Universities partnering with private developers and pension funds to redevelop student accommodation to create more space could generate around £5bn of investment.
Education Nation: The Graduation of Student Housing, a new report by Addleshaw Goddard, reveals that a third of university-owned student housing, around 100,000 beds, is in a poor state of repair.
Further demand for space is expected from increases in student numbers from the UK and abroad, with the government projecting an increase of 200,000 students by 2020.
Around £6bn was invested in purpose-built student accommodation last year, but 83% of the increase in students are being housed by the PRS sector.
The fear is that without enough purpose-built accommodation, the continued growth of student numbers could intensify the pressure on UK housing.
Demand for purpose-built student accommodation continues apace despite rising student fees and increasing rents. The number of students renting PBSA has doubled between 2007 and 2014 to 108,000 out of 1.7m total UK students in accommodation.
