2022 Student Accommodation

CUSHMAN & WAKEFIELD 16

Rental growth halved for the year Uncertainty in the market meant that rental increases were restrained across the majority of locations, rising at a weighted average of just 1.07% - less than half the 2.83% average seen over the previous seven years. The more certain demand profile in a COVID-19 environment associated with first year home undergraduates meant that increases in university-owned beds (1.50%) were higher than in the private sector (0.65%). The importance of an institutional agreement in an uncertain environment was clear, with rental increases in nominated private sector beds in line with the university average. Confidence in this market was underpinned by universities picking up the tab on unoccupied but nominated beds – an issue which universities feel the impact of and will be wary of in future agreements. Rents in beds aimed at internationals slowed the most Given the uncertainty of international demand, the highest quality beds – which had achieved an average of 4.5% rental growth per annum over the previous seven years – saw an increase of just 0.1% in a COVID-impacted academic year.

KEY STATS

WEEKLY RENTAL GROWTH BETWEEN 2020/21 AND 2021/22

1.5

1.2

1.5%

0.9

0.6

0.65%

0.3

0.0

UNIVERSITY

PRIVATE SECTOR