The UK student rental market has always been a reliable sector for property investors, but in 2025 the focus is shifting towards larger units. In particular, 3 bed apartments for students are experiencing significant demand, especially among the growing international student population. Rising enrolment numbers, limited purpose-built accommodation, and the appeal of shared living are creating a perfect storm that investors cannot afford to ignore.

This article explores why 3 bed apartments for students represent a prime investment opportunity in 2025, the benefits for both students and landlords, and which UK cities are best positioned for growth.

Growing Demand from International Students

The number of international students in the UK has been steadily climbing for over a decade. According to the Higher Education Statistics Agency (HESA), there are now more than 670,000 overseas students enrolled in UK universities. This number has increased sharply in recent years due to the UK’s global reputation for higher education and the popularity of the Graduate Route post-study work visa.

Cities such as London, Manchester, and Birmingham are experiencing particularly strong growth in international enrolments. However, while student numbers are rising, accommodation supply has not kept pace. This shortfall means many overseas students are seeking alternatives outside purpose-built student accommodation (PBSA).

As a result, demand for 3 bed apartments international students can share has surged, offering both affordability and lifestyle appeal.

Why Students Prefer 3 Bed Apartments

The appeal of 3 bed apartments for students goes beyond just affordability. While cost savings are a major factor, lifestyle preferences also play an important role.

  • Shared Costs: Renting as a group significantly reduces individual living expenses compared to studios or one-bedroom apartments. Utilities, broadband, and even groceries can be split, making student life more manageable financially.
  • Community Living: Many students, particularly those studying abroad, prefer living with friends or peers. A three-bedroom set-up allows them to enjoy privacy in their own rooms while maintaining a social and supportive environment.
  • More Space: Compared with smaller flats, 3 bed apartments often offer a more practical layout with larger communal areas. This balance of personal space and shared living is highly attractive to students.
  • Flexibility: These units appeal to both undergraduates and postgraduates, meaning demand remains strong across multiple academic levels.

It is no surprise that 3 bed apartments for students have become one of the most sought-after property types in major university cities.

Investment Advantages of 3 Bed Apartments for Students

From an investor’s perspective, the benefits of targeting this market are clear.

Broader Tenant Pool
While students are the main market, these apartments also appeal to young professionals after graduation, providing flexibility for investors.

Higher Rental Yields
Group lets typically generate stronger yields than smaller units. For example, a 3 bed apartment can command a higher combined rent from multiple tenants while still remaining affordable for each individual student. According to Zoopla rental market data, multi-occupancy student homes often outperform standard one-bed investments.

Reduced Void Risk
With three tenants sharing a single property, landlords face less risk of rental voids. Even if one room becomes vacant temporarily, income from the remaining tenants helps to cover costs.

Consistent Demand
Demand for 3 bed apartments for students is steady throughout the academic cycle, with many tenants renewing year after year. This stability makes them a reliable long-term investment.

Best UK Locations for 3 Bed Apartments for Students in 2025

Not all cities offer the same potential, and location remains the key driver of success. The following cities stand out as prime opportunities for investors.

London

As home to some of the world’s best universities, including UCL and Imperial College London, London remains a magnet for overseas students. However, the high cost of accommodation makes 3 bed apartments international students can share especially attractive. Group living allows students to remain in central areas at a lower cost per person.

Manchester

With over 100,000 students across multiple universities, Manchester is one of the largest student hubs in the UK. Demand here far exceeds supply, particularly in city-centre areas. The shortage of PBSA and rising international intake make 3 bed apartments for students a particularly lucrative investment. Data from ONS housing statistics highlights Manchester as one of the fastest-growing rental markets in the UK.

Birmingham

The UK’s second city is rapidly expanding its education sector. With HS2 boosting accessibility and regeneration reshaping the city centre, Birmingham has become a prime choice for investors. The University of Birmingham and Aston University continue to attract thousands of overseas students every year, many of whom seek larger shared apartments.

These cities combine high student populations, undersupply of accommodation, and strong rental demand, positioning them as the top destinations for investors in 2025.

The Future Outlook for Student Housing Demand

Looking ahead, the demand for 3 bed apartments for students shows no signs of slowing down. Several factors will continue to drive this market over the next decade:

  • International Growth: UCAS forecasts continued increases in applications from overseas students, particularly from Asia and Africa.
  • Housing Shortage: Government housebuilding targets remain under pressure, meaning supply is unlikely to meet student housing demand in the near future.
  • Evolving Preferences: Students increasingly seek quality accommodation with space for study and socialising, something 3 bed apartments deliver better than traditional PBSA.
  • Sustainability Requirements: With the UK tightening EPC regulations for landlords, modern and energy-efficient 3 bed apartments will gain even more appeal.

For investors, this translates into long-term security and the potential for both rental growth and capital appreciation.

How Investors Can Benefit from 3 Bed Apartments for Students

For those considering entry into the student property sector, focusing on 3 bed apartments for students provides a balance of affordability, yield, and resilience. They are particularly attractive in cities with a strong pipeline of international students and limited accommodation supply.

At TK Property Group, we specialise in identifying high-performing developments that align with these trends. From Birmingham’s regeneration zones to East London’s student hotspots, our portfolio is designed to maximise investor returns while meeting the needs of today’s student renters.

If you would like to explore opportunities in this sector, you can view our latest insights on TKPG’s News Hub or contact us directly for tailored investment advice.

Final Thoughts

The student rental market has always been an attractive option for property investors, but in 2025 the spotlight is firmly on 3 bed apartments for students. Rising international numbers, affordability pressures, and lifestyle preferences are driving strong demand for this type of housing across the UK’s leading university cities.

For investors, the message is clear: 3 bed apartments international students seek out are no longer a niche, but a core opportunity in the UK’s property investment landscape.