Purpose-built student accommodation (PBSA) and student housing: research

5. Student Housing Choices and Affordability

Introduction

This chapter is the first of two focused on the student experience. The chapter presents key themes related to student housing choices and affordability. In turn, the chapter will discuss:

• The research methods used to survey and interview students.
• The ways in which students identify and find accommodation.
• Housing choice, including the factors that are important to them when choosing housing.
• Housing costs, including how students pay for their accommodation and the ease of meeting these payments.
• Issues with housing affordability and utility costs.
• Perceptions of value for money.

Overall, students were attracted to PBSA for aspects of shared living, locations, the ease of accessing it relative to other housing tenures, and the all-inclusive nature of PBSA rent payments. However, students often perceived PBSA as representing poor for value money in comparison to other housing tenures and reported concerns over increased housing costs and the rising cost of living. Many students benefit from forms of family support and employment to mitigate this, though not all students have access to these options.

Our research on student experiences was based on two approaches: a larger survey across the three case studies of Glasgow, Edinburgh and the combined case study of Dundee and St Andrews, and one-to-one interviews with students living in PBSA and other forms of student accommodation in these locations.

Research Methods: Survey Design and Distribution

The first stage of data collection involved an online survey with students. The survey asked a range of Likert scale questions asking students to indicate the strength of their agreement or disagreement with a series of statements related to their housing experiences, such as:

• It was easy to find my housing.
• When looking for my housing, there were a good range of options available to me.
• I have a good relationship with my landlord/housing providers.

A full list of the questions that were asked is available in Annexe 2. These questions gauged the perceptions and experiences of students, identifying emerging themes and differences between students in different housing circumstances and locations. In addition, the survey collected demographic data, including information on whether students were a home or international student, whether they were the first in their family to attend university, their housing tenure, age, gender identity, sexual orientation, experience of physical or mental health conditions or illnesses, ethnicity, sexual orientation, religion, and experience of family estrangement.

The survey was hosted online and students were asked to complete it confidentially in line with University of Glasgow ethical approval. The survey was open to students aged 18+ living in one of the case study areas. The survey was distributed open from April 2022 – June 2022 and, with the support of universities, accommodation providers, and student bodies, promoted via social media, university student mailing lists, accommodation mailing lists, and through student associations and societies. The response rate of the survey and follow-on interviews discussed below was inevitably shaped by the extent and nature of distribution and the willingness of students to participate, partly explaining why the response rate was higher in some locations than others.

In total, the survey received 908 responses. The survey was largely completed by students in HE – only 36 of the 908 respondents (3.9%) declared themselves to be studying a college course.

Figure 4.1 shows the proportion of survey responses from each case study area. Students were given the option of selecting from pre-defined options (Glasgow, Dundee, St Andrews, Edinburgh) or to enter a free-text option. Small numbers of students opted to enter free-text options: Musselburgh (3), Abertay (1), Leuchars (1), Kirkcaldy (1), Fife (1), Pencaitland, East Lothian (1) and North Lanarkshire outside Glasgow (1).

The survey also asked students to record their housing tenure situation. Figure 4.2 shows that 71% of responses lived in PBSA, while just over 24% lived in the general private rented sector. Students were not asked to differentiate between living in university-owned or privately-owned accommodation, in part to avoid linking personal data with specific halls of residence, maintaining anonymity and confidentiality. The small number (8) of 'other' responses were given as free-text options and included students that indicated they live in a student housing cooperative, living in university-managed house, students living as guests in other people's properties, and those who recorded their status as "searching for private accommodation".

Students were also given the option to opt out of the demographic questions, with a 'prefer not to say' option included for each question.

Interviews

A key purpose of the survey was to support recruitment for semi-structured one-to-one interviews. Students were given an option in the survey to agree to be contacted for a follow-up interview. 45 interviews were undertaken between April and June 2022 in tandem with the survey: 15 with students living in Glasgow, 15 with students living in Edinburgh, and 15 with students living in Dundee (8) and St Andrews (7).

Demographic data was used to sample students and to achieve representation of a broad range of protected characteristics and demographics. The research team regularly reviewed the characteristics of the sample as interviews were completed, subsequently targeting interviewees to fill any under-representation of experience. It is important to note that the research team were only able to contact those who indicated that they were happy to be contacted for a follow-up interview and, in turn, not all of those invited to interview accepted. As such, the interview phase aimed to represent a broad range of experiences but does not claim to be wholly representative of the experiences of any particular demographic group.

In total, 32 interviews were conducted with students living in PBSA, 12 with students living in the private rented sector and one with a student living in a housing cooperative. While this is a study of student experiences of PBSA, interviews were undertaken with students living in other forms of housing provision in order to compare and contrast experiences and to explore their housing choices, including reasons why they may choose to live in other tenures rather than PBSA.

18% of interviewees identified their ethnicity as white Scottish and a further 18% as white British. A number of different ethnicities were represented in the remaining 64%, including white Irish (6.5%), white other ethnic groups (16%), Indian, Scottish Indian or British Indian (4.6%), and Chinese, Scottish Chinese or British Chinese (5.6%).

60% of interviewees declared their sexual orientation as straight, 27% as gay/lesbian/bisexual, and 7% as other.

33% of interviewees declared that they had a physical or mental health condition, while 13% had experienced estrangement from their families either currently or in the past. This contrasts with the overall student population, where just under 1% identify as estranged according to according to the background tables accompanying a Scottish Funding Council (2022) report. However, as Scottish Government (2022b) research notes, numbers of estranged students are likely higher than reported given the emotional and practical difficulties of evidencing estrangement.

22% of interviewees were the first in their families to attend University. Of the 45 interviewees, 27 identified as an international student, 13 as domestic/home students, four as originating from the rest of the UK, and one respondent who preferred not to share that information.

Interviews explored the biographical context and housing pathways of students, the ways in which they find housing, navigate local housing markets, and the factors that inform their choices, perceptions of housing quality and condition, landlord/provider relationships, perceptions of affordability and value for money, awareness of tenancy rights, responsibilities and conditions, the extent to which their accommodation appropriately meets their needs, and their use of space and experience of living in their accommodation. All interviews were conducted online via video meeting platforms, transcribed and anonymised, and analysed thematically in relation to the research questions. Where interview material is presented below, we use abbreviations to indicate the case study area of respondents (GLA = Glasgow; ED = Edinburgh; STA = St Andrews; DN = Dundee) and a number to distinguish between interviewees. Additional demographic information is not linked to identifiers for ethical reasons.

Photo Elicitation

During interviews, we also adopted photo elicitation techniques, where students were asked – if they wished – to take photographs of their property internally and externally and send them to the interview. This helped to form a context-setting initial section of the interview. While the majority of students did not share photographs, some interviewees did share photographs to help contextualise and support the interview.

Student Housing Choices and Costs

This section reflects on the ways in which students identify and find housing to live in, their views on housing costs and affordability, and the extent to which they consider PBSA as representing good value for money.

Identifying and Finding Housing

Prior to arriving at university, a number of students reported that they had limited awareness of the local housing market. Students' university choices were commonly informed by the reputation of their course, university, or the availability of scholarships. Many students reported that their institution had guaranteed accommodation for first-year students and therefore arrived with assumptions over this, with little consideration of their housing options in future years of study.

Some participants reflected that they "should have paid more attention" (GL3) to local housing issues given challenges they had encountered after their first year of study. Other students did report that the availability of accommodation influenced their decision-making, often related to preferences over the location and type of accommodation. For instance, GL8, a home student, wanted to avoid campus-based accommodation and preferred to live in a city, while others confirmed their choices were informed by a comparison of housing costs between different cities.

In interviews, students living in PBSA generally reported that they found it easy to find PBSA to live in. This was in part attributed to the simplicity of the application process, particularly for first year students that typically received information on accommodation choices prior to arrival. Students entering university-owned accommodation in their first year appreciated requests to indicate their preferences for shared or private facilities, catered or self-catered options, room sizes, and whether they preferred to live in mixed or single gender flats. Students valued the information provided by universities on PBSA available to them when beginning their courses. An estranged student positively reported that they were prioritised for accommodation due to their family situation, ensuring that they were able to obtain their first accommodation choice.

When moving to a new place for university, or moving to new accommodation during their studies, students sought accommodation advice and information from different sources. Students in both university and privately-owned PBSA were satisfied with the information available on websites, though some students unfamiliar with the local area felt that it was difficult to make decisions based on descriptive information online and desired, for instance, more information on transport links and connectivity between their accommodation and universities (GL12). Some international students also felt that universities could offer more support for accommodation searches, particularly where their household needs were not just for one person but for a broader family or for a particular form of accommodation.

In the survey, 77% of students in PBSA reported that they find it easy to find their current housing, compared with only 38% of those students living in the PRS. This was reaffirmed in interviews where students living in the PRS reported that they found it more difficult to find housing than those living in PBSA. One reason for this may be the support given to first year students that move into PBSA by universities. DN8, an international student studying for the second time with experience of both types of accommodation in Dundee, reported that "the university is quite good with accommodating people that aren't from the UK" but that "applying for private rental property, it was more difficult and there wasn't as much support." Some students spoke of their lack of experience in approaching and negotiating with private landlords and letting agencies.

In Edinburgh, Glasgow and St Andrews, students perceived that the supply of private rented housing for students was limited but in high demand, creating a highly competitive student housing market. Difficulties in finding PRS accommodation in these areas led students to live in PBSA beyond their first year, in part because of perceptions that accommodation in the PRS was difficult to find. One student described house hunting in St Andrews as "a stressful experience because you very much get the feeling that there are too many students of the housing that we have available within the town." The limited supply of PRS housing also led students to compromise on location, living further away from their universities, such as students that studied in St Andrews but lived in Dundee, even if this was not their preferred option. Some students reflected that the stresses of housing searches impacted their studies: "I started falling behind in my schoolwork because I was spending time looking for accommodation and I couldn't work on the assignments because I needed a place to live." Difficulties in accessing the PRS may lead to more demand for PBSA.

Students also reported difficulties in finding accommodation, whether in the PRS or PBSA, if they were applying for courses later in university recruitment cycles or if they were unable to put down early deposits. This included postgraduate students applying for courses later in recruitment cycles, with some not securing or confirming their place until shortly before the beginning of their course. Students in this situation highlighted that accommodation places can be in short supply, and that this was particularly problematic for those who secure bursaries and scholarships to fund their studies and living costs at times that are not perfectly aligned with accommodation cycles.

An additional barrier to accessing accommodation was the requirement to have a guarantor. Many forms of accommodation rented out by private PBSA providers and private landlords require a UK-based individual to provide a rent guarantee. This may affect international students and students estranged from families who may typically act as a guarantor. Some universities provide guarantor services to students that require them; GL7 reflected that they had used the service offered by the University of Glasgow.

Student Perceptions of Housing Choice

In interviews, we explored student perceptions of housing choice, including views on the choices available to them (whether PBSA offers choice) and the factors that guided the choices that they made. Students were often positive about the choices available to them when applying for PBSA. Students are often asked for housing and household preferences. In St Andrews, the varied types of university-owned accommodation, including choices between catered and non-catered and different price points, meant that students in PBSA felt they had choice.

Many students were attracted to PBSA by the opportunity to socialise and make friends. Students described shared flats in PBSA as "a good way to meet people that you wouldn't typically meet" (STA6) beyond their courses. The diversity of flatmates was also an appeal. Students saw living in PBSA as a way to meet "students from other courses or from other cultural backgrounds" (ED14). This suggests that PBSA helps to socialise students that move to new locations for study. Students also spoke of their desire to live with people from similar stages of study or from the same institution, and university-owned accommodation, rather than privately-owned, was seen as attractive for this reason. This applied to both undergraduate and postgraduate students, with the latter group choosing to live in PBSA where it was assured that they would be able to live with fellow postgraduates. Where this was not possible, some interviewees were discouraged from living in PBSA. Students living in PBSA in later years of undergraduate study spoke of their frustration at missing out on the 'typical' first year experience of living in PBSA and had chosen PBSA in later years of study to enjoy the social opportunities that they associate it with. Conversely, other students chose to leave PBSA after their first year, perceiving it as a form of accommodation that helps to transition students before they move into housing that allows them greater independence.

Housing costs also guided decision-making to an extent. This was not necessarily to do with perceptions of affordability or value for money – these themes are discussed in a following section – but rather to do with certainties over costs and convenience of paying housing costs, including rent and utilities. One interviewee, referring to the benefits of PBSA, argued that the inclusion of utilities "just simplifies it, I like that. That way you don't have to worry about not using too much or you don't have to monitor anything" (ED10).

International students argued that they would be "adjusting to a new country, so I wanted something that I don't have to control rent and water and stuff" (DN2). Others chose PBSA for similar reasons, even if they would ideally have preferred to live in the PRS such as GL9, a postgraduate student who described PBSA as the "easier option" and "the most pragmatic one to have" due to their lack of awareness and knowledge of the local housing market. Housing costs also informed the accommodation choices of other students based on perceptions of value for money and affordability, discussed in more detail below.

Location was cited as an important consideration for students, though locational preferences varied. Many students prioritised being as close their campus as possible in order to reduce transport costs. Students spoke of calculating the potential impact of travel costs when making accommodation choices and were keen to be close to amenities and areas popular with students. Locational safety was also an important factor, with some students stating that they actively researched crime rates to inform their decision-making.

There were therefore several factors that appealed to students and that informed their housing choices. However, survey responses also showed that 35% of students living in PBSA disagreed that there were a good range of options available to them, a view also shared by 55% of those living in the PRS. These responses may be attributed to perceptions expressed in interviews that PBSA did not adequately account for a range of household types and needs, such as students with families or those with pets. This was particularly expressed at postgraduate level.

Disabled students or those with long-term health conditions spoke of difficulty in finding suitable PBSA, often related to the expectation that PBSA would involve either sharing facilities with multiple people or paying higher prices for private studio accommodation within buildings. One student spoke of a specific condition that meant that they would prefer not to share bathroom facilities with others, meaning that conventional shared flats within PBSA were not a realistic option, while one autistic student reflected that they had found it difficult to live in PBSA.

Housing costs were an additional factor that affected student perceptions of their housing options. In some areas, where there was a choice between university-owned and privately-owned PBSA, students reported a preference – but also high demand – for university-owned accommodation, perceiving it as more affordable. GL13 explored various options in close proximity to their university, including privately-owned PBSA: "it was a little bit hard to find ones that were on the price I was expecting or on my budget … so I just decided to keep with the university one." Some mature students stated that they preferred en-suite and/or studio accommodation but found that they were "very limited and going beyond my price" (GL5). Issues of cost led to compromises and trade-offs in housing decision-making; for instance GL5 opted for a PBSA flat that shared kitchen space but ensured they had their own en-suite.

Some students were dissatisfied with the range of PBSA options in different locations. In Glasgow, one student reflected that they felt "there wasn't so much option for being close to the uni really" and felt that "the biggest compromise is just the distance" (GL8), reaffirmed by GL9, who desired to only live with postgraduates, who felt that "the location is not that good, I don't have anything close. I have to use public transport every time, so that adds up". This dissatisfaction mirrors some of the positives that other students reported of PBSA. Others living on campus-based accommodation echoed this, arguing that "you don't really get the full city life experience" (ED12) due to reliance on public transport, though a number of students seemed willing to trade this off for proximity to key university buildings. These findings highlight the importance of location in planning and developing PBSA, and the importance of ensuring connectivity with buildings and locations that students are expected to most frequently use.

Housing Costs

In interviews, students revealed that they draw upon multiple source of finance and income to meet their housing costs, including a significant reliance on support from family members, employment during their studies, and scholarships and loans.

Financial support from family members was frequently cited as a way in which students at all levels of study fund their housing costs. DN1, a PhD student, reflected that they were able to do their PhD "because my parents pay for the rent of my accommodation", while other interviewees felt that they were "lucky enough to have really supportive parents that help me" (ED12). As a result of this, students actually had varying levels of awareness of both the absolute and relative cost of their housing. Some students agreed set budgets with family members that paid their rent, while others were not fully aware of the cost. Some students in locations where housing costs were perceived as high, such as St Andrews and Edinburgh, felt that family support was essential to their ability to afford to study there. International students regularly cited the importance of family support for their accommodation and living costs. GL9 living in PBSA highlighted that their housing costs accounted for over two thirds of their monthly scholarship income and, as such, were reliant on their parents to ensure they had enough money to meet other living costs.

In interviews, students spoke of shortfalls between forms of student finance and their housing and living costs. For some students, this was due to receiving a lower amount of funding from SAAS due to the income of their parents, necessitating financial support from families to meet the shortfall or putting pressure on students obtain employment while studying. One student in their final year of undergraduate study reflected that "the rent itself is more expensive than your entire student loan" (GL14). Shortfalls between student finance and housing costs were also problematic for students at postgraduate stages of study and for international students, who perceived the cost of living in Scotland to be generally very high and felt that "doing all the math, for international students, it's like you have to have a lot of privilege" in order to afford to meet housing and living costs.

Students attempted to tackle this shortfall in different ways. While the importance of family support has already been established, other students highlighted that they were not able to draw upon family networks to financially support them due to experiences of estrangement. Others were reluctant to accept support as they wished to be independent, such as ED11: "I have been working a lot just to try and fund myself to be more independent". However, others struggled to find employment to support their living costs for varied reasons. Some students studied courses that demanded large amounts of contact hours or to undertake work placements, leaving little time for casual employment outside their studies. Others had taken on work but had had to reduce their hours as they had noticed they were "working more than I was actually studying" (DN6), echoed by GL8 who argued that "it's quite difficult to juggle having a job" with studying. Furthermore, the disruption to traditional areas of student employment during the Covid-19 pandemic, such as retail and hospitality sectors, had reduced employment opportunities.

Affordability and Value for Money

Students had ongoing concerns over housing affordability, in part expressed by students that found it difficult to find housing and/or to make rent payments, but also by others concerned at the prospect of rising housing and living costs in the future. Students were concerned as to whether student finance provision would be sufficient to meet these costs.

Some students living in PBSA already felt that their rents were high and were concerned at increasing costs. GL10, living in PBSA, reflected that "in Glasgow everything is getting more and more expensive by the year" with reference to accommodation costs. Student concern at expense was often related to their ability to pay for accommodation rather than views over value for money (which are discussed further below). Students were sceptical about their ability to find affordable accommodation in the PRS if PBSA became too expensive, something reaffirmed by students living in the PRS in all four locations where affordability in the PRS was perceived to be a significant problem, particularly in light of increased student admissions and competition for a limited supply of properties. ED8 living in PBSA described housing affordability as their "main worry this whole year" and felt that "if the accommodation prices were reduced … then that would make me at least feel a bit easier".

Affordability concerns were also strongly linked to expensive and rising utility costs. Students in PBSA felt less immediate concern about this, largely due to the all-inclusive nature of their accommodation, but they were conscious that the cost of living crisis developing through 2022 may impact their rent in the future. GL4 felt that they were "lucky because I live in an all-inclusive type of housing" but that they knew "a lot people who struggle because of bills rising". This was affirmed by students in the PRS who reported significant and pressing concerns around utility costs, including difficulties in heating accommodation. It should also be noted that there will inevitably be a time lag in terms of when the impact of rising utility costs impact upon rents in PBSA, given rents are set and accommodation is advertised in advance of the beginning of an academic year.

Perceptions of value for money among students varied. Objectively, within the constraints of the market in which they were choosing PBSA, some students felt that they had obtained the best accommodation possible but that it was still expensive and poor value relative to space, quality and privacy. GL1 reflected that "it's cheap and it shows but it could be a lot worse". Other students felt that rent levels for PBSA were extremely high given the number of people sharing space and amenities.

While some students felt that their accommodation was expensive and poor value for money, they were also willing to trade this off for other aspects of PBSA, such as location or social aspects. DN8, living in university-owned PBSA, felt that "it is quite a high price" but that they were willing to pay it "just because of the fact that I prioritised more wanting to meet people". Others, such as DN4, an international student, highly valued the reliability and certinaity of applying for PBSA through their university considering it as "the only reliable option" in terms of standards, quality and security. All-inclusive packages were also attractive to students and heightened positive views over value for money.

Student perceptions of value for money were not just based on an objective assessment of their housing but also on comparisons with other housing options and tenures, reflecting the geography and dynamics of local housing markets, and subjective preferences of students. For instance, in Dundee many students felt that they could obtain better value for money in the PRS with respect to space and privacy, even where they expressed satisfaction with PBSA. DN3 felt that their PBSA was "a very good set up, except for the fact it costs double what a market rent flat in Dundee costs." In this context, DN6 felt that PBSA "definitely wasn't good value for money." Other students with experience of living in both PBSA and the PRS also felt that the latter represented "much more better value" as their home in the PRS had substantially more space: "you could probably fit almost all five of our [PBSA] rooms into my bedroom now" (ED7). However, other students in housing markets where the PRS was seen as expensive or difficult to access felt that PBSA was a valuable option, as described by a student in St Andrews: "I feel there's really no other choice because private accommodation [referring to PRS} would be even more expensive … the value is that you have a place to stay that isn't going to be so much more expensive, but I feel that it could definitely be lower [in price] and have the same quality." Others, such as students on campus at Queen Margaret University, compared the price of their PBSA with more expensive PBSA in central Edinburgh and as such felt that their accommodation represented good value for money.

Key Messages

• There is substantial variation among students in terms of their ability to find, choose and afford accommodation.
• Prior to arriving at university, many students reported that they did not have a strong awareness of the local housing market, and that housing options did not form part of their decision-making over where to study.
• Findings suggest that students tend to find it easy to find PBSA and are well supported with this by universities, compared to students in the PRS who were more likely to report difficulties in accessing suitable and affordable accommodation. Difficulties in accessing the PRS guided some students to live in PBSA instead.
• Students are attracted to PBSA for different reasons, including the opportunity to socialise and make friends when starting new courses or moving to new locations, though preferences vary in terms of its suitability for students in later years of study.
• Location is an important consideration or students, with student prioritising proximity to university buildings and keen to avoid living in locations that lead to higher travel costs.
• There were mixed views as to whether PBSA adequately accounts for a range of household types and needs. Students with different household types, such as families or those with pets, reported difficulties in finding suitable accommodation. Disabled students and those with long-term health conditions also highlighted challenges in finding suitable PBSA, often due to issues of access or expectations over the level of shared amenities and space.
• Students generally perceived PBSA to be expensive within local housing markets, with no discernible difference between university and private PBSA.
• However, views on value for money varied and were contingent on the relative price of other forms of accommodation. In areas where the PRS was in high demand and characterised by high rents, PBSA was perceived as good value for money. In areas where PRS rents were lower, students were willing to trade this off for the positive attributes of PBSA living.