Students scramble for accommodation after owner goes bust in Dundee

Nearly 70 students in Dundee have been forced to find new homes after the owner of Marketgait Apartments, a 116‑room block just a ten‑minute walk from Abertay and Dundee universities, entered administration in mid‑July. The Jersey‑based special purpose vehicle that owned the property was placed in administration after its owners, real‑estate manager 90 North and Kuwaiti investment firm Rasameel, failed to repay a £5.7 million loan, prompting FRP Advisory to take control. The building, which offered studios at £199 per week and en‑suite rooms at £165, had 68 rooms let at the time of collapse and was marketed as “perfect homes” in a June Facebook post by Prestige Student Living, the managing agent. Students with contracts for the 2026‑27 academic year were given only a month to vacate, leaving them to hurriedly move possessions, arrange storage and secure alternative accommodation as term began.

The Marketgait failure underscores a broader crisis in the UK student‑housing sector, where a mix of falling international enrolments, a cost‑of‑living squeeze and rising borrowing and construction costs have left many providers financially strained. International student numbers have been down for three consecutive years, reducing demand for higher‑priced, purpose‑built accommodation that typically attracts wealthier overseas students. At the same time, domestic enrolments are at record levels but a growing share of students are opting to live at home to avoid expensive rents, a trend dubbed the “rise of the commuter student.” Modern blocks like Marketgait, which feature amenities such as a concierge and shared lounge with a pool table, command rents that are out of reach for many home‑based students, leaving providers vulnerable when occupancy drops. The building also required essential fire‑safety remedial work that the insolvent owners could not fund, further compounding its financial woes.

The closure has immediate repercussions for the displaced students and highlights the sector’s ongoing restructuring. Prestige Student Living said it promptly notified tenants, helped them find alternative housing in Dundee and refunded all payments, while a spokesperson expressed sympathy for those affected. James Elliot, a 21‑year‑old recent graduate and housing activist with Living Rent, described the situation as “anxious, stressed and shocked,” noting that many students had already packed belongings for the next year and now face storage fees. The Marketgait episode follows similar collapses, including Amare Students in Birmingham and Alma Place in Belfast, and has prompted other struggling providers to seek planning permission to convert student blocks for non‑student use, such as a 91‑room building in Coventry earmarked for city workers. Large operators like Unite Group are also reshaping their portfolios, planning to sell 15,000‑20,000 beds after a £418 million loss, concentrating on sites near the UK’s strongest universities where demand remains robust.

⚡ Effects Interpreter