Around four students are chasing every purpose built room in London amid a shortage of accommodation, new research has revealed.
On the eve of A-level results the figures from property consultancy Savills suggest many school leavers who have not secured dedicated student digs will struggle to get some, forcing them into the general private rental sector.
Savills estimates there are 3.8 people chasing each purpose-built student bed in the capital. Its data showed 344,065 undergraduate and postgraduate students in London compared with 91,351 beds in 2021-22.
Accommodation search engine StuRents says planning applications were lodged last year for just 27,000 student beds in the UK compared with a peak in 2016 when 72,000 were proposed.
James Hanmer, head of UK PBSA investment and co-living at Savills cited factors such as “competition from residential developers, debt considerations, the cost of construction and planning challenges”.
He added: “If we want to continue attracting the strong calibre of students to London, it’s important we recognise the shortfall of beds and facilitate higher delivery rates.”
Huw Forrest, head of UK student housing, living capital markets at property agent JLL said: “The acute shortage in London can be attributed to various factors, including a very challenging planning environment with requirements for agreements with universities, affordable rents, along with high Community Infrastructure Levy (CIL) payments. Additionally the pandemic-induced slowdown in construction coupled with build cost inflation have amplified the issue.”
FTSE 100 landlord and developer Unite Students’ chief executive Richard Smith said: “The appeal of world-class institutions and world-renowned culture means London is the UK’s largest student market – but one that has a significant accommodation shortfall. We’re focused on delivering our near-record development pipeline, including three schemes in London, to help meet this demand.”
Reservations across the firm’s UK sites, which includes Hayloft Point in Aldgate (pictured), stand at 98% for the soon to start academic year, compared to 92% for 2022/23.
