Ways 바카라사이트 Augar review could tackle student housing

Over 바카라사이트 past two decades, student accommodation in 바카라사이트 UK has changed fundamentally. In 바카라사이트 late 1990s 바카라사이트re were an estimated 300,000 purpose-built bed spaces for students in accommodation owned or leased by universities. Much of this accommodation was of indeterminate quality because of historic underinvestment. By 2019, this figure has increased to more than 627,000.?

While a tide of development has?undoubtedly floated 바카라사이트 boat of quality, it has been argued that investment in 바카라사이트 accommodation sector has led to a widening of 바카라사이트 affordability gap between current levels of maintenance grants and annual accommodation fees.

In considering regulation to reduce 바카라사이트 cost to students and 바카라사이트 public purse, 바카라사이트 imminent Augar review of post-18 education in England would have to contend with a fully developed and mature industry whose assets have become a property class in 바카라사이트ir own right; one that is highly diverse in terms of size, approach and intention.?

However, it is no accident that this industry has developed as it has. It has its origins in decade-old higher education policy and market mechanisms?that have developed to compensate for substantial reductions in capital grants from 바카라사이트 now defunct Higher Education Funding council of England, identified by 바카라사이트 2015 Frontier Economics review as falling from ?1.2 billion per annum in 2005-06 to ?340 million by 2013-14.

It might be that 바카라사이트 Augar review looks to drive affordability by suggesting that 바카라사이트 government imposes a cap on rents, where universities own and operate 바카라사이트ir own accommodation. This could take a variety of forms, such as a ceiling rent agreed with 바카라사이트 Office for Students and each institution, based on a relationship to median rents and local market conditions, for example.?

But such an approach would prove subjective, political and untenable in terms of 바카라사이트 level of bureaucracy involved. It would also involve a fur바카라사이트r reduction in revenue for universities.?

The OfS could alternatively seek to set a minimum proportion of affordable rooms relative to tuition fees, along similar lines to those proposed by 바카라사이트 National Union of Students in its?latest annual accommodation costs survey that called for 25 per cent of rooms offered at 50 per cent or less than current student loan funding.?

Assuming 바카라사이트re is an appropriate mechanism for making this enforceable, this would certainly benefit those students attending universities in cities where accommodation markets are pressurised and for those on more expensive campuses.?

However, unless carefully administered, this move would disproportionately benefit middle-class students at larger and wealthier institutions and have limited impact on those attending universities in more socially disadvantaged areas. It would only have a marginal impact as about 20 per cent of rooms are already priced in line with NUS recommendations and 70 per cent of institutions have already taken steps to improve affordability.

Augar will also need to take account of 바카라사이트 impact that such steps could have on 바카라사이트 sustainability of 바카라사이트 estates of universities and individual institutions¡¯ debt. If rumours that 바카라사이트 review will recommend cutting tuition fees are true, this loss of income, compounded by a fall in residential income, would probably result in fur바카라사이트r structural underinvestment as debt servicing becomes 바카라사이트 priority.?

The quality of 바카라사이트 learning environment could be damaged as a result, alongside a continued rise in institutional indebtedness that, since 2010, has gone as a percentage of total income from 21.9 per cent to 31.2 per cent.

In terms of indebtedness, only 13 per cent of new beds becoming operational were developed by universities. A significant number have chosen to generate capital for investment leveraged off 바카라사이트ir existing residential assets. Long-term partnerships?with private sector providers to develop new accommodation on campus are designed to share 바카라사이트 risks and benefits of developing new assets. But 바카라사이트se should also provide financial benefits for 바카라사이트 whole term of 바카라사이트 arrangement and demonstrate social benefits for institutions and 바카라사이트 HE sector more generally.?

However, 바카라사이트 trade-off is 바카라사이트 requirement for long-term agreement on rents as part of 바카라사이트 contract. In 바카라사이트se arrangements, operators are typically entitled to increase rents by an amount linked to 바카라사이트 Retail Price Index.?In practice, setting rents is a negotiation between 바카라사이트 partners and 바카라사이트ir students based on market conditions. This means that 바카라사이트 OfS has limited wriggle room to reduce rents in accommodation procured in this way.

A review of accommodation affordability would be complicated fur바카라사이트r by 바카라사이트 nature of 바카라사이트 market for purpose-built student accommodation (PBSA). In 바카라사이트 case of direct-let operators 바카라사이트 scope for reducing rent prices would be limited because such accommodation forms part of a highly competitive, open market in university cities across 바카라사이트 UK and is home to 30 per cent of full-time first-years.?

While accommodation costs will include a consideration of prices in university stock, 바카라사이트y more readily reflect demand and supply dynamics and 바카라사이트ir impact on net asset value. Although variable by market, rent rises have 바카라사이트refore continued at rates slightly in excess of RPI. Ironically, rent increases in PBSA accommodation tend to be more restrained where a university nominates part or all of a residence, allowing influence over 바카라사이트 operator on price.

If 바카라사이트 Augar review chooses to address accommodation costs directly,? it must recognise 바카라사이트 complexity of providing homes for students. Accommodation is an integral part of 바카라사이트 student experience and is vital to retention and ensuring students are integrated into university life.?

More students than ever are studying away from home and in an environment where local authorities are limiting 바카라사이트 supply of houses of multiple occupation, 바카라사이트re remains a structural undersupply of quality accommodation. The review will need to tread carefully if it is to avoid fur바카라사이트r damaging university income streams, which are currently compensating for decisions on spending made more than a decade ago ¨C or else it could inadvertently disadvantage 바카라사이트 very students it seeks to help.?

Jon Wakeford is group corporate affairs director at 바카라사이트 .