Return of ‘UniLand’ set to boost town centre economies- Student spending power has increased by over £655m in the last 10 years
- Annual UK student spend forecast to be close to the £20bn mark by 2017
London, 25 September 2014 – As millions of students get set to return to University, businesses across the UK will be gearing up to see how they can benefit and attract a potentially new set of customers. With an average estimated individual spend of over £11,000[1] each year, and a combined spending power in excess of £19.7bn, the student market has a significant economic impact.
Insight provided by Experian, the global information services company, reveals that many town centres up and down the country are made up of buy-to let properties which are almost exclusively inhabited by students. These areas, dubbed ‘UniLand’, play a vital role in the economic prosperity of these towns. Following a quiet summer, the return of the student population (and their disposal income) will see many shops and leisure facilities enjoy a much needed upsurge in business.
According to ONS data, in the UK, overall student spending power has increased by over £655 million during the last ten years. And this spending power is set to continue to grow. Experian research has forecast the combined annual UK student spend figure to be approximately £20 billion by 2017.
For a number of towns, such as Manchester, Oxford and Nottingham, the imported spending power of large numbers of students strengthens the local economy significantly during term time. In Nottingham, for example, the student population has increased by almost 7000 extra students since 2003 increasing their projected ‘Uniland’ spending power by in excess of £56 million over the same time period.
The Experian insights also reveal that these ‘Uniland’ areas will see a dramatic increase in internet usage during term time. Students are prolific users of the internet, and they are also the most likely to use their smartphones to check social media and shop online compared to the national average.
Nigel Wilson, Managing Director, Consumer Insight, Experian Marketing Services, said: “Understanding the demographics and spending power within any city or town and how this changes over the course of the year is essential insight for businesses, helping them to reach the right customers at the right time.
“Retailers and consumer brands in particular can draw on this data to help them to identify the most appropriate locations for their stores and where to market particular services or offers. People themselves also benefit through being provided with relevant information that best fits their needs.”
The insights provided by Experian come from their leading consumer classification system, Mosaic, which reflects the latest consumer and societal trends.
[1] Source: ONS average annual expenditure per UK student.