More than 60% of university- owned accommodation falls below the level of quality that students expect Universities are driven to invest in their residential estates either through a lack of accommodation, or a lack of the right sort of accommodation, and often both. Many capital projects are in response to chronic under-investment which has left universities with poor quality halls with obsolete layouts or amenities, which are difficult to let, or impair the student experience. Over the last 30 years, the private sector has stepped in to fill the gap in many cities and provide new and better accommodation where needed. In Section 3 we consider how under-supplied the UK is as a whole, but first we consider the extent of the issue around quality in UK university residential estates. For this report, SFG refreshed its independent assessment of the quality of each university hall of residence in the UK, drawing on its inspections of universities’ estates (carried out while preparing residential strategies) augmented by a review of universities’ websites. SFG’s assessment of quality is based on the likely perception of students and their parents, considering the standard of other PBSA available in the private sector and at other universities. It considers factors such as the age of the property, available amenities, specifications, and overall condition. For older buildings, the level of refurbishment is relevant, as well as any inherent limitations in the buildings’ construction, layout, and overall impression. Chart 2.1 defines SFG’s rating system (Quality A – D), and summarises the whole UK university residential estate on this basis. This also includes long leases and income strips where the university is the tenant and long-term partnerships with private sector investors (e.g. JVs and DBFOs), but excludes shorter-term (e.g. less than 10-year) nomination agreements with the private sector. Despite a great deal of investment by universities and their partners in the last 30 years, c. 200,000 beds (more than 60%) are in the lowest Quality C or D and thus fall below the level expected within new PBSA. However, there are so many factors that influence a university’s growth and reputation that it is impossible to isolate what impact the quality of their student accommodation has had. Page 12 | SFG | Meeting demand for modernised university-owned accommodation