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Demand for luxury student accommodation in the North rises

Demand for luxury student accommodation in the North rises

With the cost of UK university tuition hitting an average of approximately £30,000, there is no question that going through higher education is expensive. But even with that in mind demand for luxury student accommodation continues to increase, particularly in the north of the country where the number of student beds continues to rise in order to maintain demand and attract new students into the future.

Cities like Leeds, Newcastle, Manchester and Liverpool are all experiencing a surge in the number of student accommodation beds being brought to market, with data from JLL revealing that the number of student beds in Yorkshire has increased by almost half (48%) in the last five years alone, with Leeds leading the way which experienced a 79% increase over the same period, equating to just under 10,000 beds.

The 2018 Leeds Crane Survey specifically notes the upsurge in the purpose built student accommodation (PBSA) market and reports that the rise in new build student accommodation “recognises the need to provide high quality accommodation with additional amenity space and services beyond the traditional private bed student accommodation cluster flats. The provision of this type of accommodation…will enable the city’s universities to be able to attract additional students, including a higher proportion of foreign students.”

Newcastle, one of the UK’s busiest student cities, has similarly seen an increase in the amount of PBSA on the market. An article in Chronicle Live notes that the city has seen a huge rise in students studying there, with 20,000 more students in Newcastle than there were in 2001 when there were just 25,271. The growing demand for modern, high-quality accommodation from students looking to make the most out of their university experience means that the market is thriving, particularly among foreign students who are more likely to seek out private student accommodation.

Councillor Ged Bell said: “Students at Newcastle’s two universities contribute an estimated £500m to our economy each year and also attract young people from countries around the world to our city. Students themselves make a really important contribution to the local economy - with many continuing to live and work here after their studies - and our universities are major employers.”

He added: “It is great to see our universities thriving and as more young people come to study here it is important that there is sufficient student housing to meet demand.”

The numbers would indicate that the PBSA market shows no sign of slowing down as developers try to keep up with the demand as more and more young people decide to stay in education. If you’re looking to invest in luxury student accommodation in the UK’s prime northern cities contact us today to find more about current opportunities!