Dundee student accommodation provider collapses, leaving 68 students scrambling

Key facts

• The owner of Marketgait Apartments in Dundee has gone into administration.
• Sixty-eight students are affected by the collapse.
• The company failed to repay a £5.7m loan against the property.
• Prestige Student Living was marketing the property as "perfect homes" weeks before administration.
• Students had contracts for the year but were told to leave within a month.
• Falling student numbers at the building led to financial losses.

Nearly 70 students in Dundee have been left scrambling to find accommodation for the upcoming academic year after the owner of Marketgait Apartments, a city centre block, filed for administration in mid-July. The collapse of the property's owner, a special purpose vehicle owned by real estate manager 90 North and Kuwaiti investment company Rasameel, occurred after they failed to repay a £5.7m loan against the property. The building remains closed while its new owner, ATK Property, conducts essential fire safety remedial works.

Students who had secured rooms for the year were informed they had to leave within a month, causing significant anxiety and stress. Some students, particularly those who were abroad, had to pay third-party fees to store their belongings. Prestige Student Living, the managing agent, stated that the situation was beyond their control but that they took immediate action to notify students, help them secure alternative accommodation, and return all payments made.

This incident is the latest in a series of failures within the UK student housing sector. Factors contributing to the crisis include falling international student numbers for a third consecutive year, a cost of living squeeze, and increased borrowing and construction costs. While domestic student numbers are high, many opt to live at home due to rental costs. The boom in new purpose-built student housing has led to oversupply in some areas, while demand for affordable rooms remains high in others. Modern, purpose-built accommodations often command higher rents, making them inaccessible for many domestic students.