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8:03 AM, 9th November 2022, About A year ago 8
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Students heading or returning to university are fighting it out for limited accommodation with research showing that 3.1 students are chasing EVERY bed.
The findings from Stripe Property Group highlight that the private student rental sector is ‘overwhelmed’ and ‘under-stocked’, and there’s a lack of purpose-built student accommodation (PBSA).
Stripe estimates there are now 2,180,419 full-time university students across the UK – that’s 8% more than there were before the pandemic.
At the same time, there are just 697,734 student beds available to them and while this has been steadily increasing, this number has grown by just 6% when compared to pre-pandemic levels.
As a result, there are now 3.1 students for every one bed available to them, up from 3 students for every bed in 2019/20.
That means that the student accommodation sector has a current shortfall of almost 1.5m student beds to meet the demand required across the PBSA.
When analysing the demand for student rental properties, the problem facing many university students is clear and despite the new academic year having only recently started, there’s already high demand for student rentals from those looking in advance of next year.
The research shows that across 15 of the UK’s major university towns, almost a fifth of student-specific rental properties available to rent in the current market have already been snapped up.
This demand is at its highest in Brighton, where almost half (48%) of all student rentals available have already been taken.
In London, 40% of student properties are already let, while in Glasgow (32%), Bristol (29%) and Edinburgh (28%) it’s around a third.
James Forrester, the managing director of Stripe Property Group, said: “Purpose-built student accommodation plays a vital role in the lives of many young tenants, and, for the majority, it will be their first experience of living away from home.
“Those lucky enough to secure a bed will find that there are some outstanding developments available to them, designed specifically to help maximise both their academic and social life while at university.”
He added: “Unfortunately, for every one student that does find a place to live, there are now more than two who won’t, and this lack of affordable, purpose-built living can cause an immense amount of stress and anxiety at a time when they should be focussing solely on their studies.
“As it stands, the private rental sector is left to pick up the slack, but this often means paying way above the odds to rent a home that is quite often not fit for purpose.”
Mr Forrester continued: “It’s easy to see why the nation’s students feel their voice isn’t being heard on this issue as there is a real lack of initiative from the government to cultivate a thriving PBSA sector.
“Although why would they when they’ll happily sit back and collect the interest charged on student loans for the next thirty-odd years after many students have had to spend almost the entirety of their loan simply to put a roof over their heads?”
Mark C
11:16 AM, 9th November 2022, About A year ago
And so it begins...
I wonder how long it will be before the government realises that their LL bashing has caused a big hole in the available property to rent...
What are this forums thoughts on a government U turn to encourage more LL's? And if you think this will happen, when will it be?
Jonathan
12:07 PM, 9th November 2022, About A year ago
The problem isn’t so much central government but local authorities and their wretched Article 4 Declarations.
Rents in East London/NE Essex are prohibitively high for students unless they can share. We have many landlords with properties that would be ideal for 3 or more student sharers but the councils have designated 3 occupants from 2 or more households (i.e. typical 3 sharers) as small HMOs, and they require planning permission for Class 4 use. Landlords applying for permission are guaranteed to be refused unless they can prove 10+ years of continuous HMO usage or HMO usage before the Article 4 Declaration came into force which almost none of them can. And two student sharers simply can’t afford the rents without that 3rd or 4th person.
This is the real reason why there is such a scramble for student accommodation and with no signs that Article 4 Declarations can be successfully challenged or withdrawn, the student problem can only get worse
Barbaracus
14:59 PM, 9th November 2022, About A year ago
“As it stands, the private rental sector is left to pick up the slack, but this often means paying way above the odds to rent a home that is quite often not fit for purpose.”
PBSA is more expensive than PRS student rental properties.
Student HMO's are (depending on the area) subject to HMO licensing conditions, selective licensing and additional licensing which make them 'fit for purpose'.
If some properties are not 'fit for purpose' then the LL should be fined and made to bring them up to standard.
People like this who don't understand the market shouldn't be commenting.
LordOf TheManor
15:03 PM, 9th November 2022, About A year ago
The major reason for the accommodation shortage is created by the universities themselves. They market themselves to the governments and the wealthy families of the Middle and Far East - selling the UK's education for all its worth to an impressionable, selective audience.
The WIFT factor (as in Whats Init For Them)??
1: Foreign students have to pay all their tuition fees up-front. Not just for the year, but for every year of their course. Not, of course, at the same cost as a UK student - much, much more than £9250.00 per year. Last foreign student I spoke to said her course cost £15k per year.
2: Foreign students are provided with guaranteed accommodation for the duration of their course on campus - of course!! Easy to guess why. All has to be paid up front for the duration of the study - i.e. 3 or 4 years if Masters degree is done following BA/BsC.
This pre-allocation in favour of the foreign students is the reason why there is little or no accommodation left by the time the British students take up their places of choice or apply via clearing.
What a wonderful magic money tree for Universities! There's no reason not to keep chasing ever more cash-cows aka foreign students.
Do you think the UK universities are concerned about the UK students who can't find accommodation?
Their methodology appears to be one of blocking any developmental solution addressable by the PRS which is equally blocked by local government - hence all the regulatory hoops and fences encountered by private landlords.
The cash-cow money looks like it is being spent on the building/acquisition of more University-controlled/controllable accommodation/pods.
Just don't kid yourself that any of this is destined for use by the UK student market! It is deliberately designed and priced for the foreign big-buck market anyway.
In a few years time, the government will be trying to understand why the UK student population has dropped off a cliff.
Will any of us current landlords of student-shared houses be surprised??
Mr.A
16:05 PM, 9th November 2022, About A year ago
“As it stands, the private rental sector is left to pick up the slack, but this often means paying way above the odds to rent a home that is quite often not fit for purpose.
This above was written by 118 team ? Obviously they don't have a Clue about PRS Student accommodation
Student HMO in the PRS are much better value than the small cramped, miles away from university, over expensive offerings from the pbsa.
If they are not up to standard, Dont give them the hmo licence, easy ...
Mine are all away within a week of advertising every week on the first group veiwings....
LaLo
16:43 PM, 9th November 2022, About A year ago
I have read somewhere that when taking in someone from abroad ‘all’ their papers have to be checked thoroughly. If the authorities find they’re here illegally and they suspect the LL knew - which is hard to disprove - then the LL could be sent to prison for 6 months!!
Grumpy Doug
17:48 PM, 9th November 2022, About A year ago
Reply to the comment left by Mr.A at 09/11/2022 - 16:05
Couldn't agree more. Just had a really busy 3 days helping out my agents with viewings. Out of 6, 3 already reserved and the other 3 should be done by early next week. Not normally this quick but I definitely think there's more chasing a smaller supply at the moment. All of mine are a max. 15 minute walk to the main campus. Common comment from the current year 1's - "it's so cheap!". I know that the cheapest and grottiest single rooms in halls of residence are about £650 per month, rising very quickly to £800+. Mine are £450 plus bills on average and my houses are really nice, I've invested heavily over the last few years
Old Mrs Landlord
17:59 PM, 10th November 2022, About A year ago
Reply to the comment left by Mr.A at 09/11/2022 - 16:05
May I suggest you read this article again. The extract you have quoted is part of remarks by James Forrester, a provider of purpose-built student accommodation. You have mistakenly attributed it to the 118 team when in fact it comes from a competitor of PRS student landlords who obviously has an axe to grind.