Certainly, there are challenges ahead, but surely also opportunities for those bold enough to seize them.
The above quote, from the 2013 Institute for Public Policy Research publication ‘An Avalanche is Coming’, highlights the impacts of a rapidly changing global economy on the higher education sector and underscores the urgent need for a “bold” and “radical” response. Fast forward to 2024, and the Universities UK Report ‘Opportunity, growth, and partnership’ echoed this sentiment, presenting a “bold” blueprint to the Government for much-needed reform for higher education in the UK. At first glance, it might seem like nothing has changed over the past decade. However, a closer look reveals a different story. While the rhetoric may sound familiar, the context has evolved. UK universities have been navigating a whirlwind of changes while facing significant financial challenges. Technology has advanced, COVID-19 has accelerated changing pedagogy and working patterns, and the current geo-political and economic landscape remains turbulent. This has led to unavoidable, reactive decision-making, especially in the short term.
EVOLVE
Higher Education Estates
Olivia Haslam
Co-lead of Savills Education Director, Development
Sadie Janes
(IPPR, 2013)
This ongoing evolution of our long-established educational system is inevitable. UK universities are now focusing on proactively implementing change for the long term to bolster resilience and embrace new opportunities for growth. Knowledge and innovation are once again at the forefront of the economic productivity of our towns and cities. In this context, there are countless growth opportunities – not necessarily in physical scale or statement buildings, but in expanding reach and driving impact. This edition of EVOLVE explores how higher education estates can adapt to this context, and delves into strategies for effective and thoughtful estate planning, management and delivery to prepare for change. It examines best practices for commercialisation, leverages knowledge, ecosystems, and draws valuable lessons from the commercial real estate sector. Plus, it celebrates the civic role of universities in shaping and supporting local communities and businesses, highlighting their impact beyond academia.
To ‘evolve’ means to change into a better, more advanced state. As we navigate these changes together, we need to embrace the opportunity to rethink our higher education estates to support long-term, sustainable success.
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Contents
Explore this issue
Summer 2025
Managing change and delivering impact
Higher education estate strategies:
Discover how agile estate strategies are reshaping universities – balancing vision, resilience and revenue in a changing higher education landscape.
Best practice management
Commercialising surplus space:
How can universities turn empty spaces into income? Discover strategies and approaches for commercialising higher education estates.
Your key questions answered
UK business rates:
Navigate 2026 business rates changes with confidence. This Q&A guide answers key questions for estates, reliefs and future planning.
The role of universities
Mixed-use regeneration:
Explore how UK universities are driving regeneration through mixed-use developments – shaping cities, boosting economies and redefining urban placemaking.
Building a collaboration strategy
Opening up:
What if universities approached collaboration like they do net zero? Discover a bold new framework reshaping partnerships in higher education.
Coming soon...
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Managing change & delivering impact
Across the country, directors of estates are being tasked with not only reducing capital spend but also considering the release of assets to bolster revenue. These decisions challenge a university’s ability to deliver on existing masterplans or key capital projects, and plan for the future. In line with this change of emphasis, higher education (HE) estate strategies remain integral to informed and proactive decisions. But they must now focus less on the location and design of new statement buildings or masterplans depicting a complete ‘end goal’, and instead focus on setting parameters to guide and implement change with agility and resilience. To help manage change and remain ambitious, estate strategies should follow a framework of vision, objectives and priorities:
Priorities
Land and property, owned or leased, the HE estate provides the physical assets that enable activity. But it’s not just about function. An estate’s diverse mix of buildings and its ‘in-between spaces’ are the ‘seen’ identity of the university, influencing first impressions and how it is experienced. They also have a commercial value.
That ‘value’ is determining what the university needs from its estate, not just to address problems, such as ageing buildings or underutilisation, but to support its strategic growth ambitions and long-term success.
An effective HE estate strategy must align to the university’s strategic plan, setting an estate vision which unlocks ‘optimum value’ from its assets.
Operational, economic, social, environmental, financial, commercial and spatial parameters set the boundaries within which a university should respond to its objectives. Rather than defining the exact form, function and design of an estate in 10 years’ time, the estate strategy should outline opportunities to address challenges and set a new direction, responding to needs and purpose.
For more immediate challenges, outlining preferred options is important. Each short-term estate priority must present a viable option, with a thorough cost-benefit analysis to ensure deliverability. For medium to long-term estate priorities, the opportunity can be clearly defined but solutions should be determined over the strategy period, recognising change over time. In formulating estate priorities, consider and celebrate the strengths of your existing campus, resisting the temptation to jump to new-building delivery. In an increasingly competitive market, having a clear university identity and USP drives connection and belonging. Often, the strengths of the campus, whether it be prominent heritage assets, inviting green space or even a ride in a paternoster lift, form a key part of that.
They may be driven by spatial, functional, experiential or growth factors that link back to the university’s strategic plan. For example, supporting commitments to sustainability, providing an exceptional education, student and people experience, and delivering world-changing research.
Objectives may now also consider an increase of commercialisation of specialist spaces. This can diversify revenue and increase links with industry or bolster the civic role or city-centre presence for learners and the university’s profile.
Objectives must be informed by diligent, digital data on your buildings and their functionality, as well as focused on how people want to use the space – to learn, work or socialise.
Vision
Ultimately, an estate strategy should be implementable and effective throughout the defined strategy period as a tool to guide decisions which:
It certainly should not be a document that just sits on the shelf.
Preserves your estate vision
Ensures change is driven by identified needs and opportunities
Enables proactive and considered decision making
Commercialising surplus space
Explore...
01
02
Objectives
03
Land and property, owned or leased, the HE estate provides the physical assets that enable activity. But it’s not just about function. An estate’s diverse mix of buildings and its ‘in-between spaces’ are the ‘seen’ identity of the university, influencing first impressions and how it is experienced. They also have a commercial value. An effective HE estate strategy must align to the university’s strategic plan, setting an estate vision which unlocks ‘optimum value’ from its assets. That ‘value’ is determining what the university needs from its estate, not just to address problems, such as ageing buildings or underutilisation, but to support its strategic growth ambitions and long-term success.
Objectives must be informed by diligent, digital data on your buildings and their functionality, as well as focused on how people want to use the space – to learn, work or socialise. They may be driven by spatial, functional, experiential or growth factors that link back to the university’s strategic plan. For example, supporting commitments to sustainability, providing an exceptional education, student and people experience, and delivering world-changing research. Objectives may now also consider an increase of commercialisation of specialist spaces. This can diversify revenue and increase links with industry or bolster the civic role or city-centre presence for learners and the university’s profile.
In response to hybrid learning and working following post-Covid shifts, changing strategic priorities and financial pressures, how can universities right-size their estates? Underutilisation and cost inefficiencies have become a common issue, but there are also opportunities to generate more income by leveraging these assets, optimising space and maximising their potential.
Understanding your estate
generate more income by
Leveraging assets
Optimising space
Maximising potential
A comprehensive estate management strategy, encompassing commercialisation proposals, provides direction and vision for diversifying an asset. The consideration of third-party requirements, commitment to RICS service charge compliance, and a logical apportionment methodology will help support a smooth leasing process of available assets.
Practical considerations
Natalie Banks
Director Development Set up, Property Management
UK business rates
Future prospects
By focusing on diversification, evaluation and practical considerations, universities can optimise their assets, generate additional income and ensure long-term financial stability through third-party letting and commercialisation. A proactive approach will provide a valuable road map for collaborative estate and asset management. By setting it up to be fully compliant, it also ensures an asset is future-proofed – allowing the university to secure vacant possession, if required. Transparent and recoverable operational costs reduce the overall liability to university faculties and creates greater accountability of space usage, enhancing profitability for reinvestment with greater insight for continuous improvement. Indeed, the optimisation of asset space can foster innovative collaboration with departments and new occupiers, creating new business opportunities that benefit the university, staff and students.
Evaluating existing assets
key considerations
Current estate management:
This strategy should always align with the university's wider estate strategy and strategic plans, so assessing how changes will affect the estate’s wider amenities is key. Assessing planning requirements and business rates, is also important. Seeking formal legal advice on the appropriate arrangements for each circumstance is recommended to avoid common letting errors, which can expose landlords long term.
Space availability: Establishing the availability of space for third-party lettings.
Space utilisation
Space utilisation studies can identify a requirement for space reorganisation to better meet the needs of the university and release space for potential third-party occupiers.
Specialist equipment
Assessing whether specialist equipment can be shared among departments or rented out to external parties. This can create additional income streams and improve the utilisation and costs of expensive assets.
There is scope for commercialising surplus assets to drive income, however understanding asset letability is crucial at the outset of diversification and right-sizing. From individual labs and offices to entire floors and whole buildings, time-space building utilisation studies are a critical starting point for identifying opportunities.
Several leading universities are already addressing this – the University of Edinburgh, for example, conducts annual space utilisation studies to inform their estate-based strategies by comparing current utilisation against previous years.
Similarly, the University of Manchester has adopted a data-driven approach, monitoring usage and occupancy with insights that help optimise resource allocation. It’s about knowing what you have, what that space costs and timetabling cleverly.
Whole building and estate costs: Understanding maintenance costs for effective budgeting and financial planning.
Metering: Accurate measurement of energy consumption to understand occupational costs.
Insurance calculations: Ensuring adequate, cost-effective and fairly apportioned insurance coverage.
Sensitive areas: Identifying areas that require special security measures for sensitive equipment or information that may be inappropriate for commercialisation.
Operational costs: Assessing fair and reasonable allocation of operational costs.
Parking management: Evaluating parking space availability and management to elevate attractiveness to potential tenants.
With business rates hitting the headlines in the first half of 2025, Savills specialist Rating team answer your questions on the outlook for property tax and how to proactively manage it going forward.
Where are we in the business rates revaluation cycle?
The UK Government has maintained its commitment to three yearly revaluations. The current 2023 Revaluation will be replaced by the 2026 Revaluation next year, with the Valuation Office Agency (VOA) and the Scottish Assessor now preparing for the 2026 Rating List.
What is the outlook for higher education estates?
Existing 2023 List rateable values are based on 1 April 2021 in England and Wales (1 April 2022 in Scotland). Many higher education (HE) estates are valued based on cost reconstruction costs, rather than rental values – but 2021 saw an increase in those construction costs. The VOA applied some cushioning to reflect the additional running costs during lockdown, but it didn’t prevent increases in rateable values between 2017 and 2023 Rating Lists for most properties. The 2026 Revaluation will reflect values as of 1 April 2024 (1 April 2025 in Scotland). With construction costs still rising and Covid-related buffers removed, HE estates are likely to face further increases from 1 April 2026. However, there may be some better news. The annual multiplier, which is applied to a rateable value to generate the annual rates bill, could decrease by around 10%, helping to cushion the blow of ratable value increases.
What will happen to retail relief and what is the ‘super supplement’?
From 1 April 2026, new legislation will allow ‘up to’ 40% relief for retail, hospitality or leisure (RHL) properties with rateable values up to £51,000. This will have no cap per business and is clearly aimed at supporting UK high streets. However, to fund this, a ‘super supplement’ of ‘up to’ 20% will be added to rates bills of properties with ratable values of over £500,000. This could affect not only the Government’s target of ‘online retail giants’, but also universities and schools, hospitals, airports, large shops and more. The Government rejected the House of Lords’ concerns that this would severely impact certain sectors and instead said that there is provision to exempt individual properties on a case-by-case basis.
What are the implications of letting out individual buildings or properties that were previously part of a larger assessment?
Where a third party takes exclusive occupation of a clearly defined space, it should be assessed separately and have its own rateable value, with the occupier becoming the ratepayer. If that space becomes empty, the separate assessment remains on the Rating List and qualifies for three months’ empty rates relief before full rates apply. Any charitable relief that applied prior to letting the space will be lost. Having an ‘exit plan’ that might allow the space to be reabsorbed into the main assessment and used for the primary business purpose may provide an opportunity to regain charitable relief on the business rates.
When must you notify the VOA about property improvements?
Either on or before 1 April 2029, there will be a new obligation in England called ‘Duty to Notify’, requiring every ratepayer to notify the VOA of any physical or tenure-related change within 60 days of that change completing. An annual declaration will also be required of every ratepayer within 60 days of 30 April to confirm that everything that should have been notified has been. Civil penalties will apply where the timeframe is not adhered to. This clear step towards self-assessment means that the uncertainty of whether an improvement will increase a rates bill is virtually removed, subject to the efficiency of the VOA, which is soon to be merged into HMRC.
How can institutions budget for the future?
We are unlikely to know individual rates bills from 1 April 2026 until late 2025, leaving only three months’ notice before the liabilities will be due. Specialist rates advisors help project rateable values, annual multipliers and reliefs or supplements. For property improvements, it is always worth making an accrual as the VOA can backdate increases to the start of each Rating List, but from 1 April 2029, the onus will be upon the ratepayer to notify the VOA of where improvements have been made. Budgeting for the increase in rates liability should therefore be firmly factored into the costs of improvement projects from the outset.
Mixed-use regeneration
A ‘super supplement’ of ‘up to’ 20% will be added to rates bills of properties with ratable values of over £500,000.
David Parker
Director Rating
Universities are the principal anchors for every regeneration proposition in the UK.
Their economic placemaking capability, pervasive social and cultural underwrite, capacity to originate radial community wealth and intense focus on sustainability are core ingredients to successful regeneration. From London’s perspective alone, these centres of learning have had a profound impact in just the last 15 years.
King’s Cross
Central St Martins (University of the Arts London) moved into King’s Cross Granary Square 2011.
Stratford
Stratford Campus includes UCL East, Loughborough University and London College of Fashion.
Brent Cross
Sheffield Hallam University is due to open its new campus at Brent Cross Town in the Autumn of 2026.
Canada Water
The new partnership to promote science and technology innovation at Canada Water between King’s College London and British Land was signed in July 2024.
Chiswick Park
Richmond American University moved to Chiswick Park in September 2022.
To what extent universities are going to physically endorse London’s next generation of hub developments at Old Oak Common, Earls Court, Euston and Silvertown remains to be seen. Imperial College, however, is clearly booking an early reservation on the back of Old Oak Common station’s delivery, following its 9.6-acre industrial park acquisition in Acton, which Savills undertook for Imperial at the end of 2024.
Old Oak Common station’s site construction
Not only will this confluence of rail infrastructure be the catalyst for an estimated 25,000 new homes and 56,000 new jobs, but perhaps Old Oak Common will also be considered as the UK’s new cathedral for sustainable travel, not least because the recently published travel times are exemplary.
David Williams
Executive Director London Commercial Development
To what extent the University of Brimingham, Aston, Harper Adams, Loughborough, Birmingham City University or similar institutions will even wish to consider Old Oak Common as an opportunity to generate a dual city presence remains to be seen. Clearly, as with Stratford post the 2012 Olympics, there’s plenty of room at Old Oak before the results come in on a possible UK bid for London to host the 2040 Olympics.
10 mins
20 mins
35 mins
< 1 hr
to the West End
to City of London
to Heathrow, via either the Elizabeth Line or the Heathrow Express
to Birmingham Curzon Street Station
Birmingham Curzon to Heathrow
Having recently been lucky enough to see first-hand the scale of Old Oak Common station’s site construction, considered to be the UK’s largest, we would certainly recommend that universities from across the globe take a moment to consider how this superhub’s connectivity could become an academic fulcrum for UK and international students.
There’s plenty of time to plan, as it will not be ready until the early 2030s when Old Oak Common will become the major interchange for HS2, Great Western Railway and the Heathrow Express. 14 new platforms will service some 250,000 passengers a day, surrounded by the additional local connectivity of the Central Line, Bakerloo Line and London Overground.
COMING
Collaborations are critical to driving impact and creating value for universities.
The higher education sector has long been successful in this area, but there are many more opportunities. New types of partnerships could support universities more acutely, build resilience and benefit physical estates in terms of delivery, operation and use of space. For higher education, ‘collaboration’ has become a buzzword, just as ‘sustainability’ was over 20 years ago. The critical part now is its practical implementation. The sustainability agenda materialised most overtly in net-zero strategies; if we take this familiar structure, what could a university’s collaboration strategy look like? A net-zero strategy considers the balance of direct and indirect emissions with their removal across three scopes. Successful collaboration should achieve a balance between ‘value capture and value creation’ (HEPI 2024). If we consider a ‘collaboration emission’ creating new partnerships, the pathway for collaboration can be structured similarly:
Direct collaboration Collaboration that contributes to value capture, creating partnerships for the direct benefit of the university. Fuelled by financial pressures, it offers the opportunity to deliver estates differently, reducing pressure on cash reserves and diversifying uses and revenue. It can be split into Scope 1 and Scope 2, as seen below.
Indirect collaboration Value creation is driven by a university’s civic role and impact as a major regional, national or global stakeholder. Universities should not be passive in placemaking. The more attractive a place for living and enterprise, the greater the attraction for students, graduates, inward investors and innovators. This indirect collaboration forms Scope 3. Relationships should be curated in the wider regional governance ecosystem including policymakers, major employers, other education providers and the wider community.
Co-Lead of Savills Education Director, Development
Scope 01
Benefitting the university community
Attitude to risk and control
Partnerships under Scope 1 should benefit the university community while supporting the delivery or diversification of core operational assets. Consider what role partnering could play in funding and delivering campus or off-campus change, whether a new building or repurposing assets. A university does not have to be a funder, developer or owner; it can rely on third-party commercial expertise and its own covenant strength to unlock change, support robust balance sheets and provide value.
It’s important alternative models present a long-term strategic fit. Key considerations include:
Diversification of surplus assets to generate income or drive cost efficiencies is another solution. For the right university buildings or land, this could include:
Spatial and financial suitability
Futureproofing in design and location
Generating income through third-party occupiers, including complimentary businesses, affordable workspaces and meanwhile uses.
Partnering with funds or developers to deliver mixed-use schemes for which the university retains a long-term ownership, revenue or profit share.
Collaboration in Scope 2 is about strengthening direct partnerships with major businesses and communities through ‘city-making’ schemes. The anchoring and catalytic role of universities can be as an operator, academic provider, researcher or investor. Many universities are already part of very successful regeneration and mixed-use schemes. ‘Knowledge quarters’ and ‘creative hubs’ are examples of directly driving income through research, student enrolment and alternative revenue streams.
Scope 02
Strengthening existing relationships
Scope 03
Driving change with indirect benefits
Building stronger relations with local governance, which may be more effective through devolution, with greater influence on growth plans and policy development.
Scope 3 is about place and driving change, in partnership with major stakeholders, in return for enhancing economic productivity and civic impact. A university’s role as a major regional stakeholder may be further enhanced through:
Being involved with placemaking initiatives from the outset.
Exploring more impactful opportunities for lifelong learning, employability and skills growth through proactive collaboration across the ‘supply chain’.
How to unlock change through direct and indirect partnering will involve bespoke collaboration strategies for each and every university. Breaking it down into Scopes 1, 2 and 3 could help identify solutions that best the deliver long-term, positive impact.
Partnerships under Scope 1 should benefit the university community while supporting the delivery or diversification of core operational assets. Consider what role partnering could play in funding and delivering campus or off-campus change, whether a new building or repurposing assets. A university does not have to be a funder, developer or owner; it can rely on third-party commercial expertise and its own covenant strength to unlock change, support robust balance sheets and provide value. It’s important alternative models present a long-term strategic fit. Key considerations include:
