Soaring Tuition Fees Could Make Students Stay at Home

Student landlords are stepping back from investment because of uncertainty in the market over rising tuition fees. Fees are set to rise from £6,000 to a maximum £9,000 at many English universities from the start of the next academic year in September – and many are warning the extra cost could stop some students from taking up courses. One property investment expert, Jo Winchester of international consultants CB Richard Ellis (CBRE), claims many university cities in the northwest at saturation point for large student housing developments. While insurance firm LV= has released a report claiming soaring fees could force many to study locally and stay with parents rather than leave home. Overall, the two reports paint a bleak picture for several university cities in the north. CBRE looks at Cumbria, Lancaster, Preston, Manchester, and Liverpool. Ms Winchester disclosed 10 banking teams wanted to invest in student developments in the region, but could not find suitable projects. Manchester, said CBRE, was the only place in the northwest with student letting ‘opportunities’. The LV= report suggests the number of students living at home will double to 47% over the next decade and to more than 50% by 2030. Booming student cities could see student numbers dwindle by up to 52% in Newcastle, 43% in Lincoln, 42% in Sheffield and 41% in Swansea and Portsmouth, with worst-hit universities mainly in the north, the report warned. John O'Roarke, managing director of LV= home insurance, said: "The LV student towns report shows how student life is set to be transformed over the next decade, as the impact of rising tuition fees forces university students to reassess their finances and living arrangements." Paul Morris, director of facilities management at the University of Central Lancashire, Preston, said increasing the tuition fee to £9,000 was a gamble for many institutions because places could be filled next year. Morris said the picture around student numbers would be clearer in 12 months.

Landlord blog

Jennifer Leonard

Further reading

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