A higher proportion of students appear to be living in community
establishments says one rent guarantee firm after the latest Census
data was revealed.
Housing Hand says student numbers have risen over the past 10 years, from
2.5 million students in 2011 to 2.752 million students in 2021 which is a
9.9% rise in numbers.
But the Census data reveals that 16.7% of 16- to 24-year-olds are living in
a communal establishment over the same period which, Housing Hand says,
reflects a higher proportion of students sharing.
Graham Hayward, the firm’s chief operating officer, said: “The new Census
figures reflect students’ increasing preference for communal
establishments.
“We have seen demand grow over the past decade, particularly for
purpose-built student accommodation that offers student renters a more
lifestyle-focused approach to their accommodation.”
Want to live in purpose-built student accommodation
Mr Hayward also highlights that there growing demand over the short-term
from overseas applicants for UK university places and a large proportion of
these want to live in purpose-built student accommodation (PBSA) or halls
for their housing needs.
He explains: “Following a couple of years during which universities courted
UK-based students more strenuously, due to international travel disruption,
the accommodation sector is left racing to catch up with this renewed
attention from overseas applicants.
“It makes sense from a funding perspective, as international students pay
higher fees, but there is still also potential for disruption.
“Let’s not forget that China, which is beaten only by India in terms of the
number of students being sent to the UK, is still facing significant Covid
challenges.”
Student landlords with houses in multiple occupation
Mr Hayward also highlights that student landlords with houses in multiple
occupation (HMOs) are leaving the sector because of legislation changes
which are also affecting the supply of quality student homes.
In addition, the cost-of-living crisis is also affecting growing numbers of
young people who are wondering whether the cost of obtaining a degree is
worth it.
Now, greater numbers of them are looking at the potential of
apprenticeships without building up a huge debt.
Creating pressure on student landlords
Housing Hand says that all these issues are creating pressure on student
landlords, accommodation providers and universities as well as students and
their families.
However, the firm also highlights that landlords and HMOs in the private
rented sector will still play a key role in delivering student housing.
Simon Thompson, the managing director of Accommodation for Students, said:
“There’s no doubt that there will still be a role for student landlords to
play in the accommodation sector, but it is interesting that a higher
proportion of students are living in a shared establishment.
“Student landlords with quality accommodation will be popular and it’s
obvious that demand for student tenants is growing and in some student
cities there is a growing shortfall of student accommodation for students.”
Government unveils students cost of living boost
The government has unveiled a
financial package to help students
in the cost-of-living crisis and is offering a further freeze on tuition
fees. The multimillion-pound package will help students with learning and
other costs, and the tuition fees are frozen for the next two years – the
government says this measure will help reduce debt levels. The fund is
worth £15 million and is in addition to the £261 million that’s already
been provided for the 2022/23 academic year by the Office for Students
(OfS).
Student accommodation offers great prospects
There’s an interesting analysis on the Pinsent Masons blog about why real
estate investors should take a closer look at
student accommodation
. The writer highlights that prolonged economic uncertainty is threatening
the yield returns that investors can expect from commercial real estate
markets. Instead, the student accommodation sector has seen a surge in
demand and the number of young adults studying at university looks set to
grow until 2030. In addition, there’s also increasing demand from
international students from China, but there are strong numbers coming from
India and Nigeria.
Student landlords get free security hardware
Student landlords in Nottingham are being offered free security equipment
to help make their tenants safer. One landlord with four
>
student properties
received CCTV, video Ring doorbells, window restrictors and motion sensor
lighting. His homes are among 400 student properties that are benefiting
from ‘target hardening’ with the equipment being handed out for free in a
bid to reduce burglary hotspots. The £432,000 of funding is coming from the
Home Office’s Safer Stree
