In recent years, student mental health has emerged as a critical issue in higher education, with risk factors such as loneliness, the cost of living, and a growing diversity of student needs contributing to a difficult landscape. In a recent survey, 70% of students reported that financial concerns were harming their mental health, while nearly three-quarters of students reported feeling lonely.1
With accommodation being a vital space in which students navigate the challenges of University life, developers should be conscious of creating PBSA beyond the norm of basic housing needs. In this blog, we explore how developers can balance the social value of student accommodation with the need for affordability and community involvement, whilst highlighting how a social value approach is better for everyone.
Supporting Student Wellbeing
University accommodation significantly impacts student well-being. A recent survey revealed that students living in their preferred accommodation have an average Mental Health Index (MHI-5) score of 59.6, compared to 54.1 for those in non-preferred housing (the good mental health benchmark is 60).2 This highlights the importance for PBSA providers to create spaces that go beyond basic housing needs, fostering environments that support mental health and personal development.
PBSA often includes amenities such as communal kitchens, study areas, fitness facilities, and outdoor spaces, which encourage social interaction and help students build relationships. These features promote academic success and personal growth by providing opportunities for collaboration, wellness programs, and engagement in pro-social activities like sports or cultural events. When accommodation prioritises student well-being and community-building, it plays a vital role in shaping a positive and enriching university experience, helping students develop essential life skills like teamwork, communication, and leadership.
Finding a Balance
While the benefits of pro-social amenities in student accommodation are clear, financial cost can hinder students from fully enjoying these advantages. Affordability is a key concern when selecting accommodation, and with costs rising significantly due to higher interest rates and increased construction costs, it can undermine the very social value these amenities aim to provide. Many students, particularly those from disadvantaged backgrounds, face financial strain and rely on part-time jobs, which may negatively affect their academic performance and reduce their time for community engagement.
To address this, developers and providers could carefully consider the needs of students and tailor their offer to maximise the social value created by the accommodation whilst providing realistic and affordably priced spaces. Further, cost-saving approaches such as flexible contracts could help ease the financial burden. By aligning their offerings with students’ financial realities, developers can ensure the social value of student accommodation is preserved while making it accessible to all students.
Supporting the Community
A further opportunity to optimise the social value generated by PBSA is its potential for fostering a positive relationship with neighbouring communities. First, this can provide students with the opportunity to immerse themselves in local culture and engage with diverse groups. This helps broaden their perspectives and enriches their overall university experience, with a study from Galliford Try highlighting the students felt that an important part of their experience is about learning from the community in which they are living.3
Second, it can help to establish PBSA as a community asset. PBSA developments occasionally face criticisms of enhancing ‘studentification’, the negative cultural change caused by a high population of students such as noise and antisocial behaviour. While new developments focus on creating the best possible experience for students, they must also consider their responsibility to the surrounding community. For example, many PBSA schemes contain high-quality facilities and may be situated in neighbourhoods with limited existing local amenities, where value can be created by opening such spaces to local residents.
This positive relationship also promotes inclusion and shared responsibility between students and local residents. Facilitating student involvement in community activities such as volunteering or events helps to create lasting bonds. In return, the community can benefit from a diverse and dynamic student population that brings fresh ideas, innovation, and energy. Developers like The Social Hub and Vita offer excellent examples of how a community-based approach can be successfully implemented, fostering a strong sense of connection between students and their neighbourhoods.
Better for Everyone
Creating pro-social student accommodation doesn’t just benefit students, or potentially the local community. For developers, it offers numerous long-term benefits that extend beyond just attracting tenants. Enhancing the social value of PBSA improves tenant satisfaction and retention. Breaking down barriers between students and the broader community creates positive relationships, reducing the risk of issues that may affect the reputation of providers. Additionally, developments that prioritise wellbeing, social engagement, and community integration are more likely to gain support from key stakeholders such as local authorities, neighbours, and potential investors. Ultimately, pro-social student accommodation not only meets the evolving needs of students but also strengthens the developer or provider’s standing as a responsible stakeholder.
A Social Value Approach
To fully understand and harness the social impact of student accommodation, developers and providers should work with experts who can guide them in creating spaces that truly benefit both students and local communities. The British Property Federation’s Student Wellbeing Guide sets out that the wider PBSA sector must work closely with partners such as Universities and local authorities to ensure accommodation considers issues such as student safety, good design standards, and staff training.4 At RealWorth we work closely with the third, private and public sectors to value and optimise the social impact of student accommodation, with our expertise in PBSA having helped several providers such as Dominus, Vita and The Social Hub to understand the social value that they create.
RealWorth – The Social Hub, Barcelona
By valuing and optimising the social impact of student accommodation, we can create spaces that not only nurture students’ academic and personal growth but also contribute positively to the neighbourhoods they inhabit, whilst supporting the wider PBSA sector in demonstrating their benefits to key stakeholders.