An increase in the number of students is combining with a reduction in the number of houses to rent, according to research by Savill’s in University cities.
Toby Parsloe, research analyst at Savills, said, “The UK has a record 2.3 million full-time students, 91,000 more than last year. UCAS applications have remained elevated since the pandemic, as economic uncertainty has pushed many younger people towards higher education to make them stand out in an increasingly competitive job market. This number is likely to grow further. A population bubble is 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.”
- What’s the Problem? There are a lot fewer homes available for rent now compared to before the pandemic.
- In numbers: Homes available to rent in top student cities have dropped by 24.5%.
- Why does this matter now? There’s a surge in students!
- Full-time student numbers have gone up by 6.3%.
- Why? More people want to get a university degree. With jobs being super competitive, having a degree can give you an edge.
- Fun fact: There are a whopping 2.3 million full-time students in the UK!
- What’s making it worse?
- There’s a bunch of young Britons about to hit university age.
- The UK’s universities are like magnets – they attract students from all over the world!
- How’s London doing? Not great, actually.
- Even though London has many student beds, there’s a huge gap. For every bed, there are 3.8 students. That’s a lot!
- What about the regular rental homes? They have one-third fewer homes to rent than before. Oh, and rent’s gone up by 12.8% in a year!
- Any other cities in trouble? Absolutely.
- Durham: They’re really short on three-bedroom and four-bedroom homes.
- Canterbury: They’ve had a big jump in student numbers, but a drop in home listings.
- Bath: Same story as Canterbury. More students, fewer homes.
- What’s the effect of all this? Rents are shooting up!
- In 10 out of 30 cities, rents have grown by more than 10% in a year.
- Top 3 cities where rents have skyrocketed: Glasgow, Salford, and Nottingham.
- Why’s this happening?
- This issue isn’t new. The student rental market’s been tight for a while.
- Some reasons: Many landlords are selling their properties. Some are retiring, and some are reacting to financial changes like interest rates going up.
- The Future and Solution:
- More young folks are going to university soon. Even if some students study in their hometowns, the demand for student homes will be high.
- Solution? We need to build more homes specially designed for students. It’s key to keeping the UK’s reputation for top-tier higher education.
And that’s it! The UK needs more homes for its growing number of students. If it can sort this out, it can keep its universities shining on the world stage. This brings potential opportunities for savvy property investors.