Nearly 70 students in Dundee have been left in a sudden housing crisis as the academic year begins, following the collapse of the company managing Marketgait Apartments. The 116-room facility, located within a 10-minute walk of Abertay and Dundee universities, entered administration in mid-July after its owners failed to settle a £5.7 million loan.
The insolvency left dozens of residents scrambling to find alternative arrangements just as they prepared to start their studies. The property, which featured amenities like a concierge and a pool table, had been charging students £199 weekly for studios and £165 for en suite rooms. Ironically, just weeks prior to the firm’s collapse, operator Prestige Student Living was actively promoting the units on social media, urging students to secure their “perfect homes” to avoid missing out on the prime location.
The financial failure of the block was linked to declining student occupancy, which left the ownership—a special purpose vehicle backed by the real estate manager 90 North and Kuwaiti firm Rasameel—unable to finance necessary fire safety upgrades. The building is currently closed while a new owner, ATK Property, conducts the required remedial work.
James Elliot, a recent graduate and activist with the tenants’ union Living Rent, reported that many students were left in a state of shock, forced to move their belongings on short notice. He noted that international students, who were away for the summer, faced particular hardship, having to pay third parties to store their possessions while they desperately searched for new accommodation.
Prestige Student Living maintained that the closure was outside their control, noting that 27 students had active contracts for the 2026-27 year when the site entered administration. A company spokesperson said they provided as much support as possible, including helping students locate alternative housing and returning all previously paid funds.
This incident is part of a broader, deepening crisis within the UK’s student housing sector. Providers are currently squeezed by a three-year decline in international student numbers, a persistent cost-of-living crisis, and surging borrowing and construction costs. Furthermore, many domestic students are increasingly opting to live at home to save money, a trend often described as “the rise of the commuter student.”
Market failures have become increasingly common across the country. In January, Birmingham-based Amare Students entered administration, and Belfast’s 393-room Alma Place was sold to investors shortly after falling into receivership. In Coventry, receivers are even seeking permission to pivot a struggling 91-room student block toward city workers to maintain viability.
Even industry giants are feeling the pressure. Unite Group, the UK’s largest student accommodation manager, recently reported a £418 million loss for the first half of the year. In response, the firm is aggressively offloading between 15,000 and 20,000 beds. Their strategy is to consolidate their portfolio toward the nation’s most robust universities, aiming to reduce their holdings to roughly 55,000 to 60,000 beds across 20 cities, down from their current presence in 29 locations. The report also notes that nearly 70 students in Dundee have been left scrambling to find accommodation for this academic year after the latest in a string of university housing schemes went bust amid severe financial strain on the sector. The report also notes that the company filed for administration in mid-July with 68 rooms let. The report also notes that with companies going bust or disposing of properties owing to to a combination of poor demand or oversupply in different regions, it is further evidence of a crisis in the UK student housing sector. The report also notes that a boom in new-build student housing in recent years led to too many tower blocks in places such as Coventry, Leeds and Nottingham. The report also notes that glasgow, Bristol and London still face shortages, with a general lack of affordable rooms. The report also notes that modern, purpose-built housing tends to command higher rents than student halls on campus or private rooms, and is out of reach for many domestic students, with wealthier overseas students the main occupants. The report also notes that “Looking for your perfect student home in Dundee?” the operator, Prestige Student Living, wrote on Facebook on 23 June. “Marketgait Apartments still have rooms available – but not for long.
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