Construction begins on York student scheme

A student accommodation development is taking shape in York.

GMI Construction Group has broken ground on a £17 million purpose-built student accommodation (PBSA) scheme at Foss Islands Road that they say will help address “the critical demand for student accommodation” in the city.

The project, developed by Urbium Capital and Harrogate-based Gregory Property Group, will transform a former brownfield site – previously occupied by Enterprise Rent-A-Car and Just Tyres – into a five-storey building with 131 premium studios and two one-bedroom apartments.

It will also feature co-working spaces, a fitness centre, social areas and landscaped courtyards, with completion set for the 2026/27 academic year.

Mick Spells, project manager at GMI, which has offices in Leeds, Stockton, Birmingham and Manchester, said: “We’re excited to break ground on the Foss Islands Road project – continuing our work expanding York’s student housing infrastructure.

“It’s a project that aligns perfectly with GMI’s commitment to delivering high-quality projects that benefit local communities. 

“We look forward to bringing this scheme to life and making a positive contribution to the city’s student experience.”

Iain McKillop, investment director at Urbium Capital, added: “We are pleased to see work commence on this exciting project. 

“It exemplifies our dedication to transforming under-utilised brownfield sites to meet contemporary needs. 

“Foss Islands Road is an ideal location for student housing, and we are proud to collaborate with GMI Construction Group, whose expertise and commitment to quality make them an outstanding partner. 

“This development not only addresses the critical demand for student accommodation but underscores the significant role students play in York’s thriving economy.”

The scheme comes amid growing demand for PBSA in York, which was recently named one of the UK’s worst-affected cities for student housing shortages. 

Rising student numbers and increased demand for private rentals have further intensified the need for purpose-built developments.

The Foss Islands Road development also strengthens GMI’s presence in the city, with two other PBSA schemes nearing completion. 

These include a £50 million 275-bed project for Olympian Homes on the former Rialto cinema and bingo hall site and a £22 million 303-bed development for S Harrison Developments on James Street.

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