Universities are successfully raising tens of millions of pounds by renting out empty student halls to combat the higher education sector’s funding crisis, research suggests.
According to revenue data obtained under Freedom of Information rules by proptech firm Lavanda, at least 64 UK universities are making much-needed extra cash by renting out student accommodation to holidaymakers and other travellers during the summer holidays.
They netted a total of at least £98,825,919 over the past three years, adding an average of £2,102,679 to uni coffers.
These include University College London, which generated £14,913,266 by letting out up to 3,200 rooms during the past three summer holiday periods.
It was followed by London’s Brunel University, which generated £10,106,631 over the same period by letting out up to 2,357 student rooms.
Other top earners included the University of Nottingham, which made £9,559,799 in a similar period and the University of St Andrews, which yielded £8,260,000.
Many universities did not disclose their summer holiday rental revenue, meaning the actual figure will be significantly higher, Levanda said.
The data suggests some institutions are ramping up their summer rental programmes in response to extreme financial pressures affecting the sector.
The research also identified at least nine universities that do not rent their student accommodation to non-students during the summer break.
These included Newcastle University, which owns 3,372 rooms, the University of Leicester, which owns 2,633 rooms and the University of Strathclyde with 1,513 rooms.
It comes after Home Office figures revealed a 16% plunge in applications between July and September last year compared to the same period in 2023.
Fred Lerche-Lerchenborg, chief executive at Lavanda, commented: “With some universities reportedly on the brink of bankruptcy, it should come as no surprise that institutions are seeking out innovative new ways to sweat their assets.
“Not only does renting out empty rooms generate much-needed additional income for universities, it also boosts local economies that rely on student spend throughout the academic year. This is a classic example of how a more flexible approach to real estate can deliver significant social benefits, something the government would do well to bear in mind as it sets about overhauling our archaic planning system.
“Britain’s universities are the envy of the academic world, so it’s critical that this kind of resourcefulness is encouraged to help our institutions remain financially healthy, agile and competitive. In doing so, they can continue to deliver world-class education and research while also keeping accommodation costs as low as possible for students.”
