Where the money is

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10 augustus 2012 | An independent report claims that UK tuition fee hikes have led to a decrease of 15.000 university applicants. Real estate experts remain optimistic nevertheless as investments double for student housing.

Higher education is about money, also… Two reports from the UKunderline this. Yesterday, an analysis by the British Independent Commissionon Fees was published indicating that a drop of 15.000 university applicants could beattributed to the tripling of tuition fees.

“Although it is too early to draw any firm conclusions, thisstudy provides initial evidence that increased fees have an impacton application behaviour. There is a clear drop in applicationnumbers from English students when compared to their counterpartsin Scotland, Wales and Northern Ireland,” Panel chairman WillHutton commented.

Housing demand on the rise

Another report, however, sees fortunes rising in thehigher education sector. Real estate experts argue that “in spiteof higher tuition fees being introduced for 2012/13, the UK’shigher education system remains heavily oversubscribed, and thedevelopment of new student housing has not kept pace with thegrowth in student numbers.”

This also explains why investments into student housing has morethan doubled this year, £800m in the first half of 2012 compared to£375m the year before.  According to CBRE these numbers are”demonstrating the strength of the demand for this niche sector ofthe real estate market.”