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Student accommodation

Purpose-built student property continues to grow in value as investors buy in

Author: Staff





When the purpose-built student property market nationwide welcomed around £5 billion worth of investment in 2015 alone, following on from two successive years of massive growth for the first time in history, it would have been easy to think that the peak for this market would not be all that far away.

However, the continued activity in the purpose-built student property sector since has suggested that this is actually far from the case, with investment in purpose built student properties still rising.

purpose-built student accommodation

According to figures from Knight Frank, in fact, the student property sector is now worth as much as £43 billion in terms of the value of stock owned both by universities and in the private sector by landlords and investors.

Across the UK at present, the Knight Frank data shows, there are as many as 525,000 rooms in the purpose-built student property sector, helping to meet demand from students who want something that has been constructed purely with their needs and wants in mind.

And this isn’t the end for the continued development of the sector either, with the property organisation also going on to say that there are more than 100,000 at the planning stage at present.

purpose-built student rooms

As many as 90,000 rooms have been given the green light in developments nationwide, while another 44,000 are still at the stage of waiting for permission.

Purpose-built student property continues to grow

Knight Frank said that student property has been one of the most popular investment options now for a few years thanks to the fact that it offers consistent and regular increases in returns for buyers in a way that other types of property asset cannot.

In a time of uncertainty, what used to be one of the most uncertain markets for the future has actually become the most solid bet, one that people can rely on, and for this reason an increased number of buyers continue to turn towards it.

“There are more investors in the sector now than there ever have been,” said James Pullan, Knight Franks’ head of student property. “It is one of the few sectors in the property world that has delivered consistent rental growth every year since the economic downturn.”

Although Knight Frank said that this year will struggle to keep pace with the £5 billion of investment that was in evidence in student property last year, it has said that it expects to see the property market still perform well.

In the 12 months to the end of December, predictions are that the student sector will have welcomed a further £4 billion from buyers, marking a fourth year in a row of fantastic income for a sector that it’s easy to forget that it was seen as a niche relatively recently.

purpose-built student property ebook

Access our latest online guide for more information about purpose-built student property investments in UK.

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