UK universities urged to reduce rent by 30% to alleviate student housing crises
A proposal was recently passed to convince UK universities to build lower-cost accommodation to solve the student housing crises for home and international students.
This was made through a paper submitted by Martin Blakey, former chief executive of the student housing charity Unipol. He proposed this to convince universities to build a lower-cost accommodation option for less well-off students.
The paper suggests strategic adjustments to address these issues. It recommends constructing smaller buildings housing approximately 300 to 350 student beds to optimize running costs.
Additionally, the proposal includes the implementation of compact “pod-sized” en suite rooms, spanning around 10 square meters, alongside communal areas for relaxation and study purposes.
What the proposal states
His proposal urged universities to construct more affordable accommodation options tailored to both domestic and international students.
Blakey emphasizes that the prevailing model of purpose-built student accommodation (PBSA) is inherently costly, necessitating the development of a more economical alternative with reduced service and consumer expectations.
His suggestions include innovative approaches such as compact “pod-sized” rooms spanning just 10 square meters.
According to Blakey’s paper, these measures outlined have the potential to alleviate the UK’s student housing shortage and potentially lower rents by up to 30% to the current PBSA model.
This reduction would appeal to students across various income brackets who prefer allocating their resources to alternative expenditures.
Implementing these buildings would necessitate educational institutions to establish agreements aimed at both promoting them and maintaining a balanced student population within them.
Student housing market
The student housing market is feeling the impact of higher interest rates and heightened regulation, exacerbating challenges.
Meanwhile, the modest increase in the maximum maintenance loan in England fails to match the escalating rental prices.
Furthermore, the paper advocates for the introduction of a flexible energy supplement on rents and suggests diversifying room sizes and amenities within single buildings, with pricing variations accordingly.
Martin Blakey, speaking to Times Higher Education, emphasized the necessity for innovations such as the 10 square meter rooms, akin to those found in the popular Yotel hotel chain.
He noted that the sector has been stagnant on this issue for an extended period, highlighting the urgency for change.
What he said
According to Blakely,
“Everyone’s talking about affordability, but without changing the product design I can’t see how that’s going to happen. It’s just words.
“In many areas, rent is now your entire maintenance loan, and in some areas, it’s more than that. If you look at the general economic situation and parents’ ability to support their students, there’s just less money in the system”.
However, he suggests that developers will face risks and hence need to partner with an educational institution:
“If you’re a private sector developer, you’re not going to innovate because it’s too risky
“They have very little incentive to develop something new and lower-cost, and to do that they’re going to need to partner with an education institution.”
Martin Blakey also expressed his astonishment that the sector hadn’t previously considered such a concept, given the continual escalation of PBSA rents over the past decade, now reaching a “certain critical point.”
For international students from developing countries like Nigeria, this will come as a welcome development given that international students pay higher tuition fees than their home students’ counterparts, leaving most to struggle in paying for student accommodation. In addition, this may encourage more international students to apply to study in the UK.
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