2022 Student Accommodation

CUSHMAN & WAKEFIELD 18

RENTAL GROWTH BY QUALITY LEVEL

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

£250.00

£200.00

£150.00

£100.00

Average rent

£50.00

Remtal growth

£0.00

1

2

3

4

5

Accommodation Quality Level

Rental growth 2013/14 to 2021/22 Average rent

Source: Cushman & Wakefield Student Accommodation Tracker (quality levels for where scoring in the same, i.e. 1 room & 1 amenity)

Quality is increasing Whilst prices continue to rise, the quality of product and experience delivered to students continues to improve, with less price sensitive students continuing to gravitate to the best stock. This can be seen in rental growth performance, with a clear ladder evident by levels of quality. This ladder is also apparent in terms of long-term rental growth performance. Opportunities to refurbish Despite the growth in stock quality, there are still 175,910 un-refurbished first-generation bed spaces in operation in the UK PBSA market for the 2021/22 academic year, representing around a quarter of the market. Universities dominate such supply with just 17% of these beds owned privately. With a number of these beds reaching the end of their operational lives, universities across the UK are wrestling with options in an era of net zero targets. With the embedded carbon associated with new build, there is a balance to achieve between spaces that are more likely to be refurbished rather than demolished.

175,910 UN-REFURBISHED FIRST-GENERATION BED SPACES IN OPERATION