New research from HSBC reveals that 18% of parents around the world are considering the UK as a top choice when planning for their child’s overseas education, second to only the US (31%).

The data comes at a time when Scottish universities are seeing a record number of international students enrolling, which shows a rising interest in locations outside of London and England.

And this is expected to drive interest in expanding and upgrading university infrastructure as well as increasing development of purpose-built student accommodation (PBSSA)

The Quality of Life report surveyed more than 11,200 affluent respondents in 11 markets around the world and was commissioned to explore the anticipated, or actual, expenses of an overseas education, and to identify the main challenges encountered during the planning and pre-departure stages.

A growing market

The number of international students studying overseas is set to grow at an average annual rate of 4.2% by 2030 and UK universities alone are expected to see a 46% uptick in international undergraduate applications by 2026.

HSBC’s data shows that students from Hong Kong, the US, and the UAE make up the majority of the UK’s international student applicant pool, with parents from these markets citing the UK as their preferred destination for their child’s international study.

Commenting on the research findings, Sabine Fichaux, head of international at HSBC UK, said: “It’s clear that parents worldwide view the UK as a top destination for their children’s higher education – and for good reason.

“Parents are seeking out destinations and universities renowned for academic excellence, as well as opportunities for global exposure, as they look to set their children for success in a job market which is becoming more globalised.

Championing aspirations

“We understand the power of a global network, because we have one. That’s why we’re committed to championing the international education aspirations of families around the world by providing them with practical and emotional guidance, the right financial products such as pre-departure bank account opening and StudySurance, and our national network of accommodation partners.

“Whether their sights are set on a UK education, or they’re UK based and looking to expand their horizons abroad, we have the support needed to help international students and their parents to navigate an overseas education with clarity and confidence.”

Equally, an international education is an aspiration shared by British parents, with 35% saying they either have a child studying abroad currently or are hoping to send their child overseas for university in the future.

When it comes to ‘where’ UK parents are sending their children overseas for study, the US (31%), EU (28%), and Canada (13%) emerge as the top destinations.

Payment plans

HSBC’s study reveals the majority (85%) of UK parents surveyed intend to fund their child’s overseas education, despite only 42% having an education savings plan in place.

A further 90% of parents admit to lacking confidence in their financial preparedness as an overseas education for their child can cost up to £188,000 – depending on where, and for how long, their child studies abroad – which could represent up to 39% of parents required retirement savings.

Just under half (47%) of UK parents say they would pay for their child’s international education from general savings; two in 10 (20%) would take out a loan, and more than one in 10 (15%) would pay by selling their assets.

On top of expected costs, such as tuition and accommodation, there are additional costs that UK parents are willing to absorb to provide their children with an overseas education. This includes paying for health insurance (33%), paying for flights to visit their child at regular intervals (46%), giving them a separate allowance (43%), and providing them with access to professional financial planning and investing advice (36%).

Making a selection

The majority (71%) of UK parents surveyed select a university that offers their child the chance to pursue their passions, and would prioritise an innovative, future-focused programme (65%).

Additionally, 57% of UK parents would pay more for an academic experience that provides their child with opportunities to travel – suggesting international opportunities trumps prestige.

Other top reasons for UK parents considering an overseas education for their child include:

A third (33%) of parents surveyed consider an international education as a way to boost their child’s academic and career advancement; 27% believe it will enhance their child’s future opportunities; and a quarter (25%) believe it will boost their child’s independence and overseas network.