Analysis


Residential


income INCOME generated by the residential estate is significant; with a total income within the sector of approaching £2bn in 2014/15 (this currently includes all residential income as well as conference and catering income). Three institutions generate over £50m per annum, and 16 generate over £30m.


boost income by securing commercial deals with businesses such as Ocado and Regus for office space, as well as commercial leases with bank Santander and the NHS which runs a GP clinic on campus. University’s income rose to £1,477 per sqm in 2014/15. Across the sector, examples are


documented in the report of universities exploiting its estate in order to secure alternative funding streams outside of traditional routes. The University of Sheffield built workshops, laboratories and office space in Catcliffe near the M1 in a business park. The capital expenditure in Sheffield Business Park will deliver 4,000 jobs and generate over £210m per annum to the regional economy when fully developed. Driving efficiency, reducing costs,


improving the estate, raising service levels and increasing the commercial income from the estate remain key areas of focus for estate directors. AUDE chair Trevor Humphreys, director


of Estates and Facilities, at the University of Surrey said: “Universities have been


through a period of significant upheaval and the sector should be commended on its robust management and efficiency strategies, which continue to serve it well. However, the future remains uncertain as we try to plan for the impact of the HE White Paper currently going through Parliament. Brexit is also likely to affect our student demographic, our workforce, our costs, as well as research funding.” Sir Ian Diamond, Principal and Vice-


Chancellor of the University of Aberdeen, said: “A real feature of the evolution of the higher education estate in recent years has been how the local community is able to use the estate, or in which developments are a part of the community. Imaginatively developed facilities can support and enhance higher education’s contribution to the economy and to society. But in this landscape, there is no room for complacency.”


www.aude.ac.uk www.cbre.com


The residential estate continues to be a critical part of the Higher Education estate. Not just the space owned and managed by institutions themselves (which accounts for over 330,000 bedspaces) but the increasing number of private sector beds (110,000 bedspaces) and the ‘other rented accommodation’ (520,000 bedspaces). The impact of these beds on local communities is often one of the most sensitive aspects of university/community relations.


Institutions have increased their investment in their own accommodation, spending nearly £600m on the residential estate in 2014/15. The percentage of the residential estate in condition A and B remains relatively similar to last year, but has improved over the last decade. The condition of this estate continues to be very significant in terms of recruitment. It is a critical element of particularly for parental support, in university selection. It is also important in support of conference business.


Institutions continue to work innovatively with the private sector to provide access to additional accommodation. Institutions are working in a variety of different ways to ensure that students have an equivalent experience whether they are in private sector accommodation, nominated accommodation or within the University’s own accommodation.


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