COVID-19 has left an interconnected impact of losses to many businesses. While the Education sector in the UK is affected, the smart online system has patched up the crisis to a certain level. Though the learning is happening, the students are not available on the campuses to attend a live session. This means to say, they have left to their homes and are not sure when they will return to their University.
No Students | No Accommodation
Most of the Universities in the UK have a balanced mix of international and native students. Additionally, the native students also belong to other counties other than the one they are currently studying. So, they have either opted for University arranged accommodation or private accommodation. While the College-operated accommodation waived their term fee until next year, the private operators are not able to do that. The only source of income for the private dorms and rooms is through student accommodation.
Further, there are few rumours about the private hall operators who send reminders to pay the next terms accommodation fee. Still, it is the Government who shall take a call on it even if the students have signed a contract with the hall operators earlier. Ideally, it falls under no pay circumstance. The students need not pay and that is logical at this juncture.
Now, the question is – For how long?
Another question lies in front of the private accommodation owners is – When shall the Universities reopen? The prime question that we ask is, even if the Universities open, will the students seek admission in the Colleges considering the current scenario?
Commencement of Classes | Still in Doubt
The UK in the last decade has gained a reputation among international students for the standard of education. This has led many students from many countries to join the Universities in the UK. This has led to the boom of much private accommodation. Many private halls sprouted and were profitable with their service tactics and hospitality. The situation now is entirely different. As such every year, the newcomers’ classes shall start early in the year. But now, the classes are tentatively announced to reopen by August or September. Of course, this is not sure unless the Government passes an order. Still, if this happens, the Universities has their norms to allow students to learn online which is convenient for the current state. Further, considering the situation of the most postgraduate courses is planning to begin only in January next year, the private student housing businesses shall drastically stay hit.
BulletProof Cannot Stop a Cannon Attack
It was a powerful business model to offer accommodation to outstation as well as international students. Same is not the case now. Investing in running a student housing plan is ruled out. Further, the movement of international students to the UK shall stand restricted. When the online mode of study is encouraged, the students shall prefer that which is cost-effective. Indeed, it is a less expensive learning pattern in earlier situations too. The parents shall require their wards to remain close to them and study. They would certainly not encourage them to go anywhere, that too abroad. There are tough times ahead for private student housing owners.
The other major problem the private housing owners are facing, is the refund. It is an unspoken demand from the students’ side to refund the accommodation fee paid earlier for the entire term. The University-owned accommodation has accepted to it and refunded the same to all the students. Universities can afford to do that. Can the Private student Housing Operators do the same? That too, in this current situation, wherein, they are not even sure whether the colleges will reopen or not.
These Private Hall operators are also investment trusts. The stocks have crashed and it is the direct impact of the refund being paid to all the students. The students shall claim for it as it is the second most expensive factor after the college fees. With Cambridge announcing online classes till 2021 and Oxford also inclining to the same, the prospect of the Accommodation industry to stand tall as before shall take time. It was a bulletproof investment and not anymore.
Many corrective measures are being taken by the investors and also the private hall investors in the meantime. Converting the halls for different business purposes and also allowing low rent stay for locals if they travel down to reach the Universities. But it is not going to fetch any worthy revenue. Experts predict, it would take 6 months to a year for things to get normal. Still, even after that, it is in the hands of the Universities to attract international students’ footfall. As such, there were 20.4% of international students studying in the Universities every year. This amounts to be a good deal, but when the situation is like this, it will take its time. The experts suggest patience and innovation be the key to success.
