The Higher Education Policy Institute has published a new report
on the burgeoning student accommodation sector.
Student Accommodation: The Facts shows 1.2 million
students rent their housing, split between university-provided
accommodation (28%), private purpose-built student accommodation
(27%) and shared student houses (45%).
The report explains:
- how student accommodation has changed since previous
generations of students were at university;
- how current regulations add cost without stopping the most
pressing challenges; and
- how to make accommodation more responsive to the needs of
students.
It calls for a new approach in three areas.
-
Affordability: As rent now
takes up three-quarters (73%) of the maximum student loan on
average, up from 58% just a few years ago, all institutions
should adopt an affordability policy. Universities could take
the lead in providing more low-cost accommodation, either by
developing it themselves or partnering with the private
sector.
-
Regulation: Councils charge
private providers large sums for licensing but with no clear
benefits to students: in Liverpool, the landlord licensing
scheme (2017 to 2020) cost £2 million, yet it is thought no
visits were made to the accommodation and no enforcement action
was taken. Greater co-operation is needed between the
Department for Education and the Ministry of Housing,
Communities & Local Government.
-
Cost: Currently, half (49%) of
accommodation providers do not involve students in their
rent-setting. This needs to change. Moreover, VAT restrictions
on the alternative use of student accommodation by non-students
currently stop viable commercial use of student accommodation,
such as subsidising student rents via summer tourists.
, a
consultant in student accommodation and a Partner in the
real-estate firm Cushman & Wakefield, who co-authored the
report, said:
‘Our report describes the big picture of the student
accommodation sector and highlights just how much the sector has
changed in response to rising student expectations, a bigger and
more diverse student population and changing ownership
structures.
‘In future, the sector will need to provide greater choice
of accommodation and price points, but there are still
significant barriers to offering those choices.’
Martin Blakey, the Chief Executive of the charity
Unipol Student Homes and co-author of the report,
said:
‘The debate about the importance of all accommodation
providers in the education process has been spurred on by the
Coronavirus pandemic and its dramatic effect on the student
residential experience. This report supports this debate with
clear, accurate and factual information free from industry
spin.
‘The cost of student accommodation is a growing issue and
can affect educational access for disadvantaged groups. The
affordability of student accommodation must be shaped by the
university sector and not just left to the private sector. All
publicly-funded institutions should have an affordability policy
to ensure they do not disengage from this issue.
‘The fastest and most efficient way of getting greater
engagement and communication between private PBSA providers and
educational institutions is to improve the current
government-approved National Codes to provide more detailed and
specific standards that revolve around a new mission statement
for all members “to work together to the benefit of student
tenants”.’
, Director of HEPI, said:
‘The residential experience is a core part of the student
experience. Student accommodation is much more important in the
UK than in most other countries, as 80% of full-time students
leave home to study.
‘This brings challenges for policymakers, institutions and
students. Yet the current regulations are not fit for purpose,
the availability of accommodation does not reflect demand and
some students, including many of those who have to live at home,
still suffer academically from their living arrangements.
‘It is vital we build a deeper and broader understanding of
the student accommodation sector to improve this situation.
Students’ living arrangements should be designed to help rather
than hinder learning and the wider educational
experience.’
Notes for Editors
-
HEPI was established in 2002 to shape the higher
education policy debate with evidence. It is the UK’s only
independent think tank devoted to higher education. HEPI is a
non-partisan charity funded in part by organisations and
universities that wish to see a vibrant higher education
debate.
-
HEPI’s other recent work on student accommodation
includes:
