CMA steps in over student accommodation merger to protect student tenants

The Competition and Markets Authority (CMA) has stepped in to look at the purchase of student accommodation provider Student Roost by GIC and Greystar.

The CMA fears that the move could lead to higher rent and lower quality housing for students in Birmingham.

In their initial assessment, the CMA looked at how the proposed deal would impact students and universities across the UK, focusing on cities where GIC, Greystar and Student Roost have a significant combined presence.

It found the acquisition would not lead to competition concerns in most cities because the combined businesses would continue to face sufficient competition from other accommodation providers.

Higher prices and lower quality services for students

But in Birmingham, the CMA found that the combined businesses would not face enough competition across the city’s university campuses, potentially resulting in higher prices and lower quality services for students.

The CMA says that GIC, Greystar and Student Roost have accepted that the acquisition could raise competition concerns in Birmingham and will offer remedies to address them.

The CMA points out that if the proposed remedy addresses its concerns, the merger will be cleared without the need for an in-depth phase 2 investigation.

‘Cost of living is putting even more pressure on student budgets’

Colin Raftery, the senior mergers director at the CMA, said: “Aside from fees, rent is the biggest expense students face, and the rising cost of living is putting even more pressure on student budgets.

“Many university towns and cities are already dealing with a student accommodation shortage, which is why it’s crucial that private providers like those involved in this deal are competing effectively.”

He added: “We’re concerned this deal could result in students in Birmingham seeing higher prices or lower quality services.

“GIC, Greystar, and Student Roost have accepted our concerns and have told us that they plan to address them.

“A solution that fully resolves our concerns will avoid the need for a more in-depth investigation.”

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