Not sure I understand how there can be a student housing boom in midst of general higher education gloom (though packing as many rooms as possible into a building and charging the highest rents for them you can is obviously part of it) www.ft.com/content/8903... - ThreadSky

julesbirch.bsky.social • 28 days ago

Not sure I understand how there can be a student housing boom in midst of general higher education gloom (though packing as many rooms as possible into a building and charging the highest rents for them you can is obviously part of it)

https://www.ft.com/content/8903fd8e-3ca5-4fb5-9092-77fc29faefed

Comments

urbaneprofessor.bsky.social•28 days ago

I'm guessing it's extremely local/regional, and demand is high in those places where prestigious universities can still attract a lot of the wealthy, young, international students who are attracted to the PBSA (e.g. London, Edinburgh, Manchester) 🤔

julesbirch.bsky.social•28 days ago

I think so - and that PBSA has always been seen as an attractive proposition if you want to invest in residential with fewer of the political risks they see in normal PRS

urbaneprofessor.bsky.social•28 days ago

yup, and you want a quicker return and to get your investment out quicker than lending to an RSL or, as you say, corporate PRS. I'm fairly sure one of the reasons for its popularity in Edinburgh is you can duck affordable housing requirements, avoid PRS reform, and you can let it in August as well

resi-analyst.bsky.social•28 days ago

Recent planning application by Axo Student Living to convert one of their student buildings into co-living was refused
https://planandregulatory.coventry.gov.uk//planning/index.html?fa=getApplication&id=272013

resi-analyst.bsky.social•28 days ago

From the covering letter:
"It is well documented in recent times that demand for PBSA in Coventry has been, at the least, volatile. This has resulted in high vacancy rates across a number of PBSA properties."

annaclarke.bsky.social•28 days ago

That's interesting. Wonder whether they might convert a few bedrooms to being better communal space and then reapply? (Though I've never seen the logic of saying self-contained studios are too small, when the alternative for most occupants is shared housing, which might be a tiny room)

julesbirch.bsky.social•28 days ago

Have come across applications to switch out of PBSA in Cardiff too - and they might be able to make more out of temporary accommodation

resi-analyst.bsky.social•28 days ago

Is that the Watkin Jones Custom House site?
Permission for 447 student beds but will resubmit for 400 co-living in coming months.

julesbirch.bsky.social•28 days ago

This was a while back amid a real glut of new student schemes - is renting a bedroom now co-living?

resi-analyst.bsky.social•15 days ago

Liverpool this time https://www.placenorthwest.co.uk/dwindling-student-numbers-prompt-change-of-use-in-liverpool/

resi-analyst.bsky.social•28 days ago

It’s an expensive bedroom!

annaclarke.bsky.social•28 days ago

A bedroom with a hob and an ensuite!

werenotwizards.com•28 days ago

Because the bastards are charging 18 year old kids £800 per month for a room. Because it's for students it falls out with any private rental legislation in terms of rent control. Ironically, it's paid by SAAS so taxpayers are again paying for private greed.

werenotwizards.com•28 days ago

So kids are ending up £1000s in debt to live near their chosen university, where the government pays the huge rents now, then graduates pay 1000s in interest when paying back SAAS. It's corporate theft and corporate greed. As per usual.

annaclarke.bsky.social•28 days ago

It's a strange one that - many universities (Leeds, Bristol, etc) seem to be planning for significant increases in student numbers. Not really a problem for housing (assuming the purpose built stuff can attract existing students out of the PRS). But odd given the fall in numbers reported elsewhere.

abigaildombey.bsky.social•28 days ago

When I was at Brighton Uni, our housing developments were to meet our target to provide accommodation for all first year students.

They weren’t based on any assumed increases in total student numbers.

annaclarke.bsky.social•28 days ago

Some do seem to be planning for growth in numbers. Eg https://www.bristolpost.co.uk/news/bristol-news/more-20000-extra-student-beds-9160183.amp

abigaildombey.bsky.social•28 days ago

However increasing numbers of private developers across the UK are just building student accommodation NEAR universities, rather than for (or with) the Unis concerned.

annaclarke.bsky.social•28 days ago

Does that matter?

abigaildombey.bsky.social•28 days ago

Not necessarily, though rents tend to be higher.

But I thought it helps to explain the boom in the market, when you realise it’s for-profit developers building the accommodation where they see fit, rather than universities balancing their meagre budgets.

annaclarke.bsky.social•28 days ago

Yes, the rents are often quite a lot higher. The universities aren't involved financially, but the companies building the accommodation will always have a close eye on the university's plans for student numbers - unless those are over-optimistic?

hannahfearn.bsky.social•28 days ago

Those large cities with RG universities will continue to have very large student populations and I suspect the unis will increasingly wash their hands of the responsibility to house due to the cost. So there's an opportunity there.

annaclarke.bsky.social•28 days ago

I don't think most of those unis have ever done more than house the first year undergrads. But I'm hearing about redundancies across very similar universities to the ones that say they're going to grow, which seems odd (unless it's just a realignment of students between different courses?)

syd-e13.bsky.social•28 days ago

The plan generally seems to be sweating staff harder in terms of teaching - those who are left are having their teaching loads doubled. (And their research hours cut, but that seems to be being seen by management as a "tomorrow problem".)

hannahfearn.bsky.social•28 days ago

I think there's a lot of axing small courses. Which is desperately sad and regressive, but a financially a sensible coping mechanism.

annaclarke.bsky.social•28 days ago

So not so much a fall in student numbers, just a consolidation of students onto larger courses that can be taught more cheaply?

rickchasey.bsky.social•28 days ago

Yeah or are more popular with international students (££££)

michaellondonsf.bsky.social•28 days ago

There is a long (and well-understood) tendency in speculative property markets for booming supply to overshoot demand and put many developers & investors in bankruptcy. Just remember the office market in London in 1990-2.

julesbirch.bsky.social•28 days ago

True and selling accommodation they still own would be a short term fix for their finances - but had thought there was already a glut of new student accommodation in places like cardiff

supernovalabs.co.uk•28 days ago

This is a market failure.

leemelin.bsky.social•15 days ago

Based on my recent experience, not held to same standards as resi developers. Underpinned by tax payers via student loan and many offshore the profits. It feels a bit I like the Wild West. Exploiting young people who don’t have much choice.

mr.place•22 days ago

Ah, but you fail to acknowledge that real estate is a well-paid job for stupid people 🙋Some of my best friends are piling into a sector that is a UK demographic disaster & counter to “popular” political discourse. Also see - life science & film studios. I stuck to retail, it'll come good one day😉🤣

fidaisyg.bsky.social•28 days ago

Time for some serious consideration of how student accommodation can be repurposed in areas where supply exceeds demand.

Packed in rooms may prevent other housing uses, even if there is wider demand at lower rents

Comments

Posting Rules

Reply