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Student Accommodation: Demand v Supply

Domestic demand is filling the void…for now. Peter Hemple reports

A record number of UK 18-year-olds secured a place at university or college this year, close to a 3% rise on last year, UCAS reported at the end of September. However, there has been a decline in mature and international students getting onto an undergraduate university or college course.

China remains by the far the largest international market but the number of new arrivals was down -1.9% on last year, followed by India (-3.8%) and Hong Kong (-6.3%). The total number of students placed from the EU was down by 0.8% compared to a year ago. The drop in demand from China and Hong Kong is likely due to ‘frostier relations’ with China, while the decline from India could be FX-related, as the Indian Rupee had fallen in value by around 16% against the pound over the past five years. But this pales into insignificance compared to the enormous rise in costs for Nigerian students in the UK. Between September 2022 and

September 2024, the Nigerian Naira collapsed from 485 to the pound to 2,230, representing more than a 350%
increase in costs for Nigerian students!

In total, students have secured more places at higher tariff universities than in 2023 (+7.8%). Medium tariff institutions have accepted 0.5% fewer applicants, while lower tariff university have seen a decline of 4.4%. This is clear evidence that, if overall student applications go down, the lower tariff universities bear the brunt of those losses, as the better universities simply lower their grade criteria to fill the empty places, with many elite universities accused of ‘dumbing down’ this summer by accepting students who have achieved up to four grades lower than their course requirements.

Jo Saxton, UCAS chief executive, says: “This year we have seen a small increase in the number of students getting a place at university, driven by a rise in the number of UK 18- year-olds. At the same time, the figures show there are challenges with mature and international acceptances.

“There has also been a high number of applicants using Clearing, with students seemingly motivated by plenty of choice this cycle, giving the opportunity to pursue an alternative option they may not
have previously considered or thought was out of reach.” 

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