Using this very simple methodology – which, it should go without saying, does not constitute a formal valuation – we arrive at an estimated value of c. £25 billion attributed to UK universities’ freehold residential estates. Table 4.1 shows that this figure is made up of 249 assets classified as Quality A and B, and 858 that are Quality C and D. The assets categorised as Quality C and D make up c. 77% of the total residential estate, but only c. 62% of the total value of c. £25 billion. These poor-quality assets are more likely to be included by universities as part of any stock transfer into a partnership, as if they are capable of refurbishment they are likely to add value to the partnership, and could help the overall viability if new build opportunities are also envisaged as part of the arrangement. Table 4.1 : Estimated value of freehold UK university residential estate Quality rating Assets Gross value (£ billion) % of total value Number % A 26 2% 1.5 6% B 223 20% 8.3 33% C 656 59% 12.7 50% D 200 18% 2.9 12% 1,105 25.4 Section 4: Conclusion Frozen tuition fees and intense competition for scarce capital have forced universities to deprioritise accommodation investment in favour of teaching and research. Where funding is needed, they have turned to bond finance, income strips, and private real estate partnerships. Universities also tend to measure residential financial performance poorly — costs are scattered across departments, and the focus is on affordability rather than return on investment. SFG estimates the total market value of UK universities’ freehold residential estates at around £25 billion. A Student First Group research report | April 2026 | Page 35