Higher Education and Student Accommodation Construction Sector Report - UK 2012-2016 Analysis

AMA Research are pleased to announce the publication of the 4th Edition of the report “Higher Education and Student Accommodation Construction Sector – UK 2012-2016” – a key sector continuing to demonstrate robust growth over recent years.

Key areas in the report:

Review of university capital funding – budgets, plans, key universities, alternative funding sources.
Detailed analysis of types of accommodation within the student housing market, including current supply in university halls, commercial and private accommodation
Key potential growth areas up to 2016
Key operators, contractors/consortia
According to Building magazine (April 2012) “almost 80% of UK universities are planning to begin major building projects within the next year, as institutions invest in estates to attract students”.
The report identifies construction activity in the sector – in both universities and student accommodation –reviewing capital funding, maintenance issues, demand/supply of student accommodation, key contractors and consortia in the sector – together with a review of prospects up to 2016.

Areas of particular interest:

Impact of higher tuition fees - demand for places / student accommodation, review of ownership and maintenance requirements of student halls - alternative funding options for universities upgrading residential/non-residential facilities and options for transfer of stock to private sector.
Review of capital funding in HE system , impact of government spending cuts on current and planned university capital building programmes.
Supply-demand imbalance of purpose built student accommodation (PBSA) driven by rising student numbers - problems of under-supply in many university towns, especially London.
Analysis of university estate and infrastructure backlog, and an overview of leading construction contractors operating in the higher education sector.
Partnership models between investors, developers and operators of PBSA with universities to upgrade/replace existing stock. Growth of private sector to upgrade and develop accommodation – transfer of ownership / outsourcing functions to the private sector.
Market shares, portfolios and future development pipelines of key 25 commercial operators and investment funds in PBSA market – new market entrants.
Analysis of developer activity within PBSA market including current supply of accommodation, factors affecting market and forecasts of future PBSA development pipeline, key growth opportunities – c 500,000 bedspaces in 2011 but demand continues to grow.
Some of the leading contractors included in the report.
Balfour Beatty, BAM Construction, Border Construction, Bouygues, Carillion, Costain, Interserve, ISG, John Sisk, Kier, Laing O’Rourke, Leadbitter, Lend Lease, Midas, Miller Construction, Morgan Sindall, Ocon Construction, Shepherd Construction, Sir Robert McAlpine, Skanska, Vinci, VolkerFitzpatrick, Wates, Watkins Jones, Willmott Dixon.

Key areas covered in the report include:

OVERVIEW OF THE HIGHER EDUCATION SECTOR IN THE UK

Brief overview of higher education system in the UK including types of University and the impact of new universities on infrastructure development.
Growth in student numbers,  recent trends/future prospects, increase of overseas students, impact of higher tuition fees on student numbers in future.
Analysis of the Higher Education White Paper and its impact on universities.

HIGHER EDUCATION SPENDING AND INVESTMENT

Value of total university funding in the UK to 2014-15 - Higher Education Funding for England, Wales and Scotland to 2015.
Overview of higher education capital investment to 2014-15, Capital grants up to 2014 – total and for top 10 universities in England and Scotland.
Impact of funding cuts on university infrastructure development – alternative funding sources, review of ownership and maintenance requirements of their student halls. Other Sources of University Income – Charitable Trusts, Endowment Funds, Bond Markets.

CONSTRUCTION ACTIVITY IN THE HIGHER EDUCATION SYSTEM

Analysis of construction output in the higher education sector.
HE Capital Spending, top 20 University capital grants 2011-2015.
Announcements for University Science Facilities in the 2012 Budget.
University Estate – Current age of university buildings and maintenance backlog (by value)
Examples of university capital building programmes, impact of spending cuts, procurement of capital building projects in the HE sector.
Higher Education Contractors and Consortia – key players, projects/pipelines, recent awards, clients, procurement issues, etc.

OVERVIEW OF THE UK STUDENT ACCOMMODATION MARKET

Mix of student accommodation – bedspaces 2006-2016, mix by type - university owned/operated, commercial / PBSA halls, private shared houses. Current supply of student accommodation at leading UK universities including share/volume mix of types of accommodation – outsourcing , transfer of ownership to private sector etc.
Impact of rising student numbers /international students (a key market) on univ. accommodation – c.500,000 bedspaces in 2011 but demand continues to grow.
Regional analysis of  student accommodation market – level of provision, opportunities.
London student accommodation market – rising student numbers and planning restrictions affecting development activity in some central areas, development pipeline.
Factors affecting student accommodation market –impact of rising student rents, recession and higher tuition fees on PBSA market, student accommodation investment funds.
Market shares of leading 25 commercial operators of accommodation including developers, housing associations – Unite, UPP, Opal, Liberty Living, Sanctuary Homes, Victoria Hall, IQ, Watkins Jones etc - analysis of portfolios and forward development pipelines. Leading investment funds – portfolios, fund values.
Future supply 2012-2016, analysis of future PBSA development pipeline both in London and nationally, market prospects, key growth areas, new market entrants.