Warning of a ‘Tsunami of students’ struggling to find accommodation

Warning of a ‘Tsunami of students’ struggling to find accommodation

11:37 AM, 16th August 2022, About 2 months ago 5

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UK rental guarantor service Housing Hand has warned that A level results day is likely to trigger a tsunami of students struggling to find accommodation for their university places.

The warning comes in light of unparalleled demand for university accommodation, with real estate firm Cushman & Wakefield reporting that a record 2.18 million full-time students are currently studying at UK universities.

Their research highlights that 1.63 million of those require beds during their course of study because they are studying away from home.

‘Concern over the lack of available student accommodation’

Housing Hand’s chief operating officer, Graham Hayward, said: “We are working with universities up and down the country and many have expressed concern over the lack of available student accommodation in their local area.

“Some are going so far as to advise students to arrange their accommodation before they take up their place.”

Part of the problem is a lack of supply, according to Cushman & Wakefield, which cites the pandemic, rising construction costs and inflation as combining to put the brakes on the delivery of new student homes.

At the same time, legislative changes are pushing many private landlords to sell up and reducing the supply of homes in the private rented sector.

All while student numbers are climbing – and this is having a major impact on the choices that students can make when it comes to where they will live.

Lots of student applicants but no stock to select from

In East London, for example, Housing Hand is working with several letting agents who have lots of student applicants but no stock to select from.

This is pushing students to locate further afield and commute – something the Housing Hand team has witnessed in multiple areas – and all this is before A level results come out on 18th August.

Mr Hayward said: “We’re anticipating a tsunami of students who will face difficulties finding appropriate accommodation over the next few weeks.

“A growing number of universities are engaging Housing Hand to provide rental guarantor services, to try and make it easier for students to access local accommodation but lack of supply, rising costs and disrupted travel means that it isn’t always easy.”

Utility bills are a concern for students not living in halls

The rising cost of living is also coming into play with utility bill costs being a particular concern for those students not living in halls – but rents are on the rise too.

According to Cushman & Wakefield, the average university price of £6,482.45 is now 68% of the maximum Student Maintenance Loan amount.

The average yearly private sector rent for student accommodation outside of London, meanwhile, stands at £7,055.71.

That equates to 74% of the maximum Student Maintenance Loan.

The firm also pointed out that rental growth of 1.07% during 2021/22 is set to increase to 3.1% in the year ahead.

Housing Hand has also ramped up its onboarding facilities to allow for speedy validation and acceptance in the coming weeks, ready to support students who cannot or prefer not to pay upfront to secure their accommodation.



Comments

Monty Bodkin

11:58 AM, 16th August 2022, About 2 months ago

As predicted;

https://www.property118.com/renters-reform-bill-a-hand-grenade-for-student-let-sector/

"Fixed-term lets have been the norm for university students for decades. They move out at the end of their final year, and a new group moves in.

Yet all that is about to change in the Renters’ Reform Bill, thanks to astonishingly short-sighted government policy that will ban fixed-term lets.

The result, warn housing experts, is that landlords will pull out of student accommodation – creating a severe shortage.

They say the ending of fixed-term tenancies and the abolition of Section 21 evictions will make it impossible for property owners to be sure flats are empty for the following year’s cohort of students."

NewYorkie View Profile

13:24 PM, 16th August 2022, About 2 months ago

I have a house within 5 minutes walk from York St John's University where, last year, new students were forced to live in Hull and travel to York every day... up to 40 miles plus distance to and from the station/bus...! I could provide 3 rooms to students, but have decided to offer rooms to touring artists from York Theatre Royal. Same income, zero hassle, clean, uncomplaining, they aren't 'home' all afternoon and evening, and tax-free.

Consequences of knee-jerk government policy dictated by the likes of Shelter!

Peter G View Profile

14:29 PM, 16th August 2022, About 2 months ago

Reply to the comment left by Monty Bodkin at 16/08/2022 - 11:58If the Renters Reform Bill is not thoroughly reformed (ironically) to remove the madcap ideas proposed then the tsunami will be Landlords heading for the Exit - and nowhere for Students to rent.
However, this may be exactly what politicians want as it drives students to the property developers who have "built to rent" expensive student accommodation (no doubt raising rents too) - and probably supporting the Conservative Party.

Richard D.

17:21 PM, 16th August 2022, About 2 months ago

There is a major shortage coming anyway, OFS are aware of this because UCAS have told them- it would appear Government haven't been informed otherwise they surely wouldn't get rid of periodic tenancies in the RRB...
"UCAS projects that the 2025 cycle will have almost one million applicants – around 25% more
than in 2021".
https://www.ucas.com/file/558616/download?token=Rkgw9sMH

Michael Holmes

21:04 PM, 16th August 2022, About 2 months ago

Nobody seems to have grasped what a revolution this ‘Reform’ Act will be. The removal of AST security will. Inevitably drive thousands of Landlords out off the PRS. Maggie’s great reform of it in the 70s brought huge benefits to both tenants and Landlords. It is being dismantled by know nothing idealogues and will cause nothing but chaos.

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