Nearly 70 students in Dundee have been left scrambling to find accommodation for this academic year after the latest in a string of university housing schemes went bust amid severe financial strain on the sector. Students in the city have been forced to find alternative housing and rapidly move their possessions as term begins this month after the collapse of the owner of Marketgait Apartments, a city centre block. The company filed for administration in mid-July with 68 rooms let.
Just weeks earlier it had been urging students to quickly secure its “perfect homes” in online marketing. It is further evidence of a crisis in the UK student housing sector, with companies going bust or disposing of properties owing to to a combination of poor demand or oversupply in different regions. Accommodation providers are grappling with falling international student numbers, down for a third year; a cost of living squeeze; and higher borrowing and build costs, exacerbated by the Iran war, affecting upgrades at older properties.
While domestic student numbers are at a record high, a growing proportion live at home, mostly because of the cost of renting, in what has been called “the rise of the commuter student”. A boom in new-build student housing in recent years led to too many tower blocks in places such as Coventry, Leeds and Nottingham. Glasgow, Bristol and London still face shortages, with a general lack of affordable rooms.
Modern, purpose-built housing tends to command higher rents than student halls on campus or private rooms, and is out of reach for many domestic students, with wealthier overseas students the main occupants. Three weeks before the then owners filed for administration, Marketgait Apartments in Dundee was still being promoted to students. The 116-room building, less than 10-minute walk from Abertay and Dundee universities, had a concierge and a shared lounge with a pool table.
The weekly rent was pitched at £199 for a studio and £165 for an en suite room. Secure your spot today and avoid missing out on a prime location, modern living, and everything you need right on your doorstep. Book now before it’s gone!” On 15 July, however, partners from FRP Advisory were appointed to the Jersey-based special purpose vehicle that owns the redbrick block after its owners, the real estate manager 90 North and Kuwaiti investment company Rasameel, failed to repay a £5.7m loan against the property.
Falling student numbers at the building led to financial losses, leaving the company unable to fund essential fire safety remedial works. The building remains closed while its new owner, ATK Property, carries out the work. James Elliot, 21, who recently graduated from Dundee university, said he knew people living in Margetgait who had to move out and were “anxious, stressed and shocked”.
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