United Kingdom Student Accommodation Market - Growth, Trends, COVID-19 Impact and Forecast (2023 - 2028)

United Kingdom Student Accommodation Market - Growth, Trends, COVID-19 Impact and Forecast (2023 - 2028)

The UK Student home accommodation market is expected to register a CAGR greater than 4.5% during the forecast period. The UK, over the years, has observed continuous growth in several International students, reaching a level of 605130 during 2020/21. In the year 2021, almost more than 45% of the students in the age group of 18-24 years were in education, with some of them employed as well. In the year ending 2021, 428,424 sponsored study visas were granted, representing a recovery from lower numbers of the COVID-19 pandemic and an increase from the pre-pandemic level. This showed the critical role of student accommodation providers for domestic and international students. China and Pakistan were among the countries with the highest growth of sponsored study visas in the UK in 2020/2021.

UK education institutions are known for their academic excellence and quality of education. With the advent of COVID-19, many students did not attend physically, and the mode of education transformed into a distance online teaching method. This resulted in a loss of revenue for student accommodation providers as students were leaving them and returning to their homes.

As the impact of COVID-19 reduced, the educational institutions and campuses opened, and students returned; this led to an increase in demand for student accommodation and impacted the accommodation prices by observing an increase. Confidence in student accommodation providers observed increased pipeline projects, signified confidence in the sector over the coming period.

During the year 2021, a large section of the population in the UK was in the age group of 20-24, accounting for 4.03 mn, and in the year 2021 of the total population under the age group of 18-24 years, 44% of the population was engaged in education. This signifies almost more incredible than 2mn of the population in the age group of 18-24 years is engaged in education. This creates a large customer base for student accommodation service providers. Over the coming period, this growth is expected to continue as a large section of the UK population every year is entering into the tertiary level of the education system, which creates a significant demand in the student accommodation market.

The UK has a world-class educational offering with a strong global position in the international market. This is leading to a large number of International students being admitted every year for higher education. In 2021/22, the United Kingdom spent almost GBP 100.3 Bn on education, making a strong global position for the UK and an attractive place for students to pursue their careers.

During the year 2019, almost 41% of the students in the age group of (18-24) years were engaged in education, and this increased to 44% in the year 2021; this combined with expanding UK education market, signals positive growth for UK student accommodation market over the coming years.

The United Kingdom is a continuously growing market for education and markets which depend on it. The UK education market has domestic and international students as its base, observing a continuous expansion over the years. The average living cost in the UK was GBP 924 a month in 2021, a significant share of the rent. After recovery from COVID-19, as more students search for accommodation with the re-opening of colleges and universities, student accommodation providers compete through price differentiation and varieties in facilities to maximize their gains. In 2022, CRM Students, United group, Uni Acco, United Living, University living, Amber students, Vita Students, Collegiate, Downing Students, and others existed among players operating in the student accommodation market.

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