Student housing crisis looms as demand outstrips supply

The student housing market is facing a severe shortage of accommodation that could last for two years as more students opt for private rentals, a leading rent guarantor service warns. 

Housing Hand, which provides rental guarantees for students and young professionals, says it has seen a 50% increase in guarantor applications in the last six months, indicating a high level of competition for student properties. 

The situation is especially acute in popular university cities such as Glasgow, Bristol, Durham and Manchester, where the supply of student accommodation is already 'challenging'. 

The firm says that the student housing crisis is likely to persist for the next two years, as the demand for private rentals continues to grow and the supply of student accommodation fails to keep up. 

'Influx of students into the private rented sector' 

James Maguire, the head of sales and business development at Housing Hand, said: "The influx of students into the private rented sector is always a challenge in terms of meeting demand and this year will be even more so, given the lower number of landlords in the market. 

"That's why students will need to be flexible in terms of their expectations." 

He added: "Purpose-built student accommodation still proves good value in the current cost-of-living climate, as all bills are included, as well as other add-ons such as fitness centres, secure bicycle storage and so on." 

Warning students to be realistic about their housing expectations 

Housing Hand is warning students to be realistic about their housing expectations, as they may have to compromise on some aspects of their living arrangements. 

For example, some students may have to settle for smaller rooms or flats than they would like, while others may have to rent larger properties than they need due to the lack of availability. Some students may also have to face longer commutes to their campuses or lecture venues, depending on where they find suitable accommodation. 

That's because a growing number of universities are offering student accommodation in towns and cities that are miles away from their campus. 

'The supply challenge will be even more acute' 

Mr Maguire said: "With rent reforms now not due until after this current period of student admissions is complete, the impact will be felt in full next year, when the supply challenge will be even more acute. 

"Students facing two years of difficulty finding their accommodation may find early renewal essential." 

He added: "It's also important not to rely on cancellations to get a property." 

Students should still prioritise their social and academic wellbeing  

However, Housing Hand stresses that students should still prioritise their social and academic well-being when choosing where to live and look for areas that offer a good balance of convenience, affordability and community. 

The firm says that students will need to act quickly and secure their accommodation as soon as possible, or risk missing out on their preferred choice of location, size and quality. 

According to a recent survey, 46% of students plan to live in private accommodation in the next academic year, up from 40% last year. 

This strong demand, coupled with the impact of the Covid-19 pandemic on the rental market, will make it harder for many students to find a suitable home for their studies. 

'Student accommodation supply is tight' 

The managing director of Accommodation for Students, Simon Thompson, said: "News that student accommodation supply is tight should not come as a surprise - though many student landlords will be concerned that the situation could last for two years. 

"The situation is already bad in many university cities and students need to be prepared - they will need to organise themselves to find somewhere to live for their studies.  

"And that search appears to be starting earlier every academic year." 

He added: "It's also worth noting that growing numbers of landlords are using a rent guarantor service, probably to safeguard their income as rents rise and some students may struggle financially to pay their rent. 

"The student accommodation sector is in need of government help to encourage investment - and keep student landlords in the segment."