The latest survey of student accommodation – conducted jointly by the National Union of Students (NUS) and Unipol, and released this week – highlights the speed at which accommodation costs are rising. The survey shows a rise of 22 per cent since the previous NUS-Unipol survey was conducted in 2006, representing a real increase of 13 per cent above inflation.
This huge rise in prices largely reflects a significant change in the types of accommodation students are living in: for example, while in 2001 only 20 per cent of accommodation was ensuite, by 2006 this figure had risen to 43 per cent. Last year, indeed, almost 50 per cent of bedspaces on offer were ensuite.
The provision of this option of high quality rooms is certainly welcome, and there are students from wealthier backgrounds – or who see accommodation as a spending priority- who are happy to pay more for it.
However, there is strong evidence to suggest that there are many other students who do not see having these top-end rooms as such a priority, or who are not able to pay the significant extra costs these rooms entail. The worry is that these students are not being offered choices that reflect their preferences, or their budgets.
Indeed, research by CUBO in 2008 showed that as many as 93 per cent of student respondents rated the cost of accommodation as being very important, while a third of all undergraduates and postgraduates were dissatisfied with the cost of their accommodation.
For many students high rents mean having less money available for other living costs, or having to take on more part-time work. For a growing number of students, meanwhile, it means that moving away to university is no longer a viable option: 23 per cent of students now choose to live at home with parents or other relatives, and thus are significantly constrained in their choice of university.
It seems clear that the provision of more affordable options is necessary and that current demand is not reflected in provision. It is for this reason that NUS are arguing – as a first step – that 25 per cent of all rents within higher education institutions should fall within the bottom quartile of their rent structure to ensure diverse provision and affordable options for the poorest students.
It may also mean that the introduction of caps on rent, or other forms of price structuring, will need to be seriously considered. This could ensure that a wide range of accommodation is available, including low-cost and specialist housing. Students cannot be held hostage by a fixed market that does not reflect or meet demand.
The trend towards constantly upgrading student accommodation seems clear, but the risks this poses for student choice and affordability must be taken seriously. It could be that caps on prices are the only way of ensuring that students have a range of options available to them and are able to exercise real choice and management of their budgets, while also playing a full part in student life.