Higher Education Strategic Risk Analysis Report 2025/26 16 2.4 Estates infrastructure, ranked joint 7th inherent and 3rd residual Risk findings Around two thirds of institutions have a strategic risk relating to their estate. Average normalised inherent and residual scores and rankings are broadly the same as in 2024/25, suggesting that risk profiles are stable. As might be expected, there is a particularly wide variation in both inherent and residual normalised risk scores, reflecting the differing sizes, types, ages, conditions, and locations of University estates, as well as their missions, subject mix, teaching delivery models and scale of research. Common mitigation strategies and controls include: • Development and more regular and agile review of estates strategies and space management plans aligned to changes in the curriculum offer and modes of delivery; • Strengthening data and analysis on space utilisation, with a focus on use of generalist and office space; • Review and reprioritisation of capital expenditure plans, with strengthened governance and oversight; • Regular review and risk-based reprioritisation of estates maintenance plans; • Changes to student accommodation strategies and partnerships; and • Changes to the design of capital projects to control costs and maximise value. Risk commentary and recommendations It’s recognised that utilisation of university estates is inefficient compared to other business sectors, with over provision of space ranging from an estimated 10-40%11. Given the financial challenges the HE sector is facing, this position is no longer tenable in terms of energy and running costs, maintenance, efficiency, or carbon management. Institutions are also looking to make better use of their estates to generate commercial income through, for example, events and conferencing. 11 https://www.aude.ac.uk/news-and-blogs/publications/
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