We have updated our league table of university towns and cities across the country. The league table is specifically designed to consider the potential for future development of direct let purpose-built student accommodation. It is however worth noting that a lower ranked town or city may still be attractive for investment if existing supply and demand are balanced and the potential investment returns are appropriate for the risk involved. The rankings are based on a number of factors covering current and future supply and demand alongside our in-house knowledge of local student development markets.

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^{Source: Savills Research}

The results

Aberdeen and Glasgow’s stay in the top flight was short lived following promotion last year. This year, along with Cambridge, they fall into the Upper Second league as their development markets remain attractive but have become more competitive. Manchester is promoted into the First league, reflecting both strong demand and a need for more supply. The challenge for developers will be in getting support from the University during the planning process.

Belfast and Chester both move up one place into the Upper Second league while Leeds and Winchester continue their rise from last year and also move the Upper Second league. There is the opportunity for development in these markets but supply and demand is not as unbalanced as those cities in the First league.

Meanwhile, Bangor falls back into the Lower Second after promotion last year and is followed down by Liverpool, Newcastle and Southampton. The potential for development in the towns and cities in the Lower Second league is more constrained than higher leagues and should be limited to better located sites in order to minimise any risk. Loughborough and Stoke on Trent are both relegated into the Third league following promotion last year. Aberystwyth and Colchester also move down one league into Third. Chelmsford, Derby and Falmouth are promoted into the Third league.

For towns and cities in the Third league, the need for more supply is very limited and development should only be undertaken on the most prime sites. There are no relegations into the Pass league where speculative development remains risky and student demand may be weaker.