Analysis
The UK university sector grew by £2bn in one year, and it annual turnover now equates to £30bn overall, according to recent figures from the Association of University Directors of Estates (AUDE).
A
UDE’s Estates Management Report 2016, which spans the academic year 2014-2015, shows that
teaching income had risen by 6% per annum, while income from research increased by 12%. The two largest institutions in the UK each turnover in excess of £1bn per annum. The university estate equates to
14.3m sqm, which represents an increase of 200,000 sqm on the previous year. Undergraduate student numbers are actually down by 700 students, while research students increased by 10,000 and staff numbers increased by 2,000. Capital expenditure for the year
reached a record high of £2.75bn. This
growth of 5.6% on the previous year was driven by investment in the estate in the knowledge that staff and students expect high quality and attractive facilities. The report also details how Brexit may
present a significant risk to the HE sector; it is impossible to predict the level of impact although opportunities are also likely to emerge. Risks identified in the report includes recruitment of EU staff and students, rising construction costs, alongside changes to regional EU funding (EU research funding generates more than 19,000 jobs across the UK and £1.86bn for the UK economy. This equates to 14% of all UK income from research grants). The report reveals university estates
continue to expand. Individually, the universities of Manchester, Cambridge, Edinburgh, Oxford and Nottingham all have academic estates (excluding residential accommodation) in excess of 500,000 sqm.
Commercial deals Despite this growth and significant inflationary pressures (staff costs and construction price inflation), total property costs have remained relatively level for the past six to seven years, moving from £95 to £98 per sqm, showing the sector’s continued commitment to driving efficiency. For example, the University of Hertfordshire embarked on a strategy to
Universities increase turnover via business driven developments
8 highereducationestates
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