As students across the country digest their A-level results, excitement is building as many prepare to head off to university. However, many will face growing challenges in finding a place to live as continued high levels of university applications are putting increased pressure on already competitive rental markets.

Students heading to one of the UK’s top 30 university cities will face a quarter fewer homes to rent than were available before the pandemic. Meanwhile, the number of full-time students in the UK has increased by 12.4 per cent over the same period.

In total there are 91,000 more students than the year prior, as UCAS applications have remained elevated since the pandemic. In particular, economic uncertainty has pushed many younger people towards higher education to make them stand out in an increasingly competitive job market.

This situation isn't likely to ease anytime soon, with the UK’s population bubble set to increase the number of young Britons reaching university age and the country’s world class higher education institutions continue to attract students from around the world.

Where is student accommodation most squeezed? 

While London has the most purpose-built student accommodation (PBSA) beds in the country, there are still 3.8 students for every bed in the capital, far above the UK average of 2.9.

At the same time, the capital’s private rented sector faces almost a third fewer properties available compared to pre-pandemic levels, pushing up rents by 12.8 per cent in the last year alone.

But this problem isn’t limited to major UK cities, key regional universities are also struggling to accommodate their growing student body. Durham is revealed to be one of the most stock-constrained university cities, with three-bed listings down -41.8 per cent and four-beds down -32.4 per cent.

Canterbury and Bath have also experienced some of the highest annual growth in full-time students, while listings in these locations have fallen -33.2 per cent and 35.2 per cent on the pre-pandemic average, respectively.

In places where competition for rentals is particularly fierce, more pressure is placed on rising rents. In total 10 out of the 30 cities have witnessed double digit annual rental growth.

What is the solution?

Issues with undersupply in the UK student rental market have been bubbling for many years, but are becoming even more prominent with signs of private landlords selling up in response to rises in interest rates, reductions in tax relief, and the fact that many who bought when buy-to-let took off in the early 2000s are now reaching retirement and looking to sell.   

With the university-aged population projected to grow over the next decade, and even as more students opt to study in their home cities, there is a need to deliver more purpose-built student accommodation to tackle the competition for housing that students currently face.

UK higher education is a strong sector with impressive global reach. Ensuring students can be accommodated close to their chosen university, for their full university experience, is vital for retaining the sector’s favourable reputation.

Further information

Contact Toby Parsloe