February 19th, 2020
According to new figures from Real Estate advisors, JLL, the UK student housing market is now valued at an estimated £5.2 billion and is expected to continue to grow at a very impressive rate.
Student property investment is constantly named as one of the most lucrative investment opportunities and JLL’s latest UK Living Capital Market report only solidifies this claim. Student housing is now the number one Living investment after a drastic increase in the volume of high-value deals secured over the past year. Some of these deals include the Unite acquisition of Liberty Living for £2.2 billion, and the potential IPO sale of iQ for an expected price in excess of £4 billion, but what does this mean for the student housing market on the whole?
Well, the aforementioned deals have only added to the already improved market sentiment. The UK property market as a whole is continuing to recover after the countless years of political and economic uncertainty thanks to both Brexit and the recent general election. This newfound market stability as a result of the general election has resulted in an influx of new enquiries following its conclusion last year, and that is no different in the student housing market. JLL reported at the start of the year that that the long-term outlook for student housing in the UK remains positive, even with a number of near-term challenges, and their latest figures definitely back up this expectation.
Simon Scott, Lead Director, UK Living Capital Markets, JLL said: “Student housing is the big Living investment story of 2019, and with some significant new opportunities about to break into the market, we don’t expect a slowdown any time soon. The success of this sector adds to the particular attention already being received by the multifamily and coliving markets and helps to reassert the importance and value of the UK’s Living market on the European investment stage.
“Overall, the £11.2 billion Living investment in 2019 accounted for 22% of all real estate? investment. With the fog of political uncertainty starting to clear, we are looking forward to Living getting even bigger in 2020.”
The massive increase in student population in recent years has resulted in an increase in privately owned Purpose-Built Student Accommodation (PBSA) in the UK. The number of full-time students in the country has increased by 114,000 over the last five years and is showing no signs of slowing down. An estimated 500,000 full time students are predicted to enter the UK throughout the next decade, an exponential increase on the previous ten years, and with universities across the country already unable to supply anywhere near enough beds for their students, privately owned student accommodation is becoming more and more vital.
The increased demand and ever-improving market sentiment have seen 2020 get off to a great start for the student housing market, and it is expecting to continue in this vein throughout the rest of the year and beyond. If you’re interested in investing in purpose-built student accommodation, feel free to take a look through our selection of high-quality student properties available here!