By Damian Shepherd, BloombergLast Updated: Apr 30, 2025, 10:34:00 AM IST

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International students have become pivotal to the financial fortunes of both the UK higher education sector and the investors betting on student housing, given the higher fees paid and a propensity to stomach higher rents than domestic peers. While the number of EU applicants has fallen significantly since Brexit, until recently that has been largely offset by a rise in foreign students from outside the bloc. But changes to visa requirements and increased competition from other countries have begun to impact numbers. And that’s being compounded by a cost of living crisis that has encouraged some domestic students to skip university in favor of paid work.

The number of both UK and non-UK university entrants is significantly below the sector’s forecasts for 2024-2025, according to research published in November by the Office for Students.

The headline data indicating supply shortages masks a more nuanced reality where some university towns and cities are starting to see a surfeit of space, according to Ward. Still, there are early indications that President Donald Trump’s targeting of US universities could lead to an increase in interest from students applying to study in the UK.

“Several cities that were previously considered strong student markets from an investor’s perspective are likely to continue to experience challenges in filling beds over the next few academic cycles,” Ward said. “The UK higher education market remains an attractive proposition for international students, albeit the current financial difficulties faced by many institutions should be closely monitored.”