Overview Market Statistics Perceptions right or wrong Partnerships – Success stories Student Minefield Planning Possible solutions Questions & Answers
Full-time students numbers continue to rise Source: Savills, HESA
Rapid growth in overseas students in last five years Source: Savills, HESA
Students live predominately in HMOs Source: Savills, HESA
Operational Private Student Beds by Borough Source: HESA, Savills Research
Operational University Beds by Borough Source: HESA, Savills Research
Institutional Beds VS Private Beds by Borough Operational 07/08 Source: HESA, Savills Research
Supply: London Borough Supply Pipeline Source: Savills, ABI
Direct Let & Nomination Agreements by Borough Source: HESA, Savills Research
Perceptions Private Sector – Developers & Agents Public Sector – Universities & Local Authorities
Private Sector Wide Boys Arrogant Cowboys Money, Money, Money
Agents Over- paid Do nothing other than put in big invoices Big lunches Unapproachable
Public Sector & Universities Move at a slower rate due to necessity and reporting structure Bureaucracy Increasingly commercially minded Suspicious of the private sector Protective of assets No clear policy on the student issue
Current Challenges in London’s Student Market Continued under supply of student accommodation Significant Rental Increases Proliferation of Studio student schemes Difficulty in securing sites in London Tightening planning regime
the student market can be a minefield planning nuances design & development feasibility supply & demand dynamics Land Values/ Rents university & private sector objectives
Planning - what are the issues? What is our steer? Is it a priority? What is the need and where is it? Why should ‘we’ become a ‘dumping’ ground? Why should ‘they’ get out of providing any affordable housing?
Planning – weighing it up Pros Adds to ‘world city’ status; Brings economic and social benefits Reduces pressure on private and affordable housing; Counts towards housing targets. Cons Competes against other needs and targets Not counted as affordable housing Creates ‘studentification’
Planning – Mechanisms Regional Review of London Plan Housing SPG Housing Strategy Sub-regional strategies Education Strategies. Locally Local Strategic Partnerships LDFs (including site allocations) Housing Strategies Education Strategies University Accommodation Strategies
Planning – Solutions Short term Recognise that it is a need that is not going to disappear Start dialogue (we’re all here after all) Look at what we want and what we need Start to use mechanisms that are available to us now. All about working together (Sherlock Holmes not required!)
Planning – Solutions Medium/Long term Assess needs Introduce targets – sub- regional/local? LDF process - policies/site allocations/implementation Contribute towards affordable housing?
General Market Comment £6.6 billion property market Expected growth to > £20bn in the next 6 years Total of 2.3 million students studying in the UK 459,000 student bed spaces – - Education sector 326,000 beds - Private sector 133,000 beds Expected further consolidation and stock transfers from Universities to the private sector. Student Accommodation Bedspaces by Region
Possible Solutions Increased partnerships between Universities and the Private sector Utilisation of existing campus land / assets - Ability to balance capital receipt for land with ability to structure accommodation type and lease / nomination agreements - Potential to refurbish existing stock though sales and agreement to the private sector Joined up approach to planning – unlock difficult planning sites - ability to structure mutually beneficial structures Political pressure from Private and University sectors - Target the GLA - Target specific boroughs which could support student housing but don’t
‘experience and knowledge of a constantly evolving niche sector’ (Anon)
remember things aren’t always as easy as they seem....