Landlords can still pick and choose their tenants.

Social housing projects even have minimums and maximums for your earnings brackets. Other buildings have age restrictions. Others still are for women-only, or women and children, or people or a certain ethnic background. Would that not apply to this scenario, a pre determined qualifier for suitability?

landlords can still choose their tenants yes.

but no those other qualifiers would be contrary to the human rights laws in this case. government-subsidy programs might be different.

for example you could say you only wanted students. but if someone moved in and failed to remain a student you'd have no grounds for them to leave.

I wonder if they'll seek an agreement with the University to be an 'official' housing provider?

Or perhaps they just think the design and marketing will attract enough applications from students. Having 3 room-mates you don't know and a twin bed would be a deterrant for a lot of non-students.