Why Student Accommodation in Bristol is Becoming More Expensive

At Urban Student, we are deeply committed to understanding the student housing market in Bristol and ensuring we offer high-quality, comfortable, and secure accommodation for our residents. While we are proud to provide a premium service to students, we are also aware of the rising costs across the entire market and understand the challenges that many students and their families face when searching for affordable accommodation. The situation is multifaceted, and we want to share some insights into why student accommodation prices have risen in recent years, and the broader factors at play.

Growing Demand vs. Supply Challenges

Over the past few years, demand for student accommodation has surged. Between 2019 and 2023, the student population in the UK grew by an impressive 400,000, while the number of student housing units decreased by 19,000. This reduction of 95,000 bedrooms is a significant strain on the market. With limited supply and increasing demand, the pressure on available housing inevitably drives up costs across the board. This is an issue we all face in the sector, and it impacts all types of accommodation, not just premium options like ours.

Bristol, being one of the most vibrant and diverse cities for higher education, has seen particularly sharp growth in student numbers. This creates fierce competition for available housing, not only amongst students but across the rental market in general. We at Urban Student strive to ensure that despite these pressures, our residents get exceptional value, comfort, and support for the rent they pay.

Factors Driving Up Prices Across the City

Bristol’s student accommodation prices are shaped by a number of factors:

• Rising student enrolment means more students are competing for fewer available homes.
• Population growth and increasing migration from other parts of the UK and abroad also drive demand for rental properties in the city.
• A slowdown in new construction means fewer new student housing developments are coming to market, while existing stock is under immense pressure.

These trends are being felt nationwide, not just in Bristol. A recent report from the Higher Education Policy Institute (HEPI) and Unipol revealed that the average annual rent in university cities outside London had increased by 14% in the past year, bringing the average to just under £7,500 per year.

At Urban Student, we are aware of how these market trends impact students, and we remain committed to providing a level of service and quality that matches the cost.

Economic Factors Impacting Rent Prices

There are several economic factors that make Bristol a particularly expensive city for rental accommodation:

• Inflation and rising interest rates have increased the costs for property owners and developers. Landlords, including those in the student sector, have to manage higher expenses, from property maintenance to loan repayments, which unfortunately means that rent increases are sometimes unavoidable.
• Property prices in Bristol have soared, making it harder for individuals to enter the homeownership market. This forces more people into renting, increasing competition for all types of rental housing, including student accommodation.
• Low unemployment rates and the economic vibrancy of Bristol further fuel demand for rental properties, adding pressure on housing availability.

The Impact of Keir Starmer’s 2024 Autumn Budget on Student Housing

Keir Starmer’s 2024 Autumn Budget has introduced several proposals that may help ease some of the financial pressures on students. One of the key policies is a freeze on tuition fees, which will help limit the overall cost of education. In addition, the reintroduction of maintenance grants will provide much-needed financial support for students from lower-income families, allowing them to better manage their living expenses, including rent.

There are also initiatives aimed directly at the housing market. The Labour government’s focus on tenancy reform and the introduction of a renters’ charter aim to offer greater security to tenants, including students. Rent caps will be introduced, which will help limit how much rents can rise each year, making the market more predictable and reducing the risk of sudden increases in accommodation costs.

Additionally, plans to build 100,000 new affordable homes annually will include provisions for student accommodation, which could help alleviate some of the current supply issues.

These steps are encouraging and signal that the government is aware of the pressures facing students. As a premium provider, Urban Student welcomes any effort to make living more affordable for students across all levels of the housing market. Our goal remains to offer top-tier services at competitive prices, ensuring students have the best possible living environment during their time in Bristol.

How Urban Student is Supporting Students

At Urban Student, we recognise that high-quality living spaces come at a cost. However, we are always focused on delivering value for money by offering services and amenities that enhance the student experience. This includes:

• All-inclusive rent packages that cover utilities, high-speed internet, and access to communal facilities, ensuring students have predictable living costs.
• Safe and secure environments with 24/7 support teams, ensuring peace of mind for both students and their families.
• Communal spaces for studying, socialising, and relaxing, providing a sense of community and well-being.
• Convenient locations close to universities and city amenities, reducing commuting costs and time.

We understand that student life can be challenging, and we are here to make it easier by offering accommodation that supports academic success and personal development. Our focus on luxury living isn’t just about high-end finishes – it’s about creating an environment where students can feel safe and supported.

Conclusion

The rising cost of student accommodation in Bristol is a result of various market and economic factors, including growing demand, limited supply, and broader inflationary pressures. While these factors affect the entire housing market, we at Urban Student are committed to providing the best possible experience for our residents. We aim to be part of the solution by offering high-quality, secure, and well-managed accommodation that supports students during their studies.

As we look ahead, it’s promising to see the government addressing some of the underlying challenges in the student housing market. At Urban Student, we will continue to innovate and adapt, ensuring that students in Bristol can access comfortable, convenient, and supportive living spaces, while also working to keep our offerings competitive in an increasingly complex housing market.

Published: 16.09.24 by Phoebe Clutton