PBSA demand set to climb with additional 500,000 students by 2030

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Investment News
26 Mar 2021
2 min read
Blog
Investment News

PBSA demand set to climb with additional 500,000 students by 2030

26 Mar 2021
2 min read
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Research from JLL has suggested there will be an additional 500,000 full-time students in the UK by 2030, meaning investors can expect strong demand for purpose-built accommodation in university towns and cities.

Purpose-built student accommodation (PBSA) has emerged as one of the stand-out sectors in UK property market over the last 10 years, partly thanks to the high yields it has delivered to investors.

For those considering entering this market in 2021, one of the main considerations will be the reliability of demand from tenants, since this provides the fuel for further growth in yields and minimises the risk of void periods.

These would-be investors can take encouragement from the latest research by real estate services firm JLL, which predicts there will be an additional 500,000 full-time students in the UK by 2030.

One of the drivers behind this trend is the anticipated increase in the 18-year-old population from 2021 across the UK.

Furthermore, Great Britain is expected to see strong demand from overseas students in the coming years, which is great news for investors, since this demographic is often prepared to pay a rental premium for good amenities and a convenient location.

Overseas students are also more likely to rent an apartment within a PBSA because of the convenience on offer – all bills included, management team on site and the security and safety measures in place.

JLL referred to UCAS figures for January 2019 showing that, despite Brexit, UK university applications from EU students were up by 1% year-on-year, while applications from the rest of the world increased by 9%.

The report authors noted that the pool of students worldwide who are choosing to study overseas is growing.

“The quality of universities is important in attracting that demand to the UK, but so too are other factors including language, cost, political and cultural benefits,” they added. “The UK has consistently held its position as the leading destination after the USA.”

Buyers looking for investment opportunities in the UK student accommodation sector should contact Town Square Invest for more information about Silk Mill Suites – a completed and fully managed opportunity with a leading rental assurance in place.