While the prospects for higher education in the United Kingdom (UK) are under question as the Brexit end date is nearing, UK student housing construction is still booming. But is there a bubble forming, and is it going to burst?
UK student housing
Over the past several decades, higher education in the United Kingdom has become increasingly popular.
With the rise in demand, universities have started more places for both locals and for international students, which created an increased need for student accommodation.
While the boom in UK student housing construction was justified until a few years ago, there are many projects which are just beginning. Unfortunately, the adverse effects a no-deal Brexit will have on higher education in the country might mean that these new buildings will be left without students to accomodate.
Small and middle-sized cities
Some of the largest cities in the UK, like London and Manchester, are still considered very important student hubs, which means that student housing is still in high demand.
However, in smaller cities, such as Plymouth, the situation is very different. With the introduction of Erasmus programs and the influx of many international students in smaller cities like Plymouth, investors saw an opportunity.
Unfortunately, there is now an oversupply of student accommodation in these cities. Not only that, but investors are continuing to pour money in new construction projects, while the UK student housing market is already supplying more rooms than demanded.
UK student housing bubble
Currently, the student housing sector in the United Kingdom is worth more than fifty billion pounds (GBP 50 billion).
Much of the construction was inspired by the increasing number of students going to study in the UK since the beginning of the new century.
However, as Brexit is coming closer, many students have decided to not chose Britain as their university destination. Considering this, very soon, many of the newly built UK student housing buildings will be left empty, as the influx of students will decrease rapidly.
