Student rents on the rise

Student rents on the rise

A new report from the National Union of Students (NUS) and Unipol has revealed that average annual rents rose by 6% in 2018, highlighting for investors the opportunities that exist within the Purpose-Built Student Accommodation (PBSA) market.

Here are some of the main findings from the report:

  • Students in the UK are paying an average of £6,366 per year in rent for accommodation.
  • In London, the average student rent is £8,875 per year.
  • The number of self-catering en-suite rooms make up 58% of the stock (a 9% rise since 2011/12).
  • The number of studio flats has risen by 123% since 2011/12
  • The private sector now accounts for approximately half of all student accommodation compared to 39% in 2011/12

Commenting on the report, the NUS and Unipol said; “Rents have consistently outstripped inflation, alongside a tendency for the accommodation product to become increasingly luxurious.”

With discerning students looking for higher quality accommodation to complement their overall university experience, rents are forecast to rise further. For investors, this makes PBSA an attractive proposition.