London University Housing Conference Student Housing Marcus Roberts Director & Sarah Beuden Associate 30 June 2008

Student Accommodation

Overview  Market Statistics  Perceptions right or wrong  Partnerships – Success stories  Student Minefield  Planning  Possible solutions  Questions & Answers

Full-time students numbers continue to rise Source: Savills, HESA

Rapid growth in overseas students in last five years Source: Savills, HESA

Students live predominately in HMOs Source: Savills, HESA

Operational Private Student Beds by Borough Source: HESA, Savills Research

Operational University Beds by Borough Source: HESA, Savills Research

Institutional Beds VS Private Beds by Borough Operational 07/08 Source: HESA, Savills Research

Supply: London Borough Supply Pipeline Source: Savills, ABI

Direct Let & Nomination Agreements by Borough Source: HESA, Savills Research

Perceptions  Private Sector – Developers & Agents  Public Sector – Universities & Local Authorities

Private Sector Wide Boys Arrogant Cowboys Money, Money, Money

Agents Over- paid Do nothing other than put in big invoices Big lunches Unapproachable

Public Sector & Universities  Move at a slower rate due to necessity and reporting structure  Bureaucracy  Increasingly commercially minded  Suspicious of the private sector  Protective of assets  No clear policy on the student issue

Current Challenges in London’s Student Market Continued under supply of student accommodation Significant Rental Increases Proliferation of Studio student schemes Difficulty in securing sites in London Tightening planning regime

Private Sector University Sector Chemistry?

?

this is the reality

Interiors

4 Bed Apartment Cluster Flats

Studio Apartment Layout Student Studios

Commerciality of Sector  Potential long lease structure –University Lease –Nominations Agreement –Direct Let  Secure income flow –Less reliance on capital growth  Dedicated management

“within our industry there are many misconceptions that things are easier than they actually are” (Anon)

can anyone relate to this?

have you ever tried to do something that looks simple but isn’t…

Tying a Bow-Tie

the student market can be a minefield planning nuances design & development feasibility supply & demand dynamics Land Values/ Rents university & private sector objectives

Planning - what are the issues?  What is our steer?  Is it a priority?  What is the need and where is it?  Why should ‘we’ become a ‘dumping’ ground?  Why should ‘they’ get out of providing any affordable housing?

Planning – weighing it up Pros  Adds to ‘world city’ status;  Brings economic and social benefits  Reduces pressure on private and affordable housing;  Counts towards housing targets. Cons  Competes against other needs and targets  Not counted as affordable housing  Creates ‘studentification’

Planning – Mechanisms Regional  Review of London Plan  Housing SPG  Housing Strategy  Sub-regional strategies  Education Strategies. Locally  Local Strategic Partnerships  LDFs (including site allocations)  Housing Strategies  Education Strategies  University Accommodation Strategies

Planning – Solutions Short term  Recognise that it is a need that is not going to disappear  Start dialogue (we’re all here after all)  Look at what we want and what we need  Start to use mechanisms that are available to us now.  All about working together (Sherlock Holmes not required!)

Planning – Solutions Medium/Long term  Assess needs  Introduce targets – sub- regional/local?  LDF process - policies/site allocations/implementation  Contribute towards affordable housing?

General Market Comment  £6.6 billion property market  Expected growth to > £20bn in the next 6 years  Total of 2.3 million students studying in the UK  459,000 student bed spaces – - Education sector 326,000 beds - Private sector 133,000 beds  Expected further consolidation and stock transfers from Universities to the private sector. Student Accommodation Bedspaces by Region

Possible Solutions  Increased partnerships between Universities and the Private sector  Utilisation of existing campus land / assets - Ability to balance capital receipt for land with ability to structure accommodation type and lease / nomination agreements - Potential to refurbish existing stock though sales and agreement to the private sector  Joined up approach to planning – unlock difficult planning sites - ability to structure mutually beneficial structures  Political pressure from Private and University sectors - Target the GLA - Target specific boroughs which could support student housing but don’t

‘experience and knowledge of a constantly evolving niche sector’ (Anon)

remember things aren’t always as easy as they seem....

do it yourself ‘Bow Tie Man’

or the professionals

Thank you for listening Any Questions Marcus Roberts Director – Student Housing +44 (0) (0) Sarah Beuden Associate – Planning +44 (0) (0)