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A new report finds that 65% of first-time university applicants said the availability of suitable accommodation influenced their choice of university.
The report also noted that affordability remains a top concern, with 69% of students saying PBSA is a more attractive option, especially given the rising cost of living.
Global property consultancy Knight Frank, in partnership with the University and College Admissions Service (UCAS), has published its annual Student Accommodation Survey, believed to be the largest survey of the accommodation choices of prospective and current undergraduate and postgraduate students in the UK.
Now in its fifth year, the survey brings together the perspectives of prospective and current students across the U.K. The report reveals key trends that are reshaping the purpose-built student accommodation (PBSA) sector as universities, developers and investors navigate rising costs and supply constraints.
Neil Armstrong, co-head of student properties at Knight Frank, commented: “It’s clear that accommodation plays a key role in students’ decision-making, both before and during their studies. Purpose-built accommodation not only enhances the quality of student life, but also helps students to manage their living costs more effectively, especially as utility costs and rents continue to rise.”
The 2024 survey results show that students are increasingly favoring amenities that provide tangible benefits. Fast Wi-Fi, 24-hour security, and on-site laundromat were ranked as must-have features. Interestingly, the survey revealed that students are increasingly prioritizing well-being services over luxury amenities. Around 78% of current students said that an accommodation provider’s commitment to mental health support is an important factor in their housing choice.
Merelina Sykes, co-head of student properties at Knight Frank, said: “This year’s survey reaffirms the need for student accommodation providers to focus on the fundamentals that affect students’ everyday lives. While amenities such as cinema rooms and swimming pools are nice to have, students overwhelmingly prefer practical, well-maintained facilities. This also extends to chaplaincy support, with on-site health and wellbeing services increasingly seen as essential.”
With PBSA rents set to rise by 7.6% in 2024, rent burden remains a pressing issue. In the survey, 44% of students said housing costs are negatively impacting their experience at university. Additionally, 88% are concerned about rising living costs, with many students seeking additional sources of income or support from parents or guardians to cover rent and living expenses.
Katie O’Neill, head of student accommodation research at Knight Frank, which conducted the survey, added: “The housing affordability gap continues to widen, placing further strain on students and their families. For investors, developers and operators, this means delivering the best value possible whilst adapting to changing student expectations, particularly in terms of cost and support services.”
As the mismatch between PBSA supply and student demand continues in the UK, the Knight Frank report urges universities and the private sector to work more closely together in the development of new accommodation.
“Public and private sector collaboration will be crucial to any growth plan, and universities are at the heart of this, having the data on the demographics and requirements of prospective students to draw conclusions about future requirements,” O’Neill added. “After all, at a time when many universities are in a precarious financial position, inadequate or inappropriate accommodation poses a real risk to an institution’s reputation.”
The report predicts that in 10 years’ time, PBSA will house the majority of second and third graders, providing greater opportunities for investors and developers.
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