The PBSA sector is facing a multitude of conflicting pressures and a roadmap is urgently needed to help navigate this unpredictable environment. In support of this, we recently presented a summary of the findings from our newly-released report at The Student Housing Conference in May 2024.
The research in this report combines analysis of our exclusive UK PBSA data, unique review data and direct student interviews.
As the title of the report suggests, the definition of affordable means what someone perceives to be a reasonable price. However, we have found that affordability actually goes far beyond price point and is more about matching expectations to appropriate options.
The interviews conducted with our student panel highlighted that what is deemed as affordable is highly subjective and will differ vastly amongst students from different age groups, cultures and economic backgrounds.
Widening participation is a focus for UK universities and aims to support students whose personal circumstances put them at a disadvantage for entering higher education.
Gov.UK published in July 2023 that the progression rate by age 19 increased from 44.4% to 46.8% in 2021/22 and the progression rate to high-tariff HE has increased from 11.4% to 13.4%.
According to UCAS end of cycle data for the 2023 cycle, 60,410 accepted applicants declared they are in receipt of free school meals—that’s 12.5% of accepted applicants.
UCAS also shared that 28,320 (47%) of accepted applicants declaring free school meals also indicated their intent to live at home. This suggests that 32,090 students (53%) are living away from home during term time during the 2023 entry year.
To some, purpose-built student accommodation may be perceived as luxury accommodation compared to the university-owned alternative, but perception - as we know - isn’t always accurate.
For example, if we look at minimum prices per hall in each location, private halls are, on average, £26 per week more expensive than university-owned halls.
However, prices differ vastly across locations and, in some cases, university-owned accommodation is more expensive.
We have selected 10 multi-university locations to demonstrate this variance.
Based on median of minimum tenancy price per hall for 24/25 academic year per location
The above sample of locations shows that the university average is higher than private accommodation in Newcastle, Nottingham and Sheffield.
Remaining locations have a higher average for private accommodation—the largest variance being Bristol, where private accommodation is, on average, 137% more expensive than university accommodation.
So how do you make accommodation affordable?
As we highlighted earlier in this article, price is an important factor; however, the most important consideration is whether the price matches the facilities, service levels and overall experience on offer.
This is where student feedback is absolutely vital. Whether you survey residents directly or use your reviews to understand student satisfaction, understanding how the experience of your students varies between different room types and price points is crucial to ensuring expectations are aligned with reality for students from all walks of life.