Viewpoint: by Ciaran McGivern

Jun 27 2007 by Ciaran McGivern, regional director with Bank of Ireland

WITH 50,000 full-time students at Liverpool’s three universities and applications up by 10 to 15% this year, the education sector plays a significant role in driving the residential property market in the city.

But while the focus of attention has been on the rise in city centre living amongst young professionals, the revolution taking place in student accommodation has gone largely unnoticed.

Traditionally, the choice for students has been between university halls of residence, many of which are now looking distinctly dated, and multi-tenanted houses, owned by private landlords and often in run-down condition. However, a third force has now entered the market.

A number of private developers are setting their sights on the student population, offering purpose-built accommodation of a far higher standard than before. With en-suites and dishwashers, the image of student life as a scene from The Young Ones is changing fast.

Currently, commercial halls make up only 7% of student provision, but some estimate it could account for the bulk of university accommodation by 2010. Private developments like these are not popular with everyone. The National Union of Students claims that they are “elitist” and landlords often levy additional charges which students may not have budgeted for.

The fact is that rising standards of living have created higher expectations on the part of students and society as a whole. Add to that the emergence of a new type of student with greater spending power and sophistication, and the demand is there.

With many older halls of residence in need of refurbishment and traditional landlords struggling to meet new safety standards for houses in multiple occupation (HMOs), the housing stock is in need of updating. Private developers have a role to play in this.

Carefully sited, new accommodation may help to overcome the problem of “town versus gown” where residents in neighbourhoods with an influx of students complain they are threatening the sense of community.

These new developments also offer opportunities for private investors, as there is often the chance to buy and let units, as with conventional apartments. In fact, the student market can sometimes be a safer bet as tenures are longer and there may be fewer voids.

They are also a good thing for the city itself. Universities are an industry in their own right, generating revenue for the local economy. Upgrading the housing stock to meet the demands of today’s students will ensure the city can accommodate their needs.