Behind the growing appeal of purpose-built student accommodation
- 10 May 2019
- In the press
For property investors looking for opportunities in the UK right now, one of the asset classes offering the most promise is purpose-built student accommodation (PBSA).
This sector has many advantages that are capturing the attention of investors, as Jerald Solis, business development and acquisitions director at Experience Invest, recently explored in articles for Property Secrets and Property Reporter.
The appeal of UK higher education
One of the strongest factors in PBSA’s favour is the enduring appeal of higher education in the UK, with British institutions securing four of the top ten places in the 2019 QS World University Rankings.
Consequently, property owners renting out dedicated student housing can rely on strong demand for living space, particularly from international applicants who are willing to pay a rental premium for secure, well-equipped accommodation close to their campus.
Speaking on behalf of Experience Invest, Mr Solis pointed out that this need for accommodation is set to continue in the near future, regardless of external factors such as Brexit. Less than a third (140,000) of the 460,000 international students currently attending UK universities come from the EU, while three in every ten first-year students live in private PBSA.
Purpose-built student accommodation opportunities
Another appealing feature of this market for investors is the growing range of choice and opportunity currently on offer and the high investment yields available.
Research by Knight Frank has shown that approximately 29,000 new purpose-built student rooms will be delivered across the UK by the start of the 2019-20 academic year, a 25 per cent increase on the previous year’s figure.
Investors also have a wide range of appealing destinations to choose from, particularly in the north of England, where regional property markets have demonstrated stronger growth than their counterparts in the south over recent years.
Cities such as Liverpool and Newcastle are proving particularly attractive to students and investors alike, thanks to their popular universities and colleges, distinctive culture and lifestyle benefits.
Buyers who are able to research the market and find the right destination for their investment can expect to benefit from the huge potential of purpose-built student accommodation over the coming years, as the sector continues to evolve and mature..
2019 UK Student Accommodation Investment Guide
Student property is an ideal choice for investors who wish to diversify their property portfolio.
If you are considering expanding your property portfolio to include this asset class, access Experience Invest 2019 UK Student Accommodation Investment Guide and discover why the sector is the considered the country’s best performing market segment.
Simply follow the link to access your free online guide: 2019 UK Student Accommodation Investment Guide.