GSL Index data reveals a fundamental shift in student priorities as budget pressures mount and expectations around quality intensify. While the fundamentals haven’t changed – students still care about location, cost, and condition. However, the relationship between these factors is evolving in ways that accommodation providers need to understand.
Increased importance of budget
Over the past three years, budget has risen in importance when it comes to students’ priorities when looking for somewhere to live. In 2023 Q4, budget ranked fifth among factors influencing students’ accommodation search. By 2024 Q4, it had jumped to second place, and it has maintained that position. Travel time to place of study remains the number one priority, but the elevation of budget to second place signals a fundamental shift in how students are approaching their accommodation decisions (Table 1).
Quality still matters
While budget has risen in prominence, students haven’t abandoned their expectations around quality. This Autumn, 12% of students said they would pay more rent for an improvement in condition and quality of their accommodation – a slight increase from 11% in Autumn 2023. This seemingly modest figure suggests that even in a budget-conscious environment, more than one in ten students recognise that poor quality is a false economy.
Driver analysis of the factors impacting overall student satisfaction provides important insight into why this matters. Condition and quality is the most important driver of overall student satisfaction – notably higher than any other factor, including value for money itself (Figure 1).
The impact of a negative rating for Condition and quality is huge compared to negative ratings of other aspects of accommodation. Students who rate condition and quality negatively have the lowest NPS scores and are the least likely to say they are considering staying on in their accommodation. And, for many students, the condition and quality of their furnishings/accommodation is the one thing they would change about their accommodation:
The quality of the furniture in the accommodation is not very good, and I would wish we could change the furniture.
I’d improve the mattress quality.
Similarly, when it comes to the drivers of value for money perceptions (Figure 2) condition and quality is the most influential factor – nearly a full point ahead of the bedroom. This suggests that students want the basics done well, and when they’re not, satisfaction is undermined regardless of the price point.
Bedrooms need to be checked against some quality standard in the summer – a lot have something minor missing, e.g towel rails but it does mean some students are getting less for the same price.
The rent is too expensive for the quality of accommodation and the price increase for the next academic year is ridiculous.
This insight resonates with suppliers who work directly with accommodation providers on the front lines of student satisfaction.
After 18 years working in the PBSA sector, we’ve learned that good-quality furniture isn’t a luxury and it’s an investment that quickly proves its value. When students deal with wobbly fittings or an uncomfortable study setup, the effects show up everywhere with more maintenance callouts, lower satisfaction and poor reviews.
The operators who understand this don’t treat furniture as a cost to cut. They see it as a core part of the student experience. When the essentials are done well, like a supportive desk chair, a bed that’s genuinely comfortable and rooms kept to a solid standard, you see the difference in happier residents, fewer operational issues, and stronger year-on-year retention.
– Anthony Stretten, Revenue Operations Manager, Global Student
Bedrooms
Given that the bedroom itself ranks as a top factor in both accommodation search decisions and satisfaction drivers, it’s worth examining what students actually value within their personal space. The key driver analysis for bedroom satisfaction (Figure 3) reveals some interesting priorities.
Quality of furniture and fittings leads the way, followed closely by bedroom size, and design and visual appeal. What’s particularly notable is the importance of functional elements – comfort of the study area, temperature control, and the desk chair all rank highly. Interestingly, some factors that might seem important – bed size and desk space – rank lower than expected. This suggests that students prioritise quality and comfort over sheer size – they’d rather have a comfortable, well-designed smaller space than a larger but poorly appointed one.
The importance of getting the basics right
The GSL Index data tells a clear story about the current student accommodation landscape. Students may be recalibrating their priorities in response to financial pressures, but quality still matters.
The fact that condition and quality drives both satisfaction and value for money perceptions so strongly suggests that accommodation providers face a particular challenge. In a budget-conscious market, the temptation might be to compete primarily on price. However, the data indicates this could be a strategic mistake. Students might be drawn in by a lower price point, but if the condition and quality disappoint, satisfaction will suffer- and dissatisfied students are unlikely to recommend the accommodation to future cohorts.
The factors that drive satisfaction with Bedroom provide a useful template for where to focus investment. Quality furniture and fittings, temperature control, comfortable study areas, and good chairs deliver stronger returns for student satisfaction than simply maximising space. Similarly, the declining willingness to pay premiums for amenities like cinema rooms and professional kitchens suggests these investments may not be delivering the competitive advantage they once did.
For accommodation providers, the data highlights the importance of getting the fundamentals right first. Ensure bedrooms are well-appointed with quality fittings, maintain high standards of condition and cleanliness, provide functional study spaces with comfortable furniture, and manage properties well. These basics drive satisfaction. In a market where budget consciousness is rising but quality expectations remain high, the providers who succeed will be those who recognise that excellence in the basics is a competitive necessity.
