Increased Student Numbers Are Worsening the Housing Crisis

When George Osborne lifted the cap on how many students each university can take, he fired the starting pistol for increased competition in the higher education sector. But has anyone thought through the effect this will have on the housing market? Traditionally, students lived in halls of residence or shared private houses, but an increasing number of private companies are building and managing bespoke blocks for students. Business is booming. Savills predicts £2.5bn will be spent on student housing schemes this year, significantly more than the HCA invests in affordable housing. Unfortunately, the government’s latest planning guidance allows student housing to be included as part of overall housing targets when local plans are being put in place “based on the amount of accommodation it releases in the housing market”. This is misguided at best. Savills and others argue investment in student housing eases pressure on family housing, but student housing providers may be poaching sites that could have been used for affordable housing. Read more on the Guardian website.