30% Rent Cut: UK Universities Tackle Student Housing Crisis!

The UK is facing a student housing crisis, prompting a proposal from Martin Blakey, former Chief Executive of the student housing charity Unipol. His plan urges UK universities to build lower-cost accommodation for both domestic and international students. The proposal suggests constructing smaller buildings with around 300 to 350 student beds to reduce running costs. It also recommends implementing compact ‘pod-sized’ en-suite rooms spanning about 10 square metres, along with communal areas for relaxation and study.

Blakey argues that the current model of purpose-built student accommodation (PBSA) is too expensive. It requires a more economical alternative with reduced service and consumer expectations. He believes these measures could lower rents by up to 30% compared to the current PBSA model, making housing more affordable for students from various income brackets.

As per the UK student housing news, UK universities would need to establish agreements to promote and maintain a balanced student population within these buildings. The UK student housing market is facing challenges due to higher interest rates and increased regulation. The modest increase in the maximum maintenance loan in England has not kept pace with rising rental prices. 

While speaking to Times Higher Education, Blakey suggested introducing a flexible energy supplement on rents and diversifying room sizes and amenities within single buildings to accommodate different price points. He emphasised the need for innovations such as the 10 square metre rooms, similar to those found in the Yotel hotel chain. He believes developers will need to partner with educational institutions to mitigate risks, as they are unlikely to innovate on their own, highlighted the UK student housing news. 

He said, “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.”

Blakey further added, “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.”

Blakey expressed surprise that the sector had not previously considered such concepts, given the continuous rise in PBSA rents over the past decade. For international students, especially those from developing countries like Nigeria, this proposal could be a welcome development. International students already pay higher tuition fees, and affordable accommodation options could make studying in the UK more accessible for them.

The rent cut is definitely going to be a game changer for the UK student housing market. For more such student housing-related news, follow amber news. If you’re a property owner who wants to list with us, contact the amber team.