Trump’s extensive tariffs have, as expected, hit global economies hard; most significantly China, the biggest source of international students in prominent English-speaking countries. 

Anti-international sentiment 

As so often happens in history, pursuing aggressive economic policy likely guides other sectors in the same direction. In this case, the education sectors in the US and elsewhere are considering a strategy of obstructions for international students as a result. 

In the US, the Republican Party has proposed a blanket ban on Chinese nationals obtaining student visas, reflecting the anti-China rhetoric that has been building for some time. Australia is showing signs of going in the same direction. A country that at one time boasted an extensive international education sector, the Australian government is now proposing tougher visa requirements and a steep increase in visa fees, in a move to reduce migration to pre-pandemic levels. 

Impact on the UK PSBA market 

The early signs of anti-international sentiment elsewhere are promising for UK university applications. It appears that students (and their relatives) are actively looking for safer and more accommodating locations, and consequently, those choosing the UK are on the rise. 

We have seen a range of obstacles over the past 18 months for investors in the PBSA market, namely macroeconomic demands, hesitation around immigration policy and decreasing numbers of Chinese students. Unexpectedly, the market is experiencing a boost, as the international students redirecting from the restrictive US and Australian environments now position the UK as the principal English-speaking destination for university study. 

It may not be completely plain sailing, as it is also worth noting that the new Renters’ Rights Bill, which we expect to be passed in the summer, includes a provision that will cap the rent payable in advance of a tenancy. Advance rent payments have typically been used by students, and international students in particular, to demonstrate to a prospective landlord that they meet the affordability criteria of the accommodation. The introduction of a cap could cause difficulties for this new influx of Chinese students.  I have outlined this, and other practical concerns about the Bill in my previous article on the Renters’ Rights Bill if that is of interest. 

We can only wait and see if this momentum continues to build, but the future of UK PBSA looks positive.