Students squeezed as bedsits in Nottingham rising to £229 a week

The average cost for a student studio flat in the 2023/24 academic year is set to rise to £229 a week
-Credit: (Image: Joseph Raynor/ Nottingham Post)

Rent prices for student accommodation in Nottingham are now surpassing student loans according to new research. The current maximum maintenance loan available to students outside of London is £10,227 per annum and they are set to increase by 2.5% next year.

However real estate advisor CBRE warns that purpose-built student accommodation for the 2024/25 academic year is set to rise by 5% to an average of £229 a week for a studio flat. Meanwhile cluster ensuite flats with a shared kitchen and living space have risen by 2% to an average of £189 per week.

Nottingham has more than 70,000 students - the fourth-highest number outside of London. However, there are currently only 23,500 dedicated student beds.

While Nottingham's rental costs are rising, they are still lower than many other cities including Manchester and Bristol. Raj Bains, a director specialising in student accommodation at CBRE, said: "Historically, London has been the only UK city where the affordability of student rents hasn’t aligned with the available maintenance loan.

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"However, we’re now seeing this same trend play out across our key regional university towns, including Nottingham. A student letting a cluster ensuite in Nottingham next year for a 51-week tenancy will pay more than £9,500 per annum in rent.

"That’s the bulk of the maximum maintenance loan of £10,482."

Challenging planning conditions, a shortage of sites, increases in construction costs and rising debt costs have contributed to a decline in the building of new student accommodation, according to the research. However, the demand for student accommodation is still large, with just under £4 billion of deals being made in 2023.

Tim Pankhurst, head of student accommodation valuation at CBRE, said: "As maintenance loan growth lags and the cost of attending university grows, we could see a shift in where students choose to go. More than ever, the cost of living is becoming a key decision driver for domestic students when deciding where to apply to study.

"It’s also important that Nottingham remains attractive to students, to ensure there is a qualified talent pool for employers. The availability of accessible accommodation is fundamental to this."