Student digs: how we went from dingy halls to luxury pads

An NUS accommodation costs survey found that the amount of private purpose-built student accommodation on the market rose from 4 per cent to 39 per cent in the decade from 2003 to 2013.

At the same time purpose-built student accommodation offered by universities fell from 96 per cent in 2003 to 61 per cent in 2013.

According to the survey, the average cost of university accommodation rose from £59.77 a week in 2002 to £118.49 in 2013, while the average weekly student rent charged by private providers is now £140.07.

‘Less affordable options’

Colum McGuire, NUS Vice President (Welfare) told Channel 4 News: “Developers have seen opportunities to fill the gaps where institutions are less able to build and have invested heavily in high end student accommodation.

“This has created more of a market in student accommodation and we are seeing less and less affordable options on offer.

“We’ve seen a huge growth in universities either going into a partnership agreements with private providers for accommodation or outsourcing it to them completely.

“This gives more financial security to the institution by not having to commit to the capital spend or long term investment.

“The downside to this is having less of a say in how private accommodation is managed and, most importantly, priced.

One of the most significant findings in the NUS survey is the rapid decline of traditional cheaper student accommodation – non-ensuite, self-catered single rooms.

The amount of non-ensuite rooms went down from 36 per cent in to 32 per cent in 2013.

In contrast, the survey found there has been a rise in ensuite accommodation offered to students.

Universities now offer 49 per cent of ensuite rooms compared to 74 per cent in the private sector.

‘Safe accomodation’

Paul Harris, director at student housing provider UNITE, told Channel 4 News that private halls provide “high-quality, well-located, safe accommodation that is close to university campuses, transport and local amenities.

He added: “Our study bedrooms include all bills including insurance, heating, electricity and wi-fi internet.

“Over the last few years we have absorbed increasing energy prices and our rents have increased at less than the rate of inflation.”

Mr Harris also said that private halls have “helped to fill the accommodation gap as the number of university students has doubled over last 20 years and the number of university beds has stayed flat. ”

“The private sector currently provides around 180,000 safe, comfortable rooms for students who otherwise might end up in less suitable accommodation.

“We work closely with the NUS and our university partners to provide a seamless experience for students that is integrated with their university experience.”

Peter Eaton at Aukett Fitzroy Robinson, the architects behind the development of the Imperial College campus in West London, added: “Universities are increasingly targeting the global market and following the rise of student fees there are higher expectations for the entire university experience.

“While paid separately, accommodation now ranks alongside the course, location and reputation that a university offers, so universities want high quality, well designed accommodation to attract the best students.”

“Students also now expect more for their money. More than ever they need value for their fees and they expect to see this not only in their courses but also their accommodation.”

The NUS’s Colum McGuire says many universities are also “starting to offer bundle deals” which include things like gym use or other campus commercial services in the rent, giving the notion of getting something for “free”.

“The reality of course is that the price is built into the rent and the student is paying for something they may not necessarily want or need if they had the choice to buy separately.

“Additionally, private providers are often competing with both institutional accommodation, and increasingly aggressive marketing tactics from private landlords and letting agents.

“As such, many are investing hugely in commercial marketing strategies to try to ensure that they fill their rooms.”

Student finances

A study by credit report group Experian found that increasing fee levels, living costs and static maintenance loans may cause more students to choose to live at home if this is an option for them, as they try to minimise the debt they incur during their studies.

The number of students opting to stay at home in England has risen from 12 per cent in 1996 to 27 per cent in 2013, according to the NUS survey.

While nine in 10 students have some form of credit outside their student loan – mainly either an overdraft or credit card – poor credit management is already evident and this could negatively impact on students’ future financial independence.

Under the new funding system, new students eligible for the basic rate of loan will receive £5,500 to cover living costs for the 2012-13 academic year.

On the basis of average rent figures, students receiving this level of support would be left with well under £1,000 to cover other living costs after rent is deducted.

If renting an averagely priced room from a private provider, they would be left with a shortfall of over £800 before other essential costs such as food and travel are factored in.

Long-term impacts

Research has suggested that, for many students, increasing living costs and inadequate student support have led to a growing reliance on part-time work. Over a fifth of students now work more than 20 hours a week.

In addition, with employment increasingly hard to come by, students may be more likely to take on riskier debt. There is already evidence that large numbers of students are borrowing at high interest rates.

Julie Doleman, from Experian Consumer Services, told Channel 4 News: “University is the first time many young people will have had such a degree of autonomy over their day to day finances – both significant income in the form of their student loan as well as access to credit services such as overdrafts, credit cards and even personal loans.

“Crucially, you should never miss a payment if you can avoid it at all. At university you’re shaping your future in many ways, including financially.

“Any missed payments will stay on your credit file for six years – well after graduation and could impact on how credit worthy you are viewed when you look for credit to finance a car, travel or get a mortgage.”