0:01 AM, 9th October 2024, About 2 months ago
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The latest Knight Frank/UCAS Student Accommodation Survey paints a clear picture of how student preferences for university accommodation are evolving.
Now in its fifth year, the survey provides valuable insights for student landlords, developers, investors and universities to adapt to these changing needs.
The report predicts a significant shift by the end of the decade, with purpose-built student accommodation (PBSA) becoming the preferred option for most second and third-year students.
This trend is driven by several factors, including higher satisfaction rates among those already living in PBSA.
In fact, 69% of PBSA residents rated the option to live in the same property for multiple years as ‘excellent’ or ‘good’.
Also, more than half of university applicants cited the rising cost of living as a factor in their increased interest in PBSA.
The firm’s Oliver Knight says: “The accommodation sector continues to be defined by an imbalance between supply and demand, with the delivery of new beds not keeping pace with student numbers.
“Fewer than 17,500 new purpose-built student beds will be added to supply in the 2024/25 academic year.
“Longer term, just 258,000 new PBSA beds have been added across the UK since 2012. Over that same period, almost 470,000 full-time students have joined the student population.”
He adds: “At a headline level, such disparity points to ongoing pressure on an already undersupplied market.
“It also puts the quality and value of existing accommodation under the spotlight.”
Knight Frank says that accommodation is a key factor influencing university choices with 65% of first-time applicants stating that housing availability played a major role in their decision-making.
The real estate firm points out that universities and the private sector need to collaborate to meet the needs and expectations of both new and returning students.
For new students, quality, affordability and location are the most important factors when choosing where to live.
Researchers also found that students prioritise amenities that offer clear and tangible benefits.
They highlight a preference for high-quality accommodation with valuable amenities, such as fast wifi.
Just 3.5% of students are willing to sacrifice fast wifi for a lower rent.
However, 66% of respondents indicated a preference for cheaper rent over an on-site swimming pool, for example.
Unsurprisingly, students are increasingly price-sensitive when it comes to accommodation costs.
Although 44% of PBSA residents rated their housing as good or excellent value, rising rents coupled with below-inflation increases in grants and loans have heightened students’ focus on value.
For investors and PBSA operators, Knight Frank says, this means providing the highest quality accommodation possible within the constraints of financial viability, the report says.
