The rapid growth of purpose-built student accommodation (PBSA) has transformed the skylines of many university cities over the past decade.
Large-scale blocks of studio apartments and cluster flats have become the dominant model, offering students modern facilities and investors predictable returns.
However, as explored in our earlier piece on UK student accommodation trends for 2026, rising construction costs, affordability pressures and evolving student expectations are beginning to challenge that model.
A different type of development is offering students an alternative to that traditional apartment model – purpose-built townhouse-style student accommodation
David Podesta, Head of Development and a specialist in student accommodation advisory services at Vail Williams, explores how the traditional PBSA model is beginning to evolve.
PBSA has traditionally focused on delivering high-density schemes dominated by en-suite cluster bedrooms and studio apartments.
While these developments have helped address student demand in many locations, they can be seen by students as being the solution for their first year of study only, with many expecting to move on to the HMO market thereafter
Student townhouses will not replace conventional student accommodation blocks, but they can offer a complementary experience which blends the best of the PBSA model with the freedom of HMO living.
Townhouse-style accommodation (effectively modern, purpose-built HMOs) offers a compelling alternative. Instead of living in large apartment blocks, students share a house with friends, typically in groups of eight to ten, combining the social experience of traditional student housing with the benefits of professional management and security.
This approach aligns closely with what many students say they value most – living together with friends in a more communal and domestic environment.
Delivering the ‘shared house’ experience – but better
Historically, shared student houses have been provided by small private landlords, often with varying standards of quality and management. Purpose-built townhouse schemes offer a way to professionalise that experience.
Students still enjoy the benefits of shared kitchens, dining areas and living spaces, but the accommodation is delivered within a managed scheme offering:
- Professional maintenance and management
- Secure access and safety measures
- High-speed connectivity
- Shared outdoor and communal space
- Consistent accommodation standards
The result is a hybrid model, combining the lifestyle of traditional shared housing with the operational reliability of PBSA.
Addressing pressures in the wider housing market
A shift toward townhouse-style student accommodation could also bring wider benefits for local housing markets.
Many university towns have seen significant community concern over the growth of student HMOs, which can reduce the availability of family housing and change the character of residential neighbourhoods.
David commented: “Purpose-built student townhouses can help rebalance this dynamic. By delivering dedicated student housing in appropriate locations, developers can reduce pressure on traditional housing stock, freeing up homes that might otherwise have been converted into private HMOs.
“This approach can therefore help meet student demand while supporting local housing supply, addressing concerns from both communities and local authorities.”
Opportunities for universities and local authorities
It is important to recognise that student accommodation markets are highly location-specific. Demand is heavily influenced by the size of the university, its growth strategy and its accommodation partnerships.
Many universities no longer directly deliver all of their own housing. Instead, they partner with specialist providers such as Unite or UPP, or enter into nomination agreements with private sector operators to secure rooms for their students.
For local authorities and institutional landowners, townhouse schemes may offer a particularly attractive opportunity, as David explains:
“Sites that might otherwise be difficult to deliver as large PBSA blocks, including smaller development plots or existing housing assets, could lend themselves well to townhouse-style accommodation.
