The tipping point between refurbishing or redeveloping ageing halls has shifted Rising new ‑ build costs and interest rates in the last five years have considerably changed the decision process for a university on whether to refurbish or redevelop old stock. The tipping point between the two options has become much higher, so that refurbishment is coming out as a preferable option far more frequently, particularly where the older stock was built from the 1990s onwards and the room sizes are comparable to modern new-build specifications. In these instances the refurbishment can focus upon improved fit-out and mechanical and electrical upgrades, with structural changes possibly limited to knocking through a small number of bedrooms to enlarge kitchen/lounge/dining areas to modern specifications and expectations. Also, universities are increasingly concerned about affordability, and refurbishments will often be more economically viable, enabling rents to stay lower. However, there are still instances where redevelopment, on balance, is the preferable option. This tends to be the case where some or more of the following factors are present. The layout is too cramped to be readily convertible to modern PBSA specifications, and even if the internal quality were improved, it would be difficult to justify the rental uplift necessary to make the cost of refurbishment viable. This is often the case with older catered halls. Most universities report students steadily favouring self-catered more and more with every passing year. Such halls are often also laid out with shared bathrooms. However, the oldest halls often enjoy the most central locations on campus, and so retain some popularity even though students would prefer a different product. Some halls simply lack the kerb appeal to remain attractive to students, regardless of the quality of the accommodation inside. Back in 2019 while at JLL, Robert Kingham and David Stephens of SFG undertook a joint study with CUBO members to review occupancy trends across university portfolios. The study, involving 20 participating institutions, demonstrated a clear correlation between the outward appearance of a hall of residence and the level of occupancy (and retained occupancy). While it is possible to improve the external appearance, as well as the thermal performance of a building through overcladding, options are often limited by planning considerations and overall viability. There are a number of residences SFG is aware of, both across university and private sector accommodation, which have encountered issues around fire compartmentation and/or cladding . The complexities and costs involved in the rectification have made complete redevelopment the better option, particularly if additional opportunities were available to increase density or realign the product with the needs of contemporary students. Refurbishment usually attracts VAT whereas new build can often be zero-rated , thus narrowing the cost gap further. Page 18 | SFG | Meeting demand for modernised university-owned accommodation