Creating an inclusive community on campus: University of Staffordshire’s Student Village
Nick Preedy, Senior Project Manager in the Midlands, reflects on the important role social infrastructure plays in designing student living spaces.
Universities are facing rising costs, changing student expectations and pressure on capital budgets. At UKREiiF 2026, I joined Ian Prescott, Managing Director at HOCHTIEF PPP Solutions, and Sally McGill, Chief Finance Officer at University of the Arts London, to discuss how institutions can continue to expand student accommodation.
Refurbishment is moving up the agenda
The economics of new-build student accommodation have changed significantly. Higher-Risk Buildings regulations have extended programme timelines, while elevated financing costs have increased delivery costs.
Universities are also operating in an increasingly competitive accommodation market. Many direct-let Purpose-Built Student Accommodation (PBSA) providers are competing on quality and price, creating pressure on institutions with ageing stock.
One point I raised during the discussion was that universities are increasingly looking for solutions that combine refurbishment and selective new build, rather than relying solely on new developments. Rising costs, longer delivery programmes and growing competition mean institutions are focused on maximising existing assets while enhancing the student experience. In many cases, a blended approach offers the best balance of value, speed and quality.
Ian drew parallels with the social housing sector, which faced similar decisions around refurbishment and replacement a decade ago. He noted that the result was not a choice between one approach and another, but a greater focus on combining refurbishment, stock transfer and targeted new-build development.
Simplicity is shaping funding decisions
Funding structures are evolving alongside delivery strategies.
During the discussion, we reflected on the growing preference for design-build-finance (DBF) models over the more complex design-build-finance-operate (DBFO) approach. Several DBFO projects that appeared viable a few years ago have become more challenging as interest rates have risen.
DBF models can offer universities greater operational control, particularly in areas such as student wellbeing and pastoral care, while still providing access to private-sector funding and expertise.
Where DBFO models continue to work, they remain attractive because they transfer construction, operational and lifecycle risks away from the university. However, Ian cautioned that the marginal gains offered by more complex structures do not always justify the additional governance burden and risk.
Sally highlighted another shift in the market, with bond-based structures increasingly giving way to income-strip models that align funding more closely with underlying assets and provide greater flexibility.
While no single funding model is right for every institution, the discussion reinforced the importance of keeping structures focused on outcomes and avoiding unnecessary complexity.
The University of Staffordshire’s Student Village: partnership in practice
The University of Staffordshire Student Village project provided a useful example of these principles in action.
Structured as an income-strip DBFO combining refurbishment and new build, the scheme brought together the University of Staffordshire (where Sally was project sponsor in a previous role), HOCHTIEF PPP Solutions and Willmott Dixon.
A key lesson was the value of embedding the supply chain within the delivery team from the outset. This collaborative approach helped the project recover from a nine-week delay and return to programme within three months, while supporting a more standardised approach to delivery. Key elements such as room layouts, wall build-ups and M&E systems were standardised wherever possible, improving efficiency and cost certainty.
Sally also highlighted the importance of alignment from the outset. At Staffordshire, project requirements were defined early and maintained throughout delivery, helping to minimise changes after financial close and create a more efficient delivery process.
Reflecting on the project, Ian's view was that challenges can be overcome when partners remain focused on shared objectives and aligned on the outcomes they are trying to achieve.
Keeping student accommodation affordable
The higher education sector continues to face significant uncertainty. Financial pressures, evolving student demand and changing estate requirements are prompting institutions to reconsider how their campuses are used and developed.
Looking ahead, I believe there is an opportunity to reduce procurement timescales and accelerate delivery through greater standardisation and certainty earlier in the process.
Sally suggested that the sector would benefit from a longer-term assessment of DBFO projects to better understand performance over time. Ian, meanwhile, emphasised the importance of ensuring costs and rents remain aligned with what students can afford.
While our perspectives differed in some areas, we agreed that delivering high-quality student accommodation requires genuine collaboration. When universities, investors and delivery partners share responsibility for a project's long-term success, they create the conditions for sustainable and affordable student living.