There has been a significant rise in the number of students who need a place to stay in the UK while they complete their university education. Student numbers are rising, and an increasing number of students are looking for high quality purpose-built student accommodation.
Student accommodation now is very different from what you might picture. Luxury apartments in new build city centre blocks are being built especially for the Purpose-Built Student Accommodation (PBSA) market. Students have been looking for more privacy, quality and convenience over recent years. With an increase in fees for UK students and considerable costs for overseas students, they are demanding more for their money than ever before. Features like 24-hour concierge services, flat screen TVs, on-site gyms and cinema rooms are all available for students who are looking for a more comfortable student experience.
Student numbers high despite Brexit
Though Brexit has discouraged some EU students from studying in the UK, the number of international students choosing a university in the UK has remained high. Overall, 14% of undergraduates and 38% of postgraduates were from overseas.
The main students choosing to study in the UK came from non-EU countries, 21% were from China, followed by Malaysia, the United States, India, Hong Kong and Nigeria who each made up 4% in 2015. This is a reassuring indicator for property investors, as it shows the sector isn’t reliant on the EU and should be able to weather Brexit uncertainty with less impact.
Overseas students often stay in the UK for their entire university career without trips home, so they need a base for longer periods of time. They also often have an increased budget for accommodation and living costs as they can afford to study in the UK and their family wants them to do well. Many people view a UK education as an investment in the future.
To be able to afford something means to have the ability to pay for something without it causing serious financial problems afterwards.
Demand for student accommodation affects cities
The increased demand for student property has affected most UK cities. Travellers around the UK will notice the increasing number of high rise buildings, university expansions and blocks under construction. Students are having an increasing impact on UK towns and cities, contributing a great deal to the economy and making up a significant proportion of the population.
Cities with more than one university are also seeing an increasing impact from their new student residents. Cardiff, which has three universities, now has a population of which 20% are students. This has significantly affected the property market, with an ever-increasing demand for rental property for students.
In London, student numbers are growing 15 times faster than the available supply of rental property. Universities have been unable to keep up with the skyrocketing demand, leaving private student property firms with a lucrative gap in the market. Some universities have a shocking lack of beds for students. In Bristol there is a student to bed ratio of 1:93, in Southampton there are 41 students to each available bed and in Exeter there are over 22 students per bed space.
The Impact of Technology on Student Living
Technology has become an integral part of student life, influencing how students study, socialize, and live. Modern student accommodations are increasingly tech-savvy, with features such as high-speed Wi-Fi, smart home systems, and digital security measures becoming standard. Students can now control lighting, heating, and even access to their rooms through smartphone apps, adding a layer of convenience and security that was unimaginable just a decade ago.
Moreover, many PBSA providers are incorporating co-living and co-working spaces into their designs. These areas are equipped with the latest technology, enabling students to collaborate on projects, participate in virtual lectures, and connect with peers from around the world. The integration of technology not only enhances the living experience but also prepares students for the increasingly digital world they will enter after graduation.
Environmental Considerations in Student Accommodation
Sustainability has become a significant consideration for both students and developers in the student accommodation sector. Many students today are environmentally conscious and prefer living in accommodations that reflect their values. As a result, developers are increasingly focusing on green building practices, energy efficiency, and sustainable materials when constructing new PBSA.
Features such as solar panels, energy-efficient appliances, recycling facilities, and sustainable water management systems are becoming more common. Additionally, some accommodations are offering incentives for students to adopt eco-friendly habits, such as rewards for using communal transportation options or participating in green initiatives. These efforts not only reduce the environmental impact of student housing but also resonate with the values of the modern student population.
Conclusion
The rise in student numbers and the evolving expectations of the modern student population have significantly transformed the student accommodation sector in the UK. As students seek more comfort, convenience, and quality in their living arrangements, the demand for Purpose-Built Student Accommodation continues to grow. With the ongoing developments in technology, sustainability, and post-pandemic living, the future of student housing looks promising. For property investors, the sector presents a stable and lucrative opportunity, driven by the enduring demand for high-quality student living spaces.