Due to such high levels of demand, there aren’t enough rooms available on most university campuses and students are opting for purpose-built accommodation in the private sector.
Purpose-built student accommodation provides occupants with many benefits comparable with living in halls of residence which illustrates the high demand.
As student rentals are generally paid for with student loans and grants, and with parental guarantors, rent collection is almost guaranteed.
HIGHEST RENTAL YIELDS
Student accommodation investments often pay a far higher rental yield than the average private buy-to-let property.
Regardless of the fact that tuition fees are increasing, over 2.28 million students were studying in higher education last year.
PBSA’s generally allocate an on-site property management team located within the building, who ensure a high standard of maintenance.
THE DEMAND FOR
Student accommodation continues to be an attractive investment opportunity thanks to the continual rise in demand and high net yields on offer. With more and more young people choosing to move out to go to university, and universities unable to supply enough facilities on campus to current and prospective students, the demand for accommodation local to universities across the country remains to be high.
Even though tuition fees have increased and may continue to do so, this has not deferred young people from opting into higher education. Over 2.28 million students were studying in universities last year and a vast majority seek independent accommodation as part of their experience. With most students funding their living expenses through student grants and loans, rent is as good as guaranteed.
PBSA INVESTMENTS WITH LONG TERM BENEFITS
Student accommodation investments can provide a greater certainty of income, less hassle and higher yields.
The low supply of accommodation by universities compared to the high demand for affordable, purpose-built facilities from students guarantees that the rental market is in a very good position and in need of more developments to fulfil demand.
PBSA on-site property management teams not only ensure that the property is maintained to a high standard, but they usually take a proactive approach to notifying tenants when rent is due, meaning that you have a team on your behalf to keep the value and yields of your property, high.
Rental income is almost guaranteed as students in PBSA generally pay their living expenses with student loans and grants.
Purpose-built student accommodation (PBSA) is highly attractive accommodation that students want to live in. Average private rentals simply cannot compete with the facilities that provide the inclusive and social experiences that students crave during their time at university.
In a worst case scenario where a student is unable to pay rent due to delayed loans, there is always a parental guarantor to call, therefore rent collection is generally a positive and easy experience where students are concerned.
Student accommodation remains attractive during a recession, as when there are fewer jobs available, college leavers are far more likely to commit to a further education course. As part of a property portfolio that aims to achieve a greater certainty of income – PBSA investments are ideal.
There is a large and continually growing student population across the UK, which means that the demand for PBSA shows no signs of slowing.