Record breaking student property sector set for continued growth in UK in 2018

The report (Cushman and Wakefield) points out that more students than ever are studying away from home meaning the demand pool for accommodation continues to grow. Full time student numbers are now 4% higher than in 2012/2013, when maximum tuition fees rose to 9,000 per year, and continue to drive growth in the sector. Higher tariff universities grew enrolments by 1%, with medium tariff institutions growing by 2%, proving that despite some concern about the impact of the Brexit vote on student numbers, there remains considerable demand for new accommodation.

1.Sketch Demand and Supply curves for the rental market for student accommodation

[2 marks]

2.Show the equilibrium price and quantity on your sketch

[2 marks]

With reference to the extract above illustrate on your sketch what is happening in the market and explain your answer.

[5 marks]

3.Using the sketch from 1.1 (or a new sketch if you prefer) illustrate what would happen if more student accommodation was built and explain your answer.

[9 marks]