UK Student Property Market goes from Strength to Strength

UK Student Property Market goes from Strength to Strength

New research from Knight Frank shows that the UK student property investment market still continues to go from strength to strength, despite the uncertainty surrounding Brexit.

According to their 2018 UK Student Housing Research for Q1, total investment in the UK student property market totalled £4 billion, which is a 25% upturn on 2016. This illustrates the dynamism of the sector and the increasing need for more PBSA (purpose-built student accommodation) across key university towns and cities throughout the country.

The research revealed that a record 36% of all UK A-Level students applied to join university courses in 2018. The number of 18-year-olds in the UK is also predicted to rise by approximately 103,000 between 2021 and 2025, demonstrating that future demand will be strong.

Meanwhile, application numbers for students based within the EU rose by 3.4% year-on-year for courses beginning in 2018. Applications from non-EU individuals increased by 11.1%. Both of these increases show a very positive reaction to the quality of UK universities and that they have lost little of their attraction to overseas applicants.

Head of Student Property at Knight Frank, James Pullam, said: “Demand for higher education in the UK remains strong. Universities that are perceived to offer the highest quality courses in locations offering the best overall student experience will increasingly attract higher levels of students.”

With this strength comes the need for more high quality student accommodation so the PBSA market in the UK appears to have plenty of opportunities for investors.