9
REASONS FOR DECLINE IN DEMAND
The main reason for the fall in applications and demand for places was the increase in university tuition fees to a maximum of £9,000.
This change meant that a large number of students chose to start university in September 2011 rather than take a gap year to go
travelling or postpone their studies a year. Anyone starting university in September 2012 would be liable for the new higher fees. The
large number of applications seen for 2011/12 knocked on resulting in a large fall in demand for the 2012/13 academic year.
ACCOMMODATION DEMAND
VS. SUPPLY
Key things students look for in their
accommodation:
- Location – to University or local amenities
- Facilities – value added services (gym,
social areas, entertainment)
- Price/Value for Money (do location and
facilities warrant the high price)
The ‘university experience’ is important
for UK students, who will look for
accommodation close to local amenities or
popular student hotspots that is good value
for money.
There is a gradual shift towards private halls
of residence which is being driven by an
increase in international students in the UK.
As mentioned earlier, international students
have different demands and expectations
from their accommodation and have
been a key driver behind the increased
investment in purpose built student halls.
Universities and developers should factor
in these demands when building new
accommodation.
Student accommodation comes from four
main sources which have all experienced
growth in recent years: University Managed
Halls, Privately Managed Halls, Private
Rented Accommodation or Living with
Parents/Family. Privately managed halls
make up only 5% of the market, but has
experienced the most growth at over 13%
year on year. This is due to a large amount
of investment in recent years driven by
the potential of high returns (with term-
time occupancy between 96% and 99%)
and demand from international students
(account for 31% of Unite’s 40,000 beds
nationally - 47% in London).
The market is dominated by private rented
accommodation (34%) which consists of
privately managed shared flats and houses,
with university managed halls and living
at home with parents each accounting for
about 19% of the market.
Oversupply is a fairly rare feature due
to the high demand and constraints
on universities to construct their own
accommodation. There are though
exceptions to this as certain cities have
seen a huge amount of development in
the purpose built student accommodation
sector without much thought into long-
term demand.
University
Manchester Metropolitan
Roehampton
Wales, Trinity
Wales, Newport
Leeds Metropolitan
Leeds Trinity
East London
Buchinghamshire
London Metropolitan
Bolton
Rank
108
109
110
111
112
113
115
116
118
120
LOWEST RANKING UK UNIVERSITY APPLICATIONS
Source: UCAS
2011
51,493
8,904
2,310
4,928
39,965
4,594
16,816
8,240
17,458
4,707
2012
43,341
6,458
1,967
4,404
35,473
3,843
14,175
7,461
14,901
4,074
Change %
-15.83%
-27.47%
-14.85%
-10.63%
-11.24%
-16.35%
-15.71%
-9.45%
-14.65%
-13.45%
TERM-TIME ACCOMODATION OF FULL-TIME STUDENTS
PRIVATE RENTED
ACCOMODATION
PARENTAL/GUARDIAN
HOME
UNIVERSITY MANAGED
HALLS
PRIVATELY MANAGED
HALLS
OTHER
15%
10%
5%
0%
PRIVATE
PARENTAL
UNIVERSITY
PRIVATELY
OTHER
YEAR ON YEAR GROWTH (%)
Source: UCAS
% OF MARKET
Source: HESA
PRIVATELYMANAGEDHALLS HAVE A
VERY SMALL SHAREOFTHEMARKET
5%
PRIVATE RENTEDACCOMODATION
DOMINATESTHEMARKET
34%
MANAGED
(2011 - 2012)
(2011 - 2012)
