Students may have lost the battle of rising tuition fees, but rapidly increasing student rents mean that some are taking accommodation into their own hands by forming co-operatives to undercut private landlords. Last month saw the formation of the UK’s first student housing co-operative, in a pioneering move by a group of Birmingham University students.
Sean Farmelo, a 21-year-old Philosophy student and friends secured a £550,000 loan from Birmingham Co-operative Housing Services (BCHS) in order to buy two 5-bed properties in popular student area, Selly Oak. The properties will allow students to cut out the middleman and save on the excess costs charged by landlords and letting agents in order to lower rent prices. Farmelo pointed out that it is not just tuition fees that have risen astronomically in the last year.
“Tuition fees have just gone up and maintenance loans aren't getting any bigger. I pay more on my rent this year than I get in maintenance loans. It's really squeezing a lot of people out of education.” He added, "Students have been taken for cash cows and no one has done anything about it."
According to data from Accommodation for Students, the average costs of renting a student property in the UK have risen to £68.70 a week. Average rent for students in Birmingham is around £61, going up to £90 depending on location. Although figures have not yet been finalized, Farmelo expects to charge around £40 a week for rent – half of what private landlords are asking.
So far, the securing of two student properties seems like a drop in the ocean, but Farmelo hopes that this will set an example for students across the country.
"A couple of years down the line you can really start tapping real finance, such as pension funds and larger loans, to buy halls that will house hundreds of students.” He said. “It's a real possibility but it needs a catalyst to show people that there is an alternative."
The scheme has also attracted considerable attention in the national press, and student housing co-operatives are set to become more popular over coming years. New group Students For Co-operation has since been formed with the aim to support the growth of student cooperatives across the country.
Whilst there is a long way to go before the UK embraces student co-operative housing in the same way that universities in the US have, this latest success shows that students taking control of the property market could pose a real threat to private landlords in the future.
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Written by @Sarahzhdavis