Student Property

Introducing Student Property.

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Student property is one of the most in-demand types of property investment available thanks to a severe lack of supply and record demand. The days of universities providing the majority of accommodation are over and Purpose-Built Student Accommodation (PBSA) is now the preferred choice of students across the country.
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What was once a new product competing with university-owned halls has become the most popular choice for both domestic and international students, with 69% of them choosing PBSA over traditional halls of residence. The world of student accommodation has changed and the high quality PBSA product has revolutionised what students expect – making it a rewarding and reliable option for property investors.
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Knight Frank estimates that the market will grow to be worth £104bn in total by the end of 2028 from its current level of £85.8bn. This would represent growth of 21.2% in just five years, illustrating the scale of growth in the sector that investors can look forward to.

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5%

Average Rental Increase 2023/24 (CBRE)

580,000

Shortfall of Student Beds (CBRE)

£104bn

PBSA Market by 2028 (Knight Frank)

116,000

International students in the UK (UCAS)

Investment Analysis.

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The student accommodation sector in the UK is based on one fundamental fact – that there is a major imbalance between supply and demand. In the past, universities supplied the vast majority of student accommodation, but they have not been able to keep up. The number of students in the UK is growing all the time and universities simply don’t have the funds to keep building new accommodation. The growth in the number of people renting homes privately has also contributed to the supply problem.

Many students in the past have rented residential property where university halls aren’t available, but there is now not enough of that to go around either. PBSA has therefore become a huge opportunity for investors in every university town and city across the UK which needs more beds for student tenants who are desperate for quality accommodation. The Universities and Colleges Admissions Service (UCAS) says that acceptances of new students are 24% higher than they were before the Covid-19 pandemic. International student applications are also up 2% for the 2023/24 academic year, and the number of non-EU students in the UK has increased by 4% to a total of 116,000.

Investment Case: Why Student Property?

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These trends are set to continue. Overall, the Higher Education Policy Institute estimates that there will be an additional 358,000 students in the UK by 2035 on top of the current total of over 2.8 million – and all of them will need beds to stay in. The supply problem is made worse by falling construction rates in the sector and a pipeline that is set to deliver fewer new beds by the end of 2027 than in the last four-year cycle. Confused.com reports that here was a 66.7% decline in the number of new beds delivered between 2019 and 2023.

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Overall, data from CBRE shows the shortfall in the number of student beds could be as high as 580,000 a year at the moment – and there is no end in sight with Knight Frank reporting that there were just over 25,000 new beds in construction across the UK in 2023. With that in mind, it’s no surprise that the same agency reports that 98% of all student beds for the 2023/24 year were booked before the end of Spring 2023. The same is expected by the end of Spring 2024 for the next academic year, and CBRE is confident that this will see annual rent rises of at least 5% on average. Cushman & Wakefield reports that the average annual rent for students now is more than £7,600.

Request your 2024 Student Property Investment Guide.

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Student Property investment opportunities.

VISION

Student Property
Yields up to
10% NET
Starting Price of
£86,995
Completion Date
Q3 2025
Vision is our latest student accommodation investment property, situated within Huddersfield University’s new Campus
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Axiom

Student Property
Yields up to
10% NET
Starting Price of
£79,999
Completion Date
Q3 2025
Axiom is a premium student property by Abode Student, consisting of 161 studio apartments and an unrivalled amenities
Discover More

Arrange a call with our team today.

Investment Enquiries

01625 725 779
contact@theprestburyadvisory.com