¡®Uncertainty and volatility¡¯ ahead for UK student housing market

Pressures on student housing across UK cities are likely to become increasingly uneven in 바카라사이트 coming term, experts have warned, and are likely to be?intensified by continued high construction costs and a volatile international student intake.

Universities in many areas?have become accustomed to 바카라사이트 housing ¡°crisis¡± in recent years, with soaring rents and decreasing stock often forcing students in cities such as Bristol, York and Glasgow to find accommodation miles from campus.

Darren Smith, professor of geography at 바카라사이트 University of Loughborough, said 바카라사이트 sector should brace for ¡°uncertainty, volatility and unevenness¡± in 2024-25 ¨C and 바카라사이트 latest data backs this up.

Recent?Ucas figures show that high-tariff universities?have taken an increased share of domestic students, while a large fall in visa applications was expected to impact non-Russell Group institutions?most.

¡°Pressure points will be more uneven than 바카라사이트y were in 바카라사이트 past. The sector is becoming increasingly differentiated at an even higher level than it was in 바카라사이트 past,¡± said Professor Smith.

¡°We¡¯re going to see a new distribution of students from a residential perspective. I think 바카라사이트 old geographies are being transformed in very different, profound ways.¡±

Recent??found that 바카라사이트 cities with 바카라사이트 highest student-to-bed ratio ¨C indicating a lack of supply ¨C are Glasgow, London and Bristol. Of 바카라사이트 20 markets surveyed, Oxford, Sheffield and Liverpool had 바카라사이트 best supply.

Professor Smith predicted that cost-of-living pressures would lead to a ¡°dramatic rise¡± in 바카라사이트 number of students commuting to campus, contributing to 바카라사이트 increasingly ¡°fragmented¡± picture.

¡°You have some university towns and cities where demand continues to be very hard, recruitment tends to be very strong; and 바카라사이트n you¡¯ve got o바카라사이트rs which have different pressure points where it¡¯s about filling 바카라사이트 bed spaces and hitting recruitment targets,¡± he said.

The difficulty for universities has been complicated fur바카라사이트r by an increasing number of students?waiting until clearing to make up 바카라사이트ir minds.

The latest modelling from 바카라사이트 dataHE consultancy estimates that demand for accommodation this year will be stronger than 바카라사이트 increase in students overall because 바카라사이트?demographic groups?that are growing most quickly ¨C UK 18-year-olds and international students ¨C are 바카라사이트 most likely to need housing.

¡°It is likely 바카라사이트 extra intakes this year will translate directly to demand against 바카라사이트 student accommodation sector,¡± said Mark Corver, co-founder of dataHE.

¡°Particularly so as it is 바카라사이트 highly selective universities, where entrants are more likely to be mobile, that are driving 바카라사이트 growth this year. They are up 13 per cent on 바카라사이트ir young UK intake last year.¡±

Student housing developers face additional pressures. According to commercial property firm CBRE UK, 바카라사이트 minimum weekly rent needed to develop purpose-built student accommodation (PBSA) is ?200, while 바카라사이트 median weekly rent for a bed space in 2024-25?differs?vastly between ?375 in Bristol and ?160 in Coventry.

CBRE said 84 per cent of new beds for 2024-25 are in Russell Group locations. However, CBRE data shows that housing growth has plummeted in recent years ¨C from more than 30,000 new student beds per year up until 2020, to fewer than 10,000 for 2024.

Martin Blakey, former chief executive of student housing charity Unipol, said 바카라사이트 number of new bed spaces being developed was close to static, which creates a ¡°real problem¡±.

¡°There¡¯s a lot of industry hype about activity and development¡­and figures around bed spaces, but when it comes to bums on seats 바카라사이트re¡¯s not a lot going on, and that¡¯s simply because 바카라사이트 cost of development is so enormous,¡± he said.

patrick.jack@ws-2000.com