The 2023 Student Accommodation Cost Survey
In a recent event in central London, Nick Hillman, the Director of the Higher Education Policy Institute (HEPI), unveiled crucial insights from the interim Student Accommodation Costs survey.
Hillman commenced his presentation by acknowledging the invaluable contributions of Martin Blakey, Chief Executive of Unipol, to the discourse on student accommodation.
The event shed light on the challenges students face in terms of accommodation costs, maintenance support, and the urgent need for policy changes. Here, we summarize some of the key points raised by Nick Hillman in his presentation.
Maintenance and Rent in the UK
The survey covered a two-year period from 2021 to 2023, indicating a 5% increase in maintenance support and a 15% increase in rent. However, both figures fall short of the 23% increase in the Retail Price Index (RPI), highlighting the discrepancy between rising accommodation costs and available support.
Maintenance Support Absorbed by Rent
The report revealed a disturbing trend in England, where rent absorbs a significant portion of maintenance support. On average, rent now consumes 76% of the maximum maintenance loan for students from the poorest households, 100% of the average maintenance loan, and a staggering 163% of the minimum maintenance loan for students from better-off families.
Regional Disparities
Hillman urged policymakers to consider regional disparities in rent and maintenance support. He cited examples from Wales and Scotland, where the average rent in Cardiff is only 57% of the expected support, and in Glasgow, it varies significantly based on grant and loan support.
Maintenance Support Levels
Hillman emphasized that maintenance support levels are dire, suggesting a need to uprate support packages to match inflation and consider rebasing them using more robust data sources.
Reintroducing Maintenance Grants
Hillman expressed his desire to reintroduce maintenance grants in England to reduce the financial burden on the poorest students.
Learning from Other Nations
He encouraged a dialogue on adopting systems like the one in Wales but pointed out the need to consider financial implications, such as Barnett consequentials, which allocate more spending per head in Wales compared to England.
Rent Affordability
Hillman questioned the affordability of student rent, referring to the commonly accepted "30% rule" for rental costs. He argued that students might reasonably spend more on rent but highlighted that current figures are still inexcusable.
Innovations in Affordability
The report indicated that only a quarter of private providers and less than half of universities are innovating in affordability. Hillman expressed his disagreement with the idea of doubling up students in one room and called for more substantive discussions on accommodation solutions.
Lessons from History
Hillman pointed out that the student accommodation landscape has not changed significantly since the 1963 Robbins Report, which advocated for students living away from home. He emphasized the need to adapt to the changing times.
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