January 16th, 2020
The Purpose-Built Student Accommodation (PBSA) investment market in the UK has been one of the highest performing sectors in recent years, and 2020 is shaping up to be even better.
Real Estate advisors JLL recently released their ‘UK Student Housing Report 2019’ in which they delve into how supply pressures for UK purpose-built student accommodation will continue to drive the demand in the coming years.
The report found that, thanks to numerous varying factors, that the long-term outlook for student housing in the UK remains positive, even with a number of near-term challenges. JLL reported that in the last five years there has been an increase of 114,000 full time students in the UK, with a large influx of international students in recent years adding to the already strong student population. Cities like London, Manchester and Liverpool all offer extremely appealing opportunities for foreign students looking abroad.
The increased student population in the UK has resulted in a huge demand for PBSA, so much so that universities across the country are unable to supply anywhere near enough beds for their students. This in turn has led to a massive increase in privately owned PBSA. It is estimated that there are around 650,500 PBSA beds in the UK, with over 50% of these belonging to private owners. This is the first time in history that private owned properties have outnumbered university leased properties, and sets a good precedent moving forward. The PBSA market is highly unlikely to slow down any time soon thanks to thanks to a combination of supportive demographic trends, strong international demand and ever-growing pressure on the UK housing market on the whole.
Huw Forrest, Director at Living Capital Markets, Student Housing, said “The PBSA market has developed into one of the most robust offerings for private investors in the Living sector. The overall outlook for student housing in the UK remains positive.”
It’s clear to see the massive attraction that investing in student accommodation has for potential investors. The number of students at university continues to grow year upon year, resulting in a continuous increase in demand for purpose-built student accommodation. Universities cannot keep up with the exponential student influx, leaving a lucrative gap in the market for privately owned properties to soar. Are you interested in investing in student accommodation? Take a look at our range of properties available here!