Nottingham City Market Report
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NOTTINGHAM CITY MARKET REPORT STUDENT PROPERTY RESEARCH | 2019 / 20 Q2 2020 Connecting people & property, perfectly. NOTTINGHAM CITY MARKET REPORT - 1 - NOTTINGHAM CITY MARKET REPORT INTRODUCTION This City Market Report outlines the key metrics associated with purpose built student accommodation in Nottingham. The report positions the city in the context of the wider UK market and illustrates key comparators. The report illustrates the key locations for purpose built student accommodation and analyses the demand and supply dynamics in Nottingham, with a focus on Pricing, Accommodation types and future supply of student beds. CONTENTS UK Student Populations 3 Higher Education Institutions 4 Purpose Built Student Accommodation 5 Pricing 6 Development Pipeline 7 Appendix I – University Locations and PBSA Locations 8 Appendix II – Bed Numbers and Pricing 9 Appendix III – Development Pipeline 11 Knight Frank Student Team 12 NOTTINGHAM SUMMARY Close to Derby, Loughborough 2 hours by train to London 2 Higher Education Institutions 18% of the city population are students 59,397 full time students 15% Growth since 2013/14 19% of student population are international 55% Students unable to access PBSA - 2 - NOTTINGHAM CITY MARKET REPORT UK STUDENT POPULATIO NS A map of key purpose built student accommodation markets in the UK. University campuses and purpose built student accommodation locations. - 3 - NOTTINGHAM CITY MARKET REPORT HIGHER EDUCATION INSTITUTIO NS University performance Nottingham student growth Nottingham student growth international UK Rankings and Student Satisfaction are based on The Times Good University Guide 2020, and the World Rankings based on Times Higher Education World University Rankings. Full time UK students Full time international students In thousands In thousands Income % UK rankings World Student Institution Mission group tuition UK Undergraduates UK Postgraduates Non-UK Undergraduates Non-UK Postgraduates (vs 2019) ranking satisfaction fees 60 14 University of Nottingham 21 +5 149 78 Russell Group 50% 50 12 10 40 The Nottingham Trent University 40 +3 601–800 81.7 University Alliance 83% 8 30 6 20 4 10 2 - - 2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19 Source: Knight Frank, HESA Source: Knight Frank, HESA Total student growth since 2014/15: International growth since 2014/15: Nottingham international students UK international students Top 5 international domiciles Top 5 international domiciles % of total international students % of total international students China: (28%) China: (26%) India: (7%) India: (5%) Hong Kong: (5%) United States: (4%) Nottingham UK Nottingham UK Malaysia: (5%) Hong Kong: (3%) Nigeria: (3%) Malaysia: (3%) 17% 11% 19% 13% Other: (52%) Other: (59%) Source: Knight Frank, HESA Source: Knight Frank, HESA University student numbers Nottingham Nottingham Student number statistics based on the latest HESA 2018/19 data. Undergraduate applications Undergraduate acceptances In thousands In thousands Institution Full-time Full-time Total full- % Growth % Non UK 3 Year under- post- time HE since students CAGR graduates graduates students 2014/15 UK EU Non-EU UK EU Non-EU 120 25 University of Nottingham 24,576 6,523 25% 31,099 11% 3% 100 20 The Nottingham Trent University 24,921 3,377 13% 28,298 26% 8% 80 15 60 Nottingham Total 49,497 9,900 19% 59,397 17% 5% 10 40 20 5 - - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Source: Knight Frank, UCAS Source: Knight Frank, UCAS - 4 - NOTTINGHAM CITY MARKET REPORT PURPOSE BUILT STUDEN T ACCOMMODATION Types of accommodation and the level of provision in Nottingham. University sector PBSA: Private sector PBSA: Schemes Beds Schemes Beds 31 12,098 61 14,861 Comprises university halls of residence and private sector stock on leases or agreements to the higher education Comprises purpose built student accommodation, which is not affiliated with a university. institutions. City market comparison Accommodation types Ranked by % unable to access PBSA Beds by room type PBSA year of opening Source: HESA 2018/19 % In thousands Nottingham Region Full-time students % Living at home % unable to access % unable to 2019 PBSA (gross) access PBSA (net) UK UK 1,858,813 20% 64% 56% 2018 11% Exeter 22,947 3% 60% 59% 2017 Southampton 30,223 7% 55% 51% York 23,769 6% 59% 56% 26% 27% 2016 Leeds 57,851 12% 60% 54% 2015 51% Nottingham 59,397 12% 55% 48% 2014 38% 2013 Loughborough 16,824 5% 54% 52% 47% Cardiff 35,294 12% 53% 46% 2012 Lincoln 15,200 11% 52% 46% Sheffield 52,206 13% 48% 41% Pre-2012 There are 59,397 full-time students in Nottingham, therefore, 55% of students in Nottingham are unable to access Non En-suite En-suite Studio - 5 10 15 20 25 30 purpose built student accommodation or a student to bed ratio of 2.1:1 Source: Knight Frank Source: Knight Frank - 5 - NOTTINGHAM CITY MARKET REPORT PRICING Rental profile across accommodation types in Nottingham. Average rental growth across all PBSA Knight Frank's Student Property Index indicates headline rental growth for purpose built student accommodation (PBSA) across Nottingham of 3.1% for the 2019/20 academic year. This is higher than performance across the UK as a whole of 2.4%. Nottingham UK 3.1% 2.4% Average rents in Nottingham Rent per week across the range of room types adjusted to 51 weeks tenancies. Non PBSA room type based on 2 or more bedroom property and incl. bills of £20pw. Source: Rightmove, Knight Frank Student Property. Non en-suite En-suite Studio Non PBSA1 £107 £124 £164 £127 PBSA rental distribution Rental distribution across the four accommodation types £ per week Non En-suite En-suite Studio Non PBSA 50 45 40 35 30 25 20 % ofspacesbed 15 10 5 0 £40 £60 £80 £100 £120 £140 £160 £180 £200 £220 £240 £260 £280 £300 £320 Source: Knight Frank, Rightmove - 6 - NOTTINGHAM CITY MARKET REPORT DEVELOPMENT PIPELINE A snapshot of the planning pipeline in Nottingham as at October 2019. We use third party data and our own insight of the market to provide an estimated pipeline of student beds. Source: Glenigan, Knight Frank Student Property. Development pipeline (under construction): Planning applications (with consent): 4 1,033 15 2,689 Development pipeline map Nottingham development pipeline University and Private sector beds with planning permission Stage of planning Total no. of beds Source: Knight Frank Research Planning applications submitted (no consent) 1,274 Ref Address Total Planning applications with consent 2,689 beds Development pipeline (under construction) 1,033 1 RedOak Property 353 2 Vita Student Ltd 323 Total beds (in all stages of pipeline) 4,996 3 Aspbury Planning Ltd 301 4 Mr K Tang 56 Expected delivery of development pipeline Year Total no. of beds Academic year 2019-2020 - Academic year 2020-2021 1,033 2021 and beyond - Total pipeline under construction 1,033 When the development pipeline under construction is completed, the proportion of existing students unable to access PBSA would change from 55% to 53%. This projection is dependent on a number of implicit assumptions; in particular, that the student population remains unchanged. - 7 - NOTTINGHAM CITY MARKET REPORT APPENDIX I – UNIVERS ITY LOCATIONS AND PB SA LOCATION S Ref Property Total beds 1 University Park - All Hal 3,205 2 Broadgate Park 2,200 3 Madison Gardens 1,196 4 Raleigh Park 1,196 5 Nottingham Two 1,096 6 St Peters Court 807 7 New Hall 727 8 Bonington Student Village 723 9 Perverell 722 10 Trinity Square 700 11 The Glasshouse 674 12 Liberty Point 602 13 Jubilee Campus 600 14 The Village 566 15 Byron Residence 559 16 Brackenhurst Campus 491 17 Radford Mill 483 18 Riverside Point 483 19 Gill Street North 446 20 Global Point 440 21 Nova 434 22 Victoria House 421 23 Goldsmith Court 378 24 Gill Street South 352 25 Newtown & Newland House 350 26 Norton Court 312 27 iQ Exchange 277 28 Cotton Mills 274 29 The Maltings 266 30 Meridian Court 250 30+ See Appendix II - 8 - NOTTINGHAM CITY MARKET REPORT APPENDIX II – BED NU MBERS AND PRICING University and private owned purpose built student accommodation schemes operating in Nottingham in 2019/20. This table includes a reference to the map in Appendix I, total bed numbers by scheme and average weekly rents. Term length based on typical tenancy offered at property. Source: Knight Frank Student Property Ref Operator name Property name Total beds Non En-suite Studio Ref Operator name Property name Total beds Non En-suite Studio en-suite en-suite Private sector PBSA Weekly rents from* Private sector PBSA Weekly rents from* 3 Derwent Students Madison Gardens 1,196 £102 - - 61 Mezzino Graystacks 84 £120 £128 - 4 Derwent Students Raleigh Park 1,196 £103 £128 - 62 Student Cribs Park View 68 £132 - £179 5 Student Roost Nottingham Two 1,096 - £145 £155 63 Kexgill Student Accommodation Royal Albert Mill 67 £97 - - 6 UNITE Students St Peters Court 807 - £128 - 64 Hello Student Talbot Point 67 - £153 £163 8 Campus Living Villages Bonington Student Village 723 £99 £109 £164 65 Purple Frog Property Ltd The Forster Street Buildi 65 £108 - £110 10 Student Roost Trinity Square 700 - £159 £175 66 UPP Cloister House 63 - - - 11 Homes For Students The Glasshouse 674 £108 £134 £160 67 Primo Property Management Halley House 61 - - £125 12 Liberty Living Liberty Point 602 - £107 - 68 The Student Lodge Provident Works 58 - - - 14 Manor Villages The Village 566 £116 £126 - 69 Fortis Student Letting Bard House 52 - - £135 18 UNITE Students Riverside Point 483 - £143 £193 70 Purple Frog Property Ltd Hockley Point 49 £109 - - 20 Kaplan Residences Global Point 440 - £139