Student Accommodation Shortages Mean High Demand for PBSA

Between 2018 to 2021, university-building student halls decreased by 5%, and such figures expand significantly when extended to the private sector.

The supply of purpose-built student accommodation has too taken a significant dent – ​​with figures showing the number of beds provided more than halving since 2019.

On top of this, the number of beds submitted for planning has also dropped dramatically. It has been suggested this is due to varying factors such as landlords leaving the market and moving back to renting professionals.

Recent regulation surrounding HMO’s (House in Multiple Occupation) has also made it more difficult to convert a residential home into a student let which has further contributed to a slump in supply.

However, students’ own preferences have shifted to purpose-built student accommodation in recent years – contrasting the traditional HMO house share. This has placed further strain on the need for investment for purpose-built student accommodation.

Some investors may also wish to capitalize on what has been labeled ‘turnaround’ projects – this is where existing first-generation purpose-built student accommodation assets are refurbished and revamped to draw even greater returns.