Telford Living Acquires Stratford Site From Department for Transport and HS1 for 749-Bed PBSA Development

Telford Living, the UK residential development arm of Trammell Crow Company, has exchanged contracts to acquire a site on International Way in Stratford from the Department for Transport and HS1, and has simultaneously submitted a planning application for a purpose-built student accommodation (PBSA)-led mixed-use development of 749 beds across two buildings.

The site sits immediately north of Stratford International Station and opposite Westfield Stratford. It currently accommodates parking and operational railway infrastructure. Subject to planning approval, construction is expected to begin in 2028, with practical completion targeted for 2032.

Scheme Details and Affordable Provision

The planning application proposes 749 student beds split across two buildings, with 50% of the accommodation designated as affordable student housing. Beyond the residential component, the scheme would deliver flexible public space, extensive landscaping and public realm improvements, and enhanced pedestrian connections.

Telford Living said the proposals were shaped through engagement with local stakeholders, residents and students. The company described the site as one of the final development opportunities around Stratford International Station, an area it characterized as one of London's most active regeneration zones.

Alex Taylor, Senior Vice President and Head of Telford Living, said: "The acquisition of this site and submission of our planning application represent two significant milestones for Telford Living and a clear demonstration of our strategy in action. Our move into PBSA reflects the strength of demand in the sector and our commitment to diversifying across all living tenures, supported by our strong balance sheet and track record of unlocking complex sites."

Taylor added: "Stratford is one of London's great regeneration success stories and we believe this scheme will make a positive contribution to the area's next chapter. Our proposal would activate one of the final development opportunities around Stratford International Station, delivering 749 high-quality student homes alongside new public spaces, investment and improvements to the local environment."

Seller Perspective and Rail Proximity

The transaction involves two seller parties: the Department for Transport and HS1. Wendy Spinks, Chief Commercial Officer at London St Pancras Highspeed, said: "We are delighted to work with the team at Telford Living and the Department for Transport on these Stratford developments. The developments are on an important piece of land close to active railways and will bring jobs and economic growth to the region."

The site's adjacency to operational railway infrastructure is a notable execution consideration. Building beside active rail lines typically requires close coordination on construction methodology, safety planning and access logistics, factors that Telford Living acknowledged in framing the project as a complex site requiring specialist capability to unlock.

Strategic Significance for Telford Living

The International Way acquisition is Telford Living's first since the company rebranded and repositioned its strategy. The move into PBSA extends the company's platform beyond its existing build-to-rent and co-living activity, with the firm stating its intention to deploy capital across all living tenures.

The 50% affordable student accommodation component may serve both planning and market positioning purposes. Affordability constraints have weighed on student demand in recent letting cycles, and a meaningful affordable allocation differentiates the scheme from higher-priced premium PBSA products while potentially strengthening the planning case within Stratford's broader regeneration framework.

The scheme's scale — 749 beds across two buildings — suggests a development structured to achieve construction and operating efficiencies. Those efficiencies carry added importance given elevated construction costs, higher financing costs relative to recent years, and the technical demands of building adjacent to live railway infrastructure.

PBSA Market Context

The acquisition comes at a moment of mixed conditions in the UK PBSA sector. The professionally managed UK PBSA market is estimated at £84.8 billion in 2026, with potential to reach £94 billion by 2030 assuming rental growth of approximately 1.5% annually. Prime direct-let PBSA yields in London were reported at approximately 4.50% net initial yield, compared with roughly 5.25% to 5.50% in major regional markets.

At the same time, leasing performance has come under pressure. The 2025–26 letting cycle ended at 86.8% occupancy across the professionally managed sector, down 4.8% year over year, with weaker leasing dynamics, rising incentives and less predictable international-student demand cited as contributing factors. A separate measure of private-sector PBSA occupancy placed the 2025–26 figure at 85.4%, down 5.4% year over year.

Rental growth has remained positive despite the occupancy softness. University-let PBSA rents grew 4.5% between the 2024/25 and 2025/26 academic years, while direct-let PBSA rents grew 1.2% over the same period. Prime yields have nonetheless softened over the preceding nine months because of slower rental growth and occupancy concerns.

Investor demand in 2026 has been concentrated on existing assets and mid-market or lower-entry pricing. The UK has also been described as Europe's most saturated PBSA market, with available supply estimated at approximately one bed for every two students seeking and able to afford purpose-built accommodation. For a Stratford scheme of this scale, the relevant underwriting questions center on the proportion of affordable and mid-market beds, the universities providing the principal demand base, and the scheme's competitive positioning within the local supply pipeline.

Sources

Telford Living — Telford Living Exchanges on Landmark Stratford Site and Submits Planning Application for Student Accommodation Scheme