Hyper Gentrification

  • Council Estates are going through re-generation
  • Estates have become a target for private developers
  • Following redevelopment there are much less homes for council tenants
  • In London alone there has been a nett loss of over 4000 social homes in developments completed in the last 15 years
    • London schemes that have planning permission will result in the loss of 7600 social homes in the next 10 years
    • 118 estated are earmarked for or undergoing re-generation in the next 5 years, affecting 31,000 residents
    • Over 80 estates will be either fully or partially demolished
  • Example: Heygate estate was demolished and replaced by elephant park, a luxury apartment development. This lead to the loss of 3000 social homes of which only 82 were replaced
  • Profitability is the benchmark on whether the scheme will go forward, not the need for social housing

Student Accomodation

Inflation in the housing market has also impacted students. Along with student fee debts, the lack of a maintenance grant for students has lead to a growing number of students being in rent arrears. The situation is worsened as universities move away from providing student halls and private investors have moved in. Investors have focused on purpose built student accomodation, which is not suitable for the wider market. With the profit factor added to the supply, then prices will be set to attain the highest possible profit based on market conditions. It may well be that rent prices drop over the next few years as student numbers are falling away due to Brexit and less younger people.

More than 17,000 students living in university halls of residence fell behind with their rent payments in the year 2017, according to figures that suggest thousands more face financial hardship during their courses.

There has been a significant 16% rise in the numbers facing rental arrears in university accommodation, new statistics obtained under the Freedom of Information Act reveal. A small but rising number of students are also being evicted from halls or having their tenancies cancelled after falling behind with payments.

According to data uncovered by the Liberal Democrats (ironic to say the least), 97 students were evicted from halls in the last year, more than double the 40 who had their tenancies cancelled the previous year. About 17,300 students living in university halls have fallen into rental arrears in the 2017.

The data was based on responses from 90 universities in the UK. It showed that 21 had evicted a student or cancelled their contract due to failure to pay rent on time in the past five years. Average fees at halls from the universities surveyed have risen from £4,583 a year in 2012-13 to £5,208 in 2016-17, up 13.6%[1].

  1. More than 17,000 UK students face university rent arrears, Guardian 21 Jan 2018 - https://www.theguardian.com/education/2018/jan/20/17000-uk-students-university-accommodation-rent-arrears-debt