Breaking Property News 24/09/24
Daily bite-sized proptech and property news in partnership with Proptech-X.
Universities Losing Millions Due to Accommodation Challenges: A Proptech Solution
Owen Redman co-founder of Roome shares some thoughts on the plight of students and seats of learning across the UK, and how they both can be helped,
‘Universities across the UK are facing significant financial losses every year, driven in part by the accommodation crisis impacting their students. A staggering number of students drop out of university annually, with 6.4% leaving their course. These issues span affordability, conflicts with housemates, inconvenient locations, and the lack of suitable accommodation options. From our research, university staff responsible for student exit interviews report that between 80-90% of dropouts are directly related to these housing challenges. Given that student retention is crucial for institutional stability, this represents a massive concern.
The Cost of Housing-Related Dropouts
To put the impact into numbers, consider the average student population across UK institutions, which totals approximately 2.66 million students as of the latest data. If we take the 6.4% dropout rate, compounded by the fact that 85% of these students are leaving due to housing-related issues, the financial implications are immense. Let’s say a dropout represents a loss of £9,250 in tuition fees alone, not including government funding and additional income from services like accommodation, food, and other on-campus activities.
For example, if 6.4% of a university’s 20,000 students drop out annually, that equates to 1,280 students. If 85% of these dropouts are due to housing issues, that’s 1,088 students leaving. With each student representing £9,250 in lost tuition fees, this amounts to £10.07 million annually. The true financial loss is likely higher when factoring in other streams of income tied to student presence.
The International Student Challenge
Universities are not just losing money on domestic students, but also missing out on the lucrative international student market. International students pay significantly higher tuition fees, averaging £22,000 annually, and play a key role in boosting university income streams. However, for universities seeking to attract these students, the lack of clear and accessible accommodation options creates a significant barrier.
Research shows that around 50% of prospective international students consider accommodation options as a major factor in their decision-making process. With increasing competition for global talent, universities must go beyond affordability and provide better options and clarity in housing, including access to detailed information on amenities, housing types, and potential roommates. The Private Built Student Accommodation (PBSA) market, which is expected to grow at a CAGR of 5% between 2022-2028, has shown tremendous appeal to international students, but access to this housing information is often limited or poorly integrated into university portals.
In interviews conducted with international students, we found that the key concerns include a desire for more housing options, better amenities, and, most importantly, greater transparency around the people they would be living with. Unlike domestic students, affordability is less of an issue; the main barrier is the accessibility of information and the ability to make informed choices about housing options before deciding where to study.
Roome: Addressing the Accommodation Crisis
At Roome, we recognize the need for universities to have full oversight of the housing market, allowing students to make informed decisions about where and with whom they live. Our platform aggregates all types of accommodation, from traditional HMOs (Houses of Multiple Occupation) to the growing PBSA sector, giving universities and their students the power to choose the best option for their needs.
One of Roome’s key features is a smart matching algorithm, which helps students find housemates they are likely to get along with, based on interests, lifestyle, and living preferences. This unique solution reduces housemate conflicts—a major cause of student dropouts—and improves overall satisfaction with the university experience. By enhancing the student accommodation experience, universities can dramatically reduce dropout rates, saving millions of pounds annually.
From our ongoing conversations with universities and the institutions we are already partnering with, it’s clear that Roome offers far more than just a better housing solution. It is a powerful tool for improving the student experience and, more importantly, boosting international student conversion rates. With greater visibility into available accommodation, international students can make more confident decisions about where to study, leading to increased enrolment and a healthier bottom line for universities.
Unlocking Millions in Savings and Opportunities
Universities can no longer afford to overlook the housing issue. By tackling this problem head-on, institutions stand to save millions in lost revenue due to student dropouts while simultaneously increasing their appeal to the highly profitable international student market. Roome provides a comprehensive solution to both problems by offering universities and their students the tools they need to navigate the complex housing landscape.
The numbers speak for themselves: solving the accommodation problem can save universities millions and create new revenue streams through improved international student conversions. If your institution is facing housing-related challenges or simply looking for a way to improve student satisfaction and retention, we invite you to learn more about what we’re building at Roome.
If you are interested in exploring how Roome can help your university, please don’t hesitate to reach out. Together, we can make the student housing experience better for all and transform the way universities manage their accommodation offerings.
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
You May Also Enjoy
The Importance of Regular Drain Maintenance in Property Management
Are private rental prices too expensive in the UK?
Real estate market analysis reveals the best U.S. cities for property investment in 2024
Brits set to spend more on self-storage than tea and movies by 2034
The UK’s hidden gems: Top spots to build your house deposit faster than ever!