Property consultancy warns of a major shortage of student accommodation
In a report published today, property consultancy CBRE has announced a significant increase in the shortage of student accommodation. For every new student accommodation unit added over the next ten years, two are expected to be lost.
Does three-quarters of your income go towards a tiny student flat that can’t really fit anything bigger than a small double bed? According to property firm CBRE, you can still count your blessings. In a report published today, property consultancy CBRE states that Amsterdam and a number of other student cities will face a growing shortage of student accommodation over the next ten years.
According to the researchers, two student flats will disappear for every new one built during those years, with the possible consequence that more than half of students will soon have to continue living at home.
Sharp rise
The researchers back up their findings with striking figures: in the most favourable scenario, the shortfall in Amsterdam could rise from the current 6,000 to just under 10,000. The capital is therefore in the worst position, although sharp increases are also expected in Rotterdam, Leiden and Utrecht. Another notable finding is that, according to CBRE, Groningen, Maastricht, Nijmegen, Wageningen and Enschede should in fact expect a surplus.
Causes
The report identifies three causes for the growing shortage. Firstly, landlords are increasingly finding themselves forced to sell their student accommodation for commercial reasons, as selling a property yields a higher return than letting it. Furthermore, the researchers believe that there is insufficient investment in Purpose-Built Student Accommodation (PBSA), i.e. residential complexes for students. For international students in particular, the proposed restrictions on so-called short-stay accommodation – which are intended to make it impossible to let properties for a single semester without rent control – will have consequences.
Vice-Chair Richard Goldstein told Folia earlier that ‘the UvA is not permitted to build student accommodation itself’. However, Goldstein did let slip that he ‘would be delighted if, upon its sale, the P.C. Hoofthuis were to be partly converted into student accommodation’.
Solutions
The solution that emerges throughout the report does not come entirely out of the blue for an organisation that calls itself ‘the world’s largest commercial property adviser’: reforming Box 3. The most favourable scenario outlined by CBRE will only materialise ‘if Box 3 becomes more favourable for landlords’. In addition, the report criticises the Affordable Rent Act, which imposes a maximum rent on landlords via a points-based system.
Nevertheless, CBRE is primarily working on the assumption of a scenario in which not much changes for landlords at national level, meaning that ‘the burden shifts to the local authorities’. The researchers remain vague about exactly what the local authorities should do, apart from ‘focusing much more explicitly on student accommodation’. However, for them, there is no doubt that they must take action: ‘Anyone who wants to attract and retain talent must also be able to house them’.
