博鱼体育集团

Initial applications data for the 2022/23 academic year is encouraging with a 5% increase in the number of 18 year olds in the UK applying to go to university this autumn. The year-on-year increase was driven by record participation rates among school leavers in England, Wales and Northern Ireland.

In total, 320,420 18 year olds applied for a university place, reflecting application rates in England of 44.1%, 37.5% in Wales and 52.6% in Northern Ireland. In Scotland, an application rate among 18 year olds of 35.4% was the second highest on record.

The rise also coincides with an increase in the 18 year old population in the UK 鈥� the first time in six academic cycles where this has been the case. Assuming current levels of participation continue, this will underpin domestic demand for purpose-built student accommodation (PBSA) which will, in turn, support strong occupancy levels and rental growth.

Fewer mature student applications and a drop in applications from EU students meant that overall the total number of applicants was 1% lower than the equivalent point in the 2020 academic cycle. However, applicant numbers were 9% up on the equivalent point in 2019, pre-COVID.

What about international applicants?

Applications from international students, who are more likely to live in PBSA, were 4% higher than last year. The increase came despite a 19% fall in applications from EU students as changes to fees in the wake of Brexit continue to bite.

Non-EU applicants rose 5.4% to the highest number on record at this point in the cycle, driven by the usual recruitment markets of China and India.

Applications from China grew by 12.1% year-on-year, while applications from India were 11% higher, the data shows. The number of applicants from India has almost doubled in the last two years.

In part, this uptick will have been impacted by policy. In September 2019, the government changed visa rules to allow international students to remain in the UK for two years after graduating (3 years if studying at PhD level), up from four months previously.

What next?

The outlook for student numbers remains strong. Demographic growth is significant over the next decade among UK-based university-age students which supports the longer term outlook for demand, while UCAS expects the number of international students to grow by two-thirds between now and 2026.

This has underpinned a strong appetite from investors to deploy capital in the sector, with £4.42 billion spent on acquiring assets last year.

As well as an undersupply of student accommodation in the UK and ongoing uncertainty and investment risk across global markets, positive news around student numbers is a key driver for continuing investment into PBSA assets and should underpin another strong year for the sector.