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Student accommodation: what is driving spiralling costs?

UCL rent strike has thrown the spotlight on a growing problem across the UK

Published on
March 3, 2016
Last updated
February 16, 2017
Man walking past Student Home Zone office
Source: Alamy
Grab your wallet: there has been a boom in lavish accommodation, but the NUS and others say students want affordable housing

The issue of the rising cost of student rents in the UK came to a head in January when more than 150 UCL students refused to pay for their halls, demanding that the university reduce accommodation fees by 40 per cent. The protesters took to the streets in outrage against the fees, which they said had risen by 56 per cent since 2009.

The cost of student accommodation has climbed聽诲谤补尘补迟颈肠补濒濒测听in recent years 鈥 the latest by commercial property adviser Bilfinger聽GVA estimated聽that the average student in London pays a staggering 拢220 a week for rent alone. The research, which focused on 28 of the main student towns and cities in the UK, highlighted Swansea and Leicester as being the only two areas bearing an average rent of less than 拢120 a week.

This is only making it harder for those from poor backgrounds to make ends meet, say聽student organisations,聽which draw attention to the fact that maintenance grants are being scrapped in favour of higher living cost loans. The National Union of Students (NUS) argues聽that sky-high rent prices are聽resulting in the 鈥渟ocial cleansing of working-class students from education鈥.

And although students in the South of England might聽feel that they聽have been hit the hardest by rising rent聽prices, the issue is聽not limited to London.聽

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Gordon Maloney, former NUS Scotland president and an active member of the , which is calling for rent controls in Scotland,聽said聽that聽despite free tuition,聽Scottish students are also suffering聽the effects of rising rent prices.聽

鈥淚n parts of Edinburgh in particular, rents have been going up by as much as 10 per cent a year, and student support isn鈥檛 anywhere near keeping up with that,鈥 he said.

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According to the National Association of Student Money Advisers (NASMA),聽the root of the聽problem聽lies in higher education鈥檚 having become 鈥渕ore corporate鈥 and universities more competitive. This聽trend has聽led to halls聽that were once聽owned by universities being聽let out聽to external companies.聽

The Bilfinger GVA study聽highlights this, showing that the private rental market owns by far聽the largest share of term-time student accommodation, catering for聽49 per cent of students.聽

On top of this, NASMA argues that the pressure on universities to win over students with lavish accommodation has resulted in the creation of more high-end housing that is far out of the average student鈥檚 price range.聽

Kate Chapman of Collegiate Student Accommodation, which provides 鈥渓uxury鈥 accommodation including properties equipped with gyms and cinemas, said that the company was developed because there was a 鈥渄emand for higher quality accommodation in the student sector鈥.聽聽

However,聽a recent study conducted by the student housing charity argues聽that most students are not seeking luxury and that they should be directly included in planning聽processes to ensure that their needs are met.

鈥淭he authors of this report know of no evidence that students want studio flats 鈥 and certainly not 14 per cent of students, which would mirror the level of purpose-built stock in London. This is聽a聽developers鈥 and not a consumers鈥 agenda,鈥 the report states.

Ms Chapman聽agreed聽that there was a gap in the market for cheaper, quality student housing but聽said that without聽external聽funding there was little chance of this materialising. However,聽she聽added聽that Collegiate intended to introduce a charitable fund later this year that will offer聽successful applicants聽a bursary to help with living costs.聽

Driven to consider study abroad?

But have increases in the cost of housing, especially when considered in light of the rise in tuition fees, pushed聽UK school-leavers聽to聽look at universities further afield?聽A undertaken by the British Council found that the number of young Britons considering studying abroad has soared in recent years, with almost 60 per cent of those who did claiming to have been motivated by the increase in fees in the UK.

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Jamie Dunn, advising and marketing director of the Fulbright聽UK-US exchange programme, said that the temptation of scholarships in US universities might be hard to resist.

British student聽Harry聽Edwards,聽who is studying at聽the University of North Carolina at Chapel Hill,聽said聽that the rising cost of accommodation聽was聽a factor in聽his decision聽to聽study in聽the US.

鈥淭he rising cost of getting a degree in the UK was definitely a factor. I paid more attention to rising tuition, but rising living costs were also important, especially when you can鈥檛 even get a student loan that covers all of your living costs,鈥 he said.

Although he shares a dormitory in the US, he pays the equivalent of 拢135 a week, which is not unlike the聽price of student housing聽in the UK.聽But he has scholarships聽in place to assist聽with tuition聽fees, so he聽believes聽that聽he will leave with less debt than his friends back home.

Gemma聽Collins from Blackpool, who is studying at Harvard University, pays 拢4,000 a year for room and board.聽

She聽claimed that聽while it was聽not the main factor, the cost of聽higher education聽in the UK聽did come into consideration when she was deliberating over where to study. She聽described her living situation as 鈥渁mazing鈥 and said that the standard of accommodation聽offered聽in the US was 鈥渘ot comparable鈥澛爐o that聽in the UK.聽

However, she said that studying in the US should聽not be thought a quick fix for British students struggling聽to make ends meet in the UK because not every institution will be cheaper.

Rob Ellis,聽chair of NASMA,聽warned students that聽housing聽in the US聽could be just as expensive as it is in the UK and that it was important to remember the quality of UK universities.

And聽English literature graduate Louise聽Clark聽argued that her experience of living in student accommodation in Boston made student halls in the UK look like paradise.

鈥淚 was paying more money for a shared room in a small apartment on campus in Boston than you would for a spacious one-bedroom student hall even in London,鈥 she said. 鈥淟iving in a city is expensive, and it is important to look at things on a greater scale outside of the UK.鈥

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However, with the NUS stating that 鈥渢he rent in London for students is more than 100 per cent of the maximum loan and grant available鈥, the number of students聽crossing the Atlantic or venturing elsewhere in Europe聽to gain a degree could continue to grow.

POSTSCRIPT:

Print headline: Can鈥檛 pay, won鈥檛 stay? Rising rents hit students

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