The results of a study by real estate advisor, DTZ, suggest that London is heading for a shortage of affordable student accommodation, as most planned development over the next two years is occurring in the more expensive zone 1 area of the city.
News and business analysis for Professionals in International Education
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Accommodation drought in London?
The problem stems from the fact that private developers are looking to attract wealthy international students by offering accommodation in desirable central locations. Indeed, according to the DTZ report, around 75% of purpose-built student accommodation can be found in Zones 1 and 2, the most expensive areas, with the figure rising to 83% for private student accommodation.
Sarah Jones, associate director of the DTZ education team, believes that this trend is the result of developers “trying to mitigate demand risk”. However, she warns that “increased fees are likely to see demand shift towards more affordable accommodation,” adding, “Perhaps it is time for universities to develop a really competitive offer in response to the private market.”
This, however, does not seem likely. If anything university accommodation fees are set to rise. On the back of insufficient government funding and a cap on student fees, universities may well turn to accommodation as an alternative source of funding. The result will be a paucity of affordable student accommodation in London, which could lead to less wealthy students being forced elsewhere.
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