After a year of uncertainty in 2019, there are a number of issues the higher education sector needs to consider in 2020 in relation to its buildings and real estate. Here’s our top five:

1. Politics, politics, politics

Now the outcome of the General Election is known, many universities are waiting to see whether the Government will deliver on its manifesto promises, such as the commitment to increasing research and development investment to 2.4 per cent of GDP and a pledge to invest £2 billion in upgrading the further education college estate.

More pressingly, however,  is that we still await a full response to the Augar Review on the future structure of tuition fees. While the Government’s initial response suggests that the current freeze on fees in England may continue, it’s essential for institutions to have clarity in order for them to effectively budget and plan for the years to come. All these issues are likely to have a direct impact on the funds available for investment in a university’s estate.

Also, now the UK is on course to leave the EU within the year, a clear, simple visa system is needed to ensure that the sector can continue to attract and retain both the best academic talent and students, who, if faced with high fees and added bureaucracy, might very well think of heading elsewhere.

2. Student accommodation health and safety

A fire in November 2019 in a private student accommodation block housing University of Bolton students has highlighted potential pitfalls for universities when it comes to private housing.

When such housing is owned and maintained by private landlords legal responsibility lies with the operator to ensure all health and safety laws are abided by, but when an incident does occur universities may be left having to rehome or provide support to students at short notice. Certainly, a university’s reputation will be on the line in terms of how it reacts to incidents like this even if it has no direct responsibility for the accommodation.

Student accommodation is a perennial topic for almost all institutions, and getting the risk profile right between owning and operating the accommodation themselves, doing a deal with a big private sector provider, through to nomination rights in privately run accommodation, is something that Estates Directors and others will spend a lot of time thinking about this year.

3. Integrating with the surrounding town/city

Universities have always played a role within their surrounding communities, but there is increasing focus on how they could help to regenerate empty spaces in their town or city centres.

A wealth of university support functions, such as theatres, careers services, libraries, counselling support, bookstores, events facilities, art centres and exhibition space, could find a home next to traditional retail and leisure uses and, if managed correctly, be used by the non-student population. This could help drive footfall and bring life back to empty parts of town, bringing economic and social benefits and also reinforcing a university’s relationship and reputation in the area.

4. The efficient campus

It’s fair to say that most university environments have lagged behind the corporate world when it comes to getting the most out of their property assets. Although commercial landlords and developers are yet to perfect employee wellbeing and productivity, they’re generally several stages ahead of universities in terms of testing ideas such as mixing uses and blurring spaces to make spaces adaptable and return as much value as possible.

Many universities are aware that much of their space is under-utilised and are now taking lessons from the corporate world on how to improve efficiencies, but striking the right balance that works for the institution, students and staff remains a challenge.

5. The sustainable estate

Universities have been at the vanguard of the sustainability agenda for a while, and many have taken ground-breaking steps to improve their environmental performance, but with Extinction Rebellion forcing the issue (quite rightly) front and centre in political discourse pressure continues to be exerted on ensuring that every aspect of campus life contributes positively to the ESG agenda.

Further information

Contact Savills Education