Some of De Montfort University’s (DMU) most recognisable Leicester sites could be sold or rented out as the university battles an £8 million deficit caused by a sharp drop in overseas students.
An internal letter sent to staff and seen by LeicestershireLive reveals the university is actively considering an external rental or sale of several of its sites, including its Bede Island campus and the Leicester Media School.
DMU confirmed those plans in a statement, saying it needs to ensure its estate is “efficient and right-sized” in the face of what the letter describes as “severe financial pressures.”
The letter reveals DMU was facing a projected £20m deficit for the current financial year, a figure it managed to reduce to £8m through a mix of more students than expected enrolling last October and the implementation of cost-saving measures.
But the university is now warning that the position is set to deteriorate again, saying it anticipates “significant shortfalls that will require further action” once it sees how many students arrive in the autumn.
The letter pins much of the blame on changes to practice by UK Visas and Immigration, the government body responsible for granting overseas students permission to study in Britain.
The university described the policy change as “unhelpful,” saying it comes into force in June and will “severely restrict our ability to recruit overseas students from some countries – needlessly so in our view.”
Tightened visa refusal rates mean DMU expects far fewer international students on its Leicester campus from October 2026, with the letter warning this “has a direct and material impact on our financial position.”
DMU said it is lobbying the Government alongside local MPs to amend the policy.
In response, DMU says it is pursuing a range of measures to grow income from other sources. The university says it is expanding its presence in Dubai, launching home undergraduate courses at its London campus from this year’s Clearing round, and developing a new postgraduate model connecting its London and Dubai operations.
The financial pressures are also being felt on campus, where DMU has launched a redundancy consultation affecting technical services staff across all of its faculties.
While some reports have suggested as many as 60 roles could be at risk, LeicestershireLive understands the number of likely redundancies is lower than that.
However, a source told LeicestershireLive that at least 10 roles within the Faculty of Technology, Arts and Culture alone are at risk, including technical managers, porters, a gardener and an electrician.
Students have raised concerns, with one saying: “The ‘state of the art’ workshops and the excellent technicians are the main draw for the fine art course. Everything I have learnt over my four years there I have learnt from the technicians.”
The developments come despite the university having met a £40m savings target set in its Medium-Term Financial Plan, due to be delivered in full by the end of the current financial year in July 2026.
The news also follows Leicester City Council’s announcement earlier this month that it plans to sell the council-owned Innovation Centre on Oxford Street, which DMU has leased since its construction in 1995, to the university in a £2.2 million deal signed off by City Mayor Sir Peter Soulsby.
The De Montfort University International College, which offers pathway programmes for overseas students hoping to secure a full DMU degree, is also set to close at the end of the current academic year, putting fewer than 50 roles at risk.
Despite the challenges, the letter sought to reassure staff, saying: “This is a challenging time for universities across the UK, but I am confident that by remaining focused on our purpose, to educate, engage and elevate our students and communities, we will be able to address our challenges together.”
DMU did not respond to questions about whether the proposed changes to its estate would have any impact on courses or students.
In a statement to LeicestershireLive, a DMU spokesperson said: “An unhelpful change in the Government’s policy and practice around issuing visas for international students has created a new and acute issue for many British universities including De Montfort University Leicester (DMU).
“Overseas students are not only an important part of our community, they are also a key element of the financial model on which DMU and many other UK higher education institutions operate.
“The Government’s change in policy, which comes into force in June, will severely restrict our ability to recruit overseas students from some countries – needlessly so in our view. This will have implications for our financial position.
“DMU and many other universities are, with the help of local MPs, lobbying Government to amend this policy. But, unless and until Government sees sense and changes its position, we must make plans that will allow us to cope with a significant financial impact.
“Therefore we are having to think differently about how the university will operate in future. That includes looking carefully at our estate. We are specifically considering options around Bede Island and the Leicester Media School, alongside other areas, because we need to ensure the university estate is efficient and right-sized.”
