2023-07-24-莱坊-UK_Student_Housing_Market_Update_Q2_2023_3页_658kb

UK Student Market Update Summary for Q2 2023 (Knight Frank)

Supply Trends

• New student beds delivered in 2023/24 academic year decreased by 28% to fewer than 15,000 beds, below the five-year pandemic-average of nearly 24,000 beds. Leeds, Colchester, and Bristol were top delivery cities.
• Only 50 new development schemes completed, half the 2016/17 level, due to factors like rising build costs, labor shortages, and financing challenges, with private sector accounting for 72% of beds.

Student Demand and Growth

• Student population reached record levels, with 2.2 million undergraduates at start of academic year, expected to grow by 16% (or 263,000) by decade-end, potentially reaching a million new applicants annually.
• UCAS projections show a 60% increase in international student applications, signaling strong attraction of UK higher education institutions.

Pipeline and Construction

• Total student accommodation pipeline across UK stands at ~132,490 beds, with 22% under construction and 44% with planning permission; London, Nottingham, Leeds, Bristol, and Birmingham lead in pipeline.
• Construction costs inflated by 8.7% in 2022, but BCIS forecasts easing to +4.4% in 2023 and total +11.1% by 2024-2027, supporting investment viability.

Rental Market

• Tight supply in broader rental sector, with UK average student accommodation rental growth at ~5% in 2022/23, expected to rise 6-7% for 2023/24; occupancy high in demand-constrained cities.
• Student survey and Rightmove data show insufficient options, driving higher rental values across 58 out of 59 markets covered.

Investment Activity

• Q2 2023 investment rebounded to £1.1 billion, up from £135 million in Q1, despite economic caution; key deals include large portfolio sales and forward funding agreements.
• Developers are shifting to fixed-price contracts as tender inflation stabilizes; property quality and university-town focus remain priorities.

Key Events

• Unit Trust responds to market shifts; student sector is adapting to post-pandemic trends with infrastructure and funding dynamics evolving.