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0:05 AM, 22nd August 2023, About 9 months ago
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Despite a rise in student numbers heading to university this year, there has been a big 24.5% drop in the number of student homes available to rent, a survey reveals.
The findings from Savills highlight that the number of student homes to rent is lower now than before the pandemic hit, but student numbers have risen by 6.3% in that period.
It says that London has the highest number of purpose-built student accommodation (PBSA) beds in the country.
But there are 3.8 students vying for each bed – that’s higher than the national average of 2.9 students per bed.
Savills’ UK residential research analyst, Toby Parsloe, said: “Many students will face growing challenges in finding a place to live as continued high levels of university applications are putting increased pressure on already competitive rental markets.
“There are 91,000 more students than the year prior, as UCAS applications have remained elevated since the pandemic.
“This situation isn’t likely to ease anytime soon, with the UK’s population bubble set to increase the number of young Britons reaching university age.”
He added that the country’s higher education institutions are continuing to attract students from around the world.
Savills also reveals that London’s private rented sector has not escaped with nearly a third fewer properties available for student letting compared to pre-pandemic levels.
In addition, rent prices in the capital have surged by an alarming 12.8% over the past year.
The student housing challenge extends beyond London with Durham emerging as one of the most critically stock-limited university towns in the UK.
Listings for three-bedroom student homes there have plummeted by 41.8%, while four-bedroom options have fallen by 32.4%.
Mr Parsloe said: “Issues with undersupply in the UK student rental market have been bubbling for many years but are becoming even more prominent with signs of private landlords selling up in response to rises in interest rates, reductions in tax relief, and the fact that many who bought when buy-to-let took off in the early 2000s are now reaching retirement and looking to sell.
“With the university-aged population projected to grow over the next decade, and even as more students opt to study in their home cities, there is a need to deliver more purpose-built student accommodation to tackle the competition for housing that students currently face.”
However, Canterbury has seen the highest annual growth in full-time students at 24.1% between 2020/21 and 2021/22, but there has been a sharp 33.2% drop in student lettings.
Similarly, Bath has seen a 18.7% surge in student numbers since 2020, but a reduction of 35.2% in rental listings.
The survey also highlights that 10 cities with strong competition for a rental property have seen double-digit annual rent price growth.
Glasgow, for instance, has seen the most substantial increase in rents, soaring by 33.5% since the pandemic’s onset.
It is closely followed by Salford (29.3%) and Nottingham (28.9%).
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