4
BACKGROUND TO THE UK
HIGHER EDUCATION MARKET
As of 2012 there were more than 2.5m
students enrolled in 164 universities in the
UK.
Universities are assessed on a number of
criteria such as quality of teaching, career
prospects and student to staff ratio in
order to produce university league tables.
The most widely used league tables are
The Guardian “University League Table”
and The Times “Good University Guide”.
The University of Cambridge and the
University of Oxford usually trade places
at the top of these league tables, and are
considered by many to be the top two
universities in the UK.
The UK top 20 is almost completely
made up of Russell Group universities.
The Russell Group represents 24 leading
universities with excellent research, the
very best training and learning experience
and strong business links with the public
sector. The exceptions to the 2013
Guardian list are Lancaster University and
the University of Bath.
The University of Manchester is the biggest
university in the UK based on its current
student population of approximately
40,000. It is also ranked as one of the top
universities in the UK (No.41) and is part of
the Russell Group. The largest universities
in the UK are located close to major towns
or cities, with a number in the North
West of England. This list includes both
traditional “red brick” and more modern
“new” universities. Lower scoring “new”
universities have grown a lot over the last
10 years and usually offer a diverse range
of courses.
MARKETUPDATE
Location
Cambridge
Oxford
London
St Andrews, Fife
Coventry
London
Durham
Lancaster
Bath
Exeter
Loughborough
Guildford
London
Glasgow
Edinburgh
Buckingham
York
Bristol
Leicester
Edinburgh
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Student Population
19,945
25,595
9,805
9,850
27,440
25,525
16,570
13,075
15,135
18,720
16,195
15,055
16,000
26,395
27,675
1,885
17,405
19,220
17,055
10,870
GUARDIAN UK UNIVERSITY GUIDE RANKING
Source: Guardian University Guide 2013
TOP
20
UK UNIVERSITIES BY SIZE
Source: HESA
(2012)
(2013)
Purpose built student property is a growing sector in the UK with more “student pods” now available for retail investment than ever before. Over
46 schemes were launched to retail investors in 2012 with 28 already launched or in the pipeline for 2013. It is estimated that over £450m has
been invested by retail investors from the UK and overseas into purpose built student accommodation since the start of 2012. It is also possible
to gain exposure to the market through collective investment schemes and investments with a corporate element, such as asset backed bonds.
In total, investment from institutions, funds and private investors was over £2.7billion during 2012 and returns have been exceptionally strong
compared to traditional investments over the last few years.
Despite such strong growth and returns in the sector it is not without its issues. Oversupply is a fairly rare feature but one that may impact
the market in the future if properties continue to be built at such a pace. There have also been issues with property management companies,
the most recent being the Opal Group, with 20,000 beds under management, who have debts of over £880m and have recently entered
administration. 13 Opal group companies are affected with 7,200 beds in 9 locations throughout the UK. As with all property investments this is a
very illiquid market and it can take time and be very costly to sell the asset.
Institution
University of Manchester
Sheffield Hallam University
University of Nottingham
Manchester Metropolitan University
University of South Wales
University of Leeds
University of Central Lancashire
University of Plymouth
University of Birmingham
Coventry University
University of the West of England
Cardiff University
The University of Northumbria
Teesside University
Leeds Metropolitan University
The Nottingham Trent University
University of Edinburgh
The University of Warwick
University of Hertfordshire
King’s College London
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Location
Manchester
Sheffield
Nottingham
Manchester
Cardiff & Newport
Leeds
Preston
Plymouth
Birmingham
Coventry
Bristol
Cardiff
Newcastle
Middlesbrough
Leeds
Nottingham
Edinburgh
Warwick
Hatfield
London
Student Population
40,680
37,160
35,630
34,595
33,500
32,510
31,530
31,105
31,070
31,045
30,390
30,000
29,300
28,040
27,985
27,930
27,675
27,440
27,230
26,460
Institution
University of Cambridge
University of Oxford
London School of Economics
University of St Andrews
The University of Warwick
University College London (UCL)
Durham University
Lancaster University
University of Bath
University of Exeter
Loughborough University
University of Surrey
Imperial College London
University of Glasgow
University of Edinburgh
University of Buckingham
University of York
University of Bristol
University of Leicester
Heriot-Watt University
