University campuses are places where students from across the globe are brought together to live and study. This unique ecosystem was significantly disrupted by the coronavirus pandemic – forcing students to return home mid-semester and creating uncertainty in their social and academic lives.

However, despite this impact over the past 18 months, student numbers are rising, with a record number of 18-year-olds applying for full-time undergraduate courses for the 2021/22 academic year, according to data from the Universities and Colleges Admissions Service (UCAS).

Naturally, increases in applications leads to more demand for student accommodation, whether it’s university-owned and run, purpose-built student accommodation (PBSA) or houses in multiple occupation.

Ensuring rooms are high-quality, affordable, well-situated and cater to individual needs – especially well-being – are all vital parts of any university’s offering. It is, therefore, more important than ever for universities and private accommodation providers to work together to make sure student accommodation supports students in their educational journey.

Accommodating all students

Domestic students accounted for 81% of the 682,010 applicants for the 2021/22 academic year. They typically prioritise value for money and look for shared housing (Accommodation for Students recorded a 42% increase in demand for shared housing). This correlates with the rise in domestic applications, which could partly be because university is a very viable alternative to finding a job while the UK is still, technically, in a pandemic. The demographic rise in 18 year olds until the mid-2020s is another factor that has to be taken into account in the immediate pressure on student accommodation.

On the other hand, PBSA is often more attractive to international students; the Higher Education Statistics Agency has reported that undergraduates from China are more than twice as likely to live in PBSA than domestic students. While Brexit has had an impact recently, UCAS data shows that applications from Chinese students for 2021 stood at 28,490 – which has more than doubled since 2017.

With UK universities remaining popular for domestic and international students, universities and private providers need to make sure there is a good balance of all types of accommodation to meet demand for different preferences. Striking that balance can be tricky.

Rental guarantees

Relationships between universities and private providers typically involve medium or long-term nomination agreements or similar, which tend to state that the building owner will provide services and accommodation at a minimum specification for students. In return, universities will agree to advertise that accommodation to its students, and find and nominate those students to the private providers. The private providers then enter into leases with the students. This relationship is invariably underpinned by a level of rental guarantees from the university to the private provider that the students will occupy their accommodation and, most importantly, pay rent.

When the pandemic first hit, the social interventions were extraordinary, with accommodation required to be vacated and academic studies moved online. Since then, there have been a series of interruptions of varying levels, some of which have prevented student accommodation being occupied.

Hopefully moving forward we won’t see lockdowns in any way that have such a dramatic effect, but it has caused universities and private providers to look closely at their agreements and to revisit the sums that are paid, especially if accommodation is unable to be occupied.

Commercial lawyers have been busy addressing force majeure issues. Equally, the question of reimbursement or waiver of student rents has been a very live issue on both sides.

Taking a partnership approach

On a wider and more important note, providing quality accommodation to students is about much more than money to universities. Without a comfortable living environment, young people may struggle to settle into their new homes, which minimises the chances of them excelling academically. 

As attending university is often the first time many young people have lived away from home, it is paramount they feel safe and comfortable in their accommodation in order to have the best possible experience.

Universities are acutely aware of their pastoral role to make sure students feel looked after. The pandemic exacerbated the upheaval and uncertainty many students felt about their campus experiences. The repercussions are still being worked through.

The UPP Foundation’s Student Futures Commission is working closely with vice chancellors to see where the post-pandemic priorities should lie in helping students get back on track. The answers indicate that a sense of belonging is fundamental and that building cohesive student communities is a leadership priority across the sector.

Student accommodation will have its part to play in all of this.  That means that the key players, especially universities and private providers, should prioritise building relationships and taking even more of a partnership approach. This starts at the outset of the relationship where universities would want to know private provider’s attitude to not only the provision of facilities but also the additional welfare services that could be provided.

It also helps having well-drafted contracts and service level agreements in place, and continues by keeping in direct contact and having a regular and open dialogue with operators. This will, in turn, ensure that students are getting not only the best value for money but also the most out of their accommodation and campus experience.

By Clive Read, education partner at law firm Shakespeare Martineau, who has been advising universities on the management and development of their campuses for more than 30 years.