GMI Construction Group has started work on a major purpose-built student accommodation (PBSA) scheme at Foss Islands Road in York.
The £17m contract is the Yorkshire firm’s third PBSA project in the city, cementing its reputation as a leader in delivering high-quality student homes – with completion date targeted for the start of the 2026/27 academic year.
Developed in partnership by Urbium Capital and Harrogate-based developer Gregory Properties, the brownfield site – previously occupied by Enterprise Rent-A-Car and Just Tyres – was acquired early last year.
The five-storey building will feature 131 premium studios and two one-bedroom apartments, paired with an array of amenity areas, including co-working study spaces, fitness centre, multi-functional social areas, and landscaped courtyards that aim to enhance the student living experience.
Equidistant from the University of York and York St John University and conveniently positioned on the edge of the city centre, it offers a perfect location for students.
Designed with sustainability in mind, it aims to address York’s well-documented PBSA shortage while contributing to the area’s regeneration.
In 2023 York was named as suffering one of the worst shortages of PBSA in the country, exacerbated by rising student numbers, increased demand for residential rentals, and a growing trend among landlords to target short-term holiday lets.
GMI Construction Group has established a strong presence in York’s student accommodation market, with two other PBSA projects underway and due to complete later this Spring. These include a £50m 275-bed development for Olympian Homes on the former Rialto cinema and bingo hall site and a £22m project for S Harrison Developments on James Street, which will deliver 303 beds.
Mick Spells, GMI’s Project Manager, 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.”
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