Is demand for student property still strong?

Is demand for student property still strong?

According to the latest figures from UCAS, there has been a small 5% decline in student applications compared to this time last year. Student property investment has been one of the top investment classes over the last couple of years, so is this decline something for investors to worry about?

Whilst these figures might concern a few investors, seasoned investors in the student property market are still confident about this asset class. Understandably, Brexit has had an impact on these numbers. There is still a degree of uncertainty from students at the moment at what Brexit will actually mean, especially for students coming from the EU. Many students to the UK come from India and the Far East so they are not really affected by the implications of Brexit. Many analysts believe that once more of the details of Brexit transpire, student numbers will rise again because of the sheer quality of the offering that UK universities present.

It is worth remembering that there is already a high number of students in the UK. According to Universities UK there are approximately 2.28 million students in the country and many of these will be looking for good quality accommodation as they leave halls of residence, so demand for property is still expected to be high.

The changing demands of students is also a key factor when it comes to PBSA (purpose-built student accommodation). No longer content with living in poor quality HMOs, modern students are increasingly looking for a more luxurious living experience and are prepared ( or rather their parents) to pay for it. This means good quality accommodation which is close to campus, has fast broadband connections and come complete with areas which are conducive to studying and socialising. The whole business model of PBSA is built on this and that’s why investors still believe it will deliver the goods.