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Cost of British student housing has risen by a quarter in seven years Cost of British student housing has risen by a quarter in seven years
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The cost of student housing in Great Britain has increased by almost a quarter in the past seven years, outpacing inflation and price rises in the private rental market.The cost of student housing in Great Britain has increased by almost a quarter in the past seven years, outpacing inflation and price rises in the private rental market.
Students are increasingly relying on their parents, working extra hours during term time and – in some cases – taking out payday loans to cover the cost of accommodation.Students are increasingly relying on their parents, working extra hours during term time and – in some cases – taking out payday loans to cover the cost of accommodation.
The average weekly rent for purpose-built student accommodation in the UK rose 23% from £120 to £147 between 2009-2010 and 2015-2016, according to a Guardian analysis of figures from the National Union of Students (NUS) accommodation costs survey.The average weekly rent for purpose-built student accommodation in the UK rose 23% from £120 to £147 between 2009-2010 and 2015-2016, according to a Guardian analysis of figures from the National Union of Students (NUS) accommodation costs survey.
Shelly Asquith, vice president of welfare at the National Union of Students (NUS), said the rising cost of accommodation was now the biggest worry for students.Shelly Asquith, vice president of welfare at the National Union of Students (NUS), said the rising cost of accommodation was now the biggest worry for students.
“The main concern is that their income, their loans and grants, hasn’t been rising at anywhere near the same rate,” she said.“The main concern is that their income, their loans and grants, hasn’t been rising at anywhere near the same rate,” she said.
“We’re now in the situation where the average rent for students is the equivalent of 85% of your maximum loan and grant if you’re coming from the poorest background, which doesn’t leave you much money for other bills, food, social life or anything else.”“We’re now in the situation where the average rent for students is the equivalent of 85% of your maximum loan and grant if you’re coming from the poorest background, which doesn’t leave you much money for other bills, food, social life or anything else.”
The rate of increase is more than double that seen in the private rental sector. Between September 2011 and May 2016, the average private rent in Great Britain increased 8%, according to figures from the Index of Private Housing Rental Prices (IPHRP). Student accommodation costs in the UK increased 18% in the same period.The rate of increase is more than double that seen in the private rental sector. Between September 2011 and May 2016, the average private rent in Great Britain increased 8%, according to figures from the Index of Private Housing Rental Prices (IPHRP). Student accommodation costs in the UK increased 18% in the same period.
The IPHRP excludes Northern Ireland, while the Student Accommodation Costs Survey covers all of the UK. But accommodation costs in Northern Ireland are typically lower than those in the rest of the UK.The IPHRP excludes Northern Ireland, while the Student Accommodation Costs Survey covers all of the UK. But accommodation costs in Northern Ireland are typically lower than those in the rest of the UK.
Aisha Zahid, a second-year student at the University of Warwick, rents a room in a university-managed house off campus. She pays £120 a week, including bills, and says the rent will take up almost all of her student loan this year – leaving her to cover the rest of her expenses by borrowing from her parents and using her overdraft.Aisha Zahid, a second-year student at the University of Warwick, rents a room in a university-managed house off campus. She pays £120 a week, including bills, and says the rent will take up almost all of her student loan this year – leaving her to cover the rest of her expenses by borrowing from her parents and using her overdraft.
“I already have a part-time job at home but the main thing that worries me is how I will get out of my overdraft,” she said.“I already have a part-time job at home but the main thing that worries me is how I will get out of my overdraft,” she said.
“Usually my job doesn’t pay that off and when term starts I am into it again and it becomes a bit of cycle.”“Usually my job doesn’t pay that off and when term starts I am into it again and it becomes a bit of cycle.”
The price rises have coincided with a dramatic shift in the provision of student housing over the past decade.The price rises have coincided with a dramatic shift in the provision of student housing over the past decade.
Between 2006 and 2016, the proportion of student accommodation operated by educational institutes fell by almost a quarter, and today private companies are positioned to become the main providers of student accommodation in the UK.Between 2006 and 2016, the proportion of student accommodation operated by educational institutes fell by almost a quarter, and today private companies are positioned to become the main providers of student accommodation in the UK.
During that time the number of studio apartments, which are typically more profitable, rose to 9% of the overall market – and growth has been spurred by private providers.During that time the number of studio apartments, which are typically more profitable, rose to 9% of the overall market – and growth has been spurred by private providers.
There was a 20-fold increase in the number of privately built studio apartments for students, to today’s figure of almost 30,000, between 2011 and 2016.There was a 20-fold increase in the number of privately built studio apartments for students, to today’s figure of almost 30,000, between 2011 and 2016.
Kathleen Hill is a 26-year-old mature student in her first year at the University of Hertfordshire. Hill rents a private room in the university’s halls in Hatfield for £146 a week, as the annual cost of the university’s en suite and studio apartments was greater than her maximum student loan of £8,900 a year. But paying the deposit was a struggle.Kathleen Hill is a 26-year-old mature student in her first year at the University of Hertfordshire. Hill rents a private room in the university’s halls in Hatfield for £146 a week, as the annual cost of the university’s en suite and studio apartments was greater than her maximum student loan of £8,900 a year. But paying the deposit was a struggle.
“I paid the deposit for my accommodation in advance, and had to do this before I got my loan,” she said.“I paid the deposit for my accommodation in advance, and had to do this before I got my loan,” she said.
“This meant I had to take out a payday loan which it took me three months to pay back. I managed to pay it back by doing lots of overtime in the last few weeks before university, but I can imagine some people in a similar situation getting into terrible debt as a result. I worked 60-hour-weeks to make sure I didn’t owe anything.”“This meant I had to take out a payday loan which it took me three months to pay back. I managed to pay it back by doing lots of overtime in the last few weeks before university, but I can imagine some people in a similar situation getting into terrible debt as a result. I worked 60-hour-weeks to make sure I didn’t owe anything.”
According to the NUS, the quality of accommodation does not always improve in line with cost increases.According to the NUS, the quality of accommodation does not always improve in line with cost increases.
“Not only are they charging ridiculously high rents but the service is poor in lots of situations,” said Asquith.“Not only are they charging ridiculously high rents but the service is poor in lots of situations,” said Asquith.
Some students are taking action, spurred on by protests at the University of London over conditions in university-managed halls of residence last year, which resulted in compensation for tenants.Some students are taking action, spurred on by protests at the University of London over conditions in university-managed halls of residence last year, which resulted in compensation for tenants.
The Cut the Rent campaign at the University of Sussex has gathered more than 1,000 signatures in protest at the conditions at the university’s halls.The Cut the Rent campaign at the University of Sussex has gathered more than 1,000 signatures in protest at the conditions at the university’s halls.
Earlier this term, one of the halls was flooded with sewage and two of university residents have reported rat infestations. The university says such events are “extremely rare”.Earlier this term, one of the halls was flooded with sewage and two of university residents have reported rat infestations. The university says such events are “extremely rare”.
“The university is making massive profits, while the quality is terrible and the rents are rising faster than the rate of inflation,” said a spokesman for the Sussex Cut the Rent campaign.“The university is making massive profits, while the quality is terrible and the rents are rising faster than the rate of inflation,” said a spokesman for the Sussex Cut the Rent campaign.
“This campaign has sprung up because a lot of people are being priced out of university, as accommodation is too expensive and the quality isn’t up to standard.”“This campaign has sprung up because a lot of people are being priced out of university, as accommodation is too expensive and the quality isn’t up to standard.”
Vice chancellor of the University of Sussex, Adam Tickell, said profits from accommodation are reinvested in providing housing for students from lower-income families. Vice chancellor of the University of Sussex, Adam Tickell, said profits from accommodation are reinvested in providing housing and financial support for students from lower-income families.
“I have already had meetings with the students’ union and other people around campus about rent prices – we’ll continue to talk and listen to students views on this matter,” he said.“I have already had meetings with the students’ union and other people around campus about rent prices – we’ll continue to talk and listen to students views on this matter,” he said.