April 19th, 2018
When investing in Purpose-Built Student Accommodation (PBSA) there are generally two strategies. The first is to look for an individual development which appeals. Whether you are looking for the cheapest entry point, the development with the most appealing amenities, or you are looking for yield above all else, there will be a perfect PBSA development for you somewhere in the UK.
The second strategy is to look at the individual city markets, find a particularly healthy one, and then start your search for the specific development. This approach arguably offers more longevity as a development in a healthy market will provide good returns in the long term.
There is a good case to be made for Liverpool being the UK’s pre-eminent PBSA investment market. The city is home to many different higher education institutions which have more than 70,000 students between them.
This many students need a lot of beds, and it is estimated that more than 60% of students in Liverpool are forced to rent privately due to a lack of university-provided accommodation. Indeed, figures from the Mistoria Group show that the demand for high quality student accommodation in Liverpool soared by 35% over 2017. This is no surprise considering that only 28% of university accommodation in the city reaches the required standard according to Student Accommodation Tracker, as reported in Property Reporter.
As a city, Liverpool has very few peers. It occupies a naturally beautiful position on the River Mersey and is a world class cultural hub. Students from around the world travel to study in the city, and the majority of these overseas students are willing to pay a premium for the best accommodation.
The quality of the teaching on offer and the outstanding city lifestyle ensure that students will continue to choose Liverpool for many years to come. For this reason, investing in PBSA in Liverpool is a smart choice.