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• Why might the government intervene in the student accommodation market?

  Due to chronic shortages faced by students
• What is one policy the government might use to improve student accommodation?

  Rent cap
• What does a rent cap do in the context of student accommodation?

  Limits rent to a fixed percentage each year
• How does a rent cap affect the affordability of student accommodation?

  It keeps costs lower for students
• What percentage have real-term rents risen in the UK on average?

  35%
• How might a rent cap affect foreign students applying to UK universities?

  It may prevent them from being deterred
• What risk does a rent cap pose to landlords in the market?

  They may withdraw from the market
• What could happen if landlords withdraw from the market due to rent caps?

  Decrease in housing supply may occur
• What is a potential consequence of a shadow market emerging from rent caps?

  Students may live in lower-quality homes
• What is one policy the UK government could use to increase housing supply?

  Relaxation of planning laws
• How could relaxing planning laws affect the supply of student accommodation?

  It could allow quicker construction of new housing
• What does the term 'highly inelastic' refer to in the context of housing supply?

  Supply does not respond quickly to demand changes
• What effect could relaxing planning laws have on rent prices?

  Rents could fall from P1 to P2
• What external costs might arise from increasing the number of students in an area?

  Altered environment and increased nightlife activity
• How might increased student activity lead to regulatory costs?

  It could strain the NHS and local services
• What financial incentive has been offered to some students regarding accommodation?

  Deferring entry by a year to live at home
• How might deferring students help the accommodation market?

  It reduces pressure on limited supply
• Why is deferring students considered a short-run solution?

  Students will only be deferred for one year
• What long-term solutions are needed for the housing backlog?

  Sustainable solutions to increase housing supply
• What are the main issues facing the UK market for student accommodation?

  • Soaring rents
  • Limited supply of accommodation
  • Insufficient funding for new home building
• What should the UK government consider when implementing policies for student accommodation?

  • Lenient rent controls to avoid discouraging supply
  • Appropriate relaxation of planning laws
  • Easing costs of production for homebuilders
• What factors influence the effectiveness of government policies on student accommodation?

  • Current government finances
  • Market response to demand increases
  • Long-term sustainability of housing solutions