suggests the city may already be approaching saturation.

PBSA supply now exceeds forecasted need
As of late 2024, Norwich had 6,349 operational PBSA bedspaces. This is expected to rise to 7,945 with approved pipeline schemes and the planned re-opening of the UEA Ziggurats. If all pending applications are approved, total provision could exceed 9,300. By comparison, student growth projections estimate demand for around 7,293 beds by 2038/39.

Occupancy issues already emerging
Some PBSA providers reported occupancy rates as low as 62 percent for the 2024/25 academic year. One noted it was the first year they had not filled beds, despite reducing rents. Much of the short-term demand came from students relocated from the Ziggurats, which were temporarily closed due to structural concerns.

Affordability remains a key driver
PBSA is typically more expensive than traditional Houses in Multiple Occupation (HMOs). In 2022/23, 39.5 percent of full-time students in Norwich lived in HMOs. While PBSA is often attractive to international and first-year students, many undergraduates choose shared housing in later years due to lower costs and greater independence.

What does this mean for landlords?

Many traditional student properties are remaining on the market for longer this year. As a result, a number of landlords are starting to pivot these homes toward the residential market, while still aiming to achieve rent levels typically associated with student lets, often 10 to 25 percent higher than standard residential pricing.

Although PBSA offers convenience and amenities, it does not suit all students. After their first year, many prefer the affordability and independence of HMOs. With overall student numbers expected to grow only modestly and PBSA supply increasing, landlords offering well-maintained, sensibly priced homes in accessible locations are likely to remain competitive. A flexible approach to pricing and audience will help ensure continued demand.

Looking ahead, the arrival of the Renters' Rights Bill and tightening energy efficiency standards make it more important than ever to invest in the quality and sustainability of rental homes. Properties that are energy efficient, safe, and professionally managed will be best placed to succeed in a market that is becoming more regulated and more selective.

For more information, please contact Josh Bailey in on 01603 629871.

Source: Draft Purpose-Built Student Accommodation Supplementary Planning Document, Norwich City Council (April 2025). This document is currently under consultation and may be revised prior to adoption.