New JLL research has highlighted how the growth of the international student population is reshaping both higher education and housing markets.
The Global Student Mobility in UK Higher Education report found that with rising numbers of international students concentrating in key UK cities, this trend presents significant opportunities and challenges for the housing sector – from the need for more purpose-built student accommodation (PBSA) to the pressures on private rental markets.
The report also revealed that between 2018/19 and 2023/24, the number of overseas students in the UK rose by 51% to more than 730,000, including part-time students.
These students generated a profit of nearly £3bn for UK universities, with their fees accounting for two-fifths of university income – up from just over a quarter in 2017/18. By contrast, the sector made a loss of £1.4bn on teaching domestic students.
12% of overseas students globally study in the UK. Almost half of overseas students study in just four countries, the USA, UK, Canada and Australia.
Even though the UK tops the JLL ranking, with broad appeal for overseas students, they noted that countries shouldn’t become over reliant on one nation for growth, with universities needing to focus on emerging markets too.
“Overseas students have become increasingly important in UK higher education, with increases in their numbers helping to alleviate some of the more acute financial pressures facing UK universities.
“But the post-pandemic bounce-back, which fuelled some of the most recent increases in overseas student numbers, has now worked its way through the system, meaning universities will need to look elsewhere for new sources of student demand.
“More established markets like China and India may well continue to dominate, but we shouldn’t ignore other Asian and African nations which could be the growth markets of the future.
“Current tariff uncertainty and redrawing of the relationships between the US and other trading partners could lead to some re-assessing their choices. The UK, boasting a number of high ranking universities is well placed to benefit, but we need to ensure we remain welcoming to new students and that our university estates adapt to ensure we meet the needs of a changing student body.”
Marcus Dixon, Head of UK Residential Valuation, JLL
