Is Student Housing Still Recession-Proof? A Look at Economic Resilience

With economic uncertainty never far from the headlines, it’s fair to ask: does student property still offer the same resilience that’s made it such a popular asset class?

The short answer: yes—but it depends on what you’re offering and where.

Here’s why student housing continues to perform, even when other parts of the market wobble.

🎓 1. Demand Stays Strong, Even in a Downturn

Higher education tends to be counter-cyclical. When the job market weakens, more people pursue degrees or postgraduate study.

According to HESA, over 2.86 million students were enrolled in UK higher education in 2022/23. This includes:

• 1.87 million undergraduates
• 754,000 international students (including 125,000 from the EU)

UCAS has projected further application growth through 2025, driven by both domestic demand and strong recovery in overseas interest post-COVID.

In towns like Reading, where housing supply already lags demand, this cushions landlords from wider market volatility.

📉 2. Rental Income Is More Predictable

Unlike the private rental sector, student lets:

• Tend to be agreed 6–9 months in advance
• Run for fixed terms (usually 10–12 months)
• Are often underpinned by guarantors or loan-backed funding

This creates more reliable cash flow—even if economic conditions deteriorate.

🏘️ 3. The HMO Model Offers Stability

While PBSA has had moments of over-saturation in some cities, well-run HMOs near key university campuses continue to let consistently. They’re also more adaptable—landlords can shift to professional lets or short-term accommodation if needed.

Plus, with the right design and compliance, HMOs offer:

• Higher net yields
• Strong tenant retention year-to-year
• Lower exposure to single-point failure (unlike PBSA blocks reliant on occupancy guarantees)

👫 4. Independence Still Matters

Despite the rise of PBSA and university halls, many students still prefer to share a house with friends. It offers:

• A more independent, grown-up experience
• Greater control over daily life
• Often more value for money

This lifestyle appeal ensures HMOs remain a popular choice year after year.

💡 5. Students Still Value Quality

Even during a downturn, students (and parents) aren’t just chasing the cheapest option. They want:

• Fair, all-inclusive rents
• Safe, clean, comfortable homes
• Proximity to campus and friends

Properties that tick these boxes don’t sit empty.

⚖️ 6. Regulation Adds Complexity—but Also Opportunity

Landlords today face a growing burden of regulation—licensing schemes, EPC requirements, and rent reform proposals are all raising the bar. This can make traditional private lets less appealing.

Student properties, however, often justify the added admin by:

• Offering higher gross and net yields
• Being let to groups for fixed terms (typically aligning to the academic year)
• Providing more predictable tenancies, even with flexible contracts

That said, landlords need to time the market carefully. Miss the main student intake window, and even a well-located, well-fitted property can remain vacant until the next cycle.

🚨 7. But Not All Student Properties Are Created Equal

Recession resilience isn’t automatic. To stay ahead, landlords need to:

• Keep properties compliant and well-maintained
• Avoid relying on oversaturated PBSA markets
• Offer storage, functionality, and clear value

📊 8. Resilience Is Built on Reputation

Landlords who respond to maintenance quickly, communicate clearly, and offer well-managed homes gain something many others miss: positive word of mouth.

In student housing, reputations build fast—both through peer recommendations and among parents. That credibility helps ensure rebookings, better tenants, and higher occupancy—even in tougher economic times.

✅ Final Thought

Student accommodation isn’t recession-proof by default—but it’s more robust than most property sectors. With the right location, setup, and service standards, student lets continue to deliver reliable returns—even when the economy stutters.

At House 4 Students, we work with landlords who want long-term income—not just short-term tenancies.

📩 Want to know how your property stacks up in today’s market? Get in touch—we’ll give you a straight answer.