The Purpose-Built Student Accommodation (PBSA) sector is at a pivotal moment, shaped by rapid changes and significant challenges. As we look ahead, the importance of aligning with the right talent, acquisition partners, and values cannot be overstated.

Each aspect of operation—from planning and construction to management and student relations—must be underpinned by robust recruitment strategies and strong value-driven practices to ensure sustainable growth and operational success.

Emphasising Value-Driven Recruitment in the PBSA Sector

In the complex landscape of PBSA, the integration of core values such as sustainability, inclusivity, and community focus is crucial. These values should not only reflect in the physical spaces we create but also in the teams that bring these spaces to life. It’s about crafting environments that enhance student lives and foster community, necessitating a workforce that is deeply aligned with these goals.

Strategic Talent Acquisition for Operational Excellence

The limited growth in supply highlighted by the sector’s recent downturn necessitates a strategic approach to talent acquisition. As new developments become more dependent on private operators, the need for skilled professionals who can navigate the nuances of PBSA becomes more pronounced. Choosing a recruitment partner play a vital role in this scenario, offering specialised recruitment services that ensure talent aligns not only with the technical requirements of PBSA management but also with the ethos of enhancing student experience and operational efficiency.

In 2019, the Purpose-Built Student Accommodation (PBSA) sector experienced a high with 36,000 new beds being delivered. However, by 2023, this number dramatically decreased to just 12,000, a reduction of 66% in four years. This sharp decline was largely due to reduced planning approvals, increasing construction costs, and rising debt expenses, which have significantly impacted supply growth.

Addressing Affordability Through Innovative PBSA Recruitment

Affordability remains a significant challenge, as rising construction and operational costs threaten the accessibility of student accommodations. Here, the role of a recruitment partner transcends filling positions—it involves strategic planning and the integration of innovative solutions that can drive down costs whilst ensuring quality. For instance, leveraging technology in recruitment processes reduces overheads and speeds up the hiring cycle, allowing PBSA providers to maintain a balance between affordability and quality. Having an outsourced but embedded team that understands your business and works one with your team offers the best of both worlds in terms of ensuring values whilst getting access to a wider pool of talent.

Regarding affordability, new PBSA units are now frequently priced beyond the average UK student budget, exacerbated by historically high construction and financing costs. This pricing challenge is making it difficult for operators, developers, and investors to offer affordable housing solutions to students.

Mitigating Risk with Compliant and Educated Teams

As regulatory landscapes evolve, PBSA operators must ensure compliance to avoid legal pitfalls and enhance community trust. This requires a workforce that is not only educated on the latest regulations but is also committed to upholding them. It's important to partner with a team that contributes significantly here by providing candidates who have compliance knowledge and trained in best practices, thereby reducing the risk and enhancing the sector's reputation.

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The Importance of Mental Health and Wellbeing Training in PBSA teams

With the day-to-day challenges of PBSA operations, ensuring that staff are equipped to handle not just operational tasks but also student interactions with empathy and understanding is crucial. Mental health and wellbeing training become indispensable in this context. By prioritising these aspects in the recruitment process, a quality recruitment partner must ensure that the workforce is prepared to support an environment that is nurturing and understanding, reflecting the core values of community and inclusivity. These skills not only add to the value of the offering for the PBSA supplier companies but also ensures that the students, workforce and wider team have access to support if they should need it.

Rental growth in the PBSA sector has remained strong, with an increase of 10.1% year-over-year, and is expected to continue rising, with projections suggesting a rental growth of between 5% and 9.9% for the 2024-25 academic year. This robust growth, while indicative of a vibrant market, also carries the risk of making PBSA unaffordable for a significant number of students, particularly in high-cost areas such as London, Bristol, Bath, and Edinburgh.

Leveraging Technology and Data in Recruitment

The integration of smart technologies and data-driven recruitment processes helps tailor the talent search to meet precise needs and forecast future trends. With the diverse range of positions and wider team functions the use of advanced tools for talent matching and analytics for strategic decision-making ensures that recruitment is not just about filling today’s roles but preparing for tomorrow’s challenges.

The Future of PBSA

As the PBSA sector navigates and rebounds from its current landscape of limited supply and high demand, coupled with the need for affordability and compliance, the role of strategic recruitment partners becomes increasingly critical.

Agencies like DiSRUPT Recruitment are at the forefront of this drive, offering embedded recruitment solutions that align deeply with the sector’s values and operational goals. By choosing a recruitment partner committed to inclusion, sustainability, mental health and ethical practices, PBSA providers can ensure they are well-equipped to meet the challenges of today and seize the opportunities of tomorrow.

Ready to Elevate Your PBSA Strategy?

Connect with DiSRUPT Recruitment Agency today and discover how our recruitment solutions can transform your approach to talent acquisition in the PBSA sector and how we have supported and built our processes specifically to enhance the recruitment and talent acquisition for PBSA and Property Management Companies.

Visit us at www.wearedisrupt.co.uk or reach out directly to ensure your team is ready to drive growth and foster exceptional student living experiences. Let's build the future of student accommodation together.

Reach out to us directly at +44118 3042 855, or drop us an email at recruitment@wearedisrupt.co.uk. We look forward to collaborating with you to positively disrupt the norms of recruitment.

Summary of 2023/24 PBSA Stats

• In 2019, the Purpose-Built Student Accommodation (PBSA) sector experienced a high with 36,000 new beds being delivered. However, by 2023, this number dramatically decreased to just 12,000, a reduction of 66% in four years. This sharp decline was largely due to reduced planning approvals, increasing construction costs, and rising debt expenses, which have significantly impacted supply growth.
• Regarding affordability, new PBSA units are now frequently priced beyond the average UK student budget, exacerbated by historically high construction and financing costs. This pricing challenge is making it difficult for operators, developers, and investors to offer affordable housing solutions to students.
• The sector's reliance on international students to fill PBSA units has been growing, despite a recent decline in non-EU student admissions as per the latest UCAS figures. This trend emphasizes a cautious approach to avoid over-dependency on international student admissions, which although remains positive in the long run, could present sustainability challenges if there were any sudden changes in admission trends.
• Planning application activities saw a subdued level in 2023, with only 27,000 bed applications submitted and fewer than 13,000 receiving approval—a significant drop compared to 2018, where 37,000 applications were proposed and 33,000 were granted. Looking ahead to 2024, there is an anticipated resurgence in planning applications driven by the existing supply-demand imbalance, although it's unclear if this will translate into increased approvals.
• Rental growth in the PBSA sector has remained strong, with an increase of 10.1% year-over-year, and is expected to continue rising, with projections suggesting a rental growth of between 5% and 9.9% for the 2024-25 academic year. This robust growth, while indicative of a vibrant market, also carries the risk of making PBSA unaffordable for a significant number of students, particularly in high-cost areas such as London, Bristol, Bath, and Edinburgh.
• Given these challenges, it's crucial for PBSA providers to work closely with universities to align their offerings with the actual needs of students. A nuanced understanding of each location’s specific requirements is essential to effectively address supply issues and ensure that new beds are delivered where they are most needed, contributing to a balanced growth in the sector.

_{Based on stats by StuRents’ 2024 key PBSA sector trends to watch}