By Ian McNay
The sale of two recently designated ‘for-profit’ universities to owners outside the UK is one indication of the government’s market approach to higher education. I return to this below, after covering another piece of evidence.
Those who do not read the financial pages of the Guardian will not have seen an article by Rupert Neate Cannes on student accommodation as giving ‘first class returns to investors’ (17 March 2017, p33). It included two things that shocked me. ‘Last month, the value of contracts awarded to build student housing projects in the UK totalled more than the deals to build care homes, housing associations, local authority housing and sheltered housing added together’, and flats in ‘some student blocks… in London cost as much as £650 a week’. In Reading, there is one block where prices are £300 per week, and the UK average for one builder was £175 a week. Rents for university owned properties already constitute a supplementary fee and exceed the level of the maintenance loan, adding another financial obstacle to equity of access.
That may be one reason why, paradoxically, students are turning to private HE – alternative providers as they were called by government in last year’s White Paper, and now the subject of an enquiry by the Higher Education Commission, to which Ron Barnett and I were recently invited to give evidence. I did some digging around and the picture that emerged surprised me, and moved me from my initial stance of total opposition. Continue reading