Student blocks in Nottingham could be converted in a bid to keep “top talent” graduating from the two universities within the city.
More than 16,000 new bed spaces in purpose built accommodation blocks have been created in the city over a period of more than a decade.
There was a significant increase in student numbers beginning in 2010, which presented the city with a huge demand for places for them to live.
Nottingham City Council created a student housing policy which focused on the building of purpose-built blocks, as traditional family areas such as Lenton, Radford, the Arboretum and Hyson Green became “over-saturated” with students.
Planning director at the council, Paul Seddon, said the “strategy has worked”, with the city avoiding similar housing crises seen in Durham, Bristol and Manchester.
There are now more students than ever before living in purpose built accommodation, and more than 700 family homes have been returned to the market.
This means families now have more access to homes, the council is getting additional income from council tax, and student rents in accommodation are falling because there is ample choice in the market.
Purpose-built blocks have also brought in an estimated £1bn worth of construction value into the city.
However, vacancy rates are now rising and the number of full-time students has fallen.
The drop reflects both national declines in international and domestic recruitment, and a growing number of students commuting from home amid the rising cost of living.
The authority is now considering its next steps for the many student tower blocks that have been built – and those that are yet to be built.
During a meeting to discuss the issue on Monday (June 15), Mr Seddon said: “The policies have always required it, but they are requiring it more now, which is the evidence of need.
“We’ve got to a point where the supply is starting to be more than the immediate demand, then actually anything that comes to the market, any decisions, any future planning decisions we give, [we] need to be certain there is definitely need.
“Within that transition is always having adaptability in mind – and throughout a decade or so of delivery and the granting of planning permissions that there could be a transition, a change in demand.
“So, more latterly, [we] have drafted informal planning guidance on what is known in the market as co-living.
“It is a transition from student accommodation to graduates, young professionals, it is not typical flat accommodation, but it is something that is important for Nottingham’s market.”
Vikki Welch, assistant director of student living at the University of Nottingham (UoN), added: “As part of the student living strategy one of the priorities was about improving graduate retention to stay within our city and contribute to the city.
“The feedback we obtained from our students was they wanted to transition into more professional housing within the city, and they felt there was a gap in that.
“Our partnership has enabled us to provide that insight that has helped leverage this co-living documentation that is being prepared currently.
“We feel this will enable more professionals to live in our city but also retain that top talent we are educating once they have completed their studies.”
In 2025/26 the total number of full-time students from NTU and UoN was 53,888, and the number needing accommodation was 41,314.
Given that for 2025/26 the total number of occupied purpose-built beds was an estimated 29,903, this still left a deficit of at least 11,411 students who were left to find accommodated in private flats or houses in the city.
An average of 2,086 new bed spaces have been created in student blocks every year over the past five years, the council says, with 2,700 beds delivered in 2025/26 alone.
However, in the current year, which began in March, there are just 200 bed spaces forecast for delivery.
Cllr Sam Harris (Lab) said: “I remember when I was leaving NTU and trying to find a property, it was near impossible.
“Now I live on my own. I would not be able to afford the rent post-degree that I do now, that is an area I appreciate is being worked on.”