Student-area businesses fear for trade as tuition fees soar

A TIMEBOMB could be ticking for businesses that rely on students flocking to Yorkshire’s major cities, owing in part to the impact of higher tuition fees of up to £9,000 a year being introduced in the coming academic year.

Landlords, bars and shops in traditional “student” areas such as Headingley in Leeds and Broomhill in Sheffield say they fear that more students may be choosing to stay at home with their parents and attend a local university rather than moving away, in order to save money.

Several universities saw far fewer applications this year as fees almost three times higher than in previous years were announced.

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Figures from Ucas showed Hull University’s applications had decreased by 18 per cent, while Sheffield Hallam was down 17.5 per cent and Leeds Metropolitan’s were 15.9 per cent fewer than last year.

Meanwhile, when A-level results were published last Thursday, it emerged that the number of students accepted on to undergraduate courses across Britain was down by more than eight per cent on last year.

Deborah Blagdon, a landlord with 11 houses in Sheffield under the name Sheffield Student Houses, said the real impact of the tuition fees rise would be seen in two or three years, when those who entered university last year, under the old fees system, have graduated.

She said: “Last year there was a rush for students to take accommodation – every one of my properties was let by the end of January.

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“The year after next, though, is where it is likely to get quieter, after the current first years have left.”

Hull University said it thinks it could be up to 10 per cent down in new students this year.

But, despite this, student accommodation provider Hull-based Agercon Ltd is looking at investing in new facilities.

Part-owner Ross Chaplin said: “It is not this year that is the problem as we have second, third and fourth years and some postgraduates, it is more what will happen three years down the line.”

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Simon Webster, chief executive of Thornbridge Brewery and Sheffield’s BrewKitchen restaurant group, said businesses might have to work harder for student custom in future.

Mr Webster said: “I think it’s more important than ever for businesses with a good student patronage to engage more and add more value.

“It may not be possible now to just open the doors and expect students to flock through.”

Danny Bolder is landlord of the Haworth Arms on the corner of Cottingham Road, near Hull University, which two or three years ago was marketed as a student pub.

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He said he believes students will choose to stay and study at university in their home town rather than travelling away and spending £7,000 a year on accommodation.

He said: “I very much doubt there will be a student pub in four or five years time.

“The student market has been in decline for quite some time.”

Patti Crozier is design and marketing manager at the firm which runs both The Forum and The Common Room bars in Sheffield’s Division Street, and The York in the student area of Broomhill.

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She said: “In the long run, the York and the Forum bars may suffer because we do benefit from Sheffield’s high percentage of student retention.

“If the numbers of students fall each year, I expect to see minor changes in our trading habits within one to three years.

“We are planning a strategy 
to compensate for this reduction.”

Among other business people concerned about a potential 
drop in student numbers is Elizabeth Pennington, whose family firm is Daley’s, a book/stationery store opposite Bradford 
College.

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As 80 per cent of her customers are students, she fears there could be a long-term knock-on effect caused by rising tuition fees.

Ian De-Whytell, head of Crash Records in Leeds, said students make up a “significant percentage” of his customers.

He added: “ A drop-off in student numbers would certainly have something of an impact on us.”