Are You Behind on Student Bookings and Low Occupancy This Coming Academic Year?

Posted by Lavanda on 15th August 2025 -

As we enter the final stretch before the new academic year, many PBSA (purpose built student accommodation) operators are taking stock – and not all are liking what they see. Booking numbers are down, decision timelines are dragging, and the gap between expectations and reality is growing wider by the day. In a climate of uncertainty, waiting it out is no longer a strategy. It’s time to act.

The problem:

• Student accommodation bookings are significantly behind where they were this time last year, leaving many PBSA buildings facing structural voids that could deeply impact revenue performance over the course of the coming academic year.
• Many seem to be holding out for “a later leasing cycle”, however we’ve yet to see hard evidence of this. All the data points to a softening of demand in numerous locations across the UK and structural voids becoming evident. 
• Savvy operators are being realistic about how they are tracking versus previous years, are now preparing for the worst, and have plans B and C mapped out and ready to go in the event they need to mitigate risk.

 

How can Lavanda help?

• The Lavanda Short Stay platform has been designed to help PBSA buildings drive occupancy and revenue during term-time by taking short stay bookings from vetted student guests. We source high quality, verified student bookings from a growing number of OTAs including Booking.com and Student.com. 
• Term-time short stays have long been a mainstay of the industry. These bookings are typically less than a full semester, but longer in duration than summer bookings (which are typically <7 nights). A typical term-time short stay booking lasts 2-3 weeks. 
• Proactive PBSA operators are working with our Term-time Revenue Consultants to optimise how short stay strategies can be deployed throughout the academic year in order to monetise any vacant inventory as effectively as possible. 
• If your building can only be occupied by students, that’s not a problem. Lavanda will align your term-time strategy with student-only occupancy, and will help you forecast accordingly.
• If you’re already working with Lavanda over the summer, this can be as simple as opening up your calendars to take bookings into September, October, November and December. Taking action now is easy and will pay major dividends.

 

Rest assured, you are not alone. Operators across the country are actively exploring ways to optimise term-time revenue, and Lavanda is supporting them every step of the way. The good news? Taking action early opens the door to better outcomes and greater flexibility.

 > Get your personalised term-time revenue plan

Why are student bookings so behind? It’s a complex, mixed picture…

Return to pre‑Covid booking patterns

• The rush of early bookings seen during the pandemic is unwinding. Operators like Unite are experiencing a later leasing cycle, in line with pre‑2020 norms.
• At Unite, as of early July 2025, only 85% of beds are reserved, down from 94% at this time last year. Similarly, sector-wide, only 36% of rooms were booked by end‑March 2025, down from 46.3% a year earlier. These numbers point to an industry-wide trend.

 

International student demand is softening

• International student applications are down approximately 16% year‑on‑year, partly due to visa changes and policy shifts.
• A well-documented decline in new university entrants from key markets like China, India, and Nigeria have contributed to increased pressure on early bookings.

 

Affordability constraints & price sensitivity

• PBSA rents have surged – up 8% nationally, with London average annual rent now around £13,595, exceeding the cap of student maintenance loans 
• Many students are delaying booking to compare prices and wait for discounts, extending the decision-making process.

 

Local oversupply & market variability

• Some cities, like Nottingham and Sheffield, face oversupply. Booking levels in Nottingham fell from 96% to 87% year‑on‑year, with rents softening.
• Regional disparities are stark – with booking rates ranging from around 51% in top-performing cities to as low as 29% in weaker markets for this same snapshot period.

 

More deliberate student booking behaviour

• Students are engaging in longer booking journeys – particularly delaying until university offers and financial clarity are secured, or until competitive offers are live.
• This more considered approach requires operators to deploy tailored retargeting and communication strategies (e.g. WhatsApp, live chat) to convert interest into bookings.

 

Supply pipeline & new product mix

• Despite oversupply in some cities, overall PBSA supply remains tight; but construction challenges (high costs) have slowed development, keeping pace uneven across geographies.
• New competitors such as Build‑to‑Rent (BTR) products are drawing student interest where they offer flexibility and value, challenging traditional PBSA uptake in select cities.

 

> Book a call with a Term-time Revenue Consultant