Birmingham is ahead in terms of new student development, but it’s not just the students that are benefiting from the surge in student housing; investors are benefiting massively too!
Between 2010 to 2014 there was a lot of scepticism around them as one of the bigger players went under. However over the past couple of years the government have removed the caps on how many students can go to uni and this seems to have ignited interest again in the investor market. These new wave of student pods has onsite cinemas, gyms, lounges, bowling alleys etc etc all included in the rental price.
They still come at a risk as do all investment but with the big pension companies now opening investment funds directly related to purpose built student property then there seems to be more and more confidence in the market. For students it’s a win win as they get a super swanky apartment within the city and don’t have to worry about paying for anything other than their rent.
The purpose built student accommodation sector looks set to continue its strong growth. Student numbers are recovering and are set to increase further with the removal of the cap. With increased numbers, there is the need for more supply.
The level of supply required will vary by town and city depending on the strength and type of demand. It will also depend on the quality, location and price of existing supply. We expect the ‘flight to quality’ to continue with higher ranking institutions benefiting most (subject to their expansion plans).
Investment into the sector has increased substantially this year and looks set to continue. Perhaps the biggest barrier to its continuation will be sourcing opportunities for investment. As competition increases with more actual and potential investors from across the globe looking at the sector, it is likely that we will see further compression in yields
Let Rhubarb Property lead the way in your search in investing in the right student property whether it be renting or buying. Call the team today!