London University Housing Conference Student Housing Marcus Roberts Director & Sarah Beuden Associate 30 June 2008

1. London University Housing ConferenceStudent HousingMarcus RobertsDirector& Sarah BeudenAssociate 30 June 2008

2. Student Accommodation

3. Overview • Market Statistics • Perceptions right or wrong • Partnerships – Success stories • Student Minefield • Planning • Possible solutions • Questions & Answers

4. Full-time students numbers continue to rise Source: Savills, HESA

5. Rapid growth in overseas students in last five years Source: Savills, HESA

6. Students live predominately in HMOs Source: Savills, HESA

7. OperationalPrivate Student Beds by Borough Source: HESA, Savills Research

8. Operational University Beds by Borough Source: HESA, Savills Research

9. Institutional Beds VS Private Beds by Borough Operational 07/08 Source: HESA, Savills Research

10. Supply:London Borough Supply Pipeline Source: Savills, ABI

11. Direct Let & Nomination Agreements by Borough Source: HESA, Savills Research

12. Perceptions • Private Sector – Developers & Agents • Public Sector – Universities & Local Authorities

13. Private Sector • Wide Boys • Arrogant • Cowboys • Money, Money, Money

14. Agents • Over- paid • Do nothing other than put in big invoices • Big lunches • Unapproachable

15. Public Sector & Universities • Move at a slower rate due to necessity and reporting structure • Bureaucracy • Increasingly commercially minded • Suspicious of the private sector • Protective of assets • No clear policy on the student issue

16. Continued under supply of student accommodation Significant Rental Increases Proliferation of Studio student schemes Difficulty in securing sites in London Tightening planning regime Current Challenges in London’s Student Market

17. University Sector Private Sector Chemistry?

18. ?

20. this is the reality

21. Interiors

22. Cluster Flats 4 Bed Apartment

23. Student Studios Studio Apartment Layout

24. Commerciality of Sector • Potential long lease structure • University Lease • Nominations Agreement • Direct Let • Secure income flow • Less reliance on capital growth • Dedicated management

25. “within our industry there are many misconceptions that things are easier than they actually are” (Anon)

26. can anyone relate to this?

27. have you ever tried to do something that looks simple but isn’t…

28. Tying a Bow-Tie

29. the student market can be a minefield design & development feasibility planning nuances supply & demand dynamics university & private sector objectives Land Values/ Rents

30. Planning - what are the issues? • What is our steer? • Is it a priority? • What is the need and where is it? • Why should ‘we’ become a ‘dumping’ ground? • Why should ‘they’ get out of providing any affordable housing?

31. Planning – weighing it up Pros • Adds to ‘world city’ status; • Brings economic and social benefits • Reduces pressure on private and affordable housing; • Counts towards housing targets. Cons • Competes against other needs and targets • Not counted as affordable housing • Creates ‘studentification’

32. Regional Review of London Plan Housing SPG Housing Strategy Sub-regional strategies Education Strategies. Locally Local Strategic Partnerships LDFs (including site allocations) Housing Strategies Education Strategies University Accommodation Strategies Planning – Mechanisms

33. Planning – Solutions Short term • Recognise that it is a need that is not going to disappear • Start dialogue (we’re all here after all) • Look at what we want and what we need • Start to use mechanisms that are available to us now. • All about working together (Sherlock Holmes not required!)

34. Planning – Solutions Medium/Long term • Assess needs • Introduce targets – sub-regional/local? • LDF process - policies/site allocations/implementation • Contribute towards affordable housing?

36. General Market Comment • £6.6 billion property market • Expected growth to > £20bn in the next 6 years • Total of 2.3 million students studying in the UK • 459,000 student bed spaces – -Education sector 326,000 beds - Private sector 133,000 beds • Expected further consolidation and stock transfers from Universities to the private sector. Student Accommodation Bedspaces by Region

37. Possible Solutions • Increased partnerships between Universities and the Private sector • Utilisation of existing campus land / assets - Ability to balance capital receipt for land with ability to structure accommodation type and lease / nomination agreements - Potential to refurbish existing stock though sales and agreement to the private sector • Joined up approach to planning – unlock difficult planning sites - ability to structure mutually beneficial structures • Political pressure from Private and University sectors - Target the GLA - Target specific boroughs which could support student housing but don’t

38. ‘experience and knowledge of a constantly evolving niche sector’ (Anon)

39. remember things aren’t always as easy as they seem ....

40. do it yourself ‘Bow Tie Man’.........

41. .......... or the professionals

42. Marcus Roberts Director – Student Housing +44 (0) 7807 999187 +44 (0) 20 7016 3799 mroberts@savills.com Sarah Beuden Associate – Planning +44 (0) 7812 965 308 +44 (0) 20 3320 8265 sbeuden@savills.com Thank you for listeningAnyQuestions