Cushman & Wakefield’s latest annual report for the student accommodation sector in the UK shows that a record high of 2.2m full-time students are studying at UK universities, and more students than ever are studying away from home, up 221,990 from five years ago. Of these, Cushman & Wakefield calculates that 1.63m students now have a requirement for a bed space during their course of study.

Other headlines from the report are: • 2021 visa issuances to overseas students were 80.7% higher than in 2020 showing post pandemic recovery; • Average rental growth is set to bounce back to 3.1% for 2022/23; • National student to bed ratio stands at 2.39:1, an 8% increase in headroom over the last five years; • Delivery of 24,612 beds in 2021/22 was only 677 more than in 2020/21, projecting 17,000 new beds for 2022/23; • 175,910 un-refurbished first- generation bed spaces in operation in the UK PBSA market for the 2021/22 academic year. The key trend over the last five years at all levels of reputation, ranking and standing has been growth, says the report, but it adds: “Counter to the long- term undergraduate trend of a ‘flight to quality’, it is universities ranked below 100 in the league tables that are growing the fastest, outpacing those in the top 25. The average league table position of the 10 fastest-growing universities (in percentage terms) in 2020/21 was 105. The fastest-growing Russell Group institution was only the 19th fastest- growing university in the UK.” The report notes that the lowest ranked institutions are now most likely to focus growth on international and postgraduate students. Nine universities make up half of the £7bn planned investment in facilities, says C&W, adding: “Beyond 2020/21, development is set to accelerate with massive capital expenditure programmes underway – with a number of institutions planning investments of £500m. The 24 Russell Group institutions make up roughly 60% of the total future academic spending and eight of the top 10 largest spenders. Such investment points towards increased capacity and the world class facilities likely to attract the most talented students.” C&W’s view of the UK market is that there are “significant opportunities to invest and develop, but there are also risks that were not on the horizon 12 months ago. “There are headwinds that we can’t ignore: inflation is hampering construction viability and the cost of living crisis will affect affordability - as well as putting huge pressure on the budgets of all PBSA. For many students, the differential between the maintenance loan and cost of living will create issues, with the potential to impact where students choose to study.”