The global higher education landscape is undergoing significant upheaval as policy shifts in the US, Canada and Australia create uncertainty for international students. In the US, Donald Trump’s renewed efforts to curb international student inflows include halts to visa processing and plans to revoke visas for certain Chinese nationals. These measures have sent a stark message to prospective students worldwide.
For the UK’s purpose-built student accommodation sector, these developments offer a challenge and a rare window of opportunity.
Jessica Hardman, co-founder and chief executive of Aboria Capital, sees the UK as a natural beneficiary of political and policy instability elsewhere, most notably in the US.
“The UK is an obvious beneficiary of Trump’s latest policy announcements restricting international student inflows,” Hardman said. “His ongoing battle with Harvard is the latest high-profile example in a long list of signals to the global student population that they are less welcome in the US than under previous administrations.”
Course work
Although anecdotal evidence suggests some international students are already reconsidering their options, Hardman cautioned that it is too early for a meaningful uptick in PBSA bookings to materialise.
“Based on their international standing, Russell Group universities are likely to capture the lion’s share of this demand… but the forthcoming academic year and subsequent bookings cycle will be a telling litmus test for any sustained increase in international demand for UK student accommodation.”
Duncan Garrood, chief executive of Empiric Student Property, shared a similar view. He said: “The first priority for any student seeking a UK university place instead of a place in the US is to secure a space on a course. Accommodation searches typically follow several weeks later. As such, we are yet to observe any notable changes in US booking figures but would anticipate an uptick… to filter through to booking figures toward the latter portion of the cycle for the 2025/26 academic year.”
Beyond the US, recent measures introduced by other traditionally popular destinations, including enrolment caps in Australia and Canada, are also influencing student mobility.
Joe Lister, chief executive of Unite Students, is confident in the UK’s readiness to absorb this redirected interest. “The UK has a world-leading higher education sector with some of the highest-ranked universities globally,” he said. “If international students find it more difficult to study in the US, then the UK is an attractive, alternative option.
“Domestic demand reached a record high in 2024 and we’re already seeing the outlook for international recruitment improve… so we are confident that the UK higher education sector is in a strong position.”
Shivani Goolab, head of private client lending at Investec, is similarly optimistic.
“The UK higher education market continues to be globally appealing and we anticipate this will continue. With any potential tightening on student visas in the US, international students may find that the UK becomes a more attractive location to study, offering a world-class, English-speaking tertiary education.”
Notable decline
Nonetheless, the UK has also introduced policies that could dampen demand. In a bid to reduce net migration, the UK government has introduced several reforms affecting international students. Since January 2024, most international students are no longer permitted to bring dependents, except for those enrolled in postgraduate research programmes.
Additionally, students are now required to complete their courses before switching to work visas, limiting immediate post-study employment opportunities. Financial requirements have also increased; from January 2025, students must demonstrate higher monthly living funds – £1,483 in London and £1,136 elsewhere – reflecting the rising cost of living.
Furthermore, the Graduate Route, which allows post-study work, is under review, with proposals to reduce its duration from two years to 18 months.
This has led to a notable decline in international student visa applications, impacting university enrolments and the broader education sector.
Shifting strategies
Investors are eager to balance their businesses between these trends. Hardman said Aboria Capital has positioned itself to align with long-term global shifts.
“International students are typically a wealthier cohort than their domestic counterparts… and are disproportionately concentrated in Russell Group universities, which educate approximately 40% of international students in the UK, despite comprising just 24 of the UK’s 166 universities.”
Aboria’s strategy reflects this reality, she added: “Our portfolio and £1.6bn development pipeline are concentrated around the UK’s most renowned educational institutions… with the benefit of the development and operational expertise of our partner, Downing.”
For Empiric, where international students already comprise roughly 70% of the customer base, the focus is on diversity and flexibility.
“Our proposition is well-positioned to attract international students and to benefit from any increase in demand for UK higher education from any international market,” said Garrood.
Still, seizing this opportunity will require sector-wide alignment not only in delivery and operations, but also in public messaging.
“The UK suffers from an acute undersupply of high-quality student accommodation,” Hardman warns. “Increased investment into the PBSA sector is essential. Accelerated delivery of centrally-located, amenity-rich schemes… will be critical.”
Garrood echoed that sentiment, while calling for more consistent political support. He said: “The UK PBSA sector is already proactively positioning itself… However, recent rhetoric from the UK government has been unhelpful insofar as it has failed to reinforce the message that the UK welcomes and encourages international students.
“We would urge the government to take a more welcoming and proactive tone. Both universities and the PBSA sector are highly focused on attracting international students, and we hope that the government will become a more active and supportive partner in that effort.”
Policy shifts impacting international students globally
United States
Visa processing freeze: Student visa issuance paused; Chinese students particularly affected amid political tensions
Social media vetting expanded: New screening for F, M, and J visa applicants, aimed at suppressing campus activism
US-China academic tensions: Planned visa revocations for students tied to the Communist Party or sensitive fields
Canada
Student cap: Capped at 360,000 new international study permits for 2024 to ease housing pressure
Higher financial threshold: Proof of $20,635 now required (up from $10,000) for cost-of-living expenses
Limited work permits: Post-graduation work permit eligibility tightened; language tests now mandatory for post-study work rights
Work hour increase: Off-campus work limit raised to 24 hours a week during term time
Australia
Visa tightening: Major providers hit by declining visa approvals; IDP Education forecasts 50% profit drop
Sector uncertainty: Ongoing restrictions on student inflows as Australia reassesses migration and education strategy
Image: © Adobe Stock
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