The UK has a quarter fewer student homes available to let than before the pandemic despite a 6% growth in the number of full-time students.
Analysis of the top 30 student cities in the second quarter of the year versus the same period in 2017-2019, found many were struggling to accommodate the growing student population.
According to Savills, the number of properties to let has dropped -24% and is particularly bad in Durham (-42%), while Canterbury saw the highest annual growth in the number of its full-time students between 2021 and 2022 (24%) while its listing were down -33%.
Ten of the cities witnessed double-digit annual rental growth, particularly Glasgow (33%), followed by Salford (29%) and Nottingham (28%).
While London has the most purpose-built student accommodation beds in the country, there are still 3.8 students for every bed, far above the UK average of 2.9.
Pre-pandemic
However, the capital’s PRS has almost a third fewer properties available compared to pre-pandemic levels, and rents that have increased by 12% over the past year.
Savills research analyst Toby Parsloe says the UK has a record 2.3 million full-time students, 91,000 more than last year, and that number is set to grow.
He adds: “Issues with undersupply 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.”
Allison Thompson (pictured), national lettings MD at Leaders Romans Group, believes that while more purpose-built student accommodation is needed to house first-year undergraduates, there’s also a huge need for more private rented housing. She adds: “This presents a real opportunity for landlords to invest in HMOs for students.”
