knight-frank-ucas-student-accommodation-survey-report-2020-6841

Student Accommodation Survey 2020 knightfrank.com/research A survey of 60,000 students analysed by Knight Frank & UCAS JAMES PULL AN, HEAD OF GLOBAL STUDENT PROPERT Y, KNIGHT FRANK his year's Survey captured the PBSA this means delivering the highest and will continue to so As voices of over 60,000 young quality accommodation possible within universities rely on the private sector to people, split across current the constraints of viability Operators accommodate a greater proportion of students and new applicants from the must be quick to identify and prioritise students, scrutiny on private providers UK and abroad and the results give us the elements in accommodation that are will intensify new insight into today’s student most important to students Furthermore, as more second and The role that student third-year students choose to remain in T Overall, it is encouraging to see that the survey shows high levels of student accommodation plays in supporting or return to PBSA, the sector will need satisfaction within the purpose-built wellbeing, is also reinforced, with the to understand the priorities of these student accommodation (PBSA) market, survey highlighting the importance students as well as those of first-years more so in fact than the alternatives that students place on the quality and available in the private rental sector usability of the social and amenity space university is built around where they provided This must be an essential live, regardless of which year they are in feature of all new PBSA The ability of accommodation to create a Affordability is, once again, the number one issue facing students, whilst value for money is the most important SPONSOR D I R E C TO R O F U C A S M E D I A RESEARCH JA M E S P U L L A N SANDER KRISTEL OLIVER KNIGHT H E A D O F G LO B A L S T U D E N T P R O P E RT Y E D I TO R KNIGHT FRANK RESEARCH OLIVER KNIGHT UCAS ownership has overtaken university home for the first-time, will be the future to live For investors and operators of owned and operated accommodation measure of our success DR DAVID BEST, DIRE CTOR OF ANALYSIS AND INSIGHT, UCAS BEN SERLE ST U D E N T P R O P E R T Y P R F R E D DY F O N TA N N A Z H E A D O F ST U D E N T P R O P E R T Y R E S E A R C H M AT T H E W B O W E N F or the second year, I am decisions are Student mental health provide more insight into the decision pleased to introduce our has, quite rightly risen up the agenda making process overall We show how Accommodation Survey in the last twelve months, and the decision making varies, but also what Report, which aims to understand the choice and amenity provided by their information students used in order to preferences, thoughts and motivations accommodation is an essential element make their selections; peer reviews are of students about where they live The of a good student experience, and becoming important with nearly half of report tells us a lot about how students consequently good mental health respondents having used them are choosing their accommodation and M E T H O D O LO GY: T H E S U RV E Y WA S U N D E RTA K E N I N T H E P E R I O D B E T W E E N F E B R UA RY A N D N OV E M B E R A N D C O M P R I S E S B OT H A P P L I C A N T S, C U R R E N T S T U D E N T S A N D N E W S T U D E N T S W H O S TA RT E D U N I V E R S I T Y I N T H E /2 AC A D E M I C Y E A R W E R E C E I V E D A R E S P O N S E F R O M 0,8 A P P L I C A N T S, W H O A N S W E R E D T H E A P P L I C A N T S U RV E Y F O R M , A N D 0, 9 C U R R E N T O R N E W S T U D E N T S, W H O A N S W E R E D T H E C U R R E N T S T U D E N T S U RV E Y F O R M T H I S R E P O RT R E P R E S E N T S T H E K E Y F I N D I N G S F R O M T H E S U RV E Y O F C U R R E N T S T U D E N T S O N LY community of individuals, often leaving factor influencing decisions on where M AT T H E W B O W E N W R I T T E N BY The number of bed spaces in private A student’s whole experience of When the number of 18 year olds With such an excellent response to the crucial role it plays in the overall begins to rise in 2021, the development the survey, providing rich insight into student experience of accommodation that meets required a key part of the student experience, standards may be more challenging we hope their views will help to shape had researched accommodation prior and will become important elements of your thinking about the student to selecting their final university estate and asset planning accommodation challenge, now and in The majority, 57%, of students highlighting how interdependent these This year we have been able to the future 4 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 Accommodation plays a crucial role in the overall student experience Understanding the needs and motivations of students when they choose where to live will help the sector plan for the future A record-breaking 39% of all 18 housing providers, not least because UCAS/Knight Frank 2020 Student year olds in the UK submitted international students are more likely to Accommodation Survey The responses an application to start studying live in PBSA than domestic students deliver a unique insight into the The overall cost of going to university at UK universities in September 2019, preferences and concerns that students according to data from UCAS Applicants is also under the spotlight Political have when it comes to their housing from outside of the UK also increased to uncertainty may have meant that the requirements their highest levels on record Overall, Augar Review has been kicked into a fifth of all applicants (20.7%) for study the long grass for now, but the specific of the make-up of the student population, this year were from outside the UK findings for our sector, should not be but where appropriate the data has been dismissed Within the market itself, this weighted to better reflect the current one of a host of factors underpinning means greater scrutiny of the role that profile of students the student accommodation market, the private sector plays in delivering alongside an undersupply of purpose accommodation Increasing participation rates are just To counter this, operators must be built student accommodation (PBSA) Responses were broadly representative This report represents the key findings from the survey of current 52% 83% OF FINAL YEAR STUDENTS IN OF STUDENTS IN NEWCASTLE ARE MANCHESTER INTEND ON REMAINING IN E I T H E R ‘ H A P P Y ’ O R ‘ E X T R E M E LY H A P P Y ’ M A N C H E S T E R A F T E R T H E Y G R A D UAT E W I T H T H E I R P R I VAT E P B S A 53% 73 % students including their own view of the and investors looking to residential able to demonstrate that they are meeting quality of PBSA available and the role it PBSA IN LIVERPOOL HAS THE OF LEEDS STUDENTS LIVING IN investment as a way of securing their obligations to students Our survey plays in the student experience It also B E S T- R AT E D S O C I A L S C E N E W I T H % P B S A R AT E D T H E Q UA L I T Y O F T H E I R outperformance suggests that this includes providing explores the factors influencing their R AT I N G I T A S ‘ G O O D ’ O R ‘ E XC E L L E N T ’ AC C O M M O DAT I O N A S ‘ G O O D ’ O R a product that offers value for money, accommodation choices and for the first is political Brexit is still unresolved at that provides an environment in which time the difference in opinion between the time of writing The lack of clarity students can thrive and succeed, and in prospective new undergraduates, surrounding fees for EU students which parents are able to have trust applying to university for the first time, More than 60,000 students from and students coming to the end of their However, the most pressing challenge following the UK’s departure from the EU poses a challenge for student across the UK responded to the first-year "Our survey delivers unique insight into the preferences and concerns that students have when it comes to their housing requirements" ‘ E XC E L L E N T ’ 4% 1% O F S T U D E N T S I N L E I C E S T E R I N D I C AT E OF SECOND OR MORE YEAR STUDENTS T H AT T H E I R P R I VAT E P B S A R E P R E S E N T S IN SHEFFIELD HAD SECURED THEIR ‘ G O O D ’ O R ‘ E XC E L L E N T ’ VA L U E F O R AC C O M M O DAT I O N F O R T H I S Y E A R B Y MONEY THE END OF MARCH 83% O F S T U D E N T S I N B AT H W E R E S AT I S F I E D MAT T BOWEN HEAD OF STUDENT PROPERT Y RESEARCH WITH THEIR PBSA 65% O F S T U D E N T S I N LO N D O N T H AT D I D N ’ T L I K E T H E LO C AT I O N O F T H E I R AC C O M M O DAT I O N S A I D I T WA S TO O FA R AWAY F R O M U N I V E R S I T Y S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 We look at the main themes and key takeaways from this year's survey S AT I S F A C T I O N W I T H P R I V AT E AFFORDABILIT Y IS THE SUPPORTING STUDENT I N T E R N AT I O N A L CO-LIVING IS Overall, more than three quarters of FOR STUDENTS DESIGN AND SERVICE IS KEY KEY OCCUPIERS Nearly half of the respondents to our survey PBSA IS HIGH students living in purpose-built student NUMBER ONE ISSUE It comes as no surprise that value for WELLBEING THROUGH In last year’s report we noted that the STUDENTS WILL REMAIN THE NEXT STEP International students are the most likely indicated that they would move directly accommodation indicated that they were money and the overall cost of student role of accommodation in supporting to be renting, according to our survey, and into the private rented sector immediately satisfied with their accommodation choice accommodation are the two most important student wellbeing was becoming more separate data from HESA suggests they’re following their graduation Providing these for the year (78%), slightly higher than those factors influencing where students live, fully recognised This year, we wanted to more likely to live in PBSA than domestic graduates with high-quality purpose-built living in the private rented sector Across according to our survey Affordability remains delve deeper and identify what support students Of interest to accommodation rental accommodation in the right areas and the UK, around 30% of full-time first-year a key topic within the wider housing market, accommodation providers can put in place providers, this group of students at the right cost in the form of co-living or students live in private purpose-built student and the findings of the Augar Review Some 81% of respondents suggested is also the most likely to stay in the same build-to-rent schemes, is a real opportunity accommodation (PBSA), up from 22% five brought the topic into greater focus within that the creation and running of organised accommodation for the duration of their for residential investors According to the years ago A further 40% live in halls or the student sector Development figures groups or clubs was either “important” or study with 43% saying that the option to stay 2019 Knight Frank Residential Investment accommodation provided by the university suggest that the sector is responding to “very important” in supporting wellbeing in the same accommodation for more than report, investment in the build-to-rent and the remainder either live in the private this with a greater focus on delivering more From a development perspective, good one year was “extremely important” or “very market is expected to grow from £35 billion rented sector or at home with parents or affordable accommodation Of the units built quality communal or social space to improve important” when deciding currently to £75 billion by 2025 guardians If satisfaction with private PBSA in time for the 2019/20 academic year, 52% interaction was identified as “important” or where to live remains elevated relative to the other were cluster flats, which typically command “very important” by 76% of respondents options available to students, we expect its the lowest rents As the market evolves, market share will rise investors, developers and operators need to continue to deliver housing that best suits the needs of students 8 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 Are students satisfied with their accommodation, and how does that change depending on where they live? Overall most students are satisfied with their There are challenges, however The most Extra-curricular activities are welcomed by accommodation choice and would recommend commonly cited reason for dissatisfaction among students, with 48% and 30% of respondents it to new first-year students The challenge for students living in privately operated PBSA related living in private PBSA noting that the operators is how to maintain and differentiate to it not being value for money atmosphere and social scene provided within their offer their accommodation was important to their happiness S tudents living in private a shared house, said they were happier happiness were slightly lower for purpose-built student with their accommodation than those students living in privately rented house accommodation, or university- living in a single-occupancy studio or shares, with 75% saying they were happy alone with their accommodation run halls are the most satisfied with their accommodation, according to the Overall, more than 80% of students living in shared PBSA accommodation, majority of students said they are happy such respondents indicating that this e.g a twodio - a two bedroom flat with with their accommodation choice was the case shared kitchen and bathroom - a shared most cited reasons among students living rented sector were satisfied overall, a in a cluster flat (with en suite) within in privately operated PBSA related to a lower proportion (71%) said this was either private or university operated lack of value for money and problems the case accommodation said they were happy with the building whilst for those in with their living arrangements university operated accommodation Looking specifically at property While still positive, levels of % of students living in PBSA who said they were satisfied with their accommodation % of students living in privately rented house-shares who said they were satisfied with their accommodation Where students were dissatisfied, the house operated by the university, or types, those living in a cluster flat, or in Despite these differences, a clear results of our survey, with some 78% of Whilst those living in the private Where are students most satisfied with their accommodation? 95% 93% 89% 88% 89% 87% 89% 89% 82% 88% 82% 87% 81% it was a lack of value for money 85% 78% 84% 76% 83% 76% 78% 74% 71% 78% of students living in PBSA were satisfied with their accommodation Sheffield Leicester Nottingham Liverpool Source: Knight Frank/UCAS Student Accommodation Survey 2020 Cardiff Southampton Brighton Leeds Aberdeen Bath UK and noise problems For students living in privately rented house-shares the most commonly cited reasons for 10 11 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 What influences how happy you are with your accommodation? % of students living in privately operated PBSA rating the below as either 'good' or 'excellent' dissatisfaction were problems with the building and having problems with the landlord/agent The survey shows that, in addition to property type, other key drivers of happiness with private PBSA are location, the option to live with friends and the quality of accommodation, as shown in figure Looking specifically at private PBSA, efforts to create a community were also highlighted as being important, with the atmosphere and social scene provided within their accommodation rated positively by 48% and 30% of Location 80% Option to live in the property for more than one year 72% Number of bedrooms 67% Ability to live with friends or other students 64% Facilities 64% Quality of accommodation 62% Atmosphere 48% Cost 37% Social scene (e.g events on-site) 30% Ability to live with family 14% 0% respondents respectively High levels of overall happiness within student accommodation are reflected by the fact that, in total, 75% of students who lived in private PBSA said that they would recommend their accommodation to new first-year students, up from 69% in last year’s survey Some 79% of those in university-run accommodation said 75% the same, up from 77% last year 25% This year, we also asked second year students living in private PBSA if they would recommend their accommodation to first year students with 78% indicating that they would so 75% 50% of students living in private PBSA would recommend their accommodation to new first years Source: Knight Frank/UCAS Student Accommodation Survey 2020 12 13 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 Identifying and understanding the elements in accommodation that are most important to students is vital for operators T he single most important Responses were comparable regardless of whether students were certain amenities These include super- students make about where living in private or university-owned fast wifi, a gym on site and 24-hour they live is value for money Some PBSA or in the private rented sector, security, as shown in figure 6, below 98% of respondents rated this as being despite the variations in cost between important to them, with just under half the three This highlights the fact that deciding where to live, other factors (49%) rating it as “extremely important” perceived value for money is not driven identified by students as “extremely entirely by cost important” included the cleanliness of that there has been a shift in students’ Indeed, the survey suggests Value for money is the most importance factor Of note for student property providers, brand As the market evolves, investors, developers and influencing student’s decisions on where recognition, as well as previous reviews of operators will need to focus on the affordability of to live This is not entirely driven by cost, with accommodation by other students are both their offering to students and how accommodation students willing to pay a premium for certain factors influencing new student’s housing costs feed into the way students decide on where features and amenities choices they study prepared to pay a premium for access to factor influencing the choice The findings this year indicate As with our findings last year, when the bedroom (96%), the quality of the perceptions, however Just under half a preference for high-quality accommodation (95%) and the facilities (49%) of students indicated that their accommodation that provides clear offered (91%) current accommodation represented and obvious elements that add value 'extremely good' or 'good' value for money For example, respondents said that, on reviews of the accommodation by other This was down on last years’ survey top of their existing rent, they would be students, and the level of daylight More subjective factors include Which of the following influenced your decision on where to live? % of first years rating each factor as “slightly”, “very” or “extremely” important 97% Value for money Overall cost 96% Cleanliness of the bedroom 96% Location of the property 95% Quality of accommodation 95% Facilities (e.g WiFi, parking, gym) 91% 90% Bills included 89% Quality of the furnishings 85% Size of the bedroom 82% Reviews of the accommodation Source: Knight Frank/UCAS Student Accommodation Survey 2020 Which room type offers the most value for money? % rating it as “good” or “excellent” value A studio or single-person flat, within privately operated halls 92% of returning students said the absolute cost of accommodation was very or extremely important 44% 50% A room with an ensuite bathroom, within privately operated halls 52% A room with a shared bathroom, within privately operated halls 53% A studio or single-person flat, within university operated halls A room with an ensuite bathroom, within university operated halls A room with a shared bathroom, within university operated halls of residence A room within a shared house rented from a private landlord A private property on my own or with a partner rented from a private landlord Source: Knight Frank/UCAS Student Accommodation Survey 2020 42% 52% 49% 58% 14 15 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 property, and the effect this had on in the bedroom Indeed, these two factors were particularly important 80% to first-year students, with over 80% saying it helped them decide on alone, as influencing their choice This of first-year students said reviews of accommodation had helped them decide on where to live their accommodation The biggest ‘turn offs’ for students when viewing accommodation for their first year included the size of the bedroom, UNDER PRESSURE? being able to live either with friends or quality of the furnishings and the overall condition of the property is up from 60% of the response in last Affordability pressures are at the £6,130 for students living in year’s survey the forefront of any discussion privately rented house shares Brand recognition again featured as market, and student housing is accommodation they were living years living in private PBSA saying it was no exception with living costs in, most students (82%) indicated a factor in their decision of where to live, identified as important by a that their accommodation costs comparable to the 46% of new students majority of respondents were either affordable or just also sought value for money but were equally influenced by the absolute cost of accommodation, with 92% rating this as either “very” or “extremely important” Second and third-year students deemed being able to maintain friendship groups as important when looking for accommodation, with over 65% of this group identifying the number of bedrooms available in a The majority of first-year of this more fully, in this year’s operators will need to focus on the affordability of their involved when they were deciding where well as sources of funding bank account, rising to 83% for offering to students and how second years The remainder accommodation costs feed lower for second and third year students average students living in private said their rent was paid at least into the way students decide on (51%) However, for both groups, this PBSA are paying £7,990 per sometimes by someone else, where they study, highlighted by year’s survey shows a slight drop in the annum for their accommodation typically by their parents the fact that nearly half (48%) proportion of students that said their This is a premium of 6% on parents influenced where they the £7,550 average for those said they paid for their rent student funding and financial decided to live living in university-operated themselves, some 62% said they support available to them accommodation and 30% on are able to turn to their parents affected their decision to study According to our survey, on of students indicated that the However, whilst most students 74% 48% Larger bedroom 47% On-site gym Second or more years 31% 46% 35% 40% 13% 14% 7% 8% 3% 3% 45% 24 hour security Bigger/comfier bed 39% On-site laundrette 39% 31% More natural light in the bedroom 34% On-site swimming pool 32% Better communal kitchen/dining facilities 29% Discounts for shops/amenities in the local area My parent(s)/ step parent(s) All of my rent and general living expenses are covered by my student loan Savings and other loans and overdrafts Paid work Bursaries/ scholarships, other grants & related sources of support Spouse, partner or relative Other Study or group work spaces 24% A better view from the bedroom 24% 18% Cinema room Free bike hire 14% Gaming rooms 15% On-site restaurant/cafe/bar 15% In-house events (e.g clubs, parties, live music) Source: Knight Frank/UCAS Student Accommodation Survey 2020 As the market evolves, investors, developers and their rent directly from their own Fast WiFi included 27% spending students (75%) said they pay for % of students living in privately-operated PBSA who said they would pay a rental premium 34% rarely worried about their their accommodation costs, as For which of the following would you be willing to pay a rental premium? 34% money Only 16% of students survey we asked students about % of first year students and % of second year students by source of income 49% budget their available spending with 73% saying that their parents were How students pay for their accommodation? First years More generally, some 77% of students said that they actively to play, especially for first-year students, to live Parental involvement is much This compared with 88% of new students of students said their accommodation costs were either affordable or just about affordable about affordable To understand the impact Parental involvement also had a role 82% Regardless of the type of surrounding the wider housing a key influencer with 40% of new first who said the same last year Second and third-year students for financial support if required Source: Knight Frank/UCAS Student Accommodation Survey 2020 13% 16 17 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 The choice and amenity provided by student accommodation is an essential element of a good student experience, and consequently plays an important role in wellbeing I n all markets accommodation that living with friends was important to importance that students place on was ranked as the most their overall wellbeing being able to live together, as well as the important factor influencing Accommodation providers have a role student wellbeing to play here and many have taken a lead When questioned on this in more positive role that accommodation plays to reduce loneliness and isolation were students to build relationships and affordable living costs as being ‘very identified as being the most important combat loneliness is integral to them important’ with regards their overall element in support of student wellbeing, getting the most from their experience wellbeing, whilst the standard of followed by good quality communal Accommodation is uniquely placed, accommodation was also identified as or social space to improve interaction at the focal point between the social, a key factor, with 82% identifying it as within halls domestic and academic lives of students Community is also a big factor Being Student housing providers have a role to play Organised groups or clubs, for build relationships and combat loneliness ahead of student pastoral support or a good example, were identified as being important is integral to them getting the most from their campus atmosphere elements in supporting wellbeing experience How important are the following in supporting students’ wellbeing? % of students rating it as ‘i important’ or ‘very important’ 81% 77% 75% 72% 72% Organised groups or clubs to reduce loneliness and isolation Good quality communal or social space to improve interaction within halls Workshops on practical skills for students Accommodation workers (e.g porters, security) trained in understanding student wellbeing Signposting to support services 70% 70% 69% 67% 63% Strong partnerships between university support services and accommodation providers Provision of quiet blocks/corridors Support for students to develop and lead campaigns and social contact events including health and wellbeing events and this survey shows that focussing is that such groups or clubs can help on the human aspects of what is able to make friends was important to create a positive sense of community delivered as accommodation, provides a 86% of first-year students, whilst 70% of that builds loyalty and brand awareness commercial and social value second-or-more-year students indicated Creating environments that enable students to Accommodation was ranked as the most important factor influencing student wellbeing, Creating environments that enable detail, 68% of students identified The added benefit for PBSA providers in supporting wellbeing in this regard Organised groups or clubs either “important” or “very important” 72% Strict policies on anti-social behaviour 71% 71% A ‘on site’ student wellbeing rep or practitioner Workshops to give students knowledge, confidence and skills to recognise and support mental health difficulties in themselves and others 55% 42% Peer support groups within halls of residence A mentoring programme delivered by older students in halls This year’s survey highlights the 59% UNITE STUDENTS – SUPPORTING STUDENT WELLBEING Moving to university can be a manager and developer university, with new students “When people move in we daunting experience For the vast of purpose-built student able to get to know their future want to take some of those first majority of students it represents accommodation in the UK, flatmates through the My Unite day stresses away, so we take the first time they will have has been investing in student app, a process which can “help them to their rooms, show them lived on their own and, as such, wellbeing projects since 2013 reduce anxiety and loneliness in where the laundry rooms are making the transition as smooth Nick Hayes, Group Property those first few days,” according We organise a range of events as possible is of vital importance Director at the firm, explains the to Jenny Shaw, Unite’s Student and make sure everyone feels to supporting student wellbeing importance of the strategy: “It is Experience Director as welcome as possible We With over a quarter of first year about settling students in when The firm also employs over a let everyone know we are there students in the UK feeling lonely, they make their life changing hundred ‘Student Ambassadors’ for them, and they shouldn’t be according to our latest research, move to University, being there whose role it is to welcome new embarrassed to talk to us We helping students to settle in when they need us and being arrivals, show them around and know exactly what students want and make friends makes a vital safe and secure.” put on a range of events As because we are students.” contribution to their wellbeing This is a process that begins Louis, a Student Ambassador Unite Students, the largest before students even arrive at working in London, explains: Organised events to bring students together (e.g trips, socials etc) Gym access Source: Knight Frank/UCAS Student Accommodation Survey 2020 Organised mindfulness workshops or courses 18 19 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 International students are more likely to live in PBSA than domestic students so understanding their needs is essential for operators International students are the most likely Similarly to UK students, international Around one in five non-EU students not to be renting with 93% doing so, compared to students are willing to pay a premium for pay their own rent, suggesting that this group is elements which are perceived to add value, the most likely to be funded by someone else, for including super-fast internet, an onsite gym and example parents or wider family 64% for UK-based students 24-hour security ore than 706,000 students with 93% doing so, compared to 64% pay a premium for elements which are applied to start a full-time for UK-based students This equates perceived to add value, including super- undergraduate course at UK to more than 200,000 international fast internet, an onsite gym and 24-hour universities for the 2019/20 academic undergraduates across the UK in the security Only 6% of international year, according to the latest applications 2018/19 academic year students indicated that they would be M data from UCAS This was nearly 10,800 International students are among prepared to pay a premium for in-house more applications than last year and was the most likely to remain in the same social events, however, whilst having driven by a record number of applicants accommodation for longer Some 43% a games room and cinema room also from outside of the UK, which climbed said that the option to stay in the same received a low level of response 5.3% on 2018 levels accomodation for more than one year was “extremely important” or “very not pay their own rent, suggesting important” when deciding where to live that this group is the most likely to be students, from 13,390 to 15,880 This which suggests that they are looking funded by someone else, for example follows an increase of 20.6% last year longer-term when they first assess their parents or wider family Also noteworthy was a 1.1% increase accommodation preferences There are a number of parallels in applications from within the between international students and are the most likely to say that their EU students will be contingent on UK-domiciled ones when it comes to accommodation is affordable Fewer key policy decisions on fees, financial accommodation Satisfaction levels, for than one in 10 non-EU students said that support and immigration rules – yet to example, are broadly comparable at 80%, their accommodation was unaffordable be fully outlined whilst value for money and the overall 87% of EU students said their cost of accommodation are also the accommodation was either “affordable” regarding the international student most important factors for international or “just about affordable”, a higher group International students are the students when choosing where to live proportion than the number of UK- most likely to be renting, for example, Similarly, they are also willing to 92% Overall cost Reviews of the accommodation 49% 86% Bills included 56% Amount of light in the bedroom 56% domiciled students who said the same 83% Facilities (e.g WiFi, parking, gym) 43% 94% Of those who pay their own rent, those from non-EU countries European Union Future demand from The survey confirms various patterns Value for money Around one in five non-EU students on-year rise in applications from Chinese Of particular note was a 29.7% year- Most important factors for international students when choosing where to live? % of international students rating each factor as ‘very’ or ‘extremely’ important 56% Quality of the furnishings (e.g bed, desk, kitchen facilities) of international students that the option to stay in the same accommodation for more than one year was “extremely important” or “very important” when deciding where to live Source: Knight Frank/UCAS Student Accommodation Survey 2020 60% 79% Cleanliness of the bedroom Location of the property (e.g on campus, off campus, close to public transport) Quality of accommodation (e.g size of rooms, condition of the overall property) 20 21 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 Decisions on how and when students secure their accommodation will have a big impact on the marketing and pricing of schemes T Markets are localised Understanding the A quarter of first year students who live in private Almost 40% of first-years were offered an dynamics and different rental cycles in place will PBSA said they planned to stay in the same incentive when looking for somewhere to live, influence how student housing providers operate accommodation the following year, rising to 40% with a quarter of these students suggesting it in individual markets among second years played a key role in their decision where to live he timing of when new year students said that they had secured students live in a form of PBSA, this has intensified in some key cities over the and existing students find their accommodation for the following students in Manchester had secured changes in the second year Some 71% last academic cycle and in order to attract somewhere to live for the academic year by the end of March accommodation for the following year of first year students who are currently following year has a material impact on Almost 50% of first-year Only 23% of second and third-year before the end of May, whilst 56% had living in PBSA said they planned to how student housing providers price and students were without accommodation done so in Nottingham Markets with move into mainstream private rental market accommodation Understanding for the following academic year by the high proportions of students securing accommodation in their second year when students look to secure their end of May A full breakdown by month accommodation in September or In some markets this may reflect the accommodation is of vital importance can be seen in figure below October include Cardiff and London, availability of PBSA stock The picture is varied, however Interestingly, there are additional with 18% and 22% doing so respectively of first year students who currently live in private PBSA said they planned to stay in the same accommodation the following year and deals to students This is generally confined to the private PBSA market Indeed, over 39% of first-years living in private PBSA were offered an incentive when looking for somewhere differences in timings depending on students who responded to our university city In Manchester and will give PBSA providers a clear said they planned to stay in the same accommodation offering the incentive, survey said that they had secured Nottingham, for example, students start understanding of market dynamics accommodation the following year 25% said they would not have chosen the accommodation between May and looking for somewhere to live for the and influence how they and landlords Some 40% of second years living in same accommodation had it not been August By comparison, nearly the same following academic year earlier than the operate in individual markets private PBSA said the same offered proportion (59%) of second and third- UK average While the majority of first-year When students secure their accommodation for the following academic year? NOVEMBER First year Second year or more 15% JANUARY 1% 3% 3% Source: Knight Frank/UCAS Student Accommodation Survey 2020 12% 12% to live Of those that chose the Competition between PBSA operators All students DECEMBER 4% who currently live in private PBSA some PBSA providers offer incentives For example, 58% of new first-year OR EARLIER Understanding these differences Some 25% of first year students 25% new students and retain existing ones, FEBRUARY MARCH APRIL M AY JUNE J U LY AUGUST 4% 7% 9% 9% 10% 11% 27% 10% 10% 9% 7% 6% 4% 6% SEPTEMBER O R L AT E R 14% 9% 22 23 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 S T U D E N T A C C O M O D AT I O N S U R V E Y 2 Providing graduates with high-quality purpose-built rental accommodation in the right areas and at the right cost is a real opportunity for residential investors S tudents moving from one Bristol, for example, has increased from fully invested in one or more of the location to another before and 37% in last year’s survey to 51% this year Student Accommodation, PRS and after their studies makes up whilst in Edinburgh the same measure Senior Living sectors, for example, has increased from 48% to 56% intend to increase their exposure in the a large share of domestic migration in the UK London has historically been Increasing graduate retention There are synergies between the PBSA sector Accommodation influences the decisions and the growing build-to-rent market and student make on where to study, and it will moving into the private rented sector investors are recognising the opportunities increasingly influence the decisions among afforded by both graduates on where they choose to work 10 Retention rates for selected UK cities % of final-year students choosing each option A property I already own especially top-tier talent is increasingly Leeds and Birmingham are net Nearly half (47%) of students said they important to their success Businesses Edinburgh importers planned to move directly into a property need to be able to recruit the brightest in the private rented sector and best workers and access to high 56% There are clear synergies between the looking for jobs, or joining graduate rent market and investors are recognising schemes in the capital the opportunities afforded by both However, the retention of students More than two-thirds of the they graduate? coming years graduates finding appropriate housing PBSA sector and the growing build-to- 11 Where will students live after % of final-year students intending to remain within their study city after graduation regional cities such as Manchester, magnet for recent university leavers Student retention is key cities across the UK is welcome, but is dependent upon graduation, with London acting as a is increasing, with many graduates planning on a net exporter of students, whilst large This trend typically reverses upon The ability of cities to attract labour, Newcastle 44% quality housing in host cities is an important factor Accommodation influences the Glasgow Leeds 43% 36% decisions student make on where to study, and it will increasingly influence within key regional cities is increasing respondents to our 2019 Residential the decisions among graduates on where The intention of graduates to stay in Investment Survey who are not already they choose to work Manchester 52% 6% Sheffield A property I will buy 6% I’ll move into a friend’s/family’s property 45% 33% Liverpool Nottingham Other 42% 26% Cardiff 37% 7% Birmingham 40% Rented property There are clear synergies between the PBSA sector and the growing build-to-rent market and investors are recognising the opportunities afforded by both Bristol London 70% 51% Source: Knight Frank/UCAS Student Accommodation Survey 2020 47% Source: Knight Frank/UCAS Student Accommodation Survey 2020 Please get in touch with us Matthew Bowen Sarah Barr Miller For more information on the Knight Frank/ Head of Student Property Research Head of Insight Sales, UCAS Media UCAS Student Accommodation Survey +44 117 945 2641 +44 1242 545726 please contact us matthew.bowen@knightfrank.com s.barrmiller@ucas.ac.uk Knight Frank Research Reports are available at knightfrank.com/research Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, funding organisations, corporate institutions and the public sector All our clients recognise the need for expert independent advice customised to their specific needs Important Notice: © Knight Frank LLP 2019 This report is published for general information only and not to be relied upon in any way Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934 Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names