University challenge: how estate teams are investing and innovating despite financial pressures

With UK universities facing rising deficits, course cuts and job losses, one group is quietly driving transformation: the estates and facilities teams.

At Morgan Sindall we work closely with universities across the country, and we are seeing at first hand how estate departments are not just maintaining their campuses – they are transforming them.

The focus largely has shifted from expansive capital projects to targeted investments with lasting impact. Universities are refocusing on projects which deliver long-term operational savings, environmental performance and better experiences for students and staff.

Refurbishments that modernise existing space, retrofits that reduce energy demand, and adaptive reuse of underutilised buildings are all becoming the norm.

One standout example of this forward-thinking approach is the East Bank development in London – one of the UK’s most ambitious cultural and educational regeneration projects. Situated in the Queen Elizabeth Olympic Park, it brings together world-leading institutions including UCL, University of the Arts London, and Sadler’s Wells in a bold vision for collaborative, accessible, and sustainable urban development.

This project demonstrates how universities can anchor transformative placemaking that benefits not just students, but entire communities – with estate teams playing a pivotal role in shaping that future

Also present on the site is the BBC Music Studios, from which musicians will perform, record and broadcast live music across a full range of genres to the widest possible audience. The relocation to East Bank is driven by this purpose and builds on the BBC’s role as Olympic broadcaster.

Another key cultural institution, the V&A, is to have a double presence on the site: the V&A East Storehouse and the V&A East Museum, which is set to  open in the spring of 2026.

Despite wider pressures across the sector, this project demonstrates how universities can anchor transformative placemaking that benefits not just students, but entire communities – with estate teams playing a pivotal role in shaping that future.

It stands as a textbook example of how universities, working with “non-traditional” partners such as museums, broadcasters and performing arts organisations, can drive regeneration and create vibrant new destinations. This mix of institutions attracts not only students and academics, but also visitors, tourists, media attention and investment.

Crucially, the close proximity of UCL researchers to artists, fashion designers  and media professionals fosters collaboration which links academic expertise to creative practice – sparking innovation, new enterprises and local job opportunities.

This is one example of the creativity we are seeing. Faced with reduced funding and rising expectations, estate teams are not hitting pause – they are rethinking how to deliver more with less.

>> Also read: Fashion statement: London college becomes first to make its new home on the waterfront

>> Also read: Curtain rises on Sadlers Wells’ elegant East Bank end-of-terrace

>> Also read: Unpacking the museum: A look inside the new V&A Storehouse in Stratford

We are seeing creative procurement models, phasing strategies that minimise disruption and spread cost, and an increasing appetite for digital tools to drive project efficiency and lifecycle value.

Sustainability remains a core priority: not in spite of the financial climate, but because of it. Rising energy costs and climate commitments are pushing universities to accelerate decarbonisation plans.

From low-carbon heating systems to Passivhaus-standard refurbishments, the challenging marketplace they are operating in means universities have doubled down on their commitment to deliver schemes that are future-proofed and financially responsible. The estates teams we work with are not just responding to today’s pressures – they are laying the groundwork for a more resilient, sustainable future.

In a competitive sector, student experience remains a critical driver of investment. Smart campus design, inclusive and flexible teaching spaces that encourage not just academic study but social learning, where collaboration and informal knowledge exchange happen as naturally as formal teaching.

This is increasingly recognised as central to how students build skills, networks and a sense of belonging. Even with constrained capital budgets, estate teams are prioritising targeted improvements where they have the greatest impact.

This means embracing modular and offsite construction to deliver quicker results, rethinking space usage with hybrid learning in mind, and designing with wellbeing and inclusivity at the core.

The pandemic fundamentally changed how students engage with their universities, accelerating remote learning and challenging the role of the physical campus. As institutions move beyond covid-19, estate teams are recognising that getting students back on site has not been just about resuming lectures – it is about creating environments that offer value beyond the screen.

For contactors, it is important to act as true collaborators: helping universities to get the most out of every pound spent, every square metre developed, and every net-zero target set

Universities are focusing on creating a “sticky campus” – one that students want to spend time in, not just attend classes. That means attractive, flexible and well-serviced environments where students can study, socialise, access support and participate in wider cultural life.

As such, high-quality, flexible and inclusive spaces for collaboration, socialising and support services are now critical to rebuilding campus life. The most forward-looking universities are investing in estates that give students a reason to return: spaces that foster connection, wellbeing and a sense of belonging in a post-pandemic world.

Now more than ever, estate teams need partners who understand the pressures they are under and can bring creativity, reliability and technical depth to the table. For contactors, it is important to act as true collaborators: helping universities to get the most out of every pound spent, every square metre developed, and every net-zero target set.

The financial headwinds facing the higher education sector are real and significant. But, if there is one thing we have learnt from working in this space, it is that university estate teams are resourceful, mission-driven and remarkably innovative.

Universities may be under financial strain, but in the hands of bold estate teams and the right partners, their campuses can become engines of resilience, sustainability and student success for decades to come.

Mike Borkowski is national director of business development for SCAPE at Morgan Sindall Construction