British university towns are facing a pressing issue as they grapple with a severe shortage of student accommodation. According to real estate adviser CBRE, more than 350,000 purpose-built

student beds are needed across the UK's 30 largest university towns and cities to meet the growing demand from both domestic and international students.

The scarcity of student beds is expected to exacerbate the UK's already tight rental market, leading to rising rents and putting additional financial strain on young people, who are particularly vulnerable due to their limited income. Tim Pankhurst, executive director at CBRE, highlights that rents in towns and cities are on the rise, and the private rental sector has experienced a decline in available rooms.

London is experiencing the most acute shortage, with a shortfall of over 100,000 beds, representing half of the expected demand and marking a 45% increase compared to 2017-2018. The surge in students pursuing higher education, coupled with a rise in overseas enrolments, has driven the demand for purpose-built student rooms in recent years.

The shortage of accommodation is forcing students to seek alternatives in the residential rental market, where prices are escalating due to higher mortgage costs for landlords, making buy-to-let investments less appealing. James Hanmer, accommodation specialist at Savills, warns that the shortage has become extreme in some cities, such as Bristol, where demand has outpaced the delivery of purpose-built student beds.

Richard Ward, head of research at student accommodation data provider StuRents, expresses concern that the housing shortage could harm the UK's attractiveness to overseas students and potentially deter domestic students from pursuing a university degree due to escalating accommodation costs.

Analysts note that the construction pipeline for purpose-built accommodation has been slow, partly due to potential resistance from councils in approving building plans and developers opting for buy-to-let investments, which yield higher rental income. Richard Smith, CEO of student accommodation operator Unite, points out that planning applications are taking longer to process since the Covid-19 pandemic began.

To address the housing crisis, university towns need to focus on increasing the supply of purpose-built student accommodation to meet the growing demand and prevent further escalation of housing costs for students. Failure to do so may not only impact students' access to affordable accommodation but also the overall attractiveness of UK universities to both local and international learners. Photo by Derek Harper, Wikimedia commons.