The impact of gentrification on students in South London

Redevelopment is transforming Elephant and Castle, home to London College of Communication (LCC) and London South Bank University (LSBU).

There are approximately 20,000 students living in and around the area, but what does its multi-billion pound regeneration mean to them, and how is it changing the local community?

In 2010, Southwark Council signed a £2.3bn agreement with multinational construction company Lendlease to redevelop ‘the Elephant’. The scheme includes 3,000 new homes, of which 25% are classified as “affordable”, and a claimed 6,000 new jobs.

With space at local university halls of residence extremely limited in proportion to the number of students, it would seem that a development boasting a quarter of all its housing being “affordable” would be considered a blessing for undergraduates.

However, with prices for apartment in Elephant and Castle’s concrete jungle beginning at close to £600,000, the knock-on effects on the private rental sector are obvious. The more upmarket a neighbourhood becomes, the more those rents will rise.

In terms of renting, which is the most practical and budget friendly option for a student, the cheapest available studio on the market is currently £400 per week. A figure which is neither affordable nor realistic for the majority relying on loans.

Even students who receive the maximum student loan of £11,672 would be at least £9,128 short on their yearly rent and that is without taking into account additional bills, deposits or general living costs associated with living in London.

By replacing social housing with private “affordable” schemes, many students will be forced to move out of the area and further away from where they study. 

Not only has the regeneration led to a significant increase in private renting costs, student halls have also been subject to rapid increase in costs as a result. 

The Highline Building is a hall exclusively for UAL students situated only a five-minute walk from LCC. In 2017, a modern 13m sq room with an en-suite cost £182 per week inclusive of all bills. That was expensive but within the realm of possibility for those surviving on a student loan, whereas current students are faced with charges of £218 per week for the same room. 

One ex-resident of Highline Building said: “Student halls were a good option for me during my first year of university as they were within my budget and meant I didn’t have to pay travel costs to university. The current price of the halls now are too high for me to consider and meant I had to look elsewhere for accommodation.” 

University of the Arts London offer a bursary programme which awards students who receive full state funding an amount of £1,000 per annum, an initiative which massively relieves financial burden from those in the lowest income families.

However, should your household income be anywhere above £25,000 then you will lose out entirely and be entitled to no extra financial help.

With this in mind, do universities have a certain level of responsibility to ensure their housing is kept affordable, despite rising housing costs, to allow students to continue living locally?

Images Courtesy of Gemma Lewis Photography.