It is now 2018 and the demand forstudent accommodation for both Ireland and the UK is higher than ever. The numbersof both domestic and international students are rising thus the demand forhousing these students is rising too. Unfortunately, at the minute the demandis outweighing the supply and there are many students who are forced into privaterenting which can be hefty costs for students across both countries. For example,in Ireland for the academic year starting in September 2017, there has been alack in purpose built student accommodation (PBSA) of around 23,000 beds.
In the UK, the demand has seen that there were3.5 students for every available room in 2017. The demand is predominantly highin cities across the UK, such as Liverpool for example. In the last year they seenan increase of 20% in students compared to the previous year with 60% of these requiringaccommodation.
A repot was carried out by theUnion Students in Ireland (USI) which outlined the needs, wants and currenthousing situations etc of the students of Ireland. They found that 41% ofstudents would rather live in PBSA, although findings have shown that only a thirdof higher education students have a PBSA bed and 31% living in the private rentalsector. Right now, in Ireland there is not enough affordable student housingand the limited availability is unfortunately driving up the costs. Thegovernment released a new National Student Accommodation Strategy on the 20thJuly 2017, with a commitment to ease the growing housing pressures.
It aims to have an additional 21,000 PBSAbeds delivered by 2024. The intention is to achieve this through both publicand private development initiatives. Ireland has become quite a lucrative countryfor investors to participate in the construction of the student accommodationmarket. Regarding Britain, initially therewere concerns that Brexit would have an undesirable effect on the PBSA market.New research has shown that this is quite the contrary with Savills reportingthat over £2.
1 billion was transacted in the student housing sector afterBrexit compared to 1.9 billion earlier in 2017. The same report shows a 17%increase in student accommodation investment in the UK year after year.