Rents for student accommodation have increased by an average of 14.6% over the past two academic years, according to a new report by Unipol and the Higher Education Policy Institute (HEPI).
As expensive cities, the analysis deliberately excluded London and Edinburgh to ‘give a more balanced view of rents outside these markets’.
In 2021/22, average annual rents stood at £6,520, and increased to £7,475 in 2023/24 across the 10 key regional university cities – Bristol, Exeter, Glasgow, Leeds, Liverpool, Nottingham, Bournemouth, Cardiff, Portsmouth and Sheffield. Across England, average annual rents now stand at £7,566 for the current academic year (2023/24). The average rent equates to more than three quarters (76%) of the maximum maintenance loan.
The highest rents and increases were in the most undersupplied cities, the report said. The research suggests Bristol has the UK’s highest average annual rent at £9,200 per year, with Exeter at £8,559 and Glasgow at £7,548.
Glasgow saw the highest rental growth at 20.4% over the past two years, followed by 16.1% in Exeter and 15.5% in Nottingham.
Other notable rises were seen in Leeds (14.7% rise to £7,627) and Bournemouth (11.2% rise to £7,396).
Meanwhile, Liverpool, Cardiff and Sheffield are deemed the most affordable, with lower annual rents of £6,400 to £6,600 and smaller annual increases. According to the report, the reason for the more moderate increases are due to the healthier supply levels across these markets.
Nick Hillman, director of HEPI, said: “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.”
