- Language: English
- 86 Pages
- Published: July 2011
- Region: United Kingdom
Higher Education and Student Accommodation - Uk 2010-2014
- Published: June 2010
- Region: United Kingdom
- 81 pages
- AMA Research
The 3rd Edition of the overview of the Construction in Higher Education and Student Accommodation Sector in the U is part of a wider range of construction sector reviews, including Education Construction, Building Schools for the Future Programme, , Education RMI and other public sector construction reviews.
Key areas in the report:
- Overall review of University system, rising student numbers etc.
- Overview of university capital funding and impact of the recession on endowments, bond issues, business activity and privately funded research.
- Current state of the university estate and infrastructure backlog. Current capital building programmes including key developments in both teaching and residential infrastructure.
- Detailed analysis of activity in student accommodation market –current supply of accommodation in university halls, commercial and private accommodation, factors affecting the market etc.
- Student accommodation has proved a relatively strong sector in recent years, though current financing problems have resulted in a slowdown in the sector – though longer term prospects remain strong.
Areas of particular interest:
- Impact of rising student numbers, overseas students and the future of tuition fees on infrastructure development.
- Focus on the supply-demand imbalance of purpose built student accommodation (PBSA) driven by rising student numbers and problems of under-supply of accommodation in many university towns, especially in London.
- Analysis of university estate and infrastructure backlog, together with an overview of leading construction contractors operating in the higher education sector.
- Impact of future cuts proposed by the new coalition government on current and planned university capital building programmes.
- Use of prefabricated buildings and bathroom pods in the construction of university halls.
- Key commercial operators and investment funds in the PBSA market including developers, housing associations, charities and councils.
- Detailed analysis of developer activity within the PBSA market including current supply of accommodation, factors affecting the market and an assessment of the future PBSA development pipeline in the light of the current economic climate.
Some of the leading contractors included in the report.
Allenbuild, Bovis Lend Lease, Carillion, Costain, Cowlin Construction Ltd, ISG Plc, Kier, Leadbitter, Morgan Ashurst, Ocon Construction, Partnerships Programme Limited (UPP), Watkin Jones Group.
Key areas covered in the report include:
OVERVIEW OF THE HIGHER EDUCATION SECTOR IN THE UK
- Brief overview of the higher education system in the UK - types of University, impact of new universities on infrastructure development etc.
- Analysis of growth in student numbers, together with the increase of overseas students.
- Analysis of impact of tuition fees on the higher education system.
HIGHER EDUCATION SPENDING AND INVESTMENT
- Value of total university funding in the UK to 2011.
- Higher Education Funding for England, Wales and Scotland to 2011. Overview of higher education capital investment to 2011.
- Impact of funding cuts on university infrastructure development.
- Other Sources of University Income – Charitable Trusts, Endowment Funds.
- CONSTRUCTION ACTIVITY IN THE HIGHER EDUCATION SYSTEM
- Analysis of construction output in the higher education sector.
- The UK University Estate – Current age of university buildings and infrastructure backlog.
- Environmental performance of university buildings.
- Examples of university capital building programmes.
- Procurement of capital building projects in the HE sector.
- Principal Higher Education Contractors and Consortia – key players.
OVERVIEW OF THE UK STUDENT ACCOMMODATION MARKET
- Impact of rising student numbers and international students on university accommodation.
- Current supply of student accommodation at leading UK universities including types of accommodation – university owned/operated, commercial halls, private shared houses.
- Regional analysis of student accommodation market – saturation levels, major opportunities.
- The London Student accommodation market – including an analysis of the impact of the London Plan on development.
- Factors affecting the student accommodation market – land prices, impact of rising student rents, tuition fees, impact of recession on the PBSA market, student accommodation investment funds, use of prefabricated building techniques.
- Impact of new coalition government on higher education sector including measures laid out in the new coalition document.
- Analysis of leading commercial operators of student accommodation including developers and housing associations –key players, shares.
- Impact of the student accommodation sector on the UK housing market, including analysis of the ‘buy to study’ market and the rise in house prices in leading university towns.
- Future supply of student accommodation 2010-2014, analysis of the future PBSA development pipeline in the light of the current economic climate and market prospects up to 2014 and beyond.
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2. SUMMARY AND FUTURE PROSPECTS
3. OVERVIEW OF HIGHER EDUCATION IN THE UK
3.1 OVERVIEW OF UNIVERSITIES IN THE UK
3.2 STUDENT GROWTH
3.2.1 Overseas Students
3.3 TUITION FEES IN ENGLAND AND NORTHERN IRELAND
3.3.1 Arrangements in Scotland and Wales
4. HIGHER EDUCATION SPENDING AND INVESTMENT
4.1 FUNDING STRUCTURES
4.2 HEFCE FUNDING FOR ENGLAND
4.2.1 Funding Cuts
4.2.2 2010 Budget
4.3 SFC FUNDING FOR SCOTLAND
4.4 HEFCW FUNDING FOR WALES
4.5 ENDOWMENT FUNDS
5. CONSTRUCTION ACTIVITY IN THE HIGHER EDUCATION SECTOR
5.1 TOTAL EDUCATION CONSTRUCTION OUTPUT
5.2 HIGHER EDUCATION CONSTRUCTION OUTPUT
5.3 CAPITAL EXPENDITURE LEVELS
5.4 THE UNIVERSITY ESTATE
5.4.1 Infrastructure Backlog
5.4.2 Environmental Performance of University Buildings
5.5 UNIVERSITY CAPITAL BUILDING PROGRAMMES
5.6 PROCUREMENT OF CAPITAL BUILDING PROJECTS IN THE HE SECTOR
5.7 PRINCIPAL HIGHER EDUCATION CONTRACTORS
5.7.2 Key Contractor Profiles
6. THE STUDENT ACCOMMODATION MARKET
6.2 PROVISION OF STUDENT ACCOMMODATION
6.2.1 Regional Provision of Student Accommodation
6.2.2 Student Accommodation Market in London
6.3 TYPES OF STUDENT ACCOMMODATION
6.3.1 University Halls
6.3.2 Commercially Operated Halls
6.4 FACTORS AFFECTING THE MARKET
6.4.1 Student Rents
6.4.2 Impact of Student Accommodation on the Housing Market
6.4.3 Impact of the Recession on the Student Accommodation Market
6.4.4 Student Accommodation Investment Funds
6.4.5 Use of Prefabrication in the Student Accommodation Market
6.4.6 Party Policy on Higher Education
6.5 KEY DRIVERS OF THE STUDENT ACCOMMODATION MARKET
6.5.1 Future Development Pipeline
6.5.2 Outlook for the Student Accommodation Market
CHART 1: STUDENT BED-SPACES BY OWNERSHIP TYPE (UNIVERSITY / COMMERCIALLY MANAGED HALLS) - 2010 (%) 6
CHART 2: HEI ACCEPTED APPLICANTS 2004-2010 (UK & OVERSEAS APPLICANTS) 12
CHART 3: 2010 OVERSEAS APPLICANTS TO UK UNIVERSITIES BY COUNTRY OF ORIGIN 13
CHART 4: SOURCES OF HIGHER EDUCATION FINANCE – INCOME 2008-09 16
TABLE 5: HEFCE FUNDING FOR UNIVERSITIES 2007-08 TO 2010-11 (£M) 18
TABLE 6: HEFCE ENGLAND FUNDING 2010-11 – TOP 10 UNIVERSITIES 18
TABLE 7: HEFCE FUNDING CUTS 2010-11 – HIGHEST CUTS BY INSTITUTION 20
TABLE 8: SFC SCOTLAND FUNDING 2010-11 – TOP 10 UNIVERSITIES 22
TABLE 9: TOP 10 UNIVERSITY ENDOWMENT FUNDS 2009-10 (£M) 24
TABLE 10: CONTRACTORS OUTPUT OF EDUCATION SECTOR WORK (PUBLIC/PRIVATE) 1999-2009 (£M) 25
TABLE 11: CONTRACTORS OUTPUT IN PUBLIC SECTOR UNIVERSITY CONSTRUCTION WORK 1999-2009 (£M) 27
TABLE 12: TOP 20 CAPITAL ALLOCATIONS TO HIGHER EDUCATION INSTITUTIONS 2008-11 (£M) 29
TABLE 13: HIGHER EDUCATION ESTATE – KEY STATISTICS 2008 (AREA - RESIDENTIAL / NON-RESIDENTIAL, MAINTENANCE EXPENDITURE / BACKLOG, CAPITAL EXPENDITURE) 31
CHART 14: PERCENTAGE OF NON-RESIDENTIAL UNIVERSITY BUILDINGS BY AGE 32
CHART 15: PERCENTAGE OF RESIDENTIAL UNIVERSITY BUILDINGS BY AGE 32
CHART 16: HIGHER EDUCATION INFRASTRUCTURE BACKLOG – MIX BY VALUE BETWEEN RESIDENTIAL AND NON-RESIDENTIAL 33
TABLE 17: SIZE OF UNIVERSITY ESTATES & COST TO UPGRADE SPACE BY INSTITUTION 2008 – SPLIT BY RESIDENTIAL & NON-RESIDENTIAL BUILDINGS 35
TABLE 18: ENVIRONMENTAL INDICATORS FOR HIGHER EDUCATION INSTITUTIONS 2008 – ENERGY, WATER, CO2, WASTE) 37
CHART 19: TYPES OF STUDENT ACCOMMODATION IN THE UK – APPROXIMATE SHARE BY TYPE 2010 48
TABLE 20: REGIONAL STUDENT ACCOMMODATION PROVISION 2009-10 (MIX BY UNIVERSITY , COMMERCIAL HALLS, PRIVATE HOUSING, LIVING AT HOME) 49
TABLE 21: PROVISION OF STUDENT ACCOMMODATION AT MAJOR UK UNIVERSITIES 2009 54
TABLE 22: ON CAMPUS STUDENT ACCOMMODATION PROJECTS IN PIPELINE 2010 56
TABLE 23: MARKET SHARES OF LEADING COMMERCIAL OPERATORS OF STUDENT ACCOMMODATION IN THE UK 2009-10 (NO. OF BEDS & PIPELINE) 58
TABLE 24: AVERAGE REGIONAL STUDENT RENTS 2003-2009 63
TABLE 25: TOP 20 UNIVERSITY TOWNS FOR HOUSE PRICE GROWTH: 1999 - 2007 - 2009 (£) 66
TABLE 26: LEADING STUDENT ACCOMMODATION FUNDS IN THE UK 2009-10 – NO. OF BED SPACES AND FUND VALUES 69
CHART 27: FORWARD PIPELINE OF STUDENT BED-SPACES BY OPERATOR 2010-2014 77
CHART 28: ESTIMATED NUMBER OF NEW STUDENT BED SPACES BUILT PER YEAR - 2004-2014 78
The continued expansion in the number of students in higher education has led to increased pressure on university residential accommodation. Decent accommodation is a key part in universities’ marketing strategy to attract new students, but only around 21% of students are currently catered for in university run halls. With student numbers forecast to rise to 1.5 million by the end of 2010 the shortfall in university owned accommodation will continue to grow, requiring universities to address past under investment and develop additional student residences to cope with the growing numbers in communal accommodation.
It is estimated that there are around 469,000 student bed-spaces in halls of residences across the UK, of which 326,000 are provided by the Higher Education sector directly and the remaining 143,000 bed-spaces by private providers.
The total UK university estate is large and diverse, totaling 25 million sq. m. of space, of which around 6.2m sq. m is residential space. The total value of the UK student accommodation sector is estimated to be around £20bn, of which University owned student accommodation is worth around £13.8 billion and purpose built privately-owned student accommodation is worth around £6.2 billion.
There is thought to be a remedial investment need of approximately £5.1bn across the whole UK higher education infrastructure, to address backlogs of maintenance, of which around £1.3bn is for residences. With around 70% of the university estate consisting of buildings that are 30 years old or more, the replacement cost of buildings in English universities alone is estimated to be £11bn.
Universities will face considerable funding challenges over the next decade as public spending cuts become unavoidable. HEFCE funding has already been cut by £915 million to 2012-13 and universities are anticipating much fiercer competition for lucrative international students, while the expansion of domestic student numbers has been cut sharply by the Government.
HEFCE is distributing around £7,356 million to universities and higher education colleges for the academic year 2010-11. This is a reduction in cash terms of £573 million compared to 2009-10. The capital budget at £562m represents a 14.9% reduction in cash terms after adjusting for the £250 million of capital funding that was brought forward from 2010-11 into 2008-09 and 2009-10.
Following the formation of a Conservative-Liberal Democrat coalition government after the General Election on May 6th 2010, the higher education sector and wider construction industry is now awaiting clarity on where public sector spending cuts may fall and the establishment of clear economic policy for the long-term. For the higher education sector, already facing cuts of around £900m over the next three years, there are fears that extra cuts could be announced as part of the emergency measures, though this appears to have been restricted to fewer new places in 2010.
Given the extreme uncertainty in the economy at the present time, a number of commercial operators are not committing to any new development projects until financial markets stabilize, instead focusing on generating and conserving funds to enable development to take place once the economy recovers. Forecasts are therefore that growth of commercially built student accommodation will be relatively flat in 2010 before development picks up in 2011.
- Bovis Lend Lease
- Cowlin Construction Ltd
- ISG Plc
- Morgan Ashurst
- Ocon Construction
- Partnerships Programme Limited (UPP)
- Watkin Jones Group