Yorkshire-based GMI Construction Group has broken ground on the Foss Islands Road development, a purpose-built student accommodation (PBSA) scheme that will deliver 133 beds by the start of the 2026/27 academic year.
The five-storey scheme is being developed by Urbium Capital and Harrogate-based Gregory Properties, transforming a previously disused brownfield site formerly occupied by Enterprise Rent-A-Car and Just Tyres.
It comes amid rising pressure to increase the supply of PBSA in York, which in 2023 was identified as one of the UK’s most underserved cities for student housing. The problem has been exacerbated by record student numbers, heightened competition for residential rentals, and a rise in private landlords switching to short-term holiday lets.
The Foss Islands Road project will comprise 131 premium studio apartments and two one-bedroom flats, supported by a range of shared amenity areas including co-working study spaces, a fitness centre, social lounges and landscaped courtyards.
Located on the edge of the city centre and equidistant from both the University of York and York St John University, the site is considered ideal for meeting student needs.
Mick Spells, Project Manager at GMI Construction Group, 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 developments that benefit local communities. We look forward to bringing this scheme to life and making a positive contribution to the city’s student experience.”
GMI is already active in York’s student housing market, with two further developments due for completion this spring. The first is a £50 million, 275-bed scheme for Olympian Homes on the site of the former Rialto cinema and bingo hall, and the second is a £22 million, 303-bed development for S Harrison Developments on James Street.
The Foss Islands Road project marks GMI’s third PBSA scheme in York and reinforces the company’s growing reputation as a specialist in the sector.
Iain McKillop, Investment Director at Urbium Capital, said:
“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.”
Designed with sustainability in mind, the scheme is intended to contribute both to the regeneration of Foss Islands Road and the wider goal of meeting York’s long-term accommodation needs.
Planning consent for the scheme was secured in 2023, following growing concern from universities and the private rental sector about the impact of the city’s accommodation imbalance.
Work is now underway on site, with completion targeted for summer 2026.