NOTTINGHAM CITY MARKET REPORT
STUDENT PROPERTY RESEARCH | 2019 / 20 Q2 2020
Connecting people & property, perfectly. NOTTINGHAM CITY MARKET REPORT
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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
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UK STUDENT POPULATIO NS
A map of key purpose built student accommodation markets in the UK. University campuses and purpose built student accommodation locations.
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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
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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
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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 % % ofspaces bed 15
10
5
0 £40 £60 £80 £100 £120 £140 £160 £180 £200 £220 £240 £260 £280 £300 £320
Source: Knight Frank, Rightmove
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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.
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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
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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 £172 71 DRE Property Services Ltd Castle House 47 £97 - - 21 Collegiate AC Nova 434 - £156 £164 72 Urban Student Life KP House 47 - £120 £135 22 Megaclose Ltd Victoria House 421 - - £146 73 CP Walker & Son Mooregate House 45 - £109 - 23 The Student Housing Company Goldsmith Court 378 - £125 £140 74 Bee Living Russell Galleries 45 - - - 25 iQ Students Newtown & Newland House 350 - £135 £157 75 Manor Villages Bertrand Russell House 38 £101 - - 27 iQ Students iQ Exchange 277 - £115 £168 76 CP Walker & Son Flewitt House 38 - £120 - 28 D&B Property Management Cotton Mills 274 - £87 - 78 Congregational Federation Cleaves Hall 32 £90 - - 31 HomesforStudents Dagfa House 227 - - - 79 Urban Student Life Express Building 26 - - £145 33 Student Facility Management The Laceworks 222 - - £135 80 Kexgill Student Accommodation Royal Albert Court 12 £93 - - 34 CRM Russell View 210 - £124 £133 Private Sector PBSA Sub-total 13,617 35 Study Inn Clarendon Street 200 - - - 36 Study Inn Lawrence House 200 - - £154 39 Six Degrees Six Degress 198 - £110 -
43 Nicholas Humphreys Archer House 167 - - - Ref Operator name Property name Total beds Non En-suite Studio 44 Student Roost Hydrogen 164 - - £175 en-suite
45 Hello Student The Frontage 152 £147 - £169 University sector PBSA Weekly rents from* 46 Fortis Student Letting Minerva House 151 - - £125 81 Nottingham Trent University Southill House 12 - - - 49 Homes For Students Bowman House 140 - - £149 82 Nottingham Trent University Waverly Street 12 - - - 50 Homes For Students Nottingham Square 140 £99 - £112 7 The Nottingham Trent University New Hall 727 - £154 £170 51 Dwell Student Living Castle Gate Haus 133 £119 - £126 9 The Nottingham Trent University Perverell 722 - £135 - 52 CRM Medici 131 - £140 £169 15 The Nottingham Trent University Byron Residence 559 - £160 - 53 Operator TBC - Was Homes For Students Rise Nottingham 124 - - £145 16 The Nottingham Trent University Brackenhurst Campus 491 - £127 - 54 HomesforStudents The Rise 124 - - - 19 The Nottingham Trent University Gill Street North 446 - £154 £112 55 Host Student Living Lace Market Studios 114 - - £80 24 The Nottingham Trent University Gill Street South 352 - £160 - 56 Homes For Students Orbital 103 - £133 £160 26 The Nottingham Trent University Norton Court 312 - £132 - 57 Fortis Student Letting Avalon Court 100 - - £125 29 The Nottingham Trent University The Maltings 266 £101 - - 58 Hello Student Talbot Studios 98 - - £147 30 The Nottingham Trent University Meridian Court 250 £101 - - 59 Fortis Student Letting Maid Marian House 94 - - £120 32 The Nottingham Trent University Simpsons 226 - £132 - 60 Unipol Norwich Union House 88 - £126 - 38 The Nottingham Trent University Sandy 199 - £133 -
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Ref Operator name Property name Total beds Non En-suite Studio en-suite
University sector PBSA Weekly rents from*
40 The Nottingham Trent University Blenheim 177 - £132 - 42 The Nottingham Trent University Hampden 168 £113 - - 77 The Nottingham Trent University College Drive 37 £95 - - 1 The University of Nottingham University Park - All Hal 3,205 £116 £196 £203 2 The University of Nottingham Broadgate Park 2,200 £116 £147 £108 17 The University of Nottingham Radford Mill 483 £109 £127 £159 37 The University of Nottingham Study Inn 200 - - £161 41 The University of Nottingham Albion House 168 £110 - - 48 The University of Nottingham Melton Hall 143 - £126 - 13 The University of Nottingham Jubilee Campus 600 - - - 47 The University of Nottingham Jubilee Campus - Melton H 143 - - -
University sector PBSA sub-total 12,098
Grand total PBSA beds 25,715
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APPENDIX III – DEVELOPMENT PIPELINE
University sector and private sector purpose built student accommodation currently under construction in Nottingham. This table includes a reference to the development pipeline map, total bed numbers by scheme and expected year of delivery based on our own insight of the local market. Source: Glenigan, Knight Frank Student Property
Ref Address Owner Total Planning app. Comments Completion beds number date
Private sector PBSA
1 79-85 Talbot Street, NG1 5GN RedOak Property 353 17/01620/PFUL3 On Site 2020
2 Site at Station Street Vita Student Nottingham 1 Ltd 323 18/00926/PFUL3 On Site 2020
3 123 Huntingdon Street, NG1 3NG Aspbury Planning Ltd 301 18/00449/PFUL3 On Site 2020
4 100-104 Derby Road, NG1 5FB Mr K Tang 56 17/01999//PFUL On Site 2020 3 Private sector PBSA (under construction) sub-total 1,033
Ref Address Owner Total Planning app. Comments Completion beds number date
University sector PBSA
University sector PBSA (under construction) sub-total -
Total PBSA under construction 1,033
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KNIGHT FRANK STUDENT TEAM
Student Property Valuation & Advisory Student Property Capital Markets
Neil Armstrong Merelina Sykes Partner Partner Head of Student Property Head of Student Property T +44 20 7861 5332 T +44 20 7861 5425 M +44 78 1212 5564 M +44 7785577237 [email protected] [email protected]
Jonathan Goode Sarah Jones James Woolley Rachel Pengilley Josh Woolley Rupert Strutt Partner Partner Partner Partner Associate Associate T +44 20 3897 0034 T +44 20 7861 1277 T +44 20 7861 5448 T +44 20 7861 5418 T +44 20 7861 5152 T +44 20 7861 1554 M +44 7771 921 792 M +44 7918 560941 M +44 7810 599 709 M +44 782 536 4789 M +44 7770 012 233 M +44 7887 940041 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Catherine Purkiss Megan Scott Lauren Mills George Blakey Richard Spencer George Tincknell Luke Shackleton Michael O'Sullivan Associate Associate Surveyor Surveyor Surveyor Surveyor Surveyor Surveyor T +44 207 861 5274 T +44 20 7861 5403 T +44 2038 667 783 T +44 20 7861 1515 T +44 20 7861 1402 T +44 20 7861 1285 T +44 20 7861 1112 T +44 20 7861 1437 M +44 7973 924 660 M +44 7973 814 622 M +44 7976 657 957 M +44 7773 258 752 M +44 7976 729 963 M +44 7976 729 946 M +44 7976 729 924 M +44 7976 730 665 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Student Property Research Student Property Research Publications
Matthew Bowen Ben Serle Partner Associate T +44 117 945 2641 T +44 20 3909 6813 M +44 7776 769 529 M +44 7564 646 071 [email protected] [email protected]
. Student Accommodation Global Student Property UK Student Property Development Pipeline Survey 2019/20 2019/20
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Important Notice This general document is provided strictly on the basis that you cannot rely on its contents and Knight Frank LLP (and our affiliates, members and employees) will have no responsibility or liability whatsoever in relation to the accuracy, reliability, currency, completeness or otherwise of its contents or as to any assumption made or as to any errors or for any loss or damage resulting from any use of or reference to the contents. You must take specific independent advice in each case. It is for general outline interest only and will contain selective information. It does not purport to be definitive or complete. Its contents will not necessarily be within the knowledge or represent the opinion of Knight Frank LLP. Knight Frank LLP is a property consultant regulated by the Royal Institution of Chartered Surveyors and only provides services relating to real estate, not financial services. It was prepared during the period of April 2019. It uses certain data available then, and reflects views of market sentiment at that time. Details or anticipated details may be provisional or have been estimated or otherwise provided by others without verification and may not be up to date when you read them. Computer-generated and other sample images or plans may only be broadly indicative and their subject matter may change. Images and photographs may show only certain parts of any property as they appeared at the time they were taken or as they were projected. Any forecasts or projections of future performance are inherently uncertain and liable to different outcomes or changes caused by circumstances whether of a political, economic, social or property market nature. Prices indicated in any currencies are usually based on a local figure provided to us and/or on a rate of exchange quoted on a selected date and may be rounded up or down. Any price indicated cannot be relied upon because the source or any relevant rate of exchange may not be accurate or up to date. VAT and other taxes may be payable in addition to any price in respect of any property according to the law applicable.
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