'My rent was higher than my student loan' - the booming cost of private halls

In the universities of cities across the UK, purpose-built student accommodations (PBSA) have become increasingly common, with rents continuing to skyrocket. These large blocks of housing are being developed primarily by private companies, often catering to more affluent international and postgraduate students. The rise in PBSA has been driven by private companies targeting these students, who are considered increasingly important to the sector.

While developers claim they are meeting market demand, campaigners argue that the high costs are unaffordable for most Scottish students and suggest that more affordable housing should be built instead. Lara Reader, a 20-year-old student at Edinburgh University, experienced this firsthand. Despite selecting several options, Lara was allocated a room in Brae House, one of the many private PBSAs in Edinburgh.

Her monthly rent of £1,022 exceeded her £200 student maintenance loan, leaving her financially strained and forced to work 20 hours per week alongside her studies.

This situation contributed to Lara's failing first-year exams and constant stress about money. The University of Edinburgh claims its accommodations offer good value, with entry-level rents well below the average. Across the UK, 206,005 students lived in private-sector halls in 2024/25, with Scotland experiencing a higher rate of increase in PBSA.

In Glasgow and Edinburgh, the supply of PBSA has surged, with Glasgow hosting nearly 40,000 student beds if all proposed schemes are realized, and Edinburgh seeing a 60% growth in PBSA over the past decade. Richard Ward, head of research at StuRents, states that the average cost of privately-operated PBSA in these cities is £268 and £243 per person per week, respectively, while the national average (excluding London) is £191pppw.

International students, who often have better financial resources, are a significant part of the PBSA market. Saba, an international student from Pakistan, found PBSA to provide a safer option than trying to arrange private rentals abroad. However, she encountered scams from unscrupulous landlords. John Boyle, director of research and strategy at estate agency Rettie, explains that PBSA is financially viable for developers due to high land values and development costs, making it challenging to deliver affordable housing in prime locations.