The UK’s student housing sector faces unprecedented challenges as private rents have risen by 5.1% in the year to June 2023, the fastest increase since records began in January 2016.
Additionally, data from Rightmove reveals that requests to view available rental properties have skyrocketed from 6 in 2019 to 20 in 2023, with a staggering 30 requests per property in North West England.
The severe situation has caused a dramatic 50% increase in applications for rental guarantors over the past six months, according to UK rental guarantor service Housing Hand. Students in cities such as Bristol, Manchester, Durham, and Glasgow are finding it particularly challenging to secure accommodation for the new academic year.
Graham Hayward, chief operating officer at Housing Hand, stressed the importance of preparation: “Renters are making sure they are well prepared, with all their paperwork in order ready to move fast to secure the perfect property.
“It’s a very competitive environment right now, which can be very stressful for those trying to find a rental home, so it’s important for renters to be ready to act as soon as they view a home they like.”
The lack of supply has forced many students to compromise, accepting less space or paying for larger properties than needed. Some are also enduring longer commute times to campus.
Universities’ changing lecture delivery methods also impact accommodation choices, requiring students to consider optimal locations for travel to various class sites. Social considerations have become pivotal as well, with students prioritising housing that fosters social interaction and support networks.
James Maguire, head of sales and business development at Housing Hand, said: “Looking at total cost will allow them to budget accordingly. Purpose-built student accommodation still proves good value in the current cost-of-living climate, as all bills are included, as well as other add-ons such as fitness centres, secure bicycle storage, and so on.”
With A-level results day fast approaching, competition for rental properties is expected to intensify. Research by Save the Student shows that 46% of students now live with private landlords during term time, an increase of 6% since 2022.
Housing Hand warns that the situation will likely persist for at least the next two years as rental stock continues to dwindle and demand stays high.
