By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
In recent years, purpose-built accommodation has become highly sought after in the investment arena with commentators going so far as to qualify the spe-cialism as a mainstream asset class.
According to CBRE, student accommodation delivered returns of 9.4% within one year in September 2019. The growth of this area is tied to the UK’s reputa-tion for education and therefore has the benefit of being a generally stable investment. With over 2 million students in the UK, this is an area that has sig-nificant potential for rental growth.
What is purpose built student accommodation?
PBSA is a unique development in the United Kingdom which takes the form of cluster flats or studios. Private developers build the units catering specifically to student cohorts. Each site is therefore comprised of ensuite and non-ensuite ooms with a shared kitchenette and facilities like gyms, common living spaces and games rooms.
With the UK’s reputation as a hub for quality higher education, international students have flocked to the capital for decades which has placed a high de-mand on affordable student housing.
To a large extent, overseas intake was made possible through increased mo-bility and flexibility afforded to students within the European zone. Amongst universities, there is a large presence of students from the Asia Pacific region which has also attracted foreign investment from those same areas.
Despite the growth in this area, research suggests there is still a shortfall in the availability of units. According to JLL, more than210,000 full-time students were unable to obtain accommodation last year.
At the beginning of the year there were growing fears that lockdown would see a steep decline in occupancy rates across the country. Fast-forward seven months and that fear has been realised. With thousands of students returning home and lectures being delivered online, investors would be right to harbor anxiety about the future of PBSA schemes. Despite this, commentators remain positive about the outlook for 2021 with surveys showing a strong appetite for A-level students to continue higher education.
In recent years, purpose-built accommodation has become highly sought after in the investment arena with commentators going so far as to qualify the specialism…
For decades, the UK has been facing a housing crisis. In an attempt to curb this, the government and local councils introduced the concept of urban regeneration…
In 2015, the UK Government pledged to build 300,000 homes a year by the mid-2020s (one million total in five years) in what was considered a remarkably…
Strategic land acquisitions involve identifying sites across the United Kingdom that are suited for residential and commercial development...
The East and West Midlands have been distribution hub strong-holds since the Industrial Revolution owing to the “sizable population, central location and dense transportation network”...
