Savills Report: London's Student Housing Crisis Revealed

In the recent student housing news and the latest research from Savills, it has been observed that London is currently experiencing a student housing crisis. There is a shortfall of around 100,000 student beds which is more than any other region. The rise in the demand for PBSA (Purpose Built Student Accommodation) has a significant role to play here as London struggles with housing supply and new property development. Other major factors also include inflation and rising interest rates.

London student accommodation has the highest figures nationwide when it comes to the undersupply in the student housing market with a student-to-bed ratio of 3:6. Jacqui Daly, Director of Residential Research at Savills, has suggested that the ratio projected will go below 3 with the completion of projects in the short-term supply pipeline. This includes sites under construction and project plans that have received consent from the government. However, even with a 24% boost in operational beds, the capital still falls considerably short of achieving the desired ratio of 1.5 students per bed.

Moreover, apart from London student housing, other cities are also grappling with the student housing crisis. This includes Glasgow and Edinburgh, which need between 22,000 and 17,000 additional beds. Meanwhile, Bristol has risen with a forthcoming increase of around 45% in the PBSA supply, which is expected to reflect a decrease in the student-to-bed ratio from 3.5 to 2.4.

According to at Savills Report, Corranne Wheeler has highlighted the importance of cities that ensure an ample supply of suitable housing for both students and local communities. Many universities in the region have also acknowledged the importance of expanding the on-campus student housing to alleviate the supply amidst the shortage. This will also offset housing losses in the private rented sector. Wheeler further underscores the forthcoming challenge for universities, which involves securing not only new housing supply but also private sector investment to upgrade existing residences to comply with government energy efficiency targets.

Overall, the parties related to London student accommodation have to come together to find a solution for the ongoing UK student housing crisis. There must be a sustainable solution to combat the current situation in the student housing market. For more updates on the UK student housing market and crisis, do follow AmberNews!