Displaying items by tag: student accommodation

University students in the UK are facing unprecedented rent increases as the value of maintenance loans fails to keep pace. Rents have risen by over 8% since 2022, with some cases seeing increases of up to 27%. The demand for accommodation has soared, with nearly 390,000 more students needing housing in the past decade. Rising operational and development costs, high inflation, and a decline in new bed space delivery have contributed to the increases. The average private sector rent outside London now exceeds £7,600 per year, consuming 77% of the maximum student maintenance loan allowance. Fewer than 10% of beds in major university cities are affordable to students receiving maintenance loans and grants. Rental growth in purpose-built student accommodation has reached 9.4%, exacerbating the affordability challenge. Students are increasingly taking on part-time work to cover expenses, negatively impacting their studies. To address the crisis, there have been calls for increased maintenance loans, rent freezes, and rent controls.

Unipol says student housing shortages will get worse in some cities. The number of new purpose-built rooms being created is tumbling, despite student numbers growing. Keira Barber, 18, says she had to switch universities because she was unable to afford accommodation at her first choice. Universities say they always try to help because housing issues are a significant worry. Some universities have struggled to provide a room near campus for new students, offering them housing in neighbouring cities instead. Most student accommodation is now built and rented by the private sector, and Unipol keeps a register of the number of rooms as part of a voluntary code of conduct. The creation of new student rooms is grinding to a halt because of high building costs. 29,048 new student rooms were created in 2020, but only 13,543 this year. Some were old buildings brought back into use.