Huge rent rises for Purpose Built Student Accommodation

Rents for student accommodation have increased by an average of 14.6 in two years and swallow up nearly all of the average maintenance loan.

A report from student education organisations Unipol and HEPI, based its figures on data voluntarily submitted by both universities and the 10 largest providers of Purpose-Built Student Accommodation.

The providers are operating across 10 major regional university cities who collectively manage more than 125,000 beds.

In 2021/22 average annual rents stood at £6,520, and increased to £7,475 in 2023/24 across the 10 key regional university cities. 

Across England as a whole, average annual rents now stand at £7,566 for the current academic year (2023/24).

Using government data the average maintenance loan received by English students this current academic year is expected to be £7,590 versus the average rent in England which stands at £7,566.

This suggests rents swallow up virtually 100 per cent of the average loan, leaving £24 left over for other living essentials.

It also equates to more than three quarters of the maximum maintenance loan.

The highest rents and increases are in the most undersupplied cities. Bristol now has the UK's highest average annual rent at £9,200 per year, with Exeter at £8,559 and Glasgow at £7,548.

Glasgow saw the highest rental growth at 20.4 per cent over the past two years, followed by 16.1 per cent in Exeter and 15.5 per cent in Nottingham.