Affordable Accommodation For Students In London

I manage a small successful "not for profit" housing association called Cass and Claredale that houses 380 university students in east London

. We recently embarked on a major refurbishment of one of our largest building and book a decision to buck the trend and not to go to en-suite; instead we developed mostly four bed flats with a shower/bathroom ad kitchen diner. If we look at the supply of new student accommodation in London over the last 10 years it has been almost exclusively en-suite, with the most common configuration being six bed flats. The price charged for en-suite can be at least 20 per cent higher in London, and rent can easily be in excess of 150 per week.

The price level charged is mostly a reflection of a mismatch of demand over supply. Currently there are 200,000 students in London unable to access purpose build accommodation (Frank Knight London Student Living Report 2009). That is why most private suppliers are concentrating their efforts in London now. For the foreseeable future the majority of students in London will live in individual flats and houses, often in condition well below their expectations.

The introduction of licensing for HMO (Houses of Multiple Occupancy) has further restricted the availability of rented accommodation. The national landlords were reducing their "buy to let" student portfolios because of the introduction of HMO licensing (King Sturge UK Student Accommodation Market 2008). Because of this, students studying and wanting to live in central and inner London location are increasingly relying on specialist student accommodation provides, who are offering only new high quality en suite accommodation, often only offered on year long contracts. Private suppliers would argue correctly that they have no choice but to offer the high end model at a premium price, as it is the only way they can afford to buy lad in London and make a profit, when they are competing against private residential developers.

Universities are increasingly looking to attract international students and the perception is that en-suite is what they want and that they are willing to pay for it. In addition en-suite rooms are also more attractive for conference and summer trade. Universities are also more likely to opt for a new build option (which is likely to be en-suite) as opposed to refurbishment of as existing building, as new build is VAT exempt, but refurbishment are not. As universities are not able to claim back VAT on refurbishment, new build is 15 per cent more efficient to develop! The reasons listed above go a long way to explaining why we as an industry are where we are. One has to ask: is this what the students want and is it sustainable in the long-run?

by: Allan Hilton

POST COMMENT

Providers Of Rented Accommodation Edinburgh Renting Edinburgh Student Accommodation Deciding On Accommodation In Gurgaon Cheap Accommodation & Transportation Near Tunbridge Wells 5 Different Types Of Accommodation In Edinburgh Importance To Build Garden Shed In Accommodation Quick Guide To Accommodation In Oxford Quick Guide To Five Star Accommodations In London Accommodation In London Jersey Accommodation Facilities Catering To The Interests Of Tourists Belonging To Different Classes The Perfect Adelaide Hills Accommodation Vacation Villa Orlando Provides Resort-like Accommodation Investment In Uk Student Accommodation Up By Almost 50% Report Cbre