GMI Construction Group has broken ground on a new £17 million purpose-built student accommodation (PBSA) development on Foss Islands Road, marking its third major student housing project in York.

The five-storey scheme, developed in partnership by Urbium Capital and Harrogate-based Gregory Properties, will transform a brownfield site formerly home to Enterprise Rent-A-Car and Just Tyres. Once complete, the building will offer 131 premium studios and two one-bedroom apartments, alongside a range of high-quality amenities designed to enhance student living.

"We're excited to break ground on the Foss Islands Road project – continuing our work expanding York's student housing infrastructure," said Mick Spells, GMI's Project Manager. "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."

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The development, which targets completion in time for the 2026/27 academic year, will feature co-working study areas, a fitness centre, social spaces, and landscaped courtyards. Strategically located between the University of York and York St John University, and close to the city centre, the site offers students both convenience and accessibility.

Designed with sustainability at its core, the project is also a direct response to York’s critical shortage of student housing. In 2023, the city was identified as having one of the most severe PBSA shortfalls in the UK—a challenge worsened by rising student numbers and a shift by private landlords toward short-term holiday lets.

GMI Construction Group has built a strong presence in York's student accommodation sector. In addition to the Foss Islands scheme, the firm is nearing completion on two other PBSA projects: a £50 million, 275-bed development for Olympian Homes on the former Rialto cinema site, and a £22 million, 303-bed project for S Harrison Developments on James Street.