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UK Student Accommodation Crisis Intensifies Amid Rising Rents and Housing Shortages

Written by: MaryAnne Bowring 28/01/2025
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The Rising Cost of Living and Housing Shortfalls

There is now a crisis in UK student accommodation for many students, with the cost of living spiralling to unbearable heights and housing shortfalls worsening. This makes affordable accommodation a challenge. While finding acceptable housing for most students has been difficult for a long time, the situation worsened this year. The matter is inextricably linked to a more significant population trend: Generation Rent. Generation Rent simply denotes those aged 18-40 who cannot afford houses due to seriously high house prices and very low disposable income.

This group has been priced out of the housing market, forcing many to remain renters longer than previous generations. Known as Employed with No Disposable Income (ENDIES), the Generation Rent group faces severe challenges in saving for the high deposits required to buy property, leaving little hope of escaping the rental cycle. This situation has made it increasingly challenging for first-time buyers to enter the housing market.

Declining Homeownership and Rising Demand for Rentals

According to an analysis by the Office for National Statistics (ONS) based on the 2021 census, the number of homeowners in the UK has fallen by half a million in the last decade. Conversely, the number of renters has risen by 1.3 million, representing an enormous rise in demand for rental properties. Members of Generation Rent find that the students are the biggest victims of this renting crisis. Their studies indicate that of all on-campus university rooms available in the UK, only one in six is available for the students. Only 17 per cent of these on-campus houses are, therefore, affordable to a student budget for most students to live within their budget ranges.

The State of On-Campus Accommodation

Despite its small-scale nature, it assessed 49,161 rooms across nine universities. This research covers various rooms with different facilities, including shared accommodation, ensuite, and self-catered or catered options. However, it excludes the larger and more expensive ones, such as studios and family suites. For the purpose of this analysis, Generation Rent defined affordable accommodation as one that costs no more than 55 percent of the maximum student loan amount. Data shows that UK universities have less than half the affordable on-campus housing the students need. The NUS recommends that 35 per cent of the rooms be sold at that price to students. Still, universities fall short of that target by meeting about half the demands for affordable on-campus accommodation.

The Broader Rental Market Crisis and Its Impact on Students

These are compounded by a broader crisis in the UK's rental market, where rents have increased due to high demand and a lack of supply. This pressure is more acutely felt by first-year students who are new to university life and are most likely to be more vulnerable to the rising costs. Students attempting to make ends meet and afford high rent generally experience financial pressure, which contributes to poor academic performance and increased stress levels.

The Need for Affordable and Stable Living Conditions

Students need affordable accommodation to grow. Activists say suitable accommodation and stable living conditions allow students to settle down, focus on their studies, and succeed in the learning process.

Calls for Universities to Address the Crisis

Advocates for the cost-of-living crisis are pushing UK universities to rethink their approach to on-campus housing and create more affordable options that correspond to students' financial realities. The increasing rents and scarce options for affordable housing make the accommodation crisis increasingly relevant to students' concerns and portend an uncertain future for higher education in the UK.



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