Investing in UK Student Accommodation
With the majority of Universities in the UK struggling to provide enough high quality accommodation to their students each year, and now with the introduction of Article 4 areas and licensing issues surrounding HMO’s, Purpose Built Student Accommodation is becoming an ever-popular investment for investors across the globe, without the additional stamp duty costs now associated with residential buy-to-let.
The UK is typically seen as home to some of the best Universities in the world, with the second highest level of applications for places, behind only the USA. The Russell Group Universities (the leading 24 Universities in the UK) have almost 1/2 million under graduates and ¼ million post-graduate students enrolled each year. These Universities and cities are unable to meet the current demand for housing, which is why Purpose Built Student Accommodation has taken off so rapidly. In total in the UK there are over 2.3m students, increasing on average by 2% per year, and currently the number of PBSA properties can only house around 20% of the student population, with the rest having to live in low quality, bad location properties.