07 Dec The possible effect of Brexit on UK Student numbers
Many of you on our mailing list who have purchased student accommodation or are considering it may be wondering what affect Brexit will have on UK student numbers. Here’s a quick summary of factors.
There has been a decrease in the number of EU applications since Brexit but it equates to only a 0.3% drop in total student applications.
HESA figures show that EU students make up around 5.4% of UK students compared to 13.5% from outside the EU.
The government has already announced that loans and tuition fees will remain the same regardless of whether the UK is part of the EU or not. Currently EU nationals have tuition fees capped in a way that other international students do not and the government has pledged that this will remain in place. Government policy on this can be seen here https://www.gov.uk/government/news/funding-support-for-eu-students
Access for EU students to study in the UK after the UK exit the EU are unlikely to be different from those which the 13.5% non-EU students already face.
Broadgate continues to be very supportive of student accommodation investment. With the current changes made by the government in relation to buy to let from the government in the form of the removal of mortgage rate relief, stamp duty surcharges (not applicable to student halls) and now legislation relating to tenant fees payable to management companies we see student accommodation as an excellent and robust alternative to buy to let.
The most convincing argument there is for investing in student accommodation is that residential transaction numbers peaked in 2006. They are currently still short of their highest level.
Driven by many factors including local councils preventing conversion of residential housing to student housing, increases in the number of overseas students and increased demand for quality accommodation. Purpose built student housing investment, primarily from large institutions, has been higher than ever in recent years.