Cambridge only has enough purpose built student accommodation for half of the full-time university students in the city, property adviser Savills has revealed.
A shortage of suitable stock allied to a high volume of applicants has created a perfect storm in the sector, Savills laments.
The situation is so dire that some students or their parents have been paying over the odds and in advance throughout the summer to secure accommodation this autumn.
With the number of properties available to rent in the city down around 20 per cent on the norm for this time of year, new and returning students may struggle to find somewhere to live, the firm says.
Savills uses data from UCAS, the Higher Education Statistics Agency and Rightmove,
The research says there are 41,200 full time students in Cambridge, with undergraduate applications for both the University of Cambridge and Anglia Ruskin University rising year on year (2 per cent and 28.5 per cent, respectively, between 2020 and 2021).
At the same time there is only one bed in purpose-built university accommodation for every 2.1 full time students.
Rental stock in the city is already under pressure with the number of available properties in Cambridge falling 21 per cent when compared to before the pandemic.
Kristina Pascuzzi, head of lettings at Savills Cambridge, said that with student numbers rising – and fewer landlords entering the market – it seems unlikely this pressure will ease anytime soon.
“This year’s student rental market is a perfect storm in that there’s a shortage of suitable stock and a high volume of applicants, all at once,” she said.
“We had students contacting our offices as early as April this year, looking to secure a property ahead of September, with most willing to pay rent over the summer to ensure that their accommodation was secured.
“As a result, a significant number of offers have come off the back of video viewings, primarily with overseas students eager to lock in a property before they get to the UK.
“Rents are increasing across the board and the competition students are up against is vast. Not only are we seeing a backlog of students who put their studies on hold during the pandemic come to the market, but also a return of commuters to urban centres, and revived demand from corporate relocation.
“We’ve recently let one apartment in Station Square for example that had 20 direct enquiries within 24 hours. It was let within a day to an undergraduate without a viewing taking place for £2,000 a month – £250 a month over the asking price. I think we can expect competitive bidding to only heighten the closer we get to the start of the new academic year.”
Savills says there are now around 2.2 million full-time students in the UK and rising university applications have put pressure on rental markets in key student cities.
The situation is most acute in London where there is the greatest mismatch between supply and demand. There are currently almost a third fewer homes available to rent in the capital than the pre-pandemic average.
With only one bed in purpose-built university accommodation for every three and a half full-time students, any increase in student numbers will put greater pressure on the already stock-constrained wider rental market.
This month Savills also surveyed its lettings agents across its UK offices to find out more about how student demand is impacting local markets. The majority (83 per ent) of agents reported that student demand had arrived earlier than usual this year.
Across the UK, a third say that they have seen student demand arrive one month earlier than usual, while half agree that they saw demand two or more months earlier than usual.
With increased pressure to secure a home for the new academic year, 68 per cent of Savills lettings agents reported that either students or their parents chose to lock into properties by paying rent for the summer months.