From The Times December 3, 2009
Kaya Burgess
It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.
Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.
Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.
“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”
Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”
The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.
“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”
The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.
On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.
Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.
Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.
Saturday, December 5, 2009
Thursday, December 3, 2009
Corporates squeeze market for private student landlords - UK
Posted on December 1st, 2009 by steve
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
Friday, November 27, 2009
Student housing going fast
23 Nov 2009
If you or your children are studying in Cape Town and haven't sorted out accommodation for the 2010 academic year, you'd best get started because rental units are going fast.
Estate agents in Cape Town's southern suburbs say enquiries for rental units in suburbs like Rondebosch, Rosebank, Claremont, Mowbray and Newlands have been picking up steadily since September.
This is despite the option of campus residence, which becomes infra dig after first year.
Chorus Letting agent Paul Theunissen said they were definitely experiencing and increase in enquires for letting in the southern suburbs as students set themselves up for the next year.
Theunissen said most students preferred living near the institutions at which they were studying, with Rosebank and Rondebosch being most popular for Cape Peninsula University of Technology students, while University of Cape Town students looked in a range from the CBD to Wynberg in the south.
As to what parents or students could expect to pay, he said bachelor and one-bedroom flats would cost between R3k to R4k per month while two-bedroom apartments could go up to R7k per month.
Although many students had already signed leases for next year's accommodation, there were always latecomers.
"We are expecting the phones to ring off the hook from around January 4," he said.
Brenda Dickinson and Associates rental division director Taryn Hulne said the majority of leases starting in January 2010 would be finalised by the end of November.
Hulne said students and parents want to ensure that they've finalised these accommodation plans before they went home for their summer vacation.
She said there was also a lot of interest from foreign students who were going to be studying in Cape Town for post-graduate degrees or were on international exchange programmes.
IIFM agent Margi Bate said students were definitely one of the main drivers of the rental market in the southern suburbs.
Bates said they were usually busier from November until tertiary institutions opened in February the following year, and again in July due to foreign and post-graduate students picking up their tuition in the middle of the year.
She said she got enquiries from as far afield as Zimbabwe and Uganda.
She said one and two-bedroom apartments were popular among students, depending on whether they wanted to share accommodation or live alone.
Lewis Kennett, sales agent for Homenet/Harcourts Jon Rosenberg, says the Auckland Park area in Johannesburg has "without a doubt" seen a gargantuan upsurge in demand for student accommodation in November. The area is home to the University of Johannesburg and a stone's throw away from the University of Witwatersrand.
"As the varsities' student numbers grow, so the demand for accommodation grows. There is currently a real shortage of properties to meet this demand and we're only in November now.
"The demand is split according to the income of the student's parents. The students with wealthier parents are able to purchase and rent flats and townhouses to satisfy their need for privacy, while the poorer students tend to go for less expensive, communal accommodation," he says.
Bloemfontein's student housing market will also receive a boost with the launch of a new development set to be built next to the university campus.
Riaan Malan of the local Aida franchise says only about 5,000 of the 28,000 students at the University of the Free State can be accommodated in varsity residences. "That means that every year 23,000 students need accommodation, either at home in the city or in student housing, which represents a large percentage of our residential demand.
"Traditionally, students used to start looking for accommodation for the next academic year in November, but limited availability has seen prospective tenants putting their names on waiting lists earlier and earlier. This year we already had an extensive waiting list at the beginning of August."
Malan says the planned Uniloft apartment development opposite the campus will hopefully go some way to relieving the pressure on demand. "The developers are now just waiting for final rezoning approval and intend to start construction early next year, with the expected occupation date being January 2011."
He also says the developers are still negotiating final marketing prices in an effort to make units as affordable as possible, but that the 43sqm two-bedroom apartments are expected to be offered at prices between R600k and R700k.
"Investors can expect rentals of up to R5k a month if the units are let to two students."
The 370 units will be marketed off-plan and will feature high security as well as services specifically tailored to student living, such as laundry and recreational facilities. All units will be fully furnished. – Eugene Brink and West Cape News
If you or your children are studying in Cape Town and haven't sorted out accommodation for the 2010 academic year, you'd best get started because rental units are going fast.
Estate agents in Cape Town's southern suburbs say enquiries for rental units in suburbs like Rondebosch, Rosebank, Claremont, Mowbray and Newlands have been picking up steadily since September.
This is despite the option of campus residence, which becomes infra dig after first year.
Chorus Letting agent Paul Theunissen said they were definitely experiencing and increase in enquires for letting in the southern suburbs as students set themselves up for the next year.
Theunissen said most students preferred living near the institutions at which they were studying, with Rosebank and Rondebosch being most popular for Cape Peninsula University of Technology students, while University of Cape Town students looked in a range from the CBD to Wynberg in the south.
As to what parents or students could expect to pay, he said bachelor and one-bedroom flats would cost between R3k to R4k per month while two-bedroom apartments could go up to R7k per month.
Although many students had already signed leases for next year's accommodation, there were always latecomers.
"We are expecting the phones to ring off the hook from around January 4," he said.
Brenda Dickinson and Associates rental division director Taryn Hulne said the majority of leases starting in January 2010 would be finalised by the end of November.
Hulne said students and parents want to ensure that they've finalised these accommodation plans before they went home for their summer vacation.
She said there was also a lot of interest from foreign students who were going to be studying in Cape Town for post-graduate degrees or were on international exchange programmes.
IIFM agent Margi Bate said students were definitely one of the main drivers of the rental market in the southern suburbs.
Bates said they were usually busier from November until tertiary institutions opened in February the following year, and again in July due to foreign and post-graduate students picking up their tuition in the middle of the year.
She said she got enquiries from as far afield as Zimbabwe and Uganda.
She said one and two-bedroom apartments were popular among students, depending on whether they wanted to share accommodation or live alone.
Lewis Kennett, sales agent for Homenet/Harcourts Jon Rosenberg, says the Auckland Park area in Johannesburg has "without a doubt" seen a gargantuan upsurge in demand for student accommodation in November. The area is home to the University of Johannesburg and a stone's throw away from the University of Witwatersrand.
"As the varsities' student numbers grow, so the demand for accommodation grows. There is currently a real shortage of properties to meet this demand and we're only in November now.
"The demand is split according to the income of the student's parents. The students with wealthier parents are able to purchase and rent flats and townhouses to satisfy their need for privacy, while the poorer students tend to go for less expensive, communal accommodation," he says.
Bloemfontein's student housing market will also receive a boost with the launch of a new development set to be built next to the university campus.
Riaan Malan of the local Aida franchise says only about 5,000 of the 28,000 students at the University of the Free State can be accommodated in varsity residences. "That means that every year 23,000 students need accommodation, either at home in the city or in student housing, which represents a large percentage of our residential demand.
"Traditionally, students used to start looking for accommodation for the next academic year in November, but limited availability has seen prospective tenants putting their names on waiting lists earlier and earlier. This year we already had an extensive waiting list at the beginning of August."
Malan says the planned Uniloft apartment development opposite the campus will hopefully go some way to relieving the pressure on demand. "The developers are now just waiting for final rezoning approval and intend to start construction early next year, with the expected occupation date being January 2011."
He also says the developers are still negotiating final marketing prices in an effort to make units as affordable as possible, but that the 43sqm two-bedroom apartments are expected to be offered at prices between R600k and R700k.
"Investors can expect rentals of up to R5k a month if the units are let to two students."
The 370 units will be marketed off-plan and will feature high security as well as services specifically tailored to student living, such as laundry and recreational facilities. All units will be fully furnished. – Eugene Brink and West Cape News
Tuesday, November 24, 2009
Student Digs will beat commercial property
UK real estate forecast: 5% for student homes, almost zero for office blocks.
Knight Frank forecasts continued rental growth in student accommodation sector
Highlights
Rental growth in the student accommodation sector remains robust, recording growth of 5% per annum over the last six years, compared to 0.6% for commercial property. Substantially higher growth was achieved in key university towns over the last academic year.
Demand for university places continues to rise. Preliminary figures suggest a further increase in demand for places in the 2010/11 academic year, with UCAS reporting a 12% rise in applications at its October deadline.
As an asset class, the student accommodation sector is maturing and becoming recognised as an important element of the wider property investment market. Since mid 2009, there been increased demand for secure income producing assets and demonstrable yield compression.
Source: realestateweb
Knight Frank forecasts continued rental growth in student accommodation sector
Highlights
Rental growth in the student accommodation sector remains robust, recording growth of 5% per annum over the last six years, compared to 0.6% for commercial property. Substantially higher growth was achieved in key university towns over the last academic year.
Demand for university places continues to rise. Preliminary figures suggest a further increase in demand for places in the 2010/11 academic year, with UCAS reporting a 12% rise in applications at its October deadline.
As an asset class, the student accommodation sector is maturing and becoming recognised as an important element of the wider property investment market. Since mid 2009, there been increased demand for secure income producing assets and demonstrable yield compression.
Source: realestateweb
Friday, October 30, 2009
High demand for rental property in Scotland from student market
Written by Ray Clancy
Thursday, 29 October 2009 09:14 -
Buying property and renting it out to students is proving profitable for landlords in Scotland as demand is high and rents stable, according to letting agents.
Research from Lettingweb.com shows that demand from students is high and contrary to
popular opinion students generally make excellent tenants.
'The lettings market in Scotland has seen rental values decline somewhat during the first half of this year. High stock levels have forced landlords to reduce their expectations without the reward of securing a faster let. Demand for student flats, on the other hand, always seems to outstrip supply,' said Richard Matthews, marketing manager.
He explained that properties close to university campuses and near attractions such as night clubs and pubs are easy to let. 'In Glasgow, the highest demand for student flats is, as expected, in the city centre and West End. Generally students will aim to be as close to their campus as possible,' said Matthews.
Gone are the days when students were rowdy and got behind with their payments. 'As rents are more often than not now being guaranteed by parents, the standard of student flats nowadays is very high. The stereotype for students is mostly gone as they want to rent something of good quality,' added Matthews.
In Edinburgh all the student properties for the new academic year were rented out before the start of the summer. 'We could easily have let many, many more if we had them on our books. We don't even put a waiting list up for properties because the response is so immense every year. There are some students who will start to ask in January about properties for their next academic year as they are desperate to get a good home in a desirable location in the city,' said Colette Murphy, director at Braemore Property Management.
'We've seen rent falls across other parts of the rental market in recent months as there has been greater competition among landlords for tenants. However, student flats are definitely proving the exception to the rule, as these tenants are happy to pay a higher rent to secure a good property,' she added.
The company reckons that if you have a property in an area close to the university such asNewington, the Southside or Marchmont then it will prove popular with the student market. A three or four bedroom flat or house is renting for between £325 and £450 per double room per month depending on the quality of the property and its location.
Thursday, 29 October 2009 09:14 -
Buying property and renting it out to students is proving profitable for landlords in Scotland as demand is high and rents stable, according to letting agents.
Research from Lettingweb.com shows that demand from students is high and contrary to
popular opinion students generally make excellent tenants.
'The lettings market in Scotland has seen rental values decline somewhat during the first half of this year. High stock levels have forced landlords to reduce their expectations without the reward of securing a faster let. Demand for student flats, on the other hand, always seems to outstrip supply,' said Richard Matthews, marketing manager.
He explained that properties close to university campuses and near attractions such as night clubs and pubs are easy to let. 'In Glasgow, the highest demand for student flats is, as expected, in the city centre and West End. Generally students will aim to be as close to their campus as possible,' said Matthews.
Gone are the days when students were rowdy and got behind with their payments. 'As rents are more often than not now being guaranteed by parents, the standard of student flats nowadays is very high. The stereotype for students is mostly gone as they want to rent something of good quality,' added Matthews.
In Edinburgh all the student properties for the new academic year were rented out before the start of the summer. 'We could easily have let many, many more if we had them on our books. We don't even put a waiting list up for properties because the response is so immense every year. There are some students who will start to ask in January about properties for their next academic year as they are desperate to get a good home in a desirable location in the city,' said Colette Murphy, director at Braemore Property Management.
'We've seen rent falls across other parts of the rental market in recent months as there has been greater competition among landlords for tenants. However, student flats are definitely proving the exception to the rule, as these tenants are happy to pay a higher rent to secure a good property,' she added.
The company reckons that if you have a property in an area close to the university such asNewington, the Southside or Marchmont then it will prove popular with the student market. A three or four bedroom flat or house is renting for between £325 and £450 per double room per month depending on the quality of the property and its location.
Friday, September 25, 2009
Student accommodation tips for the novice
By Let and Stay (Pty) Ltd
So you have passed your matric exams, have been accepted to varsity and now need a place to stay. If you have not been accepted to a university dorm then you can make use of a student accommodation agency such as Let and Stay (Pty) Ltd to assist you in finding a suitable spot to lay your head.
It’s important to remember that you have a lot of campus activities in your first year so you need accommodation that is close to the university so that you can save time and effort in travelling between classes and activities. Accommodation that is walking distance from your campus will not only save you pot loads of money but also increase your available time to do your campus activities.
You have two private accommodation options to choose from;
• Commune / digs: You have your own room in a house shared by other students – you will commonly share a lounge and kitchen and sometimes a bathroom. You do not have to worry about trivial things like the garden and other maintenance, plumbing issues and so forth – your managing agent will take care of these issues. Your room will be semi furnished – you will have a bed, desk, chair, curtains, and cupboard. Some properties also offer WI-FI internet access and DSTV connections. Your house will be cleaned weekly and will offer secure parking for a car if required.
This option affords you the opportunity to stay with other students in a secure environment that is not as restrictive as a university dorm but still has its own house rules that you need to abide by.
• Cottage: You have your own unit that’s completely private. You could also share this cottage with a friend. You also don’t have to worry about maintenance related issues.
Other important information:
• Always deal with a reputable student letting agent that understands your budget and requirements. Your agent will present you with a professional lease agreement and offer you protection from unscrupulous landlords. Your agent will also ensure the standard and upkeep of the property.
• If you are under 21 then your parents will have to co-sign the lease agreement with you.
• Your lease will typically be for 1 year at a time.
• You want to stay within walking distance from campus – this saves time and money.
• Prices for a room in a digs start form R1900 – R3500. A cottage could cost you R2000 – R4500.
If you visit our website www.letandstay.co.za you will find more valuable information and tips on finding the perfect place to stay.
Good luck with the next phase of your lives.
So you have passed your matric exams, have been accepted to varsity and now need a place to stay. If you have not been accepted to a university dorm then you can make use of a student accommodation agency such as Let and Stay (Pty) Ltd to assist you in finding a suitable spot to lay your head.
It’s important to remember that you have a lot of campus activities in your first year so you need accommodation that is close to the university so that you can save time and effort in travelling between classes and activities. Accommodation that is walking distance from your campus will not only save you pot loads of money but also increase your available time to do your campus activities.
You have two private accommodation options to choose from;
• Commune / digs: You have your own room in a house shared by other students – you will commonly share a lounge and kitchen and sometimes a bathroom. You do not have to worry about trivial things like the garden and other maintenance, plumbing issues and so forth – your managing agent will take care of these issues. Your room will be semi furnished – you will have a bed, desk, chair, curtains, and cupboard. Some properties also offer WI-FI internet access and DSTV connections. Your house will be cleaned weekly and will offer secure parking for a car if required.
This option affords you the opportunity to stay with other students in a secure environment that is not as restrictive as a university dorm but still has its own house rules that you need to abide by.
• Cottage: You have your own unit that’s completely private. You could also share this cottage with a friend. You also don’t have to worry about maintenance related issues.
Other important information:
• Always deal with a reputable student letting agent that understands your budget and requirements. Your agent will present you with a professional lease agreement and offer you protection from unscrupulous landlords. Your agent will also ensure the standard and upkeep of the property.
• If you are under 21 then your parents will have to co-sign the lease agreement with you.
• Your lease will typically be for 1 year at a time.
• You want to stay within walking distance from campus – this saves time and money.
• Prices for a room in a digs start form R1900 – R3500. A cottage could cost you R2000 – R4500.
If you visit our website www.letandstay.co.za you will find more valuable information and tips on finding the perfect place to stay.
Good luck with the next phase of your lives.
Varsities run out of housing
MONAKO DIBETLE JOHANNESBURG, SOUTH AFRICA
Several universities are struggling to find sufficient residence accommodation for their students and are now conceding that the situation has reached crisis levels.
They are appealing to the Department of Higher Education for assistance, as they believe this problem affects students' academic performance.
South Africa has experienced a boom in higher education, with more than 74 0000 students now studying at universities.
Last year, former education minister Naledi Pandor told that R3,2-billion was earmarked for 2010/11 to 2011/12 for projects that will achieve national social and economic development goals. About 20% would be allocated to student housing.
The ministry said: "Inadequate student housing remains an obstacle to equity of access in higher education. Funding will support the creation of quality student housing, particularly at historically disadvantaged institutions in rural areas. Improved quality of student accommodation can help improve student success rates and eventual graduation rates."
While student housing projects are in the pipeline, a recent discussion forum comprising deans of students from universities in Gauteng, Limpopo and North West has highlighted that residence accommodation is "raising serious concerns".
Led by the Foundation of Tertiary Institutions of the Northern Metropolis (Fotim), the forum said universities need "support, advice and assistance in planning where students are going to live".
"We want universities to be very clear about student accommodation. We want the government to be aware of this challenge, which most universities seem to be facing," Fotim director Dr Zodwa Magwenzi told higher learning.
She said the high rate of student failures and increasing first-year dropout rates were worsened by the lack of student accommodation.
"It is thus important, especially for first-year students, to stay at residences in order to avoid this and for the purposes of proper orientation."
The forum indicated that students have had to find alternative places to live. This results in problems such as:
Students having to access private accommodation and becoming targets of crime;
"Slumlords" are renting out dilapidated buildings to "slumdog" students who pay exorbitant rent;
Landlords taking money from students and abandon the building, leaving students stranded without essential services; and
Long waiting lists causing students to hesitate and find alternative accommodation, resulting in them being stranded.
While the University of Limpopo denied that some of its students had been staying in converted water tanks, investigations by higher learning reveal that some students are subletting rooms at the University of Venda (Univen).
"Of course students sublet their rooms and there is no single room or double room housing the required number of students per room … there are always two or three more students in one room," said Univen SRC president Sylvester Motadi.
He said conditions at the recently built prefabricated student lodgings are "appalling", because the structures are weak and pose a safety hazard.
"It is difficult walking in those buildings without feeling scared," he said. However, students are confident the university leadership will address the matter.
Univen spokesperson Takalani Dzaga acknowledged that student housing had reached crisis levels but denied that students were sub-letting their residences, explaining that the university has an electronic control system that regulates access.
Dzaga said modular structures had been built to ease the accommodation burden as a short-term solution.
The university can accommodate only 2 036 students in its residences. This year it admitted an extra 2 266 students, bringing the total to 11 201.
University of the Western Cape spokesperson Luthando Tyhalibongo said the institution could accommodate only about 4 000 students at residences out of a total of 16 000. "We are in the process of increasing our capacity to meet the [high] demand for residences," he said.
South African Student Congress president Mawethu Rune said: "Institutions can't continue with this attitude of only being concerned with teaching and learning … they should also be concerned about the conditions in which students live as this impacts on student performance. There is a serious student accommodation problem in the country but students are not receiving the necessary support [from universities and government]."
The Department of Higher Education confirmed there is a severe shortage of student housing.
"The department will be implementing a new, larger student housing programme during the 2010 and 2011 academic years," Mfanafuthi Sithebe, a department spokesperson, said.
"This has to be seen in the context of the high capital costs involved in providing student housing on a university campus. For example, a standard residence with a capacity of 200 students in double rooms is expected to cost at least R30-million in 2010."
Source: Mail and Guardian Online
Web Address: http://www.mg.co.za/article/2009-09-23-varsities-run-out-of-housing
Several universities are struggling to find sufficient residence accommodation for their students and are now conceding that the situation has reached crisis levels.
They are appealing to the Department of Higher Education for assistance, as they believe this problem affects students' academic performance.
South Africa has experienced a boom in higher education, with more than 74 0000 students now studying at universities.
Last year, former education minister Naledi Pandor told that R3,2-billion was earmarked for 2010/11 to 2011/12 for projects that will achieve national social and economic development goals. About 20% would be allocated to student housing.
The ministry said: "Inadequate student housing remains an obstacle to equity of access in higher education. Funding will support the creation of quality student housing, particularly at historically disadvantaged institutions in rural areas. Improved quality of student accommodation can help improve student success rates and eventual graduation rates."
While student housing projects are in the pipeline, a recent discussion forum comprising deans of students from universities in Gauteng, Limpopo and North West has highlighted that residence accommodation is "raising serious concerns".
Led by the Foundation of Tertiary Institutions of the Northern Metropolis (Fotim), the forum said universities need "support, advice and assistance in planning where students are going to live".
"We want universities to be very clear about student accommodation. We want the government to be aware of this challenge, which most universities seem to be facing," Fotim director Dr Zodwa Magwenzi told higher learning.
She said the high rate of student failures and increasing first-year dropout rates were worsened by the lack of student accommodation.
"It is thus important, especially for first-year students, to stay at residences in order to avoid this and for the purposes of proper orientation."
The forum indicated that students have had to find alternative places to live. This results in problems such as:
Students having to access private accommodation and becoming targets of crime;
"Slumlords" are renting out dilapidated buildings to "slumdog" students who pay exorbitant rent;
Landlords taking money from students and abandon the building, leaving students stranded without essential services; and
Long waiting lists causing students to hesitate and find alternative accommodation, resulting in them being stranded.
While the University of Limpopo denied that some of its students had been staying in converted water tanks, investigations by higher learning reveal that some students are subletting rooms at the University of Venda (Univen).
"Of course students sublet their rooms and there is no single room or double room housing the required number of students per room … there are always two or three more students in one room," said Univen SRC president Sylvester Motadi.
He said conditions at the recently built prefabricated student lodgings are "appalling", because the structures are weak and pose a safety hazard.
"It is difficult walking in those buildings without feeling scared," he said. However, students are confident the university leadership will address the matter.
Univen spokesperson Takalani Dzaga acknowledged that student housing had reached crisis levels but denied that students were sub-letting their residences, explaining that the university has an electronic control system that regulates access.
Dzaga said modular structures had been built to ease the accommodation burden as a short-term solution.
The university can accommodate only 2 036 students in its residences. This year it admitted an extra 2 266 students, bringing the total to 11 201.
University of the Western Cape spokesperson Luthando Tyhalibongo said the institution could accommodate only about 4 000 students at residences out of a total of 16 000. "We are in the process of increasing our capacity to meet the [high] demand for residences," he said.
South African Student Congress president Mawethu Rune said: "Institutions can't continue with this attitude of only being concerned with teaching and learning … they should also be concerned about the conditions in which students live as this impacts on student performance. There is a serious student accommodation problem in the country but students are not receiving the necessary support [from universities and government]."
The Department of Higher Education confirmed there is a severe shortage of student housing.
"The department will be implementing a new, larger student housing programme during the 2010 and 2011 academic years," Mfanafuthi Sithebe, a department spokesperson, said.
"This has to be seen in the context of the high capital costs involved in providing student housing on a university campus. For example, a standard residence with a capacity of 200 students in double rooms is expected to cost at least R30-million in 2010."
Source: Mail and Guardian Online
Web Address: http://www.mg.co.za/article/2009-09-23-varsities-run-out-of-housing
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