With thousands of A-Level students receiving their results today, many will be looking forward to beginning University courses in the Autumn.
To mark results day, Accommodation for Students has released its annual report that focuses on the cost of student accommodation.
Rents
Data from the analysis indicates that student accommodation markets have remained fairly steady, with a very modest average rent increase of £1.43 from 2014 to £82.09.
Interestingly however, the average rents table show that students attending six of the best Universities in Britain (Cambridge, Oxford, Imperial College London, London School of Economics, Exeter and The University of Surrey) are likely to have to pay between £20 and £58 more per week than the national average.[1]
Results show that of the top ten ranked university guides listed in The Complete University Guide 2016, only Lancaster University had average rental costs lower than the national average.
Regional differences
There was also found to be firm regional disparities in place, with students in the North of England paying £14.73 less on average per week than those in the South. Students in or near to London pay much more per week on average, with costs found to be £122 higher than the rest of Britain.[2]
Welsh students have the most spare cash in their pockets, with average rents £69.09 per week. Scottish students also have more money for an extra couple of drinks in the Student Union, with weekly rents north of the border totalling £72.81.[3]
Unsurprisingly, London topped the list of cities with the mist expensive weekly average rental values. Academics in the capital pay £140 per week, followed by those in Cambridge (£124), Kingston (£115), Aberdeen (£109) and Guildford (£104).[4]
Additionally, the report revealed the cities where the greatest range of weekly rents were present. These cities are Plymouth, Exeter, Nottingham and Liverpool, where gaps between rents were up to £146. In Plymouth for example, the lowest weekly rent was £39 with the highest £185.
At the other end of the scale, Bolton, Middlesbrough, Wolverhampton, Stockton and Walsall were found to command the lowest amount of weekly rents, with none of these Universities in the top-thirty in the 2016 league table.
Increases
This year’s largest increases in weekly rents were found in Luton, Bangor and Derby, all of which were up 20% on 2014. These regions all went from providing accommodation at a rental cost below the national average to either above or beyond this figure.
Furthermore, the number of student homes offering a bills-inclusive option was greater than those offering a non-bills inclusive payment. Furthermore, the average extra cost for bills inclusive properties was between £9-£13 per week.[5]
‘It’s great to see that the overall market has remained stable over the last year, this is positive for both investor landlords and students,’ commented Simon Thompson, Director of Accommodation for Students. ‘Unsurprisingly, the north/south divide in rent values remains apparent, just as in the private rented sector. Naturally rental increases in some areas will be governed by student demand, often determined by what courses are available, but it is interesting to see that there appears to be some correlation between the highest ranked universities and cost of student accommodation,’ he continued.[6]
‘Bills inclusive rental options are increasingly prevalent which shows landlords are reacting to student needs. Anything which helps students to manage their finances is appealing and I think this trend will continue to grow over the next few years as the cost of attending university creeps up,’ Thompson concluded.[7]
[1] http://www.propertyreporter.co.uk/landlords/students-pay-premium-to-attend-top-universities.html