The global higher education sector is going through a significant shift and the UK is well-placed to benefit. Policy changes in major destination countries like the US, Canada and Australia are creating uncertainty for international students, pushing many to look elsewhere. For universities and student accommodation providers in the UK, this presents a timely opportunity.
Policy Shifts Creating Friction Elsewhere
In the US, a freeze on visa processing, tougher screening measures and growing political tension with China have made it harder for international students to navigate the system. Canada has introduced a cap on new student permits and raised financial requirements. In Australia, sector-wide restrictions and profitability concerns are also starting to affect future demand.
These developments are prompting students and their families to reassess where they study. For many, the UK stands out as a strong alternative: a globally recognised education system and access to post-study work.
What This Means for the UK
While the UK has recently introduced its own reforms (including tighter rules on dependents, higher living fund thresholds from 2025 and stricter conditions for post-study work), it still offers a comparatively stable and attractive option. Investors in purpose-built student accommodation (PBSA) are watching closely.
High-Quality Institutions Drive Demand
The UK’s higher education sector has strengths that are not easily replicated. Russell Group universities continue to attract international applicants and providers like Unite Students and Empiric are aligning development and operational strategies accordingly. Notably, around 40% of international students in the UK study at Russell Group institutions.
This level of concentration allows accommodation providers to invest with greater confidence, targeting high-demand locations with long-term growth potential.
Balancing Opportunity with Policy Risk
It’s not all straightforward. UK government policy remains a variable. While the Graduate Route is still in place, it’s under review. There’s also ongoing debate about how to manage net migration without discouraging international talent.
The sector is calling for clearer, more consistent messaging from government to ensure the UK remains a competitive destination. Universities and accommodation operators alike are urging a more proactive stance to support long-term international recruitment.
Looking Ahead
Global student mobility is realigning and the UK has an opportunity to take a stronger position in the international market. Whether that happens will depend on more than just global trends. It will require joined-up thinking from policymakers, institutions and investors to make the most of this moment.
How Botham Accounting Supports Clients in a Shifting Global Student Market
We help clients navigate this evolving landscape with confidence, ensuring they are well-positioned to capitalise on the UK’s strategic advantage while managing tax exposure and regulatory risk.
- Structuring Investments in PBSA
- Purpose-built student accommodation (PBSA) continues to attract investor interest, particularly in cities with high concentrations of Russell Group universities. We advise on optimal investment structures, VAT implications and capital allowances to maximise returns and ensure compliance.
- Tax Efficiency and Capital Allowances
- We support clients in identifying and claiming capital allowances on qualifying assets, including fixtures within student accommodation developments in communal areas. This can significantly reduce taxable profits and improve cash flow.
- VAT Strategy and Compliance
- With the complexity of VAT on property transactions, our team ensures that clients avoid common pitfalls and structure deals to preserve VAT recovery wherever possible.
- Due Diligence and Transaction Support
- Whether acquiring or disposing of assets, we provide comprehensive due diligence, reviewing contracts, TR1 forms, to ensure efficiency and mitigate risk before exchange.
Looking Ahead
As global student mobility realigns, the UK has a unique opportunity to strengthen its position. Realising this potential requires more than just market awareness, it demands strategic, joined-up thinking across tax, finance, and operations.
We help clients by aligning investment strategies with tax efficiency, regulatory compliance and long-term growth. Reach out and contact us today to find out exactly how we assist you.
