Over recent years, Lancaster has seen a significant rise in purpose-built student accommodation (PBSA) to keep pace with growing university enrollments. As Lancaster University continues to expand—hosting around 16,400 students in 2021/22—the impact on local housing markets and homeownership has become increasingly prominent .
📈 Surge in Student Accommodation
There are currently about 6,700 bed spaces available in Lancaster for students, and demand remains high—most sites report full occupancy. Between 2011 and 2019, roughly 3,428 new housing units were completed in the district; nearly 23% of these were categorised as affordable.
This growth reflects two key trends:
- Universities encourage on-campus living for first-year students.
- Private developers investing in PBSA, responding to market demand.
📊 Effects on Homeownership and the Rental Market
1. Rising Private Rental Share
Lancaster’s private rented sector now accounts for about 27.8% of all homes, higher than the national average of ~20%. Much of this growth stems from HMOs (Houses in Multiple Occupation), with properties being converted into student lets rather than long-term residences.
2. Pressure on Family Home Availability
HGMs and PBSA developments often replace family-sized homes, squeezing stock available to first-time buyers and long-term residents. The shortage has become acute—The Council estimates around 6,000 households currently need affordable housing within the district.
3. Opportunities and Challenges for Homebuyers
- Opportunities: Investors still find HMOs attractive. A notable case in point: a PhD student at Lancaster bought a three-bedroom home for around $161,000 (£130k) using a “Buy for Uni” mortgage, then rented rooms to offset costs.
- Challenges: But for non-students, competition with student tenants and increased rents make it harder to find affordable family homes.
🏡 Role of Local Estate Agents
That’s where professional help makes a vital difference. Estate Agents in Lancaster are key partners in navigating this shifting landscape. Northwood combines national reach with in-depth local insight, helping buyers uncover hidden opportunities—whether it’s a family house, a newly converted HMO, or an opportunity in PBSA investment.
They assist with:
- Identifying properties still suitable for homeownership.
- Understanding local planning, zoning for students vs. families.
- Assessing long-term rental viability and capital growth potential.
🔑 Smart Strategies for Prospective Homeowners
- Focus on family zones: Aim for neighbourhoods less affected by HMO growth—often in outskirts and newer estates.
- Partner with knowledgeable agents: Agents like those at Northwood can pre-screen properties unlikely to be converted or heavily let to students.
- Be open to niche models: Some families are exploring shared living arrangements or small buy-to-let setups to offset mortgage costs—such hybrid models can unlock affordability.
Final Thoughts
Lancaster’s surge in student housing has reshaped its property market—fueling rental prices and squeezing homeownership for non-students. However, demand for family homes remains strong. By working with Estate Agents in Lancaster at Northwood, prospective buyers can navigate this complex market confidently—identifying enduring homes and smart opportunities in a changing city.
