According to recent data from a joint study conducted by Unipol and the Higher Education Policy Institute (HEPI), rents for student accommodation have surged by a staggering 14.6% over the previous two academic years. To put that in perspective, the average annual rent across ten major regional university cities, namely Bristol, Exeter, Glasgow, Leeds, Liverpool, Nottingham, Bournemouth, Cardiff, Portsmouth, and Sheffield, was £6,520 in the academic year 2021/22. Fast forward to 2023/24, and this figure has jumped to £7,475. Comparatively, the average annual rent for student accommodation across England stands slightly higher at £7,566 for the same period.
These numbers might seem abstract, but for many students, this rise has concrete implications. In fact, the average rent now eats up a whopping 76% of the maximum maintenance loan provided to students.
Top Contenders: Cities with Skyrocketing Rents
The report brought some cities under the spotlight for their exorbitant rental rates:
- Bristol takes the lead with the highest average annual rent of £9,200.
- Exeter follows closely with an average annual rent of £8,559.
- Glasgow, besides having a yearly average of £7,548, recorded the most significant growth in rental costs, with a 20.4% increase over the past two years. This growth trajectory is followed by Exeter with a 16.1% hike and Nottingham seeing a 15.5% escalation.
Cities like Leeds and Bournemouth also observed notable rises of 14.7% (leading to £7,627) and 11.2% (resulting in £7,396) respectively.
Cities with More Modest Rents
Cities like Liverpool, Cardiff, and Sheffield appear to be more wallet-friendly options for students. With annual rents ranging between £6,400 and £6,600, these cities also experienced smaller annual increments. The report attributes these milder increases to the healthier levels of housing supply available in these markets.
Expert Insights
Nick Hillman, the director of HEPI, emphasized the need for immediate and long-term solutions. In his words, “In the short term, maintenance support should be increased at least in line with inflation. For the longer term, we need measures to encourage the supply of new student housing, which is currently restricted by factors such as higher interest rates and confusion over new regulation.”