Following the budget, struggling Universities need to make themselves more resiliant
Owen Redman, Co-founder of Roome shares his thoughts on the plight of Universities and ways they can drive revenue and ensure student housing is a better experience for all stakeholders.
Owen comments, ‘A recent article in the daily National newspaper The Times paints a stark picture of the challenges facing universities in England. With 72% of institutions predicted to operate in deficit by the next academic year and net income projected to plummet by £3.5 billion, the stakes have never been higher. This is a wake-up call, not just for universities but for everyone in the education ecosystem—including those of us innovating in the student housing and support sector.’
‘The crux of the issue is clear, rising costs, such as the hike in national insurance contributions, are outpacing modest increases in tuition fees. Universities, particularly smaller and specialist institutions, are left vulnerable, with many facing liquidity crises and potential closures or mergers’.
The Hidden Housing Crisis ‘While much of the conversation centres on institutional finances, let’s not forget the direct impact on students. Housing represents a critical, yet often under-discussed, pressure point in this equation. Here’s how the housing landscape intersects with university sustainability:
Student Dropouts Linked to Housing Struggles ‘Poor housing experiences—whether due to incompatible housemates, financial pressures, or substandard living conditions—directly contribute to the 6.2% dropout rate seen across UK universities. Each dropout represents lost tuition revenue, decreased student satisfaction scores, and a blow to a university’s reputation.’
International Recruitment Hurdles ‘The drop in international student applications, highlighted by a 40% decline from key regions like Nigeria and Bangladesh, compounds the problem. Housing is a pivotal factor for international students, who often lack the ability to vet accommodations in person.’
Universities’ Limited Off-Campus Support ‘With 80% of student life taking place off-campus, universities are ill-equipped to support students beyond their own walls. This creates a significant gap, where students are left to navigate a fragmented and competitive rental market.’
Tangible Solutions and the Role of Proptech in Higher Education’s Resilience ‘This is where platforms like Roome become essential. At Roome, we aim to tackle these housing-related challenges head-on, with a dual focus on improving the student experience and supporting universities in bolstering retention and satisfaction scores.’ We focus on:
Housemate Matching and Mental Well-being ‘Finding compatible housemates is critical for a positive student housing experience. Through Roome’s AI-driven compatibility algorithms, students are paired based on lifestyle preferences, study habits, and interests. For instance, a first-year psychology student at Surrey used Roome to find housemates who shared her passion for cooking and quiet study evenings. This led to a harmonious living environment that greatly reduced her stress and boosted her academic focus.’
‘Another example comes from a clearing student who struggled to connect with peers due to arriving late in the cycle. Roome helped him form a group with students in similar circumstances, ensuring he didn’t feel isolated or out of place in his new city.’
Housing Aggregation and Transparency ‘Navigating the competitive student housing market is daunting, with countless platforms offering inconsistent information. Roome aggregates listings from every major UK property platform, giving students a single, transparent view of the market. Take the case of a group of second-year students in Manchester.’
‘They used Roome to compare properties across platforms, filter by budget and location, and shortlist options that fit their needs. This streamlined process saved them weeks of searching. Another group in Edinburgh used Roome’s real-time alerts to secure a highly sought-after property near campus, beating out other applicants because of the app’s quick notification system.’
Reducing Dropouts and Supporting University Revenue ‘Housing issues are a significant driver of student dropouts, costing universities millions in lost tuition fees. Roome’s proactive approach has made a measurable impact. For example, at the University of Surrey, a student group faced the prospect of disbanding after a housemate dropped out. Using Roome’s spare room feature, they quickly found a compatible replacement, preventing disruptions that might have led to academic disengagement or further dropouts.’
‘During the 2023 clearing period, Roome partnered with Surrey to match over 350 students—many international—with suitable accommodations in record time. This not only filled vacant spots but also saved the university approximately £3.5 million in lost fees’.
Bold, Transformative Action: Our Call to Universities
‘The Office for Students (OfS) calls for “bold and transformative action” to ensure sustainability. We echo this sentiment. Housing must be central to any such action plan. By integrating housing solutions like Roome into their student support systems, universities can: Mitigate financial risks tied to dropouts, Enhance the overall student experience, boosting satisfaction scores and Build a resilient foundation for future growth, even amid funding challenges.’
‘As universities brace for a tough financial future, collaboration is key. At Roome, we’re ready to be part of the solution, ensuring every student finds not just a place to live, but a community to thrive in. Together, we can turn this crisis into an opportunity for meaningful, systemic change.’
Roome is a student-centric housing platform that streamlines every step of the accommodation journey—from housemate matching to simplified bill management. With a focus on trust, accessibility, and innovation, we’re helping students find their place and their people. To learn more please us this LINK.
Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 100K followers & readers, he is the 'Proptech Realestate Influencer.'
