To offset a funding crisis UK universities are raising tens of millions of pounds by renting out empty student halls to holidaymakers and other travellers during the summer. 

According to revenue data obtained by proptech firm Lavanda, at least 64 UK universities are renting out vacant rooms.

In total the universities raised at least £98,825,919 over the past three years, each adding an average of £2,102,679 extra income.

Over the last three years some of the most successful universities included

• University College London, generated £14,913,266.
• Brunel University, generated £10,106,631.
• University of Nottingham, generated £9,559,799.
• University of St Andrews, genrated £8,260,000.

The report explains that many universities did not disclose their summer holiday rental income, and so the total for all universities is much higher.

The research identified at least nine universities that do not rent their student accommodation to non-students during the summer.  These included Newcastle University, the University of Leicester and the University of Strathclyde. 

The report suggests some universities are expanding their summer rental programmes in response to increasing financial pressures. Due to price inflation, tighter visa restrictions resulting in less international student applications, and frozen tuition fees, the Office for National Statistics says it is expected that 72% of universities will be in deficit this year. Also the Home Office figures revealed a 16% plunge in applications between July and September last year compared to the same period in 2023. 

Fred Lerche-Lerchenborg, chief executive at Lavanda, commented: “With some universities reportedly on the brink of bankruptcy, it should come as no surprise that institutions are seeking out innovative new ways to sweat their assets. 

“Not only does renting out empty rooms generate much-needed additional income for universities, it also boosts local economies that rely on student spend throughout the academic year. This is a classic example of how a more flexible approach to real estate can deliver significant social benefits, something the government would do well to bear in mind as it sets about overhauling our archaic planning system.

“Britain’s universities are the envy of the academic world, so it’s critical that this kind of resourcefulness is encouraged to help our institutions remain financially healthy, agile and competitive. In doing so, they can continue to deliver world-class education and research while also keeping accommodation costs as low as possible for students.”